PARKS AMERICA, INC 10-K

ITEM 9A. CONTROLS AND PROCEDURES (a) Disclosure Controls and Procedures With the participation of the principal executive officer and principal financial officer of Parks! America (the “Registrant”), the Registrant’s management has evaluated the effectiveness of the Registrant’s disclosure controls and procedures, as required by Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the fiscal year covered by this Annual Report on Form 10-K. Based upon that evaluation, the Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures were effective as of the end of the fiscal year covered by this Annual Report on Form 10-K. (b) Management’s Annual Report on Internal Control over Financial Reporting Overview Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States and includes those policies and procedures that: 1. Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; 2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and 3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce this risk. Management based its assessment of the Company’s internal control over financial reporting on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its assessment, management has concluded that the Company’s disclosure controls and procedures and internal control over financial reporting are effective as of October 3, 2021. 19 (c) Changes in Internal Control over Financial Reporting There has been no change in our internal control over financial reporting, as defined in Rules 13a-15(f) of the Exchange Act, during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting as of October 3, 2021. ITEM 9B. OTHER INFORMATION None PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE Our executive officers and directors are as follows: Name Age Title Dale Van Voorhis 80 Chief Executive Office and Director Todd R. White 59 Chief Financial Officer and Director Mark Whitfield 60 Executive Vice President Lisa Brady 35 Director John Gannon 64 Director Charles Kohnen 54 Director Jeffery Lococo 64 Secretary and Director Rick Ruffolo 53 Director Dale Van Voorhis Dale Van Voorhis was appointed as our Chief Executive Officer on January 27, 2011. Mr. Van Voorhis was re-appointed to our Board of Directors on March 13, 2009, and served as the Company’s Chief Operating Officer from March 28, 2009 until January 27, 2011. Mr. Van Voorhis previously served the Company in various management and board of director roles from December 2003 through December 2006. In addition, Mr. Van Voorhis has been the President of Amusement Business Consultants, Inc., an amusement industry consulting company, since its inception in 1994. Mr. Van Voorhis was President and CEO of Funtime Parks Inc. (“Funtime”) from 1982 until 1994. Funtime consisted of three parks in New York and Ohio and they generated total attendance of 2.6 million visitors in 1993. Funtime sold the three parks for $60 million in 1994. Mr. Van Voorhis has over 55 years of experience in the amusement/entertainment industry. Todd R. White Todd R. White was appointed the Chief Financial Officer of Parks! America on May 31, 2013 and was appointed as a Director of the Company effective January 1, 2014. Prior to joining the Company, from 1992 through 2011, Mr. White was an executive with The Scotts Miracle-Gro Company in a variety of roles, and served most recently as its Vice President, Global Controller from 2005 through 2011. Mr. White was with Price Waterhouse in Cincinnati, Ohio from 1986 to 1992. He received a B.A. in business administration from The Ohio State University and an MBA from the University of Wisconsin-Madison. He currently serves on the Board of Managers of Spring Brook Farm Cheese, LLC, which is wholly owned by the Farms for City Kids Foundation. Mark Whitfield Mark Whitfield joined Parks! America, Inc. and was appointed Executive Vice President on September 21, 2020. Mr. Whitfield’s 42 year amusement park career began in 1979 at Six Flags Theme Parks, where he was Manager of Games & Attractions, and Merchandise and Director of Revenue at six of the current and former Six Flags parks. Most recently, Mr. Whitfield was a Senior Director of Revenue at PARC Management in Jacksonville, and for the last 10 years as General Manager at Palace Entertainment parks in San Dimas, California and in the Wisconsin Dells. He is very active in the community and served with distinction as an elected Village Trustee in Lake Delton, Wisconsin, President and Board Chair of the Sauk County, Economic Development Corporation, co-Commissioner of the Baraboo-Dells Airport, as well as serving on the Board of Directors at the San Dimas Chamber of Commerce and the Wisconsin Dells Visitors & Convention Bureau. Mr. Whitfield brings extensive experience and consistent positive results in financial/EBITDA growth, employee development, marketing, operations and in-park revenue. Mr. Whitfield has BA in Communication and Political Science and a Master of Liberal Arts from Houston Baptist University. 20 Lisa Brady Lisa Brady was appointed as a Director of the Company effective November 12, 2021. Ms. Brady brings more than a decade of experience in the entertainment, leisure, and hospitality industry with executive-level experience in strategic planning, mergers and acquisitions, investor relations, financial modeling, and real estate development. Ms. Brady started her career as a sell-side analyst at KeyBank Capital markets, covering the leisure and hospitality sector. Upon joining Cedar Fair Entertainment Company (“FUN”), Ms. Brady played an integral role within investor relations, leading communications efforts with both the sell-side and buy side. Ms. Brady was promoted to the Director of Business Development where she served as a key leader in the company’s strategic growth initiatives. Ms. Brady graduated summa cum laude from Penn State University and received the John Zahniser Female Scholar Athlete Award. John Gannon John Gannon has been a Director of the Company since December 2019. Mr. Gannon has 33 years of experience in the amusement park, water park, and zoo industry. After 14 years of service, Mr. Gannon retired from the Columbus Zoo and Aquarium in January 2020, most recently serving as its Senior Vice President responsible for managing all for profit ventures, including its water park, its amusement park section and its golf course. Prior to joining the Columbus Zoo and Aquarium, Mr. Gannon was with Six Flags, Premier Parks and Funtime Inc. for a combined total of 19 years. During his time with Six Flags, Mr. Gannon served as Vice President of Finance, with responsibility over the eastern United States and Europe. Mr. Gannon started his career as a CPA with Ernst & Young. Mr. Gannon is a member of the International Association of Amusement Parks and Attractions (“IAAPA”) and the World Waterpark Association (WWA). In 2017, Governor John Kasich appointed Mr. Gannon to the Ohio Department of Agriculture Advisory Board on Amusement Ride Safety. Mr. Gannon earned a Bachelor of Science degree in Accounting from the University of Akron. Charles Kohnen Charles Kohnen has been a director of the Company since October 19, 2010. Mr. Kohnen has a diverse business background including experience with planning and executing management strategies for turnaround companies. From 1998 to 2006 he was Managing Partner of Kohnen Realty Co., a real estate and stock investment company that he co-founded, where he was responsible for all aspects of the business including the coordination of all legal, accounting and buyout matters. Mr. Kohnen has also served as Chairman of a privately held restaurant located in Cincinnati, Ohio. Mr. Kohnen also serves on the Board of one non-profit organization and earned a Bachelor of Science degree in General Business from Miami University in Oxford, Ohio. Jeffery Lococo Jeffery Lococo was appointed Secretary of the Company on January 27, 2011 and has been a Director of the Company since May 2006. Mr. Lococo is President of Lococo Company LLC, an industry leading consulting firm in the amusement and resort industry segment. Mr. Lococo began his career with the Marriott Corporation theme park division, and progressed through middle management to General Manager level in 1990 with Funtime. From 1994 to 2000, Mr. Lococo held various executive vice president level positions with Six Flags Inc. Mr. Lococo joined Great Wolf Resorts Inc. in March of 2000 as General Manager of Great Wolf Lodge Sandusky, Ohio, and in 2005, was promoted to Corporate Vice President of Resort Operations for all Great Wolf Lodge Resorts. Mr. Lococo has over 35 years of experience in the theme/water park, entertainment and hospitality industry. Rick Ruffolo Rick Ruffolo was appointed as a Director of the Company effective November 12, 2021. Mr. Ruffolo brings three decades of consumer goods, specialty retail, marketing, innovation, and executive leadership experience to the Parks! America Board. In his first twenty years, Mr. Ruffolo held brand management roles at P&G, SC Johnson, and Nestle Purina, as well as senior executive roles leading the brand, marketing, and innovation departments at Yankee Candle and Bath & Body Works where he received multiple patents including for the multi-billion dollar launch of the Wallflowers home fragrance business. In the last ten years, as CEO & President, Mr. Ruffolo has led the successful turnaround and growth of several private equity-backed portfolio companies including Sensible Organics, CR Brands, Enviroscent, and Phelps Pet Products. Mr. Ruffolo is a dual citizen of the U.S. and Italy, was a NCAA Division I athlete and graduated summa cum laude in marketing and business administration from the University of Dayton, and received his MBA with honors from Washington University in St. Louis. 