Management's Plans Regarding Liquidity and Capital Resources

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Management's Plans Regarding Liquidity and Capital Resources

4. Management’s Plans Regarding Liquidity and Capital Resources

The Company experienced a significant decrease in revenue for the year ending December 31, 2019 compared to the previous year. The Company is optimistic the trend will improve during 2020; however, actual results may differ from expectations. The decrease in expenses for the year ending December 31, 2019 as compared to the prior year is a result of decreased occupancy and reductions in wages, benefits, and operating expenses.

The Company continues its marketing efforts toward the social clientele by developing packages designed to target more social guests, including families. These social packages are being promoted through the Company’s website as well as through travel wholesalers and with emphasis on e-commerce sites. Management has implemented programs and measures to help the Company get back to positive operating income. These programs and measures include cost control programs, consolidation of restaurant operations and efforts to increase brand awareness and recognition of the Resort.

Towards the end of December 2019, an outbreak of a novel strain of coronavirus (“COVID-19”) emerged globally. The COVID-19 outbreak in the United States has resulted in a reduction of hotel occupancy and cancellations of future reservations. It is difficult to estimate the length or severity of this outbreak; however, a significant reduction in occupancy caused by COVID-19 is expected to affect the Company’s results of operations and financial position.

The Company’s ultimate shareholder has the financial ability and intent to continue to fund operations through affiliated companies that are 100% owned by the Company’s ultimate shareholder to the extent required to support the Company’s operations. The Company’s loans outstanding due to the affiliated companies were forgiven during 2019 and was recorded as a capital transaction due to the related party nature. In addition to the shareholders financial ability these affiliated companies are expected to continue to generate positive cash flows during fiscal year 2020 should additional funding be required to support the Company’s operations.