UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)
[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, ~~2021~~2022

OR

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ___________

Commission file number 0-8463

PISMO COAST VILLAGE, INC.

(Exact name of registrant as specified in its charter)

California 95-2990441

(State or other jurisdiction of incorporation or organization) (IRS Employer ID No.)

165 South Dolliver Street, Pismo Beach, CA 93449

(Address of Principal Executive Offices) (Zip Code)

(805) 773-5649

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Name of Each Exchange

on Which Registered

Title of Each Class

N/A

Securities registered pursuant to Section 12(g) of the Act:

Common Stock

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES [ ] NO [~~[X]~~X
]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. YES [ ] NO [~~[X]~~X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Subsection 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES [X] NO [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Subsection 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

[ ] Large accelerated filer

[ ] Accelerated filer

[X] Non-accelerated filer

[X] Smaller reporting company

[ ] Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES [ ] NO [X]

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter. ~~$78,100,000~~$88,700,000

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES [ ] NO [ ]

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. ~~1,775~~1,774

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's Notice of ~~2021~~2022 Definitive Proxy Statement for the Annual Meeting of Shareholders to be held January ~~15, 2022,~~21, 2023, are incorporated by reference into Part III.

FORM 10-K

PART I

ITEM 1. BUSINESS

a. BUSINESS DEVELOPMENT

Pismo Coast Village, Inc., the "Registrant" or the "Company," was incorporated under the laws of the State of California on April 2, 1975. The Company's sole business is owning and operating Pismo Coast Village RV Resort, a recreational vehicle resort (hereinafter the "Resort") in Pismo Beach, California. The Resort has continued to enhance its business by upgrading facilities and services to better serve customers.

b. BUSINESS OF ISSUER

The Company is engaged in only one business, namely, the ownership and operation of the Resort. The Company generates revenue from rental of camping sites, recreational vehicle storage, recreational vehicle repair and retail sales from a general store and recreational vehicle parts store. Accordingly, all of the revenues, operating profit (loss) and identifiable assets of the Company are attributable to a single industry segment.

Pismo Coast Village RV Resort is a full-service 400-space recreational vehicle resort. Its Resort operations include site rentals, RV storage business, video arcade, laundromat, and other income sources related to the operation. The retail operations include a general store, RV parts store, and RV repair shop. In addition, the Company has a recreation department that provides a summer season youth program and recreational equipment rentals.

PUBLIC AND SHAREHOLDER USERS

The present policy of the Company is to offer each shareholder the opportunity for 45 nights of free use of sites at the Resort; 25 nights may be used during prime time and 20 nights during non-prime time. The free use of sites by shareholders is managed by designating the nights of the year as prime time and non-prime time. A ~~prime time~~prime-time night is one that is most in demand, for example, Memorial Day Weekend and the period from June 1 until Labor Day. Non-prime time is that time with the least demand. Each shareholder is furnished annually a calendar that designates the prime and non-prime time nights; it also provides a schedule of when reservations can be made and the procedure for making reservations. Shareholder's free use of sites average approximately 21% to 24% annually (refer to Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, page 9).

SEASONAL ASPECTS OF BUSINESS

The business of the Company is seasonal and is concentrated during prime days of the year which are defined as follows: President's Day Weekend, Easter week, Memorial Day Weekend, summer vacation months, Labor Day, Thanksgiving Weekend and Christmas vacation.

WORKING CAPITAL REQUIREMENTS

By accumulating reserves during the prime seasons, the Company is able generally to meet its working capital needs during off-season. Industry practice is to accumulate funds during the prime season, and use such funds, as necessary, in the off-season. The Company has arranged, but not used, a $500,000 line of credit to ensure funds are available, if necessary, in the off-season.

COMPETITION

The Company is in competition with nine other RV parks located within a five-mile radius. Since its property is the only property located adjacent to the beach, it has a competitive edge. The Company is recognized as a recreational vehicle resort rather than a park because of its upgraded facilities and amenities, which include a restaurant, general store, 66 channels of satellite TV, high-speed wireless internet service throughout the property, a heated pool, a miniature golf course and a recreational program. The Resort is noted for its ability to provide full service, which includes RV storage and RV repair and service. The Resort is consistently given high ratings by industry travel guides based on resort appearance, facilities offered, and recreational programs. In November 2007, Pismo Coast Village RV Resort was awarded the designation of 2007/2008 RV Park of the Year, Large Park Category, by the National Association of RV Parks and Campgrounds (ARVC), which has a membership of more than 3,900 properties. Pismo Coast Village RV Resort also received national Park of the Year honors in 1999, 1997, and 1995. In fiscal year 2004, Pismo Coast Village RV Resort was awarded the designation of RV Park of the Year - Mega Park Category 2004 by the California Travel Parks Association (CTPA), now known as the California Association of RV Parks and Campgrounds (CalARVC). ~~These factors allow the Resort to price its site rental fees above most of its competition based on perceived value received.~~

Competition for the tourist market is strong between the cities on the Central Coast of California. Resort management and staff are involved with the City of Pismo Beach, Chamber of Commerce, Conference and Visitors Bureau, and are major sponsors in cooperative events and advertising. The Resort continues to market off-season discounts and place advertisements in trade publications and industry directories. In addition, the Company places its brochure with companies selling or renting recreational vehicles and has found the Resort's website and social media to be very effective. The marketing program also targets groups and clubs by offering group discounts, meeting facilities, and catering services. The Company's marketing plan was funded ~~$38,690~~$58,944 for fiscal year ~~2021,~~2022, which was developed out of operating revenues. The major source of the Company's business is repeat business, which has been developed by attention to good customer service and providing quality recreational facilities.

ENVIRONMENTAL REGULATION

The Company is affected by federal, state and local antipollution laws and regulations. Due to the nature of its business operations (camping, RV storage and small retail store sales), the discharge of materials into the environment is not considered to be of a significant concern, and the EPA has not designated the Company as a potentially responsible party for clean up of hazardous waste.

The main property of the Resort is located within the boundaries of those lands under the review and purview of the Coastal Commission of the State of California and the City of Pismo Beach. The water and sewer systems are serviced by the City of Pismo Beach. The Company was subject to state and federal regulations regarding the fiscal year 1996 reconstruction of an outflow structure that empties into Pismo Creek at the north boundary of the Resort. Because the Resort is within the wetlands area, the California Coastal Commission required permits for repair and construction to be reviewed by the following agencies: City of Pismo Beach, State Lands Commission, Regional Water Quality Board, State of California, California Department of Fish and Game, State Department of Parks and Recreation and the Army Corps of Engineers.

EMPLOYEES

As of September 30, ~~2021,~~2022, the Company employed approximately 6171 people, with 1323 of these on a part-time basis and 4842 on a full-time basis. Due to the seasonal nature of the business, additional staff is needed during peak periods and fewer during the off-season. Staffing levels during the fiscal year ranged from approximately 5764 employees to 6371 employees. Management considers its labor relations to be good.

ADDITIONAL INFORMATION

The Company has remained conservative when considering rates and rate increases. As a result of experiencing increasing operational expenses and conducting a local comparative rate study, the Board of Directors (Board) voted to increase all ~~monthly~~ trailer ~~storage~~towing fees $6$10 per ~~month~~tow effective ~~January~~August 1, ~~2021.~~2022. The Board also voted at the ~~September 2020~~May 2021 meeting to increase all nightly rates $5 per night effective ~~March~~January 1, ~~2021.~~2022. It is anticipated the proposed rates will continue to market site usage at its highest value and not negatively impact the Company's ability to capture an optimum market share.

c. REPORTS TO SECURITY HOLDERS

Pismo Coast Village, Inc. files quarterly reports, an annual report, and periodic reports, providing the public with current information about the Company and its operations with the Securities and Exchange Commission.

The Company makes available on its website, www.pismocoastvillage.com, access to its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission.

The public may read and copy any materials filed with the Securities and Exchange Commission, on official business days during the hours of 10:00 a.m. to 3:00 p.m., at the SEC's Public Reference Room located at 100 F Street, N. E., Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet site (http://www.sec.gov) that contains reports, proxy statements, and other information that the Company files electronically with the SEC.