21 Involvement in Certain Legal Proceedings During the past ten years none of the following events have occurred with respect to any of our directors or executive officers or any of the persons nominated by our board to become a director of the Company. 1. A petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing; 2. Such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); 3. Such person was the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities: i. Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; ii. Engaging in any type of business practice; or iii. Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws; 4. Such person was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (3)(i) above, or to be associated with persons engaged in any such activity; 5. Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated; 6. Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated; 7. Such person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: i. Any Federal or State securities or commodities law or regulation; or ii. Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease- and-desist order, or removal or prohibition order; or iii. Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or 8. Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member. 22 Audit Committee Our Audit Committee is responsible for: (1) overseeing the accounting and financial reporting processes of the Company, including the audits of the Company’s consolidated financial statements; (2) appointing, compensating and overseeing the work of the independent registered public accounting firm employed by the Company; (3) assisting the Board in its oversight of: (a) the integrity of the Company’s consolidated financial statements and (b) the independent registered public accounting firm’s qualifications and independence; and (4) undertaking the other matters required by applicable rules and regulations of the SEC. Our Audit Committee is comprised of three directors, John Gannon, Charles Kohnen, and Jeffery Lococo. The Board has determined that John Gannon qualifies as an “audit committee financial expert” as that term is defined in the applicable SEC Rules. Our Audit Committee met four times in the twelve-month period ended October 3, 2021. Compensation Committee Our Compensation Committee determines matters pertaining to the compensation and expense reporting of certain of our executive officers, and administers our stock option, incentive compensation, and employee stock purchase plans. The Compensation Committee is composed of three Directors, John Gannon, Charles Kohnen, and Jeffery Lococo. Our Compensation Committee met one time during the twelve-month period ended October 3, 2021. Code of Ethics We have not adopted a Code of Ethics. SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our executive officers and directors and persons who own more than 10% of a registered class of our equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common stock and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% stockholders are required by the SEC regulations to furnish our Company with copies of all Section 16(a) reports they file. Based upon a review of those forms and any written representations regarding the need for filing Forms 5, to the best of the Company’s knowledge, no required Section 16(a) reports were filed late. 23 ITEM 11. EXECUTIVE COMPENSATION SUMMARY COMPENSATION TABLE The following table sets forth information regarding compensation paid to our principal executive officer, principal financial officer, and our other executive officers, for the years ended October 3, 2021, September 27, 2020 and September 29, 2019. Name & Principal Salary Bonus Stock Award Option Awards Non-Equity Incentive Plan Compensation Change in Pension Value and Non-Qualified Deferred Compensation Earnings All Other Compensation Total Position Year ($) ($) ($) ($) ($) ($) ($) ($) Dale Van Voorhis 2021 100,000 25,000 10,000 6 135,006 Chief Executive 2020 93,333 20,000 8,500 - 121,833 Officer and Director 2019 90,000 18,000 4,625 - 112,625 Mark Whitfield 2021 135,000 - - 290 135,290 Executive Vice President 2020 2,596 10,000 - - 12,596 Michael D. Newman (1) 2021 108,000 25,000 - - 133,000 Vice President of Safari 2020 102,167 17,000 - 3,661 122,828 Operations 2019 96,250 15,000 - 5,492 116,742 Todd R. White 2021 86,250 25,000 10,000 290 121,540 Chief Financial 2020 73,750 20,000 8,500 - 102,250 Officer and Director 2019 67,500 18,000 4,625 - 90,125 James Meikle (2) 2019 - - - 88,167 88,167 Director and Chief Operating Officer (1) Effective October 31, 2021, Mr. Newman resigned his employment with the Company. (2) On November 28, 2018, Mr. Meikle passed away. DIRECTOR COMPENSATION The following table sets forth with respect to the named director, compensation information inclusive of equity awards and payments made in the year ended October 3, 2021. Fees Earned or Paid in Cash Stock Awards Option Awards Non-Equity Incentive Plan Compensation Change in Pension Value and Non-Qualified Deferred Compensation Earnings All Other Compensation Total Name ($) Shares/($) ($) ($) ($) ($) ($) Dale Van Voorhis — 22,789 — — — — $ 10,000 $ (10,000 ) John Gannon $ 5,000 11,395 — — — — $ 10,000 $ (5,000 ) William Jump (1) $ 10,000 — — — — — $ 10,000 Charles Kohnen — 22,789 — — — — $ 10,000 $ (10,000 ) Jeffery Lococo — 22,789 — — — — $ 10,000 $ (10,000 ) Todd R. White — 22,789 — — — — $ 10,000 $ (10,000 ) (1) On January 14, 2021, Mr. Jump passed away. Historically, each director was awarded an annual grant of 25,000 Shares for their service to the Company. Beginning in our 2018 fiscal year, we provided each director with the option of receiving their annual grant in Shares or the cash equivalent, based on the Share price on the date of grant. Beginning in our 2020 fiscal year, our annual director compensation is based on a dollar award, with each director provided the option of receiving that compensation in all Shares, all cash or a combination thereof. 24 Employment Agreements Effective as of June 1, 2020, the Company and Dale Van Voorhis, the Company’s Chairman and Chief Executive Officer, entered into an employment agreement (the “2020 Van Voorhis Employment Agreement”). Pursuant to the 2020 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base annual compensation in the amount of $100,000 per year, subject to annual review by the Board of Directors. The 2020 Van Voorhis Employment Agreement has a term of two years and entitles Mr. Van Voorhis to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. Effective as of January 1, 2019, the Company and Todd R. White, the Company’s Chief Financial Officer, entered into an employment agreement (the “2019 White Employment Agreement”). The 2019 White Employment Agreement has a term of three years, with minimum annual compensation of $70,000 in year one, $75,000 in year two and $80,000 in year three. Effective January 1, 2021, Mr. White’s annual compensation was changed to $90,000. Mr. White is entitled to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. Effective as of May 1, 2018, the Company entered into an employment agreement with Michael D. Newman (the “Newman Employment Agreement”) to serve as the Company’s Vice President of Safari Operations. Mr. Newman had been the general manager of Wild Animal – Georgia since February 2011. Pursuant to the Newman Employment Agreement, Mr. Newman received an initial base annual compensation of $95,000 per year, subject to annual review by the Board of Directors. Mr. Newman also received a $5,000 signing bonus. Effective as of May 1, 2020, Mr. Newman’s annual compensation was set at $108,000. The Newman Employment Agreement had a term of five years and entitled Mr. Newman to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. Effective October 31, 2021, Mr. Newman resigned his employment with the Company. As of October 3, 2021, the Company has not adopted any deferred compensation plans. Each of the foregoing employment agreements contains provisions for severance compensation in the event an agreement is (i) terminated early by the Company without cause ($116,667 in aggregate) or (ii) in the event of a change in control of the Company ($381,667 in aggregate), as well as disability and death payment provisions ($95,000 in aggregate). Effective as of July 1, 2017, the Company and James Meikle, then the Company’s President and Chief Operating Officer, entered into the “2017 Meikle Employment Agreement”. The 2017 Meikle Employment Agreement had a term of two years, with an initial base annual compensation in the amount of $135,000 per year. On November 28, 2018, Mr. Meikle passed away. Pursuant to the death benefit terms of the 2017 Meikle Employment Agreement, during the three month period ended December 30, 2019, the Company recorded a provision of approximately $88,000, which was distributed to his estate on January 15, 2020. Stock Option and Award Plan A Stock Option and Award Plan (the “Plan”) providing for incentive stock options and performance bonus awards for executives, employees, and directors was approved by our Board of Directors on February 1, 2005, however, the Plan has not been submitted to the stockholders for approval. The Plan sets aside five million (5,000,000) shares for award of stock options, including qualified incentive stock options and performance stock bonuses. To date, no grants or awards have been made pursuant to the Plan and we did not submit the Plan for consideration to the Company’s stockholders at the last meeting of stockholders. 