What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-10 compared with 2025-03-11 · 169 added, 105 removed, 720 unchanged (28% of the section changed)

56 unchanged sentences

LONG-TERM ASSETS

99,147 19,650

Other prepaid expenses

5 unchanged sentences

Operating lease right-of-use assets

27,674 53,026

Equity investment (Note 11)

1 unchanged sentence

Other long-term receivables (Note 9)

2,097,463 1,597,463

Land held for development

22 unchanged sentences

Current portion of finance lease obligations

Current portion of operating lease obligations

35,862 32,950

Current portion of operating lease obligations

Total Current Liabilities

60 unchanged sentences

57,105,967 56,861,654

Gain on transfer/sale of land (Note 11)

1,732,353 6,489,976

Gain on transfer of land (Note 11)

INCOME FROM OPERATIONS

1 unchanged sentence

OTHER INCOME (LOSS)

(Loss) income from equity investment

Loss from equity investment

( 5,242,852 ) ( 5,467,771 )

1 unchanged sentence

1,966,803 2,071,511

Net Other (Loss) Income

Net Other Loss

( 3,276,049 ) ( 3,396,260 )

INCOME BEFORE INCOME TAXES

(LOSS) INCOME BEFORE INCOME TAXES

( 814,431 ) 3,036,727

INCOME TAX EXPENSE (Note 4)

INCOME TAX BENEFIT (EXPENSE) (Note 4)

285,000 ( 923,885 )

NET (LOSS) INCOME

$ ( 529,431 ) $ 2,112,842

Basic earnings per share

Basic earnings (loss) per share

$ ( 0.10 ) $ 0.42

Diluted earnings per share

Diluted earnings (loss) per share

$ ( 0.10 ) $ 0.42

41 unchanged sentences

Operating Activities:

Net (loss) income

$ ( 529,431 ) $ 2,112,842

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

8 unchanged sentences

56,248 49,214

Loss (gain) from equity investment

5,467,771 ( 1,501,268 )

Gain on sale of land

Loss from equity investment

5,242,852 5,467,771

4 unchanged sentences

96,255 44,971

Employee retention credit

Increase in TIF receivable

21 unchanged sentences

Other long-term liabilities

( 181,000 ) 181,000

Payable to horsepersons

7 unchanged sentences

34,275 60,800

Proceeds from sale of land

Additions for TIF eligible improvements

( 754,281 ) ( 4,244,238 )

Proceeds from TIF receivable

Proceeds from sale of short-term investments

19 unchanged sentences

( 1,310,127 ) ( 1,293,218 )

Net (decrease) increase in cash, cash equivalents, and restricted cash

Net increase (decrease) in cash, cash equivalents, and restricted cash

2,136,684 ( 12,154,336 )

9 unchanged sentences

$ 176,000 $ 1,187,000

Additions to land, buildings, and equipment funded through prepaid expenses

Dividend declared but not yet paid

3 unchanged sentences

ROU assets obtained in exchange for operating lease obligations

171,030 87,430

Transfer of assets to Trackside Investments, LLC

3 unchanged sentences

Interest paid

11,000 13,000

See notes to consolidated financial statements.

64 unchanged sentences

The interest rate on the TIF Receivable is 6%.

Other long-term receivables - In connection with the 2024 live race meet and purse fund contribution agreement with the MNHBPA and the MQHRA, the Company recorded an overpayment of purses.

Other long-term receivables - In connection with the 2024 and 2025 live race meet and purse fund contribution agreements with the MNHBPA and the MQHRA, the Company recorded an overpayment of purses.

This overpayment was intended to create a short-term bridge until additional purse supplements can be obtained from other sources.

In the event that additional purse revenue is secured within the five years following the 2025 live race meet through additional forms of gaming at the Company, new revenue streams, or legislative action, the Company will be eligible for reimbursement of the actual 2024 overpayment amount from those purse supplements.

For more information on the Company’s overpayment of purses related to the 2024 live race agreement, see Note 9.

For more information on the Company’s overpayment of purses related to the 2024 and 2025 live race agreements, see Note 9.

Impairment of Long-Lived Assets – The Company reviews its long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

43 unchanged sentences

The estimated grant date fair value of each stock-based award is recognized as expense over the requisite service period (generally the vesting period).

The estimated fair value of each option is calculated using the Black-Scholes option-pricing model.

For more information on the Company’s stock-based compensation plans, see Note 5.