ITEM 2. PROPERTIES

The Company's principal asset consists of the Resort, which is located at 165 South Dolliver Street in Pismo Beach, California. The Resort is built on a 26-acre site and includes 400 campsites with full hookups and nearby restrooms with showers and common facilities, such as a video arcade, recreation hall, restaurant, general store, swimming pool, laundromat, and three playgrounds.

In 1980, the Company purchased a 2.1-acre parcel of real property located at 2250 22nd Street, Oceano, California, at a price of $66,564. The property is being used by the Company as a storage facility for recreational vehicles. The storage capacity of this lot is approximately 121 units. On October 20, 2014, the Company entered into a long-term lease with Verizon Wireless for the installation of a cell tower. The lease term is for five (5) years with up to four (4) additional five (5) year terms unless lessee terminates the lease at the end of the current term.

In 1981, the Company exercised an option and purchased a 3.3-acre parcel located at 424 South Dolliver Street, Pismo Beach, California, at a price of $300,000. The property, which previously had been leased by the Company, is used primarily as a recreational vehicle storage yard. The storage capacity of this lot is approximately 120 units. On June 6, 2016, the Company entered into a long-term lease with Verizon Wireless for the installation of a cell tower. The lease term is for five (5) years with up to four (4) additional five (5) year terms unless lessee terminates the lease at the end of the current term.

In 1988, the Company purchased approximately 0.6 acres of property at 180 South Dolliver Street, Pismo Beach, California, across the street from the main property, consisting of a large building with a storefront and one large maintenance bay in the rear. Also, on the property is a smaller garage-type building with three parking stalls. The Company enlarged its recreational vehicle repair operation, added RV storage for approximately eleven units and developed the storefront into an RV parts store. The property was purchased for $345,000, of which $300,000 was financed and paid in full during fiscal year 1997.

On December 31, 1998, the Company closed escrow on a parcel of property located at 1295 Sand Dollar Avenue, Oceano, California, to be developed as an additional RV storage facility. The 5.5-acre property is located adjacent to existing Company RV storage. On October 14, 1999, construction was completed, and the Company received County approval to occupy the premises. The property was purchased for $495,000, of which $395,000 was financed and paid in full in July 2000. Development cost amounted to $195,723 and was allocated from operational cash flow. Storage capacity for this property is approximately 408 units and is currently full.

On February 28, 2003, the Company closed escrow on a parcel of property to be developed as an additional RV storage facility. The 4.7-acre property is located on Fountain Avenue in Oceano, California, and was purchased for $650,000, of which $500,000 was financed. The note on this property was paid off in September 2005. The construction permit granted by the County of San Luis Obispo was contingent upon permit approval by the California Coastal Commission. In January 2006, the Commission denied the permit based on wetland conditions. The property is currently being considered for another ~~use.~~use or possibly liquidation.

Due to the continued demand for RV storage and the denial of the aforementioned permit, the Board of Directors elected to purchase additional property. On January 11, 2006, the Company closed escrow on a six-acre property located at 974 Sheridan Road, Arroyo Grande, California, previously developed as an RV storage facility. The purchase price was $2.1 million, and included approximately 80 existing storage customers. This property had been permitted and developed the previous year, and is considered in good condition with a capacity of approximately 229 units.

On April 6, 2006, the Company purchased the 2.2-acre property located at 2030 Front Street in Oceano, California, that it previously rented from Union Pacific Railroad for RV storage. The purchase price was $925,000 and the condition is considered good. The lot is operating at full capacity with 181 units.

On May 9, 2008, the Company closed escrow on a 19.55-acre property located at 2180 Arriba Place in Arroyo Grande, California, to be developed for RV storage. The purchase price was $3.1 million for the undeveloped land. The Company received a development permit through the County of San Luis Obispo Planning Commission. The development was completed in May 2010, and the storage capacity is expected to be approximately 900 units. On January 21, 2013, the Company entered into a long-term lease with Verizon Wireless for the installation of a cell tower. The lease term is for five (5) years with up to four (4) additional five (5) year terms unless lessee terminates the lease at the end of the current term.

On May 20, 2015, the Company closed escrow on a one-acre property located at 2096 Nipomo Street in Oceano, California, to be developed as an RV Repair and Service facility. The purchase price was $425,000 and required the demolition of a two-story residence. The Company successfully expanded the usable property area by seeking road abandonment. On September 1, 2017, the Company received a Minor Use Permit with conditions from San Luis Obispo County. Construction was completed and the Certificate of Occupancy was received from the County of San Luis Obispo in March of 2021.

There is no deferred maintenance on any of the Resort's facilities. The Company's facilities are in good condition and adequate to meet the needs of the shareholder users as well as the public users. The Company continues to develop sufficient revenue from general public sites sales to support a continued positive maintenance program and to meet the demands of shareholders use of free sites.

Management considers the Company's insurance policies offer adequate coverage for risk and liability exposure.

1. TRAILER STORAGE YARDS

In 1986, the Company leased a parcel of land 100 feet wide by 960 feet long, located at 2030 Front Street in Oceano, California, from the Union Pacific Railroad Corporation. The property is being used by the Company as a storage facility for recreational vehicles. Capital improvements in the amount of $40,000 were made to this property, which provides storage for approximately 180 units. On July 29, 2005, Union Pacific Railroad Corporation sold the property to the Weyrick Family Trust, who, after entering into a five-year lease, agreed to sell the property to the Company for $925,000. This transaction was completed April 6, 2006.

Associated with the previously mentioned property, and included within the fenced storage perimeter, is the lease of a ten-foot by 960-foot section belonging to Union Pacific Railroad. This lease also allows for the Company's fence to encroach upon the lessor's property. This annual lease is currently $7,379, with a 3% automatic annual increase.

In 1991, the Company developed a lease for a five-acre RV storage lot at the Oceano Airport clear zone as storage for approximately 310 RVs. This lot, which is located at 1909 Delta Lane in Oceano, was developed to replace a 100-unit storage lot that was closed when the lease was not renewed. Construction was completed in January 1992 and capital improvements in the amount of $330,768 were made to this property of which $300,000 was financed and paid in full during fiscal year 1997. The original lease on the storage lot was for five years and the Company executed a third five-year option with the County of San Luis Obispo that expired December 31, 2006. In response to the Company's request for another five-year extension, the County has answered that, until the Oceano Airport Master Plan is updated, the lease will be a month-to-month holdover.

On June 2, 2020, the San Luis Obispo County Board of Supervisors voted to approve a lease with the Company following the completion of the Oceano Drainage project. The initial lease term is for two years and may be extended for four additional and successive two-year terms. ~~Monthly~~The lease was extended in June of 2022. The monthly lease is ~~set at $3,737~~currently $3,924 with an annual adjustment based on Consumer Price Index published in July.

The Resort leases out areas to other companies to ensure that the best service and equipment are available for guest use or creates cash flow for the Company. These areas are leased from the Company pursuant to the herein below described leases.

1. RECREATIONAL ARCADE AGREEMENT WITH COIN AMUSEMENTS, INC.

This agreement is dated November 1, 2021, and pursuant to this agreement, the Company granted Coin Amusements, Inc. the concession to operate various coin-operated game units at the Resort. The one-year term expires on October 31, ~~2022,~~2023, and continued renewal is expected without significant impact.

2. WASH MULTIFAMILY LAUNDRY SYSTEMS, GOLETA, CA

The seven-year lease that expired October 31, 2016, was renewed for another seven years effective September 1, 2016. The lease grants Wash Multifamily Laundry Systems (“Wash”) the right to place and service coin-operated laundry machines on the Resort. The agreement provides that 70% of the Lessee's gross income be paid to the Company as rent. On September 8, 2016, Wash replaced all 18 washers and 18 dryers with new equipment. Continued renewal is expected without significant impact.

3. PISMO COAST INVESTMENTS

The Company renewed a lease agreement with Ms. Jeanne Sousa, a California Corporations Licensed Broker, for the lease of a 200-square foot building at the Resort from which she conducts sales activities in the Company's stock. On November ~~8, 2019,~~11, 2022, the lease was renewed commencing January 1, ~~2020~~2023 and terminating December 31, ~~2022. Continued renewal is expected without significant impact.~~2025. Termination or cancellation may be made by either Lessor or Lessee by giving the other party sixty (60) days written notice.