25 ITEM 12. EQUITY COMPENSATION PLAN INFORMATION AND SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The following table sets forth certain information relating to the ownership of common stock by (i) each person known by us to be the beneficial owner of more than five percent of the outstanding shares of our common stock, (ii) each of our directors, (iii) each of our named executive officers, and (iv) all of our executive officers and directors as a group. Unless otherwise indicated, the information relates to these persons, beneficial ownership as of December 6, 2021. Except as may be indicated in the footnotes to the table and subject to applicable community property laws, each person has the sole voting and investment power with respect to the shares owned. The address of each beneficial owner is care of Parks! America, Inc., 1300 Oak Grove Road, Pine Mountain, GA 31822, unless otherwise set forth below that person’s name. Name Number of Shares Owned Percent (1) Title Dale Van Voorhis 16,012,700 21.3 % Chief Executive Officer and Director Todd R. White (2) 1,265,109 1.7 % Chief Financial Officer and Director Charles Kohnen (3) 21,856,759 29.1 % Director Jeffery Lococo 554,759 7.0 % Secretary and Director John Gannon 11,394 0.0 % Director Focused Compounding Fund, LP 1700 Alma Drive, Suite 460 Plano, TX 75075 13,097,450 17.4 % (1) Based upon shares of common stock issued and outstanding as of December 6, 2021, except that shares of common stock underlying options and warrants exercisable within 60 days of the date hereof are deemed to be outstanding. (2) 410,350 of the Company’s shares owned by Mr. White are held jointly with his spouse. (3) 15,271,000 of the Company’s shares owned by Mr. Kohnen are held jointly with his spouse. Officers, directors and their controlled entities, as a group, controlled approximately 52.8% of the outstanding common stock of the Company as of December 6, 2021. The information as to shares beneficially owned has been individually furnished by our respective directors, named executive officers and other stockholders, or taken from documents filed with the SEC. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Except as set forth below, none of the following parties has, since our date of incorporation, had any material interest, direct or indirect, in any transaction with the Company or in any presently proposed transaction that has or will materially affect the Company: ● Any of our directors or officers; ● Any person proposed as a nominee for election as a director; ● Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock; ● Any of our promoters; and ● Any relative or spouse of any of the foregoing persons who has the same house as such person. Director Independence Of the members of the Company’s Board of Directors, Lisa Brady, John Gannon, Charles Kohnen, Jeffery Lococo and Rick Ruffolo are considered to be independent under the listing standards of the Rules of NASDAQ set forth in the NASDAQ Manual (note, our common shares are not currently listed on NASDAQ or any other national securities exchange, and this reference is used for definitional purposes only). 26 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES Audit Fees As disclosed on a Form 8-K filed with the U.S. Securities and Exchange Commission on April 10, 2020, GBQ Partners LLC was appointed as our independent registered accounting firm effective April 8, 2020. Our prior independent registered public accounting firm, Tama, Budaj & Raab, P.C. Certified Public Accountants (“TBR”), resigned as effective April 8, 2020. On a combined basis, fees billed by our independent registered public accounting firms, for the audit and quarterly reviews of our financial statements and services that are normally provided by an accountant in connection with statutory and regulatory filings or engagements for the years ended October 3, 2021 and September 27, 2020 were approximately $55,000 and $48,500, respectively. Tax Fees The aggregate fees billed by TBR, for professional services rendered for tax compliance, tax advice and tax planning for the years ended October 3, 2021 and September 27, 2020 were approximately $13,000 and $6,500, respectively. All Other Fees Our independent registered public accounting firms billed no other fees for the years ended October 3, 2021 and September 27, 2020. Audit Committee Pre-Approval Policies and Procedures The audit committee is required to pre-approve the audit and non-audit services performed by our independent registered public accounting firm in order to assure that the provision of such services do not impair the registered public accounting firm’s independence. 27 PART IV ITEM 15. EXHIBITS 3.1 Articles of Incorporation of Great American Family Parks, Inc. dated July 17, 2002 (incorporated by reference to the Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on August 4, 2005). 3.2 Amended Articles of Incorporation of Great American Family Parks, Inc. dated January 26, 2004 (incorporated by reference to the Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on August 4, 2005). 3.3 Bylaws of Great American Family Parks, Inc. dated January 30, 2004 (incorporated by reference to the Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on August 4, 2005). 3.4 Great American Family Parks 2005 Stock Option Plan dated February 1, 2005 (incorporated by reference to the Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on August 4, 2005). 3.5 Amended Bylaws of the Company, as of January 17, 2011 (incorporated by reference to the Annual Report on Form 10-KT filed by the Company on December 29, 2012). 3.6 Amended Bylaws of the Company as of June 12, 2012 (incorporated by reference to the Report on Form 8-K filed by with the Securities and Exchange Commission on July 16, 2012). 21.1 Subsidiaries of the Registrant. 23.1 Consent of GBQ Partners LLC dated December 9, 2021. 31.1 Certification by Chief Executive Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, promulgated pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification by Chief Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, promulgated pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1 Certification by Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, promulgated pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Certification by Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, promulgated pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 28 SIGNATURES In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf as of December 9, 2021 by the undersigned, thereunto duly authorized. PARKS! AMERICA, INC. By: /s/ Dale Van Voorhis Dale Van Voorhis Chief Executive Officer and Director (Principal Executive Officer) In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. SIGNATURE TITLE DATE By: /s/ Dale Van Voorhis Dale Van Voorhis Chief Executive Officer and Director (Principal Executive Officer) December 9, 2021 By: /s/ Lisa Brady Lisa Brady Director December 9, 2021 By: /s/ John Gannon John Gannon Director December 9, 2021 By: /s/ Charles Kohnen Charles Kohnen Director December 9, 2021 By: /s/ Jeffery Lococo Jeffery Lococo Secretary and Director December 9, 2021 By: /s/ Rick Ruffolo Rick Ruffolo Director December 9, 2021 By: /s/ Todd R. White Todd R. White Chief Financial Officer and Director (Principal Financial Officer) December 9, 2021 29 ITEM 8 PARKS! AMERICA, INC. and SUBSIDIARIES INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Consolidated Financial Statements of Parks! America and Subsidiaries Page Report of Independent Registered Public Accounting Firm F-2 Consolidated Balance Sheets as of October 3, 2021 and September 27, 2020 F-4 Consolidated Statements of Operations for the years ended October 3, 2021 and September 27, 2020 F-5 Consolidated Statement of Changes in Stockholders’ Equity for the years ended October 3, 2021 and September 27, 2020 F-6 Consolidated Statements of Cash Flows for the years ended October 3, 2021 and September 27, 2020 F-7 Notes to the Consolidated Financial Statements F-8 F- 1 Report of Independent Registered Public Accounting Firm Board of Directors and Shareholders Parks! America, Inc. Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Parks! America, Inc. (the “Company”) as of October 3, 2021 and September 27 2020, the related consolidated statements of operations, stockholders’ equity, and cash flows for the years then ended, and related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of October 3, 2021 and September 27, 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. F- 2 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates. Estimated Redemption Rate Used to Determine Online Ticket Sales for Deferred Revenue Customers can purchase online admission tickets in advance of their visit. These tickets can be used anytime during a twelve month period following the date of the ticket purchase. For such purchases, the Company estimates a redemption rate based on historical experience and other factors and assumptions the Company believes to be customary and reasonable. The remaining portion of online ticket sales represents tickets expected to go unused. The Company recognizes a pro-rata portion of the expected unused ticket revenue over time. The Company reviews the estimated redemption rate on an ongoing basis and revises it as necessary. As of October 3, 2021, $192,801 of deferred revenue related to the consideration received for advance online ticket sales. We identified the evaluation of the estimated redemption rate used to determine deferred revenue for online ticket sales as a critical audit matter. Subjective auditor judgment was required to evaluate the effect of historical customer usage patterns on the estimated rate of future use assumption. The following are the primary procedures we performed to address this critical audit matter. We obtained an understanding and evaluated the design of controls over the Company’s process to develop the estimated redemption rate. We evaluated historical periods’ ticket redemption activity for indication of significant changes in customer behavior and to determine whether changes in the historical activity were consistent with changes in the Company’s business that impact the estimated redemption rate assumption. We compared trends of customers’ historical redemption patterns to the Company’s estimated redemption rate assumption. We assessed the outstanding online ticket data utilized by the Company to derive the redemption rate assumption by comparing it to relevant underlying documentation. /s/ GBQ Partners LLC GBQ Partners LLC We have served as the Company’s auditor since 2020. Columbus, Ohio December 9, 2021 F- 3 PARKS! AMERICA, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of October 3, 2021 and September 27, 2020 October 3, 2021 September 27, 2020 ASSETS Cash $ 6,654,348 $ 5,505,716 Accounts receivable 4,469 - Inventory 314,103 200,891 Prepaid expenses 175,248 148,732 Total current assets 7,148,168 5,855,339 Property and equipment, net 13,806,868 13,654,800 Intangible assets, net 10,966 - Other assets 15,974 12,144 Total assets $ 20,981,976 $ 19,522,283 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities Accounts payable $ 221,414 $ 178,485 Other current liabilities 531,347 599,390 Current portion of long-term debt, net 699,483 1,221,009 Total current liabilities 1,452,244 1,998,884 Long-term debt, net 4,960,180 5,797,392 Total liabilities 6,412,424 7,796,276 Stockholders’ equity Common stock; 300,000,000 shares authorized, at $ .001 par value; 75,124,087 and 75,021,537 shares issued and outstanding, respectively 75,124 75,021 Capital in excess of par 4,934,212 4,889,316 Treasury stock ( 3,250 ) ( 3,250 ) Retained earnings 9,563,466 6,764,920 Total stockholders’ equity 14,569,552 11,726,007 Total liabilities and stockholders’ equity $ 20,981,976 $ 19,522,283 The accompanying notes are an integral part of these consolidated financial statements . F- 4 PARKS! AMERICA, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended October 3, 2021 and September 27, 2020 1 2 For the year ended October 3, 2021 September 27, 2020 Net sales $ 11,655,658 $ 9,440,986 Sale of animals 206,833 66,278 Total net sales 11,862,491 9,507,264 Cost of sales 1,489,196 962,047 Selling, general and administrative 5,817,986 4,115,323 Depreciation and amortization 704,016 576,139 Tornado damage insurance recovery - ( 24,373 ) Loss on disposal of operating assets 90,105 29,121 Income from operations 3,761,188 3,849,007 Other income, net 65,314 27,788 Gain on extinguishment of debt 189,988 - Interest expense ( 335,944 ) ( 182,926 ) Income before income taxes 3,680,546 3,693,869 Income tax provision 882,000 926,400 Net income $ 2,798,546 $ 2,767,469 Income per share - basic and diluted $ 0.04 $ 0.04 Weighted average shares outstanding (in 000’s) - basic and diluted 75,094 74,965 The accompanying notes are an integral part of these consolidated financial statements. F- 5 PARKS! AMERICA, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY For the Years Ended October 3, 2021 and September 27, 2020 1 2 3 4 5 Capital in Shares Amount Excess of Par Treasury Stock Retained Earnings Total Balance at September 29, 2019 74,821,537 $ 74,821 $ 4,855,516 $ ( 3,250 ) $ 3,997,451 $ 8,924,538 Issuance of common stock to Directors 200,000 200 33,800 - - 34,000 Net income for the year ended September 27, 2020 - - - - 2,767,469 2,767,469 Balance at September 27, 2020 75,021,537 75,021 4,889,316 ( 3,250 ) 6,764,920 11,726,007 Beginning balance, value 75,021,537 75,021 4,889,316 ( 3,250 ) 6,764,920 11,726,007 Issuance of common stock to Directors 102,550 103 44,896 - - 44,999 Net income for the year ended October 3, 2021 - - - - 2,798,546 2,798,546 Balance at October 3, 2021 75,124,087 $ 75,124 $ 4,934,212 $ ( 3,250 ) $ 9,563,466 $ 14,569,552 Ending balance, value 75,124,087 $ 75,124 $ 4,934,212 $ ( 3,250 ) $ 9,563,466 $ 14,569,552 The accompanying notes are an integral part of these consolidated financial statements. F- 6 PARKS! AMERICA, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended October 3, 2021 and September 27, 2020 1 2 For the year ended October 3, 2021 September 27, 2020 OPERATING ACTIVITIES: Net income $ 2,798,546 $ 2,767,469 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization expense 704,016 576,139 Interest expense - debt financing cost amortization 16,366 4,603 Interest expense - loan discount amortization 13,985 7,517 Loss on disposal of assets 90,105 29,121 Stock-based compensation 44,999 34,000 Gain on extinguishment of debt ( 189,988 ) - Changes in assets and liabilities (Increase) decrease in accounts receivable ( 4,469 ) - (Increase) decrease in inventory ( 113,212 ) 4,310 (Increase) decrease in prepaid expenses ( 26,516 ) ( 1,203 ) Increase (decrease) in accounts payable 42,929 82,215 Increase (decrease) in other current liabilities ( 68,043 ) 176,230 Net cash provided by operating activities 3,308,718 3,680,401 INVESTING ACTIVITIES: Acquisition of property and equipment ( 988,901 ) ( 525,409 ) Acquisition of Aggieland Safari - ( 6,373,500 ) Tradename registrations ( 10,966 ) - Proceeds from the disposition of property and equipment 39,943 17,832 Net cash used in investing activities ( 959,924 ) ( 6,881,077 ) FINANCING ACTIVITIES: Payments on 2018 Term Loan ( 1,164,113 ) ( 207,135 ) Payments on 2020 Term Loan ( 1,173,589 ) - Payments on 2021 Term Loan ( 60,946 ) - Payment of Note to Seller of Aggieland Safari ( 750,000 ) - Proceeds from 2021 Term Loan 1,950,000 - Proceeds from 2020 Term Loan - 5,000,000 Proceeds from Paycheck Protection Program Loans - 188,087 Debt financing costs ( 1,514 ) ( 62,375 ) Net cash (used in) provided by financing activities ( 1,200,162 ) 4,918,577 Net increase in cash 1,148,632 1,717,901 Cash at beginning of period 5,505,716 3,787,815 Cash at end of period $ 6,654,348 $ 5,505,716 Supplemental Cash Flow Information: Cash paid for interest $ 323,197 $ 150,484 Cash paid for income taxes $ 926,750 $ 844,000 Non-Cash Investing and Financing Activities: Note to Seller of Aggieland Safari $ - $ 728,500 The accompanying notes are an integral part of these consolidated financial statements. F- 7 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 1. ORGANIZATION Parks! America, Inc. (“Parks!” or the “Company”) was originally incorporated on July 30, 1954 as Painted Desert Uranium & Oil Co., Inc. in Washington State. On October 1, 2002, Painted Desert Uranium & Oil Co., Inc. changed its name to Royal Pacific Resources, Inc. and its corporate domicile to the State of Nevada . On December 19, 2003, Royal Pacific Resources, Inc. acquired the assets of Great Western Parks LLC pursuant to a Share Exchange Agreement that resulted in the Company assuming control and changing the corporate name to Great American Family Parks, Inc. The acquisition was accounted for as a reverse acquisition in which Great Western Parks was considered to be the acquirer of Royal Pacific Resources for reporting purposes. On June 11, 2008, the Company changed its name from Great American Family Parks, Inc. to Parks! America, Inc. The Company owns and