New Accounting Pronouncement

Accounting Standards Update (ASU) No.

2023 - 09, Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures requires enhanced disclosures primarily related to the rate reconciliation and income taxes paid information.

The Company adopted ASU 2023 - 09 on January 1, 2025.

The adoption resulted in additional disclosures but did not have an impact on the Company's consolidated financial position, results of operations, or cash flows.

Results for the year ended December 31, 2025 are presented under ASU 2023 - 09 while prior period amounts continue to be reported in accordance with previously applicable US GAAP.

See footnote 4 of the consolidated financial statements for changes to accounting policies.

LAND, BUILDINGS AND EQUIPMENT

14 unchanged sentences

This represents land owned for potential real estate development and totaled $ 2,659,257 and $ 2,183,930 as of December 31, 2025 and 2024 , respectively.

A reconciliation between income taxes computed at the statutory federal income tax rate and the effective tax rate for the years ended December 31, 2024 and 2023 is as follows:

Federal tax expense at statutory rates

The following table summarizes income (loss) before income taxes for the years ended December 31, 2025 and 2024 :

United States

$ ( 814,431 ) $ 3,036,727

Nondeductible lobbying expense

The Company's income tax expense (benefit) for the years ended December 31, 2025 and 2024 is as follows:

$ ( 507,000 ) $ 522,900

State expense, net of federal impact

( 403,000 ) 674,000

Stock-based compensation expense

Current income tax expense (benefit)

( 910,000 ) 1,196,900

238,000 51,985

Total income tax expense

387,000 ( 325,000 )

Income tax expense (benefit) for the years ended December 31, 2024 and 2023 consists of the following:

Deferred income tax expense (benefit)

625,000 ( 273,015 )

Total income tax expense (benefit)

$ ( 285,000 ) $ 923,885

The following is a reconciliation from the Company's statutory rate to the effective rate for the year ended December 31, 2025 and 2024 after adoption of ASU 2023 - 09:

United States federal statutory income tax rate

$ ( 171,000 ) 21.0 %

Deferred, Federal

State income taxes, net of federal tax benefit of state tax

( 13,000 ) 1.6 %

Deferred, State

Credit for tax on employee tips

( 29,000 ) 3.6 %

Total income tax expense

Nontaxable or nondeductible items

Stock based compensation not benefited

27,000 ( 3.3 %)

Nondeductible lobbying expenses

38,000 ( 4.7 %)

9,000 ( 1.1 %)

Changes in unrecognized tax benefits

IRS interest refund

( 146,000 ) 17.9 %

Provision for income tax benefit

$ ( 285,000 ) 35.0 %

The following is a reconciliation from the Company's statutory rate to the effective rate for the year ended December 31, 2024 prior to the adoption of ASU 2023 - 09:

Federal tax (benefit) expense at statutory rates

$ 637,700 21.0 %

State and local income tax, net of federal (national) income tax effect

275,700 9.1 %

Nondeductible lobbying expense

Stock-based compensation expense

( 26,415 ) ( 0.9 %)

Provision for income tax expense

$ 923,885 30.4 %

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

1 unchanged sentence

Deferred tax assets:

Vacation accrual

Accrued compensation

$ 97,000 $ 82,300

1 unchanged sentence

89,000 94,800

Stock-based compensation expense

Stock-based compensation

210,700 160,200

Net operating losses

155,400 1,700

Net deferred tax assets

1 unchanged sentence

Deferred tax liabilities:

Land, building and equipment - cost and depreciation

Land, building and equipment

5,982,700 5,523,200

Investment in equity investments

Investment in joint ventures

3,996,900 3,468,100

Prepaid expenses

TIF accrued interest receivable

1,058,000 962,100

TIF receivable accrued interest

Prepaid expenses

252,100 231,600

3 unchanged sentences

$ ( 10,471,000 ) $ ( 9,846,000 )

For the period ended December 31, 2025, the Company had a federal and state net operating loss carryforwards of $ 460,000 and $ 1,574,000 , respectively.

The federal net operating loss carryforward has an indefinite carryforward period.

The state post-apportioned net operating loss carryforward will expire in 2040.

The Company is subject to U.S.

2 unchanged sentences

federal or state by tax authorities for years before 2022 and 2021, respectively.

