Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2024

Principles of Consolidation

Principles of Consolidation – The accompanying consolidated financial statements include the accounts and balances of the Company and its wholly owned subsidiaries, Salamander Innisbrook Securities, LLC and Salamander Innisbrook Condominium, LLC. All significant intercompany balances and transactions have been eliminated in consolidation.

Statements of Cash Flows

Cash and Cash Equivalents - The Company considers all liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash arises from cash balances established as lender reserves required by the Company's debt agreement.

	2024		2023
Cash	$	7,174,896	$	11,711,728
Restricted cash		2,027,616		2,041,612
	$	9,202,512	$	13,753,340

Revenues, Deferred Revenue and Accounts Receivable

Revenues, Deferred Revenue and Accounts Receivable - Revenues are derived from a variety of sources including, but not limited to, hotel, food and beverage operations, retail sales, golf course operations and commissions on real estate transactions. With the exception of initiation fees and membership dues, all revenues net of any sales and other taxes collected are recognized as products are delivered or services are performed.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under the new revenue recognition standard. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company's revenue is transactional, and the contract's performance obligation is generally satisfied at the time of the transaction.

Revenues from performance obligations satisfied over time include membership dues, annual fees and initiation fees. The membership initiation fees at the Resort are non-refundable and are initially recorded when received as deferred revenue and amortized over the average life of a membership which, based on historical information, is deemed to be ten years for full golf members and five years for resort and executive memberships. Membership dues and annual fees are recognized over the applicable membership period (three months to one year depending on type of membership).

Accounts receivable represent amounts due from memberships, resort guests and companies or individuals that held conferences or group stays at the Resort, net of the allowance for credit losses. The Company performs periodic credit evaluations of the Company's customers and members and generally do not require collateral because the Company believes that the Company has procedures in place to minimize the possibility of significant losses occurring. Companies with a recent prior direct billing positive history with the Resort are granted credit for billing. If companies have not been to the Resort within the past two years, an updated credit evaluation is conducted. Terms are negotiable by group contract, but invoices are typically due 30 days from the receipt of invoice.

In June 2016, the FASB issued guidance (FASB ASC 326) which significantly changed how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The most significant change in this standard is a shift from the incurred loss model to the expected loss model. Under the standard, disclosures are required to provide users of the financial statements with useful information in analyzing an entity’s exposure to credit risk and the measurement of credit losses. Financial assets held by the Company that are subject to the guidance in FASB ASC 326 were accounts receivable.

The Company adopted the standard in 2023 utilizing a cumulative-effect adjustment for the Company's accounts receivable. No adjustments were necessary to the Company's allowance for credit losses and/or retained earnings as a result of the adoption of this standard and therefore the impact of this standard on the Company's consolidated financial statements primarily resulted in disclosures only.

At each balance sheet date, the Company recognizes an expected allowance for credit losses. In addition, also at each reporting date, this estimate is updated to reflect any changes in credit risk since the receivable was initially recorded. This estimate is calculated on a pooled basis where similar risk characteristics exist. The allowance estimate is derived from a review of the Company's historical losses based on the aging of receivables. This estimate is adjusted for the Company's assessment of current conditions, reasonable and supportable forecasts regarding future events, and any other factors the Company deems relevant. The Company believes historical loss information is a reasonable starting point in which to calculate the expected allowance for credit losses as the Company's portfolio has remained relatively constant since the Company's inception. The allowances for credit losses were $13,968 and $10,957 as of December 31, 2024 and 2023, respectively. The Company writes off receivables when there is information that indicates the debtor is facing significant financial difficulty and there is no possibility of recovery. If any recoveries are made from any accounts previously written off, it is recognized in income or an offset to credit loss expense in the year of recovery. The total amount of write-offs was immaterial to the consolidated financial statements as a whole in both 2024 and 2023.

In addition, gift card purchases and advanced event deposits are collected and deferred and recognized as income as the service is performed at a future date. Deferred revenue includes unrecognized initiation fee liabilities, unearned member dues, gift card liability and advanced events deposits.