operates through wholly owned subsidiaries three regional theme parks and is in the business of acquiring, developing and operating local and regional theme parks and attractions in the United States. The Company’s wholly owned subsidiaries are Wild Animal Safari, Inc. a Georgia corporation (“Wild Animal – Georgia”), Wild Animal, Inc., a Missouri corporation (“Wild Animal – Missouri”), and Aggieland-Parks, Inc., a Texas corporation (“Aggieland Wild Animal – Texas”). Wild Animal – Georgia owns and operates the Wild Animal Safari theme park in Pine Mountain, Georgia (the “Georgia Park”). Wild Animal – Missouri owns and operates the Wild Animal Safari theme park located in Strafford, Missouri (the “Missouri Park”). Aggieland Wild Animal – Texas owns and operates the Aggieland Wild Animal Safari theme park near Bryan/College Station, Texas (the “Texas Park”). The Company acquired the Georgia Park on June 13, 2005, the Missouri Park on March 5, 2008, and the Texas Park on April 27, 2020. The Company’s Parks are open year round, but experience increased seasonal attendance, typically beginning in the latter half of March through early September. As a result, combined third and fourth quarter net sales have historically ranged from 68% to 72% of annual attendance based net sales. For the Company’s 2021 fiscal year, the first full year including Aggieland Safari, combined third and fourth quarter net sales were approximately 60% of annual attendance based net sales. COVID-19 In March 2020, the World Health Organization characterized COVID-19, a disease caused by a novel strain of a coronavirus, as a pandemic. The rapid spread of COVID-19 has resulted in governmental authorities throughout the United States implementing a variety of containment measures with the objective of slowing the spread of the virus, including travel restrictions, shelter-in-place orders and business shutdowns. The COVID-19 pandemic and these containment measures have had, and could continue to have, a material impact on the Company’s business. The rapid acceleration of the COVID-19 pandemic in the United States occurred at the beginning of the Company’s annual high season. Beginning the week of March 9, 2020, the Company began to see a significant reduction in paid attendance at its Georgia and Missouri Parks. Effective April 3, 2020, the Company’s Georgia and Missouri Parks were closed as a result of shelter-in-place mandates in Georgia and Missouri. Also note that prior to the acquisition of the Texas Park, its operations were suspended for the majority of April 2020 due to a shelter-in-place mandate in Texas. F- 8 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 1. ORGANIZATION (CONTINUED) In compliance with respective state issued guidelines, the Georgia Park and the Texas Park each reopened on May 1, 2020, and the Missouri Park reopened on May 4, 2020. Subsequent to reopening, attendance levels were strong at each of the Company’s three Parks for the balance of its 2020 fiscal year, which continued throughout its 2021 fiscal year in comparison to pre-COVID-19. However, there may be longer-term negative impacts to the Company’s business, results of operations and cash flows, and financial condition as a result of the COVID-19 pandemic. These negative impacts may include changes in customer behavior and preferences causing significant volatility or reductions in Park attendance, increases in operating expenses to comply with additional hygiene-related protocols, limitations in the Company’s ability to recruit and maintain staffing, limitations on the Company’s employees ability to work and travel, and significant changes in the economic or political conditions in the areas the Company’s Parks are located. Despite the Company’s efforts to manage these potential impacts, the ultimate impact may be material, and will depend on a number of factors beyond its control, including the duration and severity of the COVID-19 pandemic and actions by governmental authorities taken to contain its spread and mitigate its public health effects. There is also the potential for attendance levels at the Company’s Parks to moderate or decline as alternative entertainment venues reopen to full capacity once the COVID-19 pandemic has run its course or vaccines are widely adopted and proven effective. While attendance based net sales remain strong versus the comparable pre-COVID-19 period, the Company experienced a decline in attendance based net sales and attendance for weeks 32 through 53 of its 2021 fiscal year versus the comparable period of its 2020 fiscal year. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation : The Company’s consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that the disclosures made are adequate to make the information presented not misleading. The information reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods set forth herein. Principles of Consolidation : The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries (Wild Animal – Georgia, Wild Animal – Missouri and Aggieland Wild Animal – Texas). All inter-company accounts and transactions have been eliminated in consolidation. Accounting Method : The Company recognizes income and expenses based on the accrual method of accounting. Estimates and Assumptions : Management uses estimates and assumptions in preparing financial statements in accordance with GAAP. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements. Fiscal Year End : The Company’s fiscal year-end is the Sunday closest to September 30, and its quarterly close dates are also determined by the Sunday closest to the end of each quarterly reporting period. For the 2021 fiscal year, October 3 was the closest Sunday, and for the 2020 fiscal year, September 27 was the closest Sunday. The 2021 fiscal year was comprised of 53-weeks, while the 2020 fiscal year was comprised of 52-weeks. This fiscal calendar aligns the Company’s fiscal periods closely with the seasonality of its business. The high season typically ends after the Labor Day holiday weekend. The period from October through early March is geared towards maintenance and preparation for the next busy season, which typically begins at Spring Break and runs through Labor Day. Financial and Concentrations Risk : The Company does not have any concentration or related financial credit risks. The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. Business Combinations : The Company’s acquisition of Aggieland Safari, on April 27, 2020, was accounted for in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations . In purchase accounting, identifiable assets acquired, and liabilities assumed, are recognized at their estimated fair values at the acquisition date, and any remaining purchase price is recorded as goodwill. In determining the fair values of assets acquired and liabilities assumed, the Company makes significant estimates and assumptions, particularly with respect to long-lived tangible and intangible assets. Critical estimates used in valuing tangible and intangible assets include, but are not limited to, future expected cash flows, discount rates, market prices and asset lives. Although estimates of fair value are based upon assumptions believed to be reasonable, actual results may differ. See “NOTE 3: ACQUISITION” for more information. Trade Accounts Receivable : The theme parks are primarily a payment upfront business; therefore, the Company typically carries little or no accounts receivable. The Company had accounts receivable of $ 4,469 and $ 0 as of October 3, 2021 and September 27, 2020, respectively. F- 9 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Inventory : Inventory consists of gift shop items, animal food, and concession and park supplies, and is stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method. The gross profit method is used to determine the change in gift shop inventory for interim periods. Inventories are reviewed and reconciled annually, because inventory levels turn over rapidly. The Company had inventory of $ 314,103 and $ 200,891 as of October 3, 2021 and September 27, 2020, respectively. Property and Equipment : Property and equipment are stated at cost. Depreciation is computed on the straight-line method over the estimated useful lives of the assets, which range from three to thirty-nine years. A summary is included below. SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT October 3, 2021 September 27, 2020 Depreciable Lives Land $ 6,389,470 $ 6,389,470 not applicable Mineral rights 276,000 276,000 25 years Ground improvements 2,637,050 2,334,172 7-25 years Buildings and structures 3,827,827 3,798,098 10-39 years Animal shelters and habitats 2,282,575 2,098,947 10-39 years Park animals 1,143,133 1,166,583 5-25 years Equipment - concession and related 349,849 232,281 3-15 years Equipment and vehicles - yard and field 607,347 556,168 3-15 years Vehicles - buses and rental 213,951 237,075 3-5 years Rides and entertainment 228,009 224,578 5-7 years Furniture and fixtures 28,694 26,057 5-10 years Projects in process 126,755 34,290 Property and equipment, cost 