The following is a reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2025 and 2024 :

Unrecognized tax benefits — January 1

Gross increases — tax positions taken during the prior period

Gross decreases — tax positions taken during the current period

$ 181,000 $ —

Additions based on tax positions related to the current year

Additions for tax positions of prior years

Reductions for tax positions of prior years

Reductions for tax positions of current years

( 181,000 ) ( 449,000 )

Unrecognized tax benefits — December 31

The balances of unrecognized tax benefits as of December 31, 2024 and December 31, 2023 are $ 181,000 and $ 0 , respectively, and if recognized, would result in adjustments to deferred taxes and would not impact the effective tax rate.

It is reasonably expected that the total amounts of unrecognized tax benefits will fully reverse within 12 months of the reporting period.

$ — $ 181,000

The Company has not accrued interest expense and penalties related to the unrecognized tax benefits for the periods ended December 31, 2025 and December 31, 2024, respectively.

The following table summarizes the Company's tax payments and refunds by jurisdiction for the year ended December 31, 2025:

Income Tax Paid, Net of Refunds

Federal refund

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

16 unchanged sentences

The Plan is administered by the Board of Directors which determines the persons who are to receive awards under the Plan, the type of award to be granted, the number of shares subject to each award and, if an option, the exercise price of each option.

The Plan provides that payment of the exercise price may be made in the form of unrestricted shares of common stock already owned by the optionee.

The Company calculates the fair market value of unrestricted shares as the average of the high and low sales prices on the date of the option exercise.

The Company’s common stock is purchased upon the exercise of stock options, and restricted stock awards are settled in shares of the Company’s common stock.

There were no options granted in 2025 or 2024.

The grant-date fair value of options outstanding and exercisable at December 31, 2025 and 2024 was $ 0 .

As of December 31, 2025 , there are no options outstanding.

There were no options granted in 2024 or 2023.

The total fair value of options exercised during the years ended December 31, 2024 and 2023 was $ 0 .

The total intrinsic value of options exercised during 2024 and 2023 was $ 0 .

Long Term Incentive Plan

The Long Term Incentive Plan (the “LTI Plan”) authorizes the grant of Long Term Incentive Awards that provide an opportunity to Named Executive Officers (“NEOs”) and other Senior Executives to receive a payment in cash or shares of the Company’s common stock to the extent of achievement at the end of a period greater than one year (the “Performance Period”) as compared to Performance Goals established at the beginning of the Performance Period.

Beginning in 2020, and as a result of the COVID- 19 pandemic, the Company temporarily suspended the granting of performance awards under its LTI Plan, and instead granted deferred stock awards designed to retain NEOs and other senior executives in lieu of LTI Plan awards from 2020 through 2024.

In February 2022, the Compensation Committee made determinations regarding the achievement of 2021 performance goals and payouts under the 2019 - 2021 LTI Plan, which completed the performance period and awards under the 2019 - 2021 LTI Plan, and the last outstanding awards under the LTI Plan.

Accordingly, there are no awards outstanding under the LTI Plan.

The Company did not record compensation expense related to the LTI Plan for 2024 or 2023 .

Beginning in 2020, the Company temporarily suspended the granting of performance awards under its LTI Plan, and instead granted deferred stock awards designed to retain NEOs and other senior executives in lieu of LTI Plan awards from 2020 through 2025.

Accordingly, there were no awards outstanding under the LTI Plan during the years ended December 31, 2025 and 2024.

Board of Directors Stock Option, Deferred Stock Awards, and Restricted Stock Grants

12 unchanged sentences

In 2024, the Company granted employees deferred stock awards totaling 22,100 shares of common stock, with a vesting term of approximately four years and a fair value of $ 21.08 per share.

The vesting schedule of the awards is as follows:

The vesting schedule of the awards granted in 2025 is as follows:

(i) 25 % vesting and being issued in March 2026, ( ii) 25 % vesting and being issued in March 2027, ( iii) 25 % vesting and being issued in March 2028 and (iv) 25 % vesting and being issued in March 2029.

4 unchanged sentences

( 12,505 ) 22.61

( 5,475 ) 22.43

Non-Vested Balance, December 31, 2025

1 unchanged sentence

At December 31, 2025 , there was approximately $ 853,000 of total unrecognized stock-based compensation expense related to unvested employee and board of director deferred stock awards that is expected to be recognized over a period of approximately 3.3 years.

NET INCOME PER SHARE COMPUTATIONS

The following is a reconciliation of the numerator and denominator of the net income per common share computations for the years ended December 31, 2024 and 2023 .