4. VERIZON WIRELESS

The Company entered into a lease with GTE Mobilnet of Santa Barbara Limited Partnership, d/b/a Verizon Wireless, for a 42-foot by 37-foot portion of the RV storage lot located at 2180 Arriba Place, Arroyo Grande, California, for the construction and operation of a cell tower communications facility. The term of the lease is for five years commencing on January 21, 2013. On June 1, 2020 an amendment to the agreement was signed by the Company and Airtouch Cellular d/b/a Verizon Wireless. The amendment set the rent to $2000 per month with an annual increase of 2%. The amendment also stipulated six renewable five-year terms

On October 20, 2014, the Company entered into a second lease with GTE Mobilnet of Santa Barbara Limited Partnership, d/b/a Verizon Wireless, for a 40-foot by 40-foot portion of the RV storage lot located at 2250 22^nd Street, Oceano, California, for the construction and operation of a cell tower communications facility. The term of the lease is for five years commencing on October 20, 2014, and ending on October 19, 2019. Continued renewal is expected without significant impact. The Lessee, upon the annual anniversary date of the agreement, may terminate provided that three (3) months prior notice is given to Lessor.

On January 14, 2016, the Company entered into a third lease with GTE Mobilnet of Santa Barbara Limited Partnership, d/b/a Verizon Wireless, for the placement of a 22-foot tall flagpole cell tower at 165 South Dolliver, Pismo Beach, California. The lease includes space for the flagpole and equipment enclosure, conduits, and right of way. The term of the lease is for five years commencing on January 14, 2016, and ending on January 13, 2021. Continued renewal is expected without significant impact. The Lessee, upon the annual anniversary date of the agreement, may terminate provided that three (3) months prior notice is given to Lessor.

On June 6, 2016, the Company entered into a fourth lease with GTE Mobilnet of Santa Barbara Limited Partnership, d/b/a Verizon Wireless, for a 40-foot by 40-foot portion of the RV storage lot located at 424 South Dolliver Street, Pismo Beach, California, for the construction and operation of a cell tower communications facility. The term of the lease is for five years commencing on June 6, 2016, and ending on June 5, 2021. Continued renewal is expected without significant impact. The Lessee, upon the annual anniversary date of the agreement, may terminate provided that three (3) months prior notice is given to Lessor.

5. ROCK AND ROLL DINER OF OCEANO INC. d/b/a PISMO COAST VILLAGE GRILL

The Company entered into a lease with Mr. Marios Pouyioukkas, owner/operator of Rock and Roll Diner of Oceano Inc., for the lease of a 708-square foot space at the Resort from which the concessionaire operates the restaurant facilities as an independent food service operation. The term of the initial lease was from June 18, 2012 until December 31, 2013. The lease was renewed November 1, 2019 for a three-year period beginning January 1, 2020, and will expire December 31, 2022. ~~Continued renewal is expected without significant impact.~~This lease has been renewed for a one-year term expiring December 31, 2023. Termination or cancellation may be made by either Lessor or Lessee by giving the other party thirty (30) days written notice.

ITEM 3. LEGAL PROCEEDINGS

No pending legal proceedings against the Company other than routine litigation incidental to the business.

ITEM 4. (REMOVED AND RESERVED).

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

a. MARKET INFORMATION

There is no market for the Company's common stock, and there are only limited or sporadic transactions in its stock. Ms. Jeanne E. Sousa, a licensed broker/dealer, handled sales of the Company’s shares as Pismo Coast Investments. The last transaction the Company is aware of occurred ~~August 10, 2021,~~September 9, 2022, at a price of ~~$44,000~~$50,000 for one share conveyed. This price was used for computation of aggregate market value of Company stock on page 2 of this Report.

b. HOLDERS

The approximate number of holders of the Company's common stock on September 30, ~~2021,~~2022, was ~~1,506.~~1,495.

c. DIVIDENDS

The Company has paid no dividends since it was organized in 1975, and although there is no legal restriction impairing the right of the Company to pay dividends, the Company does not intend to pay dividends in the foreseeable future. The Company selects to invest its available working capital to enhance the facilities at the Resort, or develop properties supporting the Resort operations.

d. SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

The Company does not currently have securities authorized for issuance under equity compensation plans.

e. RECENT SALES OF UNREGISTERED SECURITIES: USE OF PROCEEDS FROM REGISTERED SECURITIES

The Company does not have sales of unregistered securities.

ITEM 6. SELECTED FINANCIAL DATA

Not applicable to smaller reporting companies. See Management’s Discussion and Analysis.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following analysis discusses the Company's financial condition as of September 30, ~~2021,~~2022, compared with September 30, ~~2020.~~2021. The discussion should be read in conjunction with the audited financial statement and the related notes to the financial statement and the other financial information included elsewhere in this Form 10-K.

Certain information included herein contains statements that may be considered forward-looking statements, such as statements relating to anticipated expenses, capital spending and financing sources. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include, but are not limited to, those relating to competitive industry conditions, California tourism and weather conditions, dependence on existing management, leverage and debt service, the regulation of the recreational vehicle industry, domestic or global economic conditions, and changes in federal or state tax laws or the administration of such laws.

OVERVIEW

Pismo Coast Village, Inc. operates as a 400-space recreational vehicle resort. The Company includes additional business operations to provide its users with a full range of services expected of a recreational resort. These services include a store, video arcade, laundromat, recreational vehicle repair, RV parts shop and an RV storage operation.

The Company is authorized to issue 1,800 shares of one class, all with equal voting rights and all being without par value. Transfers of shares are restricted by Company bylaws. One such restriction is that transferees must acquire shares with intent to hold the same for the purpose of enjoying camping rights and other benefits to which a shareholder is entitled. Each share of stock is intended to provide the shareholder with the opportunity for 45 nights of free site use per year. However, if the Company is unable to generate sufficient funds from the public, the Company may be required to charge shareholders for services.

Management is charged with the task of developing sufficient funds to operate the Resort through site sales to general public guests by allocating a minimum of 175 sites to general public use and allocating a maximum of 225 sites for shareholder free use. The other service centers are expected to generate sufficient revenue to support themselves and/or produce a profit.

The Company continues to promote and depend upon recreational vehicle camping as the primary source of revenue. The rental of campsites to the general public provides income to cover expenses, complete capital improvements, and allow shareholders up to 45 free nights camping annually. Additional revenues come from RV storage and spotting, RV service and repair, on-site convenience store, and other ancillary activities such as laundromat, arcade, and bike rental.

On March 11, 2020, the World Health Organization declared the outbreak of a coronavirus (COVID-19) a pandemic. In response, the County of San Luis Obispo followed by the Governor of California issued a Shelter at Home order effective March 19, 2020, requiring certain non-essential businesses to temporarily close to the public. The Company began canceling reservations on March 19 and closed the park on March 23. The resort remained closed until May 22, 2020 at which time the County of San Luis Obispo permitted occupancy to fifty percent. On June 5, 2020, the County of San Luis Obispo allowed lodging businesses to operate at full capacity with restrictions on amenities.

The RVing public actively seeks accommodations on the Central Coast despite volatile fuel prices and personal financial uncertainties. RVing offers an affordable outdoor recreational experience, and the Company provides quality facilities and services in a highly popular location. Site occupancy for fiscal year 2020 was down 18.0%, following the previous year’s occupancy, primarily due to the impacts of COVID-19. Revenues from ancillary operations, such as the General Store, RV service, laundromat, arcade, and bike rental, were significantly decreased due to the COVID-19 closure and ongoing impact.

Following the full resort reopening on June 5, 2020, the company experienced multiple months of record occupancy, including fiscal year 2021 reflecting record occupancy. This occupancy ~~has~~ directly impacted the increase of revenue in all segments of the company. As the COVID-19 pandemic eased, fiscal year 2022 reflected resort activity returning to pre-pandemic levels. Site occupancy, while still strong decreased by 3,185 or 2.5% occupied site nights when comparing fiscal year 2022 to 2021.