18,110,660 17,373,719 Less accumulated depreciation ( 4,303,792 ) ( 3,718,919 ) Property and equipment, net $ 13,806,868 $ 13,654,800 Intangible Assets : Intangible assets consist of tradename registrations, which are reported at cost and are being amortized over a period of 15 years. Impairment of Long-Lived Assets : The Company reviews its major assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an asset is considered impaired, then impairment will be recognized in an amount determined by the excess of the carrying amount of the asset over its fair value. Other Current Liabilities : The following is a breakdown of other current liabilities: SCHEDULE OF OTHER CURRENT LIABILITIES October 3, 2021 September 27, 2020 Deferred revenue $ 242,318 $ 273,386 Accrued sales taxes 64,396 69,101 Accrued wages and payroll taxes 81,160 42,774 Accrued property taxes 47,517 68,530 Accrued income taxes - 46,402 Other accrued liabilities 95,956 99,197 Other current liabilities $ 531,347 $ 599,390 Financial Instruments : The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short-term maturities or due to the fact they were entered into during the Company’s 2021 and 2020 fiscal years. Securities that are publicly traded are valued at their fair market value as of the balance sheet date presented. F- 10 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Paycheck Protection Program Loan Accounting Policy : Currently, there is no authoritative guidance under GAAP that addresses accounting and reporting by a for-profit business entity that receives forgivable debt from a government entity. Accordingly, management has elected to recognize forgivable debt received from a government entity as debt until debt extinguishment occurs when the Company is legally released from being the obligor. Upon legal release as obligor, the Company will recognize the forgiven amount as income. Revenue Recognition : The Company recognizes revenues in accordance with ASC 606, Revenues from Contracts with Customers . Under ASC 606, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocation the transaction price to the performance obligation in the contract; and (5) recognize revenue when (or as) the Company satisfies the performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Revenues from park admission fees are recognized at the point in time control transfers to the customer, which is generally when the customer accepts access to the park and the Company is entitled to payment. Park admission fee revenues from advance online ticket purchases are deferred until the customers’ visit to the parks. Park admission revenues for annual passes and memberships are deferred and recognized as revenue on a pro-rata basis over the term of the pass or membership. Revenues from retail and concession sales are generally recognized upon the concurrent receipt of payment and delivery of goods to the customer. Sales taxes billed and collected are not included in revenue. The Company periodically sells surplus animals created from the natural breeding process that occurs within the parks. All animal sales are reported as a separate revenue line item. Animal sales are recognized at a point in time when control transfers to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which generally occurs upon delivery of the animal. Based on the Company’s assessment of control indicators, sales are recognized when animals are delivered to the customer. The Company provides disaggregation of revenue based on geography in “ Note 10: Business Segments ”, as it believes this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Deferred revenues from advance online admission tickets, and season passes and memberships were $ 242,318 and $ 273,386 as of October 3, 2021 and September 27, 2020, respectively, and is included within Other Current Liabilities in the accompanying consolidated balance sheets. Advertising and Marketing Costs : The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense for the years ended October 3, 2021 and September 27, 2020 totaled $ 977,562 and $ 749,411 , respectively. Stock Based Compensation : The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period associated with the grant. The Company awards shares to its Board of Directors for service on the Board. The shares issued to the Board are “restricted” and are not to be re-sold unless an exemption is available, such as the exemption afforded by Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Company recognizes the expense based on the fair market value at time of the grant. The Company typically awards its annual Director compensation around the end of each calendar year. A Stock Option and Award Plan (the “Plan”) providing for incentive stock options and performance bonus awards for executives, employees, and directors was approved by the Company’s Board of Directors on February 1, 2005, however, the Plan has not been submitted to the stockholders for approval. The Plan sets aside five million ( 5,000,000 ) shares for award of stock options, including qualified incentive stock options and performance stock bonuses. To date, no grants or awards have been made pursuant to the Plan and the Company did not submit the Plan for consideration to the Company’s stockholders at its last meeting of stockholders. F- 11 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes : The Company utilizes the asset and liability method of accounting for income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and the tax basis of the assets and liabilities, and are measured using the enacted tax rates and laws. Management periodically reviews the Company’s deferred tax assets to determine whether their value can be realized based on available evidence. A valuation allowance is established when management believes it is more likely than not, that such tax benefits will not be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. The Company follows guidance issued by the FASB ASC 740 with respect to accounting for uncertainty in income taxes. A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued as of October 3, 2021 or September 27, 2020. Basic and Diluted Net Income (Loss) Per Share : Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise any common share rights unless the exercise becomes anti-dilutive. Basic and diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the applicable weighted average number of common shares outstanding in each period. Dividend Policy : The Company has not yet adopted a policy regarding payment of dividends. Recent Accounting Pronouncements : Credit Losses – Financial Instruments In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) , which changes the impairment model for most financial assets to require measurement and recognition of expected credit losses for financial assets held, replacing the existing incurred loss model. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principals in ASC 740, and also clarifies and amends existing guidance to improve consistent application. The provisions ASU 2019-12 are effective for the Company’s financial statements no later than the fiscal year beginning October 4, 2021. The Company is in the process of evaluating the impact of this amendment on its consolidated financial statements; however, it is not anticipated to be material. Except as noted, the Company does not expect recently issued accounting standards or interpretations to have a material impact on the Company’s financial position, results of operations, cash flows or financial statement disclosures. F- 12 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 3. ACQUISITION On April 27, 2020 , the Company, through a newly formed subsidiary, Aggieland-Parks, Inc., a Texas corporation, acquired substantially all the assets of Aggieland Safari LLC, Ferrill Creek Ranch LLC, and Vernell Investments LLC (combined the “Aggieland Assets”), primarily consisting of the Aggieland Safari Adventure Zoo and Safari Park (“Aggieland Safari”), including animal inventory, real estate, mineral rights, and certain equipment and other assets necessary to operate Aggieland Wild Animal – Texas. Aggieland Wild Animal – Texas is situated on 250 acres of a 450-acre property, located approximately 25 miles northeast of Bryan/College Station, Texas and 120 miles northwest of downtown Houston. The total purchase price for the Aggieland Assets was $ 7.10 million, after determination of the fair value of the seller note. The transaction was financed with a $ 5.00 million loan (the “2020 Term Loan”) from First Financial Bank, N.A. (“First Financial”), a seller note with a face value of $ 750,000 (the “Aggieland Seller Note”), and cash totaling $ 1.38 million. The 2020 Term Loan is secured by substantially all the Aggieland Assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0 % per annum, has a maturity date of April 27, 2031 , and required interest only monthly payments through April 2021. The Aggieland Seller Note represented a deferred portion of the purchase price, bore no interest, matured on June 30, 2021, and was secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $ 728,500 for the Aggieland Seller Note as of April 27, 2020. The following table sets forth the purchase consideration paid to the members of Aggieland Safari and the amount of assets acquired and liabilities assumed as of the acquisition date: SCHEDULE OF SOURCES OF CONSIDERATION PAID TO AGGIELAND SAFARI MEMBERS Sources of consideration paid to Aggieland Safari Members: Cash advances $ 125,000 Cash at closing 1,250,000 2020 Term Loan 5,000,000 Aggieland Seller Note 728,500 Less cash received ( 1,500 ) Total consideration $ 7,102,000 Purchase price allocation: SCHEDULE OF PURCHASE PRICE ALLOCATION Inventories $ 10,000 Property and equipment 7,131,000 Deferred revenue ( 39,000 ) Total net assets acquired $ 7,102,000 The purchase price has been allocated based on the estimated fair value of assets acquired and liabilities assumed as of the acquisition date. The determination of estimated fair value requires management to make significant estimates and assumptions. The following table presents supplemental pro forma information for the year ended September 27, 2020 as if the acquisition had occurred at the beginning of the Company’s 2020 fiscal year. The unaudited pro forma information includes adjustments for depreciation expense on property and equipment acquired, interest expense on debt incurred related to the acquisition, and the related income tax effects, as well as the elimination of property and equipment impairment charges recorded by Aggieland Safari prior to the acquisition. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected at the beginning of the Company’s 2020 fiscal year. SCHEDULE OF SUPPLEMENTAL PRO FORMA INFORMATION For the year ended September 27, 2020 Total net sales $ 10,165,644 Net income $ 2,613,578 Income per share - basic and diluted $ 0.03 F- 13 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 4. LONG-TERM DEBT On June 18, 2021, the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed a refinancing transaction (the “2021 Refinancing”) with Synovus Bank (“Synovus”). The 2021 Refinancing included a term loan in the original principal amount of $ 1.95 million (the “2021 Term Loan”). The 2021 Term Loan bears interest at a rate of 3.75 % per annum and is payable in monthly installments of approximately $ 26,480 , based on a seven-year amortization period. The 2021 Term Loan has a maturity date of June 18, 2028 . The 2021 Term Loan is secured by a security deed on the assets of Wild Animal – Georgia. The Company paid a total of approximately $ 1,514 in fees and expenses in connection with the 2021 Refinancing. The outstanding balance of the 2021 Term Loan was $ 1.89 million as of October 3, 2021. On July 11, 2018 , the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed a refinancing transaction (the “2018 Refinancing”) with Synovus. The 2018 Refinancing included a term loan in the original principal amount of $ 1.6 million (the “ 2018 Term Loan ”). The 2018 Term Loan had an interest rate of 5.0 % per annum and was payable in monthly payments of approximately $ 22,672 , based on a seven-year amortization period. The 2018 Term Loan had a maturity date of June 11, 2021 , with an option to renew at 5.0% per annum for an additional 49-month term. The 2018 Term Loan was secured by a security deed on the assets of Wild Animal – Georgia. The Company paid a total of approximately $ 15,680 in fees and expenses in connection with the 2018 Refinancing. The 2021 Term Loan replaced the Company’s 2018 Term Loan with Synovus, which had an outstanding balance of $ 1.02 million, which was paid off with the proceeds of the 2021 Term Loan. On April 27, 2020 , the Company acquired Aggieland Wild Animal – Texas, see “NOTE 3. ACQUISITION”, financing the transaction with the 2020 Term Loan from First Financial and the Aggieland Seller Note. The 2020 Term Loan in the original principal amount of $ 5.00 million from First Financial is secured by substantially all the Aggieland Wild Animal – Texas assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0 % per annum, has a maturity date of April 27, 2031, and required interest only monthly payments through April 2021. The 2020 Term Loan requires monthly payments of approximately $ 53,213 beginning in May 2021. The Company paid a total of approximately $ 62,375 in fees and expenses in connection with the 2020 Term Loan. On June 30, 2021 , the Company used the incremental proceeds of the 2021 Term Loan, combined with additional funds, to paydown $ 1.00 million against the 2020 Term Loan, which had an outstanding balance of $ 3.83 million as of October 3, 2021. The Company was in compliance with the liquidity and annual debt coverage ratio financial covenants of the 2020 Term Loan as of September 27, 2020 and October 3, 2021, and for the years then ended. The Aggieland Seller Note represented a deferred portion of the Aggieland Wild Animal – Texas purchase price, had a face value of $ 750,000 , bore no interest, matured on June 30, 2021, and was secured by a second priority subordinated lien and security interest in the acquired mineral rights and the animal inventory. The Company applied a 2.5% discount rate to determine a fair value of $ 728,500 for the Aggieland Seller Note as of April 27, 2020, with the resulting $ 21,500 discount amortized as interest expense over the period of the Aggieland Seller Note. On June 29, 2021, the Company paid off the Aggieland Seller Note. As a result of the initial negative economic impacts and uncertainties caused by the COVID-19 pandemic, Wild Animal – Georgia and Wild Animal – Missouri each applied for Paycheck Protection Program (“PPP”) loans. On April 14, 2020 and April 16, 2020 , the Company received two unsecured PPP loans totaling $ 188,087 . The PPP was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, and is administered by the U.S. Small Business Administration (the “SBA”). The term of the PPP loans was two years, with an interest rate of 1.0 % per annum. All payments were deferred for the first twelve months of these PPP loans, with accrued interest being added to the principal during the payment deferral period. Under the terms of the CARES Act, some or all the PPP loan proceeds were eligible to be forgiven, based on use for specified purposes, subject to limitations and ongoing rulemaking by the SBA. The Company applied for forgiveness of the full amount of both the Wild Animal – Georgia and Wild Animal – Missouri PPP loans in March 2021. Effective March 29, 2021 and May 25, 2021 the SBA approved the Forgiveness Applications for Wild Animal – Georgia and Wild Animal – Missouri, respectively, including forgiveness of accrued interest, resulting in a gain on extinguishment of debt totaling $ 189,988 , during the year ended October 3, 2021. Interest expense of $ 335,944 and $ 182,926 for the years ended October 3, 2021 and September 27, 2020, respectively, includes $ 16,366 and $ 4,603 , respectively, of debt financing costs amortization in each period. In addition, interest expense for the years ended October 3, 2021 and September 27, 2020 includes $ 13,985 and $ 7,517 of loan discount amortization, respectively. F- 14 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 4. LONG-TERM DEBT (CONTINUED) The following table represents the aggregate of the Company’s outstanding long-term debt: SCHEDULE OF DEBT As of October 3, 2021 September 27, 2020 Loan principal outstanding $ 5,715,466 $ 7,089,053 Less: unamortized debt financing costs ( 55,803 ) ( 70,652 ) Gross long-term debt 5,659,663 7,018,401 Less current portion of long-term debt, net of unamortized costs and discount ( 699,483 ) ( 1,221,009 ) Long-term debt $ 4,960,180 $ 5,797,392 As of October 3, 2021, the scheduled future principal maturities, by fiscal year, are as follows: SCHEDULE OF MATURITIES OF LONG-TERM DEBT 2022 705,370 2023 738,668 2024 773,565 2025 810,141 2026 848,477 thereafter 1,839,245 Total $ 5,715,466 NOTE 5. LINE OF CREDIT July 11, 2018 , the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed the 2018 Refinancing with Synovus . The 2018 Refinancing included a line of credit of up to $ 350,000 (the “2018 LOC”). The 2018 LOC was scheduled to mature July 11, 2021 , with an option to renew for an additional three-year term . On June 18, 2021 , the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed the 2021 Refinancing with Synovus, which in part replaced the 2018 LOC. The Company elected to not renew the 2018 LOC, which had never been utilized. NOTE 6. STOCKHOLDERS’ EQUITY Shares of common stock issued for service to the Company are valued based on market price on the date of the award. On December 18, 2020, the Company declared its annual compensation award to six Directors for their service on the Board of Directors. Each Director was awarded $ 10,000 , to be paid all in shares of the Company’s common stock, all in cash or a combination thereof, at each Director’s election. Four Directors elected to receive all shares, one Director elected to receive 50% in shares and 50% in cash, and one Director elected all cash. Based on the closing stock price of $ 0.4388 per share