NET INCOME (LOSS) PER SHARE COMPUTATIONS

The following is a reconciliation of the numerator and denominator of the net income (loss) per common share computations for the years ended December 31, 2025 and 2024 .

Year Ended December 31,

Net income (numerator) amounts used for basic and diluted per share computations:

Net income (loss) (numerator) amounts used for basic and diluted per share computations:

$ ( 529,431 ) $ 2,112,842

1 unchanged sentence

5,071,423 4,994,905

Plus dilutive effect of stock options

Plus dilutive effect of deferred stock awards

$ 5,071,423 $ 5,032,210

Net income (loss) per common share:

$ ( 0.10 ) $ 0.42

Net income per common share:

( 0.10 ) 0.42

There were no out-of-the money stock options at December 31, 2024 or December 31, 2023 .

For the year ended December 31, 2025, 31,893 shares have been excluded from the calculation of diluted weighted average shares outstanding as the inclusion of these shares would have an anti-dilutive effect.

GENERAL CREDIT AGREEMENT

19 unchanged sentences

Interest expense related to our finance leases was immaterial.

The following table shows the classification of the right of use assets on our Consolidated Balance Sheets:

Year Ended December 31,

The following table shows the classification of the right of use assets on our Consolidated Balance Sheets at December 31, 2025 and 2024 :

Balance Sheet Location

2 unchanged sentences

Operating lease right-of-use assets

27,674 53,026

Total Leased Assets

7 unchanged sentences

Year Ended December 31, 2025

Operating Leases

Finance Leases

$ 28,228 $ 44,447

2029 and beyond

Total minimum lease obligations

28,228 177,593

amounts representing interest

( 554 ) ( 27,461 )

Present value of minimum lease payments

27,674 150,132

current portion

( 27,674 ) ( 32,950 )

Lease obligations, net of current portion

$ — $ 117,182

Purchase Obligations

8 unchanged sentences

Effective December 12, 2023, the Indemnity Agreement was amended to increase the maximum indemnification by an additional $ 1,300,000 .

Effective December 18, 2024, the Indemnity Agreement was amended to increase the maximum indemnification by an additional $ 500,000 .

Effective December 30, 2025, the Indemnity Agreement was amended to increase the maximum indemnification by an additional $ 250,000 , bringing the total to a maximum of $ 7,750,000 .

1 unchanged sentence

Under the Indemnity Agreement, the Company is obligated to reimburse and indemnify each loan guarantor for any amounts paid by such loan guarantor to the lender on debt financing by Doran Canterbury II, LLC, up to a maximum of $ 1,000,000 .

Effective December 21, 2023, the Company entered into its annual live race meet and purse fund contribution agreement with the Minnesota Horsemen’s Benevolent & Protective Association (“MNHBPA”) and the Minnesota Quarter Horse Racing Association (“MQHRA”) regarding the 2024 live race meet.

Effective December 30, 2025, the Indemnity Agreement was amended to increase the maximum indemnification by an additional $ 1,750,000 , bringing the total to a maximum of $ 2,750,000 .

December 21, 2023, the Company entered into its annual live race meet and purse fund contribution agreement with the Minnesota Horsemen’s Benevolent & Protective Association (“MNHBPA”) and the Minnesota Quarter Horse Racing Association (“MQHRA”) regarding the 2024 live race meet.

In an effort to increase field size and improve the quality of racing for the 2024 season, the Company guaranteed purses for overnight races at $ 23,000 per race.

The parties recognized there was likely to be a significant financial cost to the Company in establishing a 2024 thoroughbred purse structure intended to average $ 23,000 per conducted overnight race and that to maintain that average purse structure, the Company made an overpayment that may be repaid to the Company through reimbursement in subsequent racing years.

This overpayment of purses by the Company was intended to create a short-term bridge until additional purse supplements can be obtained from other sources.

At the conclusion of the 2024 live race meet, the Company recorded a receivable related to the overpayment of 2024 purses in the amount of $ 1,597,463 , which is presented on the Company's balance sheet as of December 31, 2024.

Management believes it is likely that additional purse supplements will ultimately be obtained when considering both the length of time to secure such funds ( five years following the 2025 live race meet) and the fact that legislation has been introduced in both chambers of the Minnesota legislature that would provide those supplements through revenues from taxes paid by sports wagering licenses.