RV storage continues to provide a significant portion of the Company’s revenue. RV storage provides numerous benefits to the customer including: no stress of towing, no need to own a tow vehicle, use of RV by multiple family members, and convenience.

Ongoing investment in Resort improvements has assured Resort guests and shareholders a top quality, up-to-date facility. This quality and pride of ownership was evident when the National Association of RV Parks and Campgrounds Park of the Year was awarded to the Resort for 2007 - 2008. In addition, in 2008 the Resort was the only industry rated "A" park in California for customer satisfaction based on internet visitor surveys collected nationally by Guest Reviews. The Resort also received the Guest Reviews “A” rated park recognition for the years 2011, 2012, 2013, 2014, 2015, 2016 and one of 30 parks nationally in 2017. The Resort continues to enjoy high annual ratings from Good Sam receiving 9.5,10, and 8.5 out of 10 for years 2022 and 2021.

The Company's commitment to quality, value, and enjoyment is underscored by the business' success due to word of mouth and referrals from guests. In addition, investment for online marketing, ads in the leading national directories, and trade magazine advertising formulates most of the business-marketing plan.

CURRENT OPERATING PLANS

The Board of Directors continues its previously established policy by adopting a stringent conservative budget for fiscal year ~~2022,~~2023, which projects a positive cash flow of approximately ~~$2,757,241~~$2,913,850 from operations. This projection is based on paid site occupancy reflecting similar occupancy as experienced in fiscal year ~~2019, as fiscal year 2020 occupancy was skewed due to the COVID-19 closure.~~2022. The ~~2022~~2023 budget plan includes a $5 per night increase for all site rentals effective January 1, ~~2022.~~2023. While the Company projects a positive cash flow, this cannot be assured for fiscal year ~~2022.~~2023.

FINANCIAL CONDITION

The business of the Company is seasonal and is concentrated on prime days of the year which are defined as follows: President's Day weekend, Easter week, Memorial Day weekend, summer vacation months, Labor Day weekend, Thanksgiving week, and Christmas/New Year’s week. There are no known trends that affect business or affect revenue.

The Company develops its income from two sources: (a) Resort Operations, consisting of revenues generated from RV site rentals, from RV storage space operations, and lease revenues from the laundromat, arcade, restaurant operations and property leases for cell tower communications facilities by third party lessees; and (b) Retail Operations, consisting of revenues from general store operations and from RV parts and service operations.

With the possibility of requiring additional funds for planned capital improvements and the winter season, the Company maintains a $500,000 Line of Credit to ensure funds will be available if required. In anticipation of future large projects, the Board of Directors has instructed management to build operational cash balances. The Company has no other liabilities to creditors other than current accounts payable arising from its normal day-to-day operations and advance Resort rental reservation deposits, none of which are in arrears.

LIQUIDITY

The Company's policy is to use its ability to generate operating cash flow to meet its expected future needs for internal growth. The Company has continued to maintain sufficient cash so as to not require the use of a short-term line of credit during the off-season period, and the Company expects to be able to do so (although no assurance of continued cash flow can be given).

Net cash provided by operating activities totaled $~~3,001,405~~1,710,003 in ~~2021,~~2022, compared to ~~$1,424,339~~$3,001,405 for the ~~2020~~2021 fiscal year.

During fiscal year 2022, capital investment of $247,870 was made that included Wi-Fi upgrade, surveillance cameras, new truck for security, new truck for RV Service, new backhoe, new outfall pumps and electrical panel, pool heater, and two golf carts. During fiscal year 2021, capital investment of $169,180 was made that included a new street sweeper, a garbage compactor container, and final construction on the RV shop. ~~During fiscal year 2020, capital investment of $637,041 was made that included construction on the new RV service facility, and a new Hino trailer tow truck.~~ These projects were completed on time and within budget.

Fiscal year ~~2021's~~2022's current ratio (current assets to current liabilities) of ~~3.06~~3.82 increased from fiscal year ~~2019's~~2021's current ratio of ~~2.60.~~3.06. The increase in current ratio is the result of increased cash and cash equivalents.

Working Capital increased to $8,499,386 at the end of fiscal year 2022, compared to $6,377,259 at the end of fiscal year ~~2021, compared to $4,288,675 at the end of fiscal year 2020.~~2021. This increase is primarily a result of increased cash and cash equivalents as a result of increased income from Resort operations and postponement of some capital projects.

CAPITAL RESOURCES AND PLANNED EXPENDITURES

The Company plans capital expenditures up to ~~$223,000~~$175,000 in fiscal year ~~2022~~2023 to further enhance the Resort facilities and services. This would include enhancing the resort’s recreation amenities, upgrading ~~the resort WiFi system, installing six surveillance~~RV Storage security cameras, ~~on the resort,~~ replacing ~~two older pickups,~~three maintenance golf carts, and ~~replacing~~purchasing a ~~tractor.~~lowboy tilt-trailer. Funding for these projects is expected to come from normal operating cash flows and, if necessary, supplemented with outside financing. These capital expenditures are expected to increase the Resort's value to its shareholders and the general public.

RESULTS OF OPERATIONS

YEAR-TO-YEAR COMPARISON

Revenue: Operating revenue, interest and other income increased above the prior fiscal year ended September 30, ~~2020,~~2021, by ~~$2,379,128,~~$784,748, or ~~32.0%~~8.0%.

REVENUE BY SEGMENT	REVENUE BY SEGMENT					REVENUE BY SEGMENT

		2021		2020			2022		2021
OCCUPANCY
% of Shareholder Site Use			23.8%		20.4%			24.0%		23.8%
% of Paid Site Rental			65.4%		47.1%			61.3%		63.8%
% Total Site Occupancy			87.5%		67.7%			85.4%		87.5%
% of Storage Rental			99.0%		99.0%			99.0%		99.0%
Average Paid Site		$	67.27	$	64.8		$	75.67	$	68.98

RESORT OPERATIONS
Site Rental		$	6,421,329	$	4,469,703		$	6,775,065	$	6,421,329
Storage Operations			1,895,295		1,788,939			2,015,925		1,895,295
Support Operations			188,275		121,726			230,468		188,275
Total			8,504,899		6,380,368			9,021,458		8,504,899

RETAIL OPERATIONS
Store			705,779		554,899			682,091		705,779
RV Repair/Parts Store			600,228		495,488			632,984		600,228
Total			1,306,007		1,050,387			1,315,075		1,306,007

INTEREST INCOME			981		2,004
Employee Retention Credit								245,380		-

Interest Income								14,822		981

TOTAL REVENUE		$	9,811,887	$	7,432,759		$	10,596,635	$	9,811,887

Occupancy rates on the previous table are calculated based on the quantity occupied as compared to the total sites available for occupancy (i.e., total occupied to number of total available). Average paid site is based on site revenue and paid sites. Resort support operations include revenues received from the arcade, laundromat, recreational activities, and other less significant sources.

~~2021~~2022 COMPARED WITH ~~2020~~2021

Resort operations income increased ~~$2,124,531,~~$516,559, or ~~33.3%~~6.4%, primarily due to ~~COVID-19 and the resort campsites being closed from March 23, 2020 until May 22, 2020. Paid~~a $353,737 or 5.5% increase in site revenue ~~increased $1,951,626, or 43.7%, due to~~reflecting a rate increase, and an increase of ~~26,372,~~$120,631, or ~~38.2% in paid site night occupancy. Due to~~6.4% from the ~~temporary resort closure in 2020,~~ RV Storage and ~~RV Spotting revenue increased $111,526, or 6.5%, for fiscal year ended September 30, 2021.~~towing program.

Retail operations income increased ~~$255,620,~~$9,068, or ~~24.3%~~0.7%, primarily due to the impact of COVID-19 on all resort retail segments during fiscal year 2020. While the RV Service operation was able to remain open, the General Store on the resort was closed from March 23, 2020 until June 5, 2020. The RV Service department revenue ~~increased $104,740,~~increasing $32,756, or ~~21.1%~~5.5% above the previous year. The General Store revenue ~~increased $150,879,~~decreased $23,687, or ~~27.2% above~~3.4% below the previous year. Both RV Service and the General Store were impacted by staffing challenges which included hiring qualified personnel, and in some cases reduction of operational hours. In an effort to maximize revenue, management continues to stock more appropriate items, more effectively merchandise, and pay greater attention to customer service. In addition, management has actively promoted the RV service and retail operation locally compared to previous years.