Use of Estimates

se of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates that are critical to the accompanying consolidated financial statements include the Company's beliefs that all of the Company's long-lived assets, are recoverable and that the Company's estimates of the average lives of memberships from which the Company bases its revenue recognition are reasonable. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the periods they are determined to be necessary. It is at least reasonably possible that such estimates could change in the near term with respect to these matters.

Concentrations of Credit Risk

Concentrations of Credit Risk - Financial instruments that potentially subjects the Company to concentrations of credit risk consist principally of cash and accounts receivable. Cash consists of bank deposits which may, at times, exceed federally insured limits. No losses have been experienced in such accounts.

Financial Instruments

Financial Instruments - The Company used the following methods and assumptions in estimating the fair values of the Company's financial instruments:

•Accounts receivable and accounts payable: Due to their short-term nature, the carrying amounts reported on the accompanying consolidated balance sheets for these accounts approximate their fair values.

•Deferred revenues: The carrying amounts of these accounts approximate their fair values because they approximate their net present values considering relevant risk factors.

•Debt: The carrying values of variable rate debt financing reflected in the balance sheets at December 31, 2024 and 2023 approximates their fair values as the changes in their associated interest rates reflect the current market and credit risk is similar to when the loan was originally obtained.

Insurance Recoveries

Insurance Recoveries - See Note 11.

Inventories and Supplies

Inventories and Supplies - Inventories and supplies are recorded at average cost, on a first-in, first-out basis, or market.

Property, Buildings and Equipment, net

Property, Buildings and Equipment, net – Property, buildings and equipment are stated at cost less accumulated depreciation and amortization. The Company capitalizes any asset purchase of $1,000 or more with an estimated useful life of at least three years. Depreciation and amortization are recorded using the straight-line basis over the shorter of the estimated useful lives of the assets, or if applicable, the lease terms. Estimated useful lives are generally as follows:

Category	Average Lives (in Years)
Buildings	40
Land improvements	20
Machinery and equipment	3 to 7
Assets recorded under finance leases	3 to 4

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets - The Company regularly review long-lived assets for impairment by comparing the carrying values of the assets with their estimated future undiscounted cash flows. If it is determined that an impairment loss has occurred, the loss is recognized during that period. Any impairment loss would be calculated as the difference between asset carrying values and fair value as determined by prices of similar items and other valuation techniques, giving consideration to recent operating performance and pricing trends. There were no impairment losses for the years ended December 31, 2024 and 2023.

Intangibles

Intangibles - Indefinite life intangibles consist of the trade name valued at $2,300,000 and a water contract valued at $2,030,001. The Company evaluates intangible assets for impairment annually (or earlier if a significant event occurs that may indicate that the assets may not be recoverable). Factors the Company considers important, which could indicate impairment, include the following: (1) significant under-performance relative to historical or projected future operating results; (2) significant changes in the manner of the use of the acquired assets or the strategy for the Company's overall business; and (3) significant negative industry or economic trends. During the years ending December 31, 2024 and 2023, there were no impairment charges related to intangible assets.

Deferred Financing Costs

Deferred Financing Costs – Deferred financing costs, which arose from costs incurred to originate the financing discussed at Note 8, are being amortized to interest expense over the term of the related indebtedness. The unamortized portions of these costs are reflected as reductions of such debt.

Deferred contract costs, net

Deferred contract costs, net – Deferred contract costs, which arose from the costs of obtaining long term commitments on rental pool agreements that the Company would not have incurred if the pool participants did not commit to five-year contracts, were being amortized over the contract lives using the straight-line method through December 31, 2023 (at which time the costs were fully amortized).

Advertising

Advertising - Advertising costs, which are expensed as incurred, were $1,040,856 and $697,387 for the years ended December 31, 2024 and 2023, respectively.

Leases

Leases - Leases are classified as finance leases or operating leases dependent on whether the lease transfers substantially all of the benefits and risks of ownership of property. Assets and liabilities are recorded at amounts equal to the present value of the minimum lease payments at the beginning of the lease term. Interest expense relating to the lease liabilities is recorded to affect constant rates of interest over the terms of the leases.