Accordingly, management believes no allowance related to this receivable is necessary at December 31, 2024.

At the conclusion of the 2024 live race meet, the Company recorded a receivable related to the overpayment of 2024 purses in the amount of $ 1,597,463 , which is presented as Other long-term receivables on the Company's balance sheet as of December 31, 2024.

In addition, the Company agreed to allocate approximately $ 400,000 to be used as recruiting and participation incentives to attract thoroughbred trainers, owners, and stables for the 2024 live meet in an effort to generate additional pari-mutuel handle through improved field size.

For the year ended 2024, the Company recognized expenses of $ 418,000 related to these incentives.

Effective January 31, 2025, the Company entered into its annual live race meet and purse fund contribution agreement with the MNHBPA and the MQHRA regarding the upcoming 2025 live race meet.

In an effort to maintain field size and improve the quality of racing for the 2025 season, the Company has guaranteed an additional $ 500,000 of purse monies to be distributed above the minimum amount defined in Minnesota Statutes Chapter 240.

In the event that additional purse revenues are secured throughout the duration of the 2025 live race agreement through additional forms of gaming at the Company, new revenue streams, or legislative action, the Company has agreed to provide additional purse monies of up to $ 1,500,000 , to a total of $ 2,000,000 in potential overpayment of purses to support the 2025 live race meet.

The parties recognize there is likely to be a significant financial cost to the Company in establishing this 2025 thoroughbred purse structure and that to maintain that average purse structure, the Company will be making an overpayment that may be repaid to the Company through reimbursement in subsequent racing years.

This anticipated overpayment of purses by the Company is intended to create a short-term bridge until additional purse supplements can be obtained from other sources.

Effective January 31, 2025, the Company entered into its annual live race meet and purse fund contribution agreement with the MNHBPA and the MQHRA regarding the 2025 live race meet.

In an effort to maintain field size and improve the quality of racing for the 2025 season, the Company guaranteed an additional $ 500,000 of purse monies to be distributed above the minimum amount defined in Minnesota Statutes Chapter 240.

The parties recognized there was likely to be a significant financial cost to the Company in establishing this 2025 thoroughbred purse structure and that to maintain that average purse structure, the Company made an overpayment that may be repaid to the Company by the MNHBPA through reimbursement in subsequent racing years.

This overpayment of purses by the Company was intended to create a short-term bridge until additional purse supplements can be obtained from other sources.

At the conclusion of the 2025 live race meet, the Company recorded a receivable related to the overpayment of 2025 purses in the amount of $ 500,000 .

The combined amounts from the 2024 and 2025 live race meet agreements of $ 2,097,463 is presented as Other long-term receivables on the Company's balance sheet as of December 31, 2025.

As mentioned above, in the event that additional purse revenue is secured within the five years following the 2025 live race meet through additional forms of gaming at the Company, new revenue streams, or legislative action, the Company will be eligible for reimbursement of the actual 2024 and 2025 overpayment amounts from those purse supplements.

Management believes it is likely that additional purse supplements will ultimately be obtained when considering both the length of time to secure such funds and the fact that legislation has been introduced in both chambers of the Minnesota legislature that would provide those supplements through revenues from taxes paid by sports wagering licenses.

Accordingly, management believes no allowance related to this receivable is necessary at both December 31, 2025 and 2024.

The Company is periodically involved in various claims and legal actions arising in the normal course of business.

3 unchanged sentences

OPERATING SEGMENTS

The Company's chief operating decision maker is its Chief Executive Officer and President, Randall D.

The Company has four reportable operating segments:

70 unchanged sentences

As the Company is able to assert significant influence, but not control, over Doran Canterbury I’s operational and financial policies, the Company accounts for the joint venture as an equity method investment.

For the years ended December 31, 2024 and 2023 , the Company recorded a loss of $ 3,552,000 and income of $ 1,722,000 , respectively, on equity method investments related to this joint venture.

The increased income for 2023 is primarily due to a gain recognized on insurance proceeds received by Doran Canterbury I related to an outstanding claim.

For the years ended December 31, 2025 and 2024 , the Company recorded a loss of $2,739,000 and $3,552,000, respectively, on equity method investments related to this joint venture.

The decreased loss for 2025 is primarily due to an increase in leasing rates by Doran Canterbury I year-over-year following repairs related to an insurance claim that occurred in 2023.