Interest/Dividend Income ~~decreased $1,023,~~increased $13,841, or ~~51.0%~~1411.0%, ~~below~~above the previous year. This increase was primarily due to a onetime interest payment on a property tax refund. Interest Expense decreased to ~~$13,545~~$11,849 in ~~2021~~2022 compared to ~~$17,413~~$13,545 the previous year.

The Company also received Employee Retention Credit payments totaling $245,380 in June of 2022.

Operating Expenses increased ~~$581,865,~~$921,746, or ~~11.1%~~15.8%, as a result of labor ~~small equipment,~~and labor related expenses, insurance benefits, liability insurance, credit card service expense, ~~land lease, utilities including water/sewer, gas, electricity,~~vehicle expense, landscaping, accounting fees, credit card service expense, repairs and ~~garbage,~~maintenance, storage lot maintenance, advertising, custodial supplies, office supplies, contributions, and ~~vehicle expense. During the 2020 COVID-19 closure, 50% of the staff continued working. During this time many expenses were reduced or managed accordingly.~~Wi-Fi.

Maintaining a conservative approach, most expense items were managed well below plan and in many categories below the previous year. The Board of Directors has directed management to continue maintenance projects as needed to provide a first-class resort for campers using recreational vehicles.

Income before provision for income tax of ~~$3,470,535,~~$2,728,039, a ~~172.3% increase above~~21.4% decrease below last year, is reflective of increased ~~income from operations.~~operating expenses.

Net income of ~~$2,413,335~~$2,003,339 for fiscal year ~~2021~~2022 shows ~~an increase~~a decrease of ~~$1,534,479,~~$409,996, or ~~174.6%~~17.0%, ~~above~~below a net income of ~~$878,856~~$2,413,335 in ~~2020.~~2021. This ~~increase~~decrease in net income is a reflection of the ~~increase~~decrease in the income before provision for income tax.

~~INFLATION~~Inflation has not had a significant impact on our profit position. The Company has increased rates, which have more than compensated for the rate of inflation.

~~FUTURE OPERATING RESULTS~~Future operating results could be unfavorably impacted to the extent that changing prices result in lower discretionary income for customers and/or increased transportation costs to the Resort. In addition, increasing prices affect operations and liquidity by raising the replacement cost of property and equipment.

FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS:

A number of factors, many of which are common to the lodging industry and beyond our control, could affect our business, including the following:

increased gas prices;

increased competition from other resorts in our market;

increases in operating costs due to inflation, labor costs, workers' compensation and healthcare related costs, utility costs, insurance and unanticipated costs such as acts of nature and their consequences and other factors that may not be offset by increased rates;

changes in interest rates, cost and terms of debt financing;

changes in governmental laws and regulations, fiscal policies and zoning ordinances and the related costs of compliance with laws and regulations, fiscal policies and ordinances;

adverse effects of market conditions, which may diminish the desire for leisure travel; and

adverse effects of a downturn in the leisure industry.

The leisure and travel business is seasonal and seasonal variations in revenue at our Resort can be expected to cause quarterly fluctuations in our revenue.

Our revenue is generally highest in the third and fourth quarters. Quarterly revenue also may be harmed by events beyond our control, such as extreme weather conditions, terrorist attacks or alerts, contagious diseases, economic factors, and other considerations affecting travel. To the extent that cash flow from operations is insufficient during any quarter due to temporary or seasonal fluctuations in revenue, we have to rely on our short-term line of credit for operations.

In the recent past, events beyond our control, including an economic slowdown and terrorism, harmed the operating performance of the leisure industry generally, and if these or similar events occur again, our operating and financial results may be harmed by declines in average daily rates or occupancy.

Carrying our outstanding debt may harm our business and financial results by:

requiring us to use a substantial portion of our funds from operations to make required payments on principal and interest, which will reduce the amount of cash available to us for our operations and capital expenditures, future business opportunities and other purposes;

making us more vulnerable to economic and industry downturns and reducing our flexibility in responding to changing business and economic conditions;

limiting our ability to borrow more money for operations, capital expenditures or to finance acquisitions in the future; and

requiring us to sell one or more properties, possibly on disadvantageous terms, in order to make required payments of interest and principal.

Our Resort has a need for ongoing renovations and potentially significant capital expenditures in connection with improvements, and the costs of such renovations or improvements may exceed our expectations.

Occupancy and the rates we are able to charge are often affected by the maintenance and capital improvements at a resort, especially in the event that the maintenance of improvements is not completed on schedule, or if the improvements result in the closure of the General Store or a significant number of sites. The costs of capital expenditures we need to make could harm our financial condition and reduce amounts available for operations. These capital improvements may also give rise to additional risks including:

construction cost overruns and delays;

a possible shortage of available cash to fund capital improvements and the related possibility that financing of these expenditures may not be available to us on favorable terms;

uncertainties as to market demand or a loss of market demand after capital improvements have begun;

disruption in service and site availability causing reduced demand, occupancy, and rates; and

possible environmental issues.

We rely on our executive officers and management team, the loss of whom could significantly harm our business.

In October 2021, our Chief Executive Officer/General Manager, Mr. Jay Jamison informed the Executive Committee that he intended to retire at the end of calendar year 2022. This provided the Company time to conduct a replacement search and allow the successor time to work with Mr. Jamison. On July 15, 2022, Ms. Lesley Marr began her career with Pismo Coast Village, Inc. as General Manager, and assumed full responsibility in that position on November 8, 2022.

~~Our~~Upon retirement of our Chief Executive Officer/General Manager, Jay Jamison, our continued success will depend, to a significant extent, on the efforts and abilities of our ~~C.E.O. and~~new General Manager, ~~Jay Jamison. Mr. Jamison~~Lesley Marr. Ms. Marr is important to our business and strategy and to the extent that were heshe to depart and is not replaced with an experienced substitute, ~~Mr. Jamison's~~Ms. Marr’s departure could harm our operations, financial condition and operating results.

Uninsured and underinsured losses could harm our financial condition, and results of operations.

Various types of catastrophic issues, such as losses due to wars, terrorist acts, earthquakes, floods, pollution or environmental matters, generally are either uninsurable or not economically insurable, or may be subject to insurance coverage limitations, such as large deductibles or co-payments. Our Resort is located on the coast of California, which has been historically at greater risk to certain acts of nature (such as severe storms, fires and earthquakes).

In the event of a catastrophic loss, our insurance coverage may not be sufficient to cover the full current market value or replacement cost of our lost properties. Should an uninsured loss or a loss in excess of insured limits occur, we could lose all or a portion of the capital we have invested in the Resort, as well as the anticipated future revenue from the Resort. In that event, we might nevertheless remain obligated for any notes payable or other financial obligations related to the property. Inflation, changes in building codes and ordinances, environmental considerations and other factors might also keep us from using insurance proceeds to replace or renovate the Resort after it has been damaged or destroyed. Under these circumstances, the insurance proceeds we receive might be inadequate to restore our economic position on the damaged or destroyed property.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Pismo Coast Village, Inc. is responsible for the information and representations contained in this report. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which we considered appropriate in the circumstances and include some amounts based on our best estimates and judgments. Other financial information in this report is consistent with these financial statements.

Our accounting systems include controls designed to reasonably assure assets are safeguarded from unauthorized use or disposition and provide for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. These systems are supplemented by the selection and training of qualified financial personnel and an organizational structure that provides for appropriate segregation of duties.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

Pismo Coast Village, Inc.