Income Taxes

Income Taxes - With the exception of an entity owned by Salamander Innisbrook Securities, LLC the Company and its subsidiaries are single member limited liability companies and therefore the majority of the results of the Company's operations flow through to the Company's member for inclusion in its income tax returns. The Company provided for estimated income taxes of approximately $23,000 and $168,000, for 2024 and 2023, respectively, related to our tax paying subsidiary. No provision and/or benefit for deferred income taxes has been recorded as there are no significant differences between financial statement and tax reporting.

Under FASB ASC 740-10, the Company is required to evaluate each of the Company's tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity’s tax status as a pass-through entity, and the decision not to file a tax return. The Company has evaluated each of the Company's tax positions and have determined that no provision or liability for income taxes is necessary.

The Company evaluates the validity of the conclusions regarding uncertain income tax positions on an annual basis to determine if facts or circumstances have arisen that might cause the Company to change judgment regarding the likelihood of a tax position’s sustainability under examination. At December 31, 2024, the Company does not believe that any uncertain tax positions exist.

Innisbrook Rental Pool Lease Operation

Use of Estimates

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions which affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported revenues and expenses during the reporting period may be affected by the estimates and assumptions management is required to make. Actual results could differ from those estimates.

Income Taxes

Income Taxes - No federal or state taxes have been reflected in the accompanying financial statements as the tax effect of fund activities accrue to the Participants. The Innisbrook Rental Pool Trust files an annual tax return, which remains subject to examination by taxing authorities for years on or after 2016. The Rental Pool and related Trust have adopted the Financial Accounting Standards Board Accounting Standards Codification Topic 740-10, Accounting for Uncertainty in Income Taxes. This topic requires the Rental Pool and the related Trust to evaluate each of their tax positions and the information reported in the Trust’s tax return to determine if such information and positions are more likely than not to be sustained under examination by a taxing authority. A tax position includes an entity’s tax status, which includes considerations as to the qualifications of the Trust and the decision that all fund activities pass through to the participants of the Rental Pool.

The Rental Pool and trustees of the Trust have evaluated their tax positions and have determined that no provision or liability for income taxes is necessary. Conclusions regarding uncertain tax positions are evaluated on an annual basis to determine if facts or circumstances have arisen that might cause a change in judgment regarding the likelihood of a tax position’s sustainability under examination.

Basis of Accounting

Basis of Accounting -The accounting records of the funds are maintained on the accrual basis of accounting.

Cash and Cash Equivalents

Cash and cash equivalents - The Rental Pool considers all liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Investments and Fair Value Measurements

Investments and Fair Value Measurements - The Rental Pool classifies its debt securities into held-to-maturity, trading, or available-for-sale categories. Debt securities are classified as held-to-maturity when the Rental Pool has the positive intent and ability to hold the securities to maturity. All the Rental Pool’s investments are considered to be held to maturity and are therefore stated at amortized cost on the balance sheet. Fair value of financial instruments is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.

Level 3 – Unobservable inputs for the asset or liability.

On December 31, 2024, the Rental Pool had short term investments in United States ("U.S.") Treasury Securities with an aggregate cost and fair value of approximately $159,000. On December 31, 2023, the Rental Pool had short term investments in U.S. Treasury Securities with an aggregate cost and fair value of approximately $452,000 and $458,000, respectively. These investments are classified as Level 1 within the fair value hierarchy. All of such securities had maturity dates in 2025 and 2024. There were no liabilities recorded at fair value on a recurring basis as of any period presented.

On December 31, 2024, the Rental Pool had short term investments in Certificates of Deposit with an aggregate cost and fair value of approximately $380,000. These investments are classified as Level 1 within the fair value hierarchy. All of such securities had maturity dates in 2025 and 2026. There were no liabilities recorded at fair value on a recurring basis as of any period presented.

Revenue

Revenue - All room revenue net of any sales and other taxes collected are recognized as services are performed.

Accounts Receivable

Accounts Receivable - Receivables are presented net of any allowances for uncollectible amounts. All receivable balances reflected in the accompanying financial statements as of December 31, 2024 and 2023, were collected in 2025 and 2024, respectively. As such, an allowance for credit losses was not considered necessary as of December 31, 2024 or 2023.