In accordance with U.S.

10 unchanged sentences

As the Company is able to assert significant influence, but not control, over Doran Canterbury II’s operational and financial policies, the Company accounts for the joint venture as an equity method investment.

For the year ended December 31, 2024 , the Company recorded a loss of $ 1,923,000 on equity method investments related to this joint venture.

As of December 31, 2023, the proportionate share of Doran Canterbury II's earnings was immaterial.

For the years ended December 31, 2025 , the Company recorded a loss of $2,205,000 and $1,923,000, respectively, on equity method investments related to this joint venture.

The increased loss for 2025 is primarily due to an increase in non-cash depreciation expense compared to 2024.

In accordance with U.S.

GAAP, since we are committed to provide future capital contributions to Doran Canterbury II, we also present as a liability in the accompanying Consolidated Balance Sheets for the net balance recorded for our share of Doran Canterbury II's losses in excess of the amount funded into Doran Canterbury II, which was $766,000 and $ 0 at December 31, 2025 and 2024 , respectively.

We are a party to a contribution and indemnity agreement with affiliates of Doran relating to debt financing by Doran Canterbury II as borrower, which is guaranteed by Doran affiliates.

7 unchanged sentences

As the Company is able to assert significant influence, but not control, over Canterbury DBSV’s operational and financial policies, the Company accounts for the joint venture as an equity method investment.

For the years ended December 31, 2024 and 2023 , the Company recorded income of $ 8,000 and a loss of $ 223,000 , respectively, on equity investment related to this joint venture.

For the years ended December 31, 2025 and 2024 , the Company recorded a loss of $ 252,000 and income of $ 8,000 , respectively, on equity investment related to this joint venture.

The decrease in income for 2025 is primarily due to a gain on sale of land that occurred in 2024.

For the years ended December 31, 2025 and 2024 , the Company also received dividend distributions of $ 75,000 and $ 36,000 , respectively, related to this joint venture.

8 unchanged sentences

Therefore, we derecognized the land and recognized a full gain in 2024 (approximately $ 1,732,000 ) between the carrying amount of the land and the estimated fair value of the land transferred.

In future periods, the Company will recognize its proportionate share of Trackside Investments' earnings as an increase or decrease in its Equity investment and as Income or Loss from Investment in this joint venture.

The following table summarizes changes to the Equity investment and Investee losses in excess of equity investment lines on our consolidated balance sheets for the year ended December 31, 2024 :

Equity Investment

Investee Losses in Excess of Equity Investment

Equity Investment, net

Net Equity Investment Balance at 12/31/22

For the year ended December 31, 2025, the Company recorded a loss of $ 47,000 on equity investments related to this joint venture.

As of December 31, 2024, the proportionate share of Trackside Investments, LLC's earnings was immaterial.

For the years ended December 31, 2025 and 2024 , the Company also received dividend distributions of $ 8,000 and $ 0 , respectively, related to this joint venture.

For the years ended December 31, 2025 and 2024 , the Company also received preferred return payments of $ 69,000 and $ 0 , respectively, related to this joint venture.

Financial information from the financial statements of the Company's joint ventures, Doran Canterbury I, LLC (Doran I), Doran Canterbury II, LLC (Doran II), and all the Company's other joint ventures are summarized as follows:

As of December 31, 2025

Current assets

$ 6,306,889 $ 5,779,528 $ 456,519 $ 70,842

Equity investment (loss) income

Noncurrent assets

139,607,148 53,053,492 72,925,034 13,628,622

Dividends received from investments

Current liabilities

77,028,627 72,325,450 4,693,064 10,113

Net Equity Investment Balance at 12/31/23

Noncurrent liabilities

89,001,340 14,567,290 69,259,050 5,175,000

Equity investment loss

Joint ventures' equity

( 20,115,930 ) ( 28,059,720 ) ( 570,561 ) 8,514,351

Contribution to equity investment

CPHC share of joint ventures' equity

( 3,365,820 ) ( 7,755,253 ) ( 766,211 ) 5,155,644

Dividends received from investments

Fiscal Year Ended December 31, 2025

$ 8,037,249 $ 1,777,521 $ 5,968,626 $ 291,102

Net Equity Investment Balance at 12/31/24

Gross profit (loss)

3,176,376 ( 315,508 ) 3,280,880 211,004

( 18,545,508 ) ( 9,996,550 ) ( 8,048,678 ) ( 500,280 )