165 South Dolliver Street

Pismo Beach, California

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Pismo Coast Village, Inc. (the Company) (a California corporation) as of September 30, ~~2021~~2022 and ~~2020,~~2021, and the related statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended September 30, ~~2021~~2022 and ~~2020,~~2021, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, ~~2021~~2022 and ~~2020,~~2021, and the results of its operations and its cash flows for each of the years in the two-year period ended September 30, ~~2021,~~2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s 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 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 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters 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 matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

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Income Taxes

Management’s estimates of the deferred tax assets, liabilities and provisions disclosed in Note 7 are based primarily on the differences between depreciation measurements on a tax basis versus GAAP basis, and timing of vacation expense recognition and shareholder site usage. We evaluated the key factors and assumptions used to develop the estimates of income tax provisions in determining that they are reasonable in relation to the financial statements taken as a whole.

We identified the evaluation of the Company’s income tax provisions as a critical audit matter because the application of tax law and timing of recognition of income tax expense and benefits is complex and involves subjective judgement.

We have served as the Company’s auditor since 2005.

BROWN ARMSTRONG ACCOUNTANCY CORPORATION

Auditor Firm ID: #237

Bakersfield, California

November ~~12, 2021~~11, 2022

PISMO COAST VILLAGE, INC. BALANCE SHEET SEPTEMBER 30, 2021 AND 2020
PISMO COAST VILLAGE, INC. BALANCE SHEET SEPTEMBER 30, 2022 AND 2021					PISMO COAST VILLAGE, INC. BALANCE SHEET SEPTEMBER 30, 2022 AND 2021

	2021		2020			2022		2021
Assets
Current assets
Cash and cash equivalents	$	9,226,456	$	6,452,110	$	1,019,465	$	9,226,456
Cash Reserved for Capital Improvements and Deferred Maintenance						9,566,367		-
Accounts receivable		36,764		25,610		49,115		36,764
Inventories		200,107		190,211		216,842		200,107
Prepaid income taxes		-		271,200		323,900		-
Prepaid expenses		16,657		22,086		342,211		16,657
Total current assets		9,479,984		6,961,217		11,517,900		9,479,984

Property and equipment
Net of accumulated depreciation and amortization		15,262,544		15,537,195		15,031,100		15,262,544

Total assets	$	24,742,528	$	22,498,412	$	26,549,000	$	24,742,528

Liabilities and Stockholders’ Equity
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	319,576		280,784	$	265,444	$	319,576
Accrued salaries and vacation		417,544		278,874		432,187		417,544
Rental deposits		2,244,848		2,058,135		2,268,627		2,244,848
Income taxes payable		60,000		-		-		60,000
Current portion of capital lease obligations		60,757		54,749		52,256		60,757
Total current liabilities		3,102,725		2,672,542		3,018,514		3,102,725

Long-term liabilities
Deferred taxes		443,300		423,100		424,900		443,300
PPP Loan Payable		-		555,715
Capital lease obligations, net of current portion		156,638		220,525		104,382		156,638

Total liabilities		3,702,663		3,871,882		3,547,796		3,702,663

Stockholders’ equity
Common stock – 0 par value, 1,800 shares issued, 1,775 shares outstanding		5,569,268		5,569,268
Stockholders' equity
Common stock - no par value, 1,800 shares issued, 1,774 shares outstanding						5,566,130		5,569,268
Retained earnings		15,470,597		13,057,262		17,435,074		15,470,597
Total stockholders’ equity		21,039,865		18,626,530
Total stockholders' equity						23,001,204		21,039,865

Total liabilities and Stockholders’ Equity	$	24,742,528	$	22,498,412
Total liabilities and stockholders' equity					$	26,549,000	$	24,742,528

The accompanying notes are an integral part of these financial statements.					The accompanying notes are an integral part of these financial statements.

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PISMO COAST VILLAGE, INC. STATEMENTS OF INCOME AND COMPREHENSIVE INCOME YEARS ENDED SEPTEMBER 30, 2021 AND 2020
PISMO COAST VILLAGE, INC. STATEMENTS OF INCOME AND COMPREHENSIVE INCOME YEARS ENDED SEPTEMBER 30, 2022 AND 2021					PISMO COAST VILLAGE, INC. STATEMENTS OF INCOME AND COMPREHENSIVE INCOME YEARS ENDED SEPTEMBER 30, 2022 AND 2021

	2021		2020			2022		2021
Income
Resort operations	$	8,504,899	$	6,380,368	$	9,021,458	$	8,504,899
Retail operations		1,306,007		1,050,387		1,315,075		1,306,007
Total income		9,810,906		7,430,755		10,336,533		9,810,906

Costs and expenses
Operating expenses		5,816,253		5,234,388		6,737,999		5,816,253
Cost of goods sold		625,358		491,597		639,434		625,358
Depreciation		443,831		414,805
Total cost and expenses		6,885,442		6,140,790
Depreciation and amortization						479,314		443,831
Total costs and expenses						7,856,747		6,885,442

Income from operations		2,925,464		1,289,965		2,479,786		2,925,464

Other income (expense)
Interest and dividend income		981		2,004		14,822		981
Interest expense		(13,545)		(17,413)		(11,849)		(13,545)
Employee Retention Credit Income						245,280		-
PPP loan forgiveness income		557,635		-		-		557,635
Total other income (expense)		545,071		(15,409)		248,253		545,071

Income before provision for income tax		3,470,535		1,274,556		2,728,039		3,470,535

Provision for income tax		1,057,200		395,700		724,700		1,057,200

Net income		2,413,335		878,856	$	2,003,339	$	2,413,335

Net income per share	$	1,359.63	$	495.13	$	1,129.28	$	1,359.63

Total comprehensive income per share	$	1,359.63	$	495.13	$	1,129.28	$	1,359.63

The accompanying notes are an integral part of these financial statements.					The accompanying notes are an integral part of these financial statements.

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PISMO COAST VILLAGE, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
YEARS ENDED SEPTEMBER 30, 2021 AND 2020

Accumulated
Other
Comprehensive
Income

Common Stock

Retained
Earnings

Shares

Amount

Total

Balance – September 30, 2018
1,775

$
5,569,268

$
10,700,173

$
78,004

$
16,347,445

Net Income

1,478,233

1,478,233

Unrealized gain on investments

(78,004)

(78,004)

Balance – September 30, 2019
1,775

$
5,569,268

$
12,178,406

$
-

$
17,747,674

Net Income

878,856

878,856

Unrealized gain on investments

-

-

Balance – September 30, 2020
1,775

$
5,569,268

$
13,057,262

$
-

$
18,626,530

Net Income

2,413,335

2,413,335

Unrealized gain on investments

-

-

Balance – September 30, 2021
1,775

$
5,569,268

$
15,470,597

$
-

$
21,039,865

The accompanying notes are an integral part of these financial statements.

PISMO COAST VILLAGE, INC. STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY YEARS ENDED SEPTEMBER 30, 2022 AND 2021
	Common Stock			Retained Earnings		Accumulated Other Comprehensive Income		Total


	Shares	Amount

Balance - September 30, 2019	1,775	$	5,569,268	$	12,178,406	$	-	$	17,747,674

Net Income				$	878,856				878,856

Balance - September 30, 2020	1,775	$	5,569,268	$	13,057,262	$	-	$	18,626,530

Net Income				$	2,413,335				2,413,335

Balance - September 30, 2021	1,775	$	5,569,268	$	15,470,597	$	-	$	21,039,865

Net Income					2,003,339				2,003,339

Repurchase of common stock	(1)		(3,138)		(38,862)				(42,000)

Balance - September 30, 2022	1,774	$	5,566,130	$	17,435,074	$	-	$	23,001,204

The accompanying notes are an integral part of these financial statements.