on December 18, 2020, a total of 102,550 shares were distributed on January 11, 2021. The total compensation award cost of $ 60,000 was reported as an expense in the three month period ended January 3, 2021. On December 5, 2019, the Company declared its annual compensation award to four Directors for their service on the Board of Directors. Each Director was awarded $ 8,500 , to be paid all in shares of the Company’s common stock, all in cash or a combination thereof, at each Director’s election. All four Directors elected to receive all shares, totaling 200,000 shares, based on the closing stock price of $ 0.17 per share on December 5, 2019, and the Company distributed each award on January 8, 2020. The total award cost of $ 34,000 was reported as an expense in the three month period ended December 29, 2019. Officers, Directors and their controlled entities own approximately 52.8 % of the outstanding common stock of the Company as of October 3, 2021. F- 15 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES Employment Agreements: Effective as of June 1, 2020 , the Company and Dale Van Voorhis, the Company’s Chairman and Chief Executive Officer, entered into an employment agreement (the “2020 Van Voorhis Employment Agreement”). Pursuant to the 2020 Van Voorhis Employment Agreement, Mr. Van Voorhis receives an initial base annual compensation in the amount of $ 100,000 per year, subject to annual review by the Board of Directors. The 2020 Van Voorhis Employment Agreement has a term of two years and entitles Mr. Van Voorhis to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. Effective as of January 1, 2019 , the Company and Todd R. White, the Company’s Chief Financial Officer, entered into an employment agreement (the “2019 White Employment Agreement”). The 2019 White Employment Agreement has a term of three years , with minimum annual compensation of $ 70,000 in year one, $ 75,000 in year two and $ 80,000 in year three. Effective January 1, 2021, Mr. White’s annual compensation was changed to $ 90,000 . Mr. White is entitled to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. Effective as of May 1, 2018 , the Company entered into an employment agreement with Michael D. Newman (the “Newman Employment Agreement”) to serve as the Company’s Vice President of Safari Operations. Mr. Newman had been the general manager of Wild Animal – Georgia since February 2011. Pursuant to the Newman Employment Agreement, Mr. Newman received an initial base annual compensation of $ 95,000 per year, subject to annual review by the Board of Directors. Mr. Newman also received a $ 5,000 signing bonus. Effective as of May 1, 2020, Mr. Newman’s annual compensation was changed to $ 108,000 . The Newman Employment Agreement had a term of five years and entitled Mr. Newman to participate in any deferred compensation plan the Company may adopt during the term of his employment with the Company. Effective October 31, 2021, Mr. Newman resigned his employment with the Company. As of October 3, 2021, the Company has not adopted any deferred compensation plans. Each of the foregoing employment agreements contains provisions for severance compensation in the event an agreement is (i) terminated early by the Company without cause ($ 116,667 in aggregate) or (ii) in the event of a change in control of the Company ($ 381,667 in aggregate), as well as disability and death payment provisions ($ 95,000 in aggregate). NOTE 8. INCOME TAXES For the years ended October 3, 2021 and September 27, 2020, the Company reported a pre-tax profit of $ 3.68 million and $ 3.69 million, respectively. The Company’s provision for income taxes consists of the following: SCHEDULE OF PROVISION FOR INCOME TAX October 3, 2021 September 27, 2020 For the year ended October 3, 2021 September 27, 2020 Federal $ 688,300 $ 740,800 State 193,700 185,600 Total tax provision $ 882,000 $ 926,400 The Company’s provision for Federal income tax consists of the following: SCHEDULE OF COMPONENTS OF FEDERAL INCOME TAX Federal income tax benefit attributable to: October 3, 2021 September 27, 2020 For the year ended October 3, 2021 September 27, 2020 Provision at statutory rate $ 772,915 $ 775,716 State tax benefit ( 40,677 ) ( 38,976 ) PPP loan forgiveness benefit ( 39,897 ) - Other ( 4,041 ) 4,060 Net provision for Federal income taxes $ 688,300 $ 740,800 For the fiscal years ended October 3, 2021 and September 27, 2020, the Company recorded a provision for State of Georgia income taxes of $ 193,700 and $ 185,600 , respectively. F- 16 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 9. COMMITMENTS AND CONTINGENCIES On February 17, 2021, two children of James Meikle, the Company’s former President and Chief Operating Officer, filed a Complaint in the Eighth Judicial District Court, Clark County, Nevada (case no. A-21-829563-C), alleging the Company was obligated under Mr. Meikle’s Employment Agreement to purchase at least $ 540,000 of life insurance for Mr. Meikle, who passed away on November 28, 2018. The Complaint seeks damages of $ 540,000 , as well as interest and expenses. The Company denies it was obligated to purchase such life insurance and has raised other issues it believes are adverse to this claim. The Company is vigorously opposing this claim. On May 21, 2019, the Company’s Missouri Park was struck by a tornado and sustained property damage, primarily to the “walk about”, the more traditional zoo-like section of the park, as well as to several auxiliary buildings. The park was closed at the time of this event and no employees were injured. While a few animals sustained non-life threatening injuries, no animals were killed or escaped. As a result of the tornado damage, through September 29, 2019, the Company had written-off $ 56,339 related to the net book value of property destroyed and damaged, and incurred $ 24,105 of cleanup and repair expenses. Through September 29, 2019, the Company had capitalized $ 66,376 of expenditures related to improvements associated with the tornado damage. The Company capitalized an additional $ 71,478 of improvements associated with the tornado damage during the year ended September 27, 2020. On April 15, 2020, the Company received $ 24,373 of insurance proceeds, partially offsetting the costs and expenses incurred in the recovery from the tornado damage. Except as described above, the Company is not a party to any pending legal proceeding, nor is its property the subject of a pending legal proceeding, that is not in the ordinary course of business or otherwise material to the financial condition of its business. None of the Company’s directors, officers or affiliates is involved in a proceeding adverse to its business or has a material interest adverse to its business. NOTE 10. BUSINESS SEGMENTS The Company manages its operations on an individual location basis. Discrete financial information is maintained for each Park and provided to corporate management for review and as a basis for decision-making. The primary performance measures used to allocate resources are Park earnings before interest and tax expense, and free cash flow. The following tables present financial information regarding each of the Company’s reportable segments: SCHEDULE OF REVENUE BY REPORTING SEGMENTS October 3, 2021 September 27, 2020 For the year ended October 3, 2021 September 27, 2020 Total net sales: Georgia $ 8,067,808 $ 6,878,994 Missouri 1,792,112 1,449,781 Texas 2,002,571 1,178,489 Consolidated $ 11,862,491 $ 9,507,264 Total net sales $ 11,862,491 $ 9,507,264 Income (loss) before income taxes: Georgia $ 4,517,649 $ 4,113,926 Missouri 202,597 84,836 Texas ( 62,922 ) 433,916 Segment total 4,657,324 4,632,678 Corporate ( 896,136 ) ( 783,671 ) Other income, net 65,314 27,788 Gain on extinguishment of debt 189,988 - Interest expense ( 335,944 ) ( 182,926 ) Consolidated $ 3,680,546 $ 3,693,869 Income before income taxes $ 3,680,546 $ 3,693,869 F- 17 PARKS! AMERICA, INC. and SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS October 3, 2021 NOTE 10. BUSINESS SEGMENTS (CONTINUED) October 3, 2021 September 27, 2020 For the year ended October 3, 2021 September 27, 2020 Depreciation and amortization: Georgia $ 273,900 $ 258,779 Missouri 223,338 238,560 Texas 206,778 78,800 Corporate 30,351 12,120 Consolidated $ 734,367 $ 588,259 Depreciation and amortization $ 734,367 $ 588,259 Capital expenditures Georgia $ 513,676 $ 193,116 Missouri 251,236 190,928 Texas 223,989 141,365 Consolidated $ 988,901 $ 525,409 Capital expenditures $ 988,901 $ 525,409 October 3, 2021 September 27, 2020 As of October 3, 2021 September 27, 2020 Total assets: Georgia $ 9,785,396 $ 8,352,457 Missouri 3,388,808 3,120,166 Texas 7,554,842 7,919,577 Corporate 252,930 130,083 Consolidated $ 20,981,976 $ 19,522,283 Total assets $ 20,981,976 $ 19,522,283 NOTE 11. SUBSEQUENT EVENTS The Company has analyzed its operations subsequent to October 3, 2021 to the date these financial statements were issued and has determined that no material subsequent events have occurred from the date of these consolidated financial statements through the date of filing. F- 18