CPHC share of equity in income of joint ventures

( 5,242,852 ) ( 2,739,055 ) ( 2,205,338 ) ( 298,460 )

CPHC's dividends received from joint ventures

( 82,861 ) — — ( 82,861 )

As of December 31, 2024

Current assets

$ 14,505,405 $ 11,593,489 $ 411,006 $ 2,500,910

Noncurrent assets

142,521,390 56,250,927 78,755,486 7,514,977

Current liabilities

10,175,889 5,885,368 4,140,521 150,000

Noncurrent liabilities

147,212,092 79,664,237 67,547,855 —

Joint ventures' equity

( 361,146 ) ( 17,705,189 ) 7,478,156 9,865,887

CPHC share of joint ventures' equity

1,959,893 ( 5,016,198 ) 1,439,126 5,536,965

Fiscal Year Ended December 31, 2024

$ 6,208,696 $ 2,172,608 $ 4,015,928 $ 20,160

Gross profit (loss)

1,902,942 ( 310,841 ) 2,299,285 ( 85,502 )

( 19,972,811 ) ( 12,964,134 ) ( 7,021,446 ) 12,769

CPHC share of equity in income of joint ventures

( 5,467,771 ) ( 3,551,980 ) ( 1,923,491 ) 7,700

CPHC's dividends received from joint ventures

( 36,480 ) — — ( 36,480 )

Tax Increment Financing

17 unchanged sentences

, the Company recorded a TIF receivable of approximately $ 18,898,000 , which represents $ 15,551,000 of principal and $ 3,347,000 of interest.

For the year ended December 31, 2025, the Company received its first payment from the City of Shakopee totaling $ 582,000 , fully related to interest on this receivable.

The Company expects to finance its improvements under the Redevelopment Agreement with funds from its current operating resources and existing credit facility and, potentially, third -party financing sources.

Recently Closed Transactions Under Real Estate Agreements

On August 20, 2024, the Company completed the transfer of approximately 3.5 acres of land to the Trackside Investments joint venture for total consideration of $ 2,316,000 .

Trackside Investments, LLC was formed as a joint venture for the development of an approximately 16,000 square foot restaurant and entertainment venue, with the venue opening anticipated to be Summer 2025.

On April 28, 2023, the Company completed the sale of 37 acres of land to Bloomington Investments, LLC, an entity related to Swervo Development (“Swervo”), for total consideration of $ 8,800,000 .

With the land sale and government approvals now complete, Swervo began construction of its planned state-of-the-art amphitheater in 2023.

As a result of these two land transactions, the Company recorded a gain of approximately $ 1,732,000 and $ 6,490,000 on the Consolidated Statements of Operations for the years ended December 31, 2024 and December 31, 2023 , respectively.

RELATED PARTY RECEIVABLES

1 unchanged sentence

These member loans bear interest at the rate equal to the Prime Rate plus two percent per annum and totaled $ 1,284,000 and $ 898,000 as of December 31, 2025 and 2024 , respectively.

The Company expects to be fully reimbursed for these member loans when the joint ventures achieve positive cash flow.

The Company evaluates the collectability of the related party receivables from the Doran Canterbury I and II joint ventures on an ongoing basis.

In evaluating collectability, management considers the joint ventures' financial condition, liquidity, historical and projected operating performance, and expected future cash flows, as well as the Company's ownership interest and involvement.

Based on this evaluation, management determined that the outstanding balances are collectible as of December 31, 2025.

Management's assessment considered the joint ventures' forecasted cash flows and expected operating performance, which management believes will enable the joint ventures to meet their payment obligations.

Accordingly, no allowance for credit losses has been recorded for this receivable as of December 31, 2025 and 2024.

The Company has also recorded related party receivables of approximately $ 19,000 and $ 34,000 as of December 31, 2025 and 2024 , respectively, for various related costs incurred by the Company.

The Company expects to be fully reimbursed for these costs by the related parties in the following year.

SUBSEQUENT EVENTS

On January 8, 2026, Canterbury Development LLC contributed $ 1,466,405 as an equity contribution to its Doran Canterbury II joint venture.

This equity contribution was necessary for Doran Canterbury II to complete refinancing of its existing mortgage payable and is expected to reduce future interest expense from this joint venture.

The equity contribution and refinancing did not impact the Company's financial statements as of December 31, 2025 or 2024.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data