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PISMO COAST VILLAGE, INC. STATEMENT OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2021 AND 2020
PISMO COAST VILLAGE, INC. STATEMENT OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2022 AND 2021					PISMO COAST VILLAGE, INC. STATEMENT OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2022 AND 2021

	2021		2020			2022		2021
Cash flows from operating activities
Net Income	$	2,413,335	$	878,856	$	2,003,339	$	2,413,335
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		443,831		414,805		479,314		443,831
PPP loan forgiveness income		(555,715)		-		-		(555,715)
Accounts receivable		(11,154)		24,802		(12,351)		(11,154)
Inventory		(9,896)		1,035		(16,735)		(9,896)
Prepaid income taxes		271,200		(266,300)		(323,900)		271,200
Prepaid expenses		5,429		4,021		(325,554)		5,429
Accounts payable and accrued liabilities		38,792		4,413		(54,132)		38,792
Accrued salaries and vacation		138,670		(81,036)		14,643		138,670
Rental deposits		186,713		465,443		23,779		186,713
Income taxes payable		60,000		-		(60,000)		60,000
Deferred taxes		20,200		(21,700)
Long term deferred taxes						(18,400)		20,200
Total adjustments		588,070		545,483		(293,336)		588,070
Net cash provided by operating activities		3,001,405		1,424,339		1,710,003		3,001,405

Cash flows from investing activities
Purchases of property and equipment		(169,180)		(637,041)		(247,870)		(169,180)
Net cash used in investing activities		(169,180)		(637,041)		(247,870)		(169,180)

Cash flows from financing activities
Proceeds from Loans		-		555,715
Acquisition of capital lease assets		-		81,669
Repurchase of capital stock						(42,000)		-
Principal payments on capital lease obligations		(57,879)		(48,596)		(60,757)		(57,879)
Net cash used in financing activities		(57,879)		588,788		(102,757)		(57,879)

Net increase in cash and cash equivalents		2,774,346		1,376,086		1,359,376		2,774,346

Cash and cash equivalents – beginning of year		6,452,110		5,076,024		9,226,456		6,452,110

Cash and cash equivalents – end of year	$	9,226,456	$	6,452,110	$	10,585,832	$	9,226,456

Reconciliation of Cash and Cash Equivalents Per Balance Sheet
Cash and equivalents						1,019,465		9,226,456
Cash reserved for capital improvements						9,566,367		-
Cash and cash equivalents per statement of cash flows					$	10,585,832	$	9,226,456

Schedule of payments of interest and taxes
Cash paid for income tax	$	705,768	$	663,631	$	1,127,000	$	705,768
Cash paid for interest	$	13,545	$	17,413	$	11,849	$	13,545

The accompanying notes are an integral part of these financial statements.					The accompanying notes are an integral part of these financial statements.

Table of Contents

PISMO COAST VILLAGE, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, ~~2021~~2022 AND ~~2020~~2021

NOTE 1: Nature of Business

Pismo Coast Village, Inc. (the Company) is a recreational vehicle camping resort. Its business is seasonal in nature with the fourth quarter, the summer, being its busiest and most profitable.

NOTE 2: Summary of Significant Accounting Policies

Revenue from Contracts with Customers

The Financial Accounting Standards Board (FASB) issued new guidance that created Topic 606, Revenue from Contracts with Customers, in the Accounting Standards Codification (ASC). Topic 606 supersedes the revenue recognition requirements in FASB ASC 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The new guidance also added Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers, to the ASC to require the deferral of incremental costs of obtaining a contract with a customer. The cumulative impact of adopting FASB ASC 606 was immaterial and did not require an adjustment to retained earnings.

Revenue primarily consists of recreational camping space rentals, revenue from recreational vehicle storage space and RV service and repairs, food and beverage sales and other ancillary goods and services. Revenue is recognized when spaces are occupied or goods and services have been delivered or rendered, respectively.

Sales taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Finally, the Company collects Transient Occupancy Taxes (TOT) and Tourism Business Improvement District (TBID) assessments from guests which are remitted to the City of Pismo Beach and County of San Luis Obispo and are excluded from revenues. At September 30, ~~2021~~2022 and ~~2020,~~2021, the Company had ~~$85,714~~$84,860 and ~~$71,145~~$85,714 in TOT and TBID assessments due to the City of Pismo Beach and the County of San Luis Obispo included in accrued expenses on the combined balance sheet, respectively.

Performance Obligations

For performance obligations related to the Company accommodations and other ancillary goods and services, control transfers to the customer at a point in time. The Company’s principal terms of sale occur simultaneously when control of the goods and services are transferred to the customer and payment is accepted. The Company does not have any significant financing components.

The Company does not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of the business, the Company’s revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at the resort are refunded to guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to services are generally recognized as an adjustment to the transaction price at the time the resort stay occurs or services are rendered.

Desegregation of Revenue

Revenue from performance obligations satisfied at a point in time consists of sales related to the Company accommodations and other ancillary goods and services at the location in Pismo Beach,

Table of Contents

PISMO COAST VILLAGE, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, ~~2021~~2022 AND ~~2020~~2021

PAGE 2

NOTE 2: Summary of Significant Accounting Policies (Continued)

California. The geographic nature of the revenue could affect the nature, timing, amount and uncertainty of revenue and cash flows. Revenue from site rentals, storage rental, spotting, and store and accessory sales accounts for approximately ~~66%~~64%, 14%, 4%, and ~~13%~~12% of the Company total revenue for the period ended September 30, ~~2021,~~2022, respectively. Revenue from other ancillary goods and services accounts for the remaining 3%6% of revenue for the period ended September 30, ~~2021.~~2022.

Customer Deposits

The Company does not recognize revenue when a customer prepays for resort accommodations. Rather, the Company records a deferred revenue liability equal to the amount received. Revenue is then recognized when the customer stays at the resort. As of September 30, ~~2021~~2022 and ~~2020,~~2021, the Company had Customer deposits related to prepaid village accommodations was ~~$2,244,848~~$2,268,627 and ~~$2,058,135~~$2,244,848 on the balance sheet as rental deposits, respectively.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments including certificates of deposit with an original maturity of three months or less when purchased to be cash equivalents. As of September 30, ~~2021~~2022 and ~~2020,~~2021, the Company had ~~$6,097~~$6,089 and ~~$6,096~~$6,097 of cash equivalents.

Allowance for Doubtful Accounts

It is the policy of management to review the outstanding accounts receivable at year-end, as well as historical bad debt write-offs, and establish an allowance for doubtful accounts for estimated uncollectible accounts. Management did not believe an allowance for doubtful accounts was necessary as of September 30, ~~2021~~2022 or ~~2020.~~2021.

Inventories

Inventories have been valued at the lower of cost or market on a first-in, first-out basis. Inventories are comprised primarily of finished goods in the general store and in the RV repair shop.

Property and Equipment

All property and equipment are recorded at cost. Depreciation of property and equipment is computed using the ~~straight line~~straight-line method based on the cost of the assets, less allowance for salvage value, where appropriate. Depreciation rates are based upon the following estimated useful lives:

Building and resort improvements	5 to 40 years
Furniture, fixtures, equipment, and leasehold improvements	5 to 31.5 years
Transportation equipment	5 to 10 years

Table of Contents

PISMO COAST VILLAGE, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, ~~2021~~2022 AND ~~2020~~2021

PAGE 3

NOTE 2: Summary of Significant Accounting Policies (Continued)

Earnings Per Share

The earnings per share are based on the ~~1,775~~1,774 shares issued and outstanding. The financial statements report only basic earnings per share, as there are no potentially dilutive shares outstanding.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Advertising

The Company follows the policy of charging the costs of non-direct advertising as incurred. Advertising expense was ~~$38,690~~$58,944 and ~~$39,589~~$38,690 for the years ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively. Advertising expense was included in operating expenses on the statement of operations.

Concentration of Credit Risk

At September 30, ~~2021~~2022 and ~~2020,~~2021, the Company had cash deposits of ~~$7,400,355~~$552,851 and ~~$4,591,578~~$7,400,355 in excess of the $250,000 federally insured limit with Pacific Premier Bank, respectively. However, because Pacific Premier Bank is a member of the Certificate of Deposit Account Registry Service (CDARS), large deposits are divided into smaller amounts and placed with other FDIC insured banks which are also members of the CDARS network. Then, those member banks issue CDs in amounts under $250,000, so that the entire deposit balance is eligible for FDIC insurance.

~~Risks and Uncertainties~~

Due to ~~uncertainty surrounding the recent COVID-19 pandemic, the length and severity of the outbreak, and the volatility~~large fluctuations in the ~~world investment markets,~~Operating checking account, there may be times when the balance is ~~increasing uncertainty as to how these events will affect results of operations and financial position of~~above the Company going forward. As required by executive order by the Governor of California in March 2020, all non-essential businesses were required to close services offered in person to the public. As such, the recreational vehicle camping resort operated by the Company was required to close and thereby effecting the occupancy rate. However, the Company did see an increase in occupancy rates from July through the report date.$250,000 FDIC threshold.

Income Taxes

The Company uses the asset-liability method of computing deferred taxes in accordance with ~~ASC~~Accounting Standards Codification (ASC) Income Taxes topic. ASC 740 requires, among other things, that if income is expected for the entire year, but there is a net loss to date, a tax benefit is recognized based on the annual effective tax rate.

FASB ASC 740 also requires, among other things, the recognition and measurement of uncertain tax positions based on a "more likely than not" (likelihood greater than 50%) approach. As of September 30, ~~2021,~~2022, management has considered its tax positions and believes that the Company did not maintain any uncertain tax positions under this approach and, accordingly, all tax positions have been fully recorded in the provision for income taxes.

~~PISMO COAST VILLAGE, INC.~~

~~NOTES TO FINANCIAL STATEMENTS~~

~~SEPTEMBER 30, 2021 AND 2020~~

~~PAGE 4~~

~~NOTE 2: Summary of Significant Accounting Policies (Continued)~~

It is the policy of the Company to consistently classify interest and penalties associated with income tax expense separately from the provision for income taxes, and accordingly no interest or penalties associated with income taxes have been included in this calculation, or separately in the Statement of Operations and Retained Earnings. The Company does not expect any material changes through September 30, ~~2022.~~2023. Although the Company does not maintain any uncertain tax positions, tax returns remain subject to examination by the Internal Revenue Service for fiscal years ending on or after September 30, 2018 and by the California Franchise Tax Board for fiscal years ending on or after September 30, 2017.

Table of Contents

PISMO COAST VILLAGE, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2022 AND 2021

PAGE 4

NOTE 3: Property and Equipment

At September 30, ~~2021~~2022 and ~~2020,~~2021, property and equipment included the following:

	2021		2020		2022		2021
Land	$	10,394,747	$	10,394,747	$	10,394,747	$	10,394,747
Building and resort improvements		13,185,090		11,349,248		13,174,590		13,185,090
Furniture, fixtures, equipment and leasehold improvements		777,074		679,303		870,440		777,074
Transportation equipment		794,974		794,974		959,978		794,974
Construction in progress		87,589		1,852,022		87,589		87,589
		25,239,474		25,070,294		25,487,344		25,239,474
Less accumulated depreciation		(9,976,930)		(9,533,099)		(10,456,244)		(9,976,930)
	$	15,262,544	$	15,537,195	$	15,031,100	$	15,262,544

Depreciation and amortization expense was ~~$443,831~~$479,314 and ~~$414,805~~$443,831 for the years ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

At September 30, ~~2021~~2022 and ~~2020~~2021 the cost of assets under capital lease was $405,819 and $405,819, respectively, and related accumulated amortization was ~~$267,393~~$331,071 and ~~$196,991,~~$267,393, respectively. Depreciation expense on assets under capital lease was ~~$70,402~~$63,678 and ~~$70,276~~$70,402 for the years ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

The Company ~~had~~has a revolving line of credit with Pacific Premier Bank (formerly Heritage Oaks Bank) for $500,000, expiring April 1, ~~2022. The Company received a Letter of Credit written in favor of~~2023. There was no outstanding balance on the County of San Luis Obispo (the County), California for $412,062 to cover a bond requirement relating to public improvements as part of the Company’s construction of a new RV service facility. The Company completed the required public improvements and the Letterline of credit ~~has been exonerated.~~as of September 30, 2022 or 2021.

At September 30, ~~2021~~2022 and ~~2020,~~2021, capital lease obligations consisted of the following:

At September 30, ~~2021,~~2022, future minimum payments on capital lease obligations were as follows:

Each share of stock is intended to provide the shareholder with free use of the resort for a maximum of 45 days per year. If the Company is unable to generate sufficient funds from the public, the Company may be required to charge shareholders for services.

A shareholder is entitled to a pro rata share of any dividends as well as a pro rata share of the assets of the Company in the event of its liquidation or sale. The shares are personal property and do not constitute an interest in real property. The ownership of a share does not entitle the owner to any interest in any particular site or camping period.

The provisions for income taxes for the years ended September 30, ~~2021~~2022 and ~~2020~~2021 are as follows:

The Company uses the asset-liability method of computing deferred taxes in accordance with FASB ASC Topic 740. The difference between the effective tax rate and the statutory tax rates is due primarily to the impact of state taxes net of the federal tax benefit and nondeductible variable costs of shareholder usage.

At September 30, ~~2021~~2022 and ~~2020,~~2021, the deferred income tax liabilities consisted of the following:

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The majority of the balance is due to timing differences of depreciation expense, caused by the use of accelerated depreciation methods for tax calculations.

At September 30, ~~2021~~2022 and ~~2020,~~2021, the deferred income tax liabilities consisted of the following temporary differences:

There were no net operating loss or tax credit carryforwards for the year ended September 30, ~~2021~~2022 or ~~2020~~2021 for federal or state.

On April 28, 2020, the Company (the “Borrower”) was granted a loan in the aggregate amount of $553,802, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a note dated April 28, 2020 issued by the borrower, matures on April 28, 2022 and bears interest at a rate of 0.98% per annum, payable monthly commencing on November 28, 2020. The note may be prepaid by the borrower at any time prior to maturity with no prepayment penalties. Funds from the loan were only used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. The Company received full forgiveness of the loan as of May 10, 2021.

The Company leases a lot located in Oceano for $3,575 per month. The lease has converted to a month-to-month lease however the lessor is considering a long-term renewal at this time.

The Company has a five-year lease obligation for a copier. Rental expense under this operating lease is $384 per month. ~~Future minimum lease payments under this obligation are as follows:~~

Rent expense under these lease agreements was ~~$55,945~~$58,400 and ~~$26,091~~$55,945 for the years ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

The Company is the sponsor of a 401(k)-profit sharing pension plan, which covers substantially all full-time employees. Employer contributions are discretionary and are determined on an annual basis. The Company’s matching portion of the 401(k) safe harbor plan was ~~$64,148~~$73,679 and ~~$64,089~~$64,148 for the years ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

Events subsequent to September 30, ~~2021~~2022 have been evaluated through November ~~12, 2021,~~11, 2022, which is the date the financial statements were available to be issued. Management did not identify any subsequent events that required disclosure.

We have audited the financial statements of Pismo Coast Village, Inc. (the Company) as of and for the years ended September 30, ~~2021~~2022 and ~~2020,~~2021, and our reports thereon dated November ~~12, 2021,~~11, 2022, which expressed an unqualified opinion on those financial statements, appears on page 16. The supplementary information contained in the Statements of Operations for the Three Months Ended September 30, ~~2021~~2022 and ~~2020,~~2021, has been subjected to audit procedures performed in conjunction with the audit of the Company’s financial statements. The supplementary information is the responsibility of the Company’s management. Our audit procedures included determining whether the supplementary information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplementary information. In forming our opinion on the supplementary information, we evaluated whether the supplementary information, including its form and content, is presented in conformity with accounting principles generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There has been no change of accountants, nor any disagreement with accountants, on any matter of accounting principle, practices, or financial statement disclosures required to be reported under this item.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports, filed or submitted under the Securities Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, under the direction of our Chief Executive Officer and Chief Financial Officer (who is our principal accounting officer), has evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of September 30, ~~2021~~2022 (the end of the period covered by this report). Based on that evaluation, our principal executive officer and our principal accounting officer concluded that these disclosure controls and procedures were effective as of such date.

Our management is also responsible for establishing internal control over financial reporting ("ICFR") as defined in Rules 13a-I5(f) and 15(d)-15(f) under the 1934 Act. Our ICFR is intended to be designed 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 of America. Our ICFR is expected to include policies and procedures that management believes are necessary 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 generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and our directors; 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.

Management recognizes that there are inherent limitations in the effectiveness of any system of internal control, and accordingly, even effective internal control can provide only reasonable assurance with respect of financial statement preparation and may not prevent or detect misstatements. In addition, effective internal control at a point in time may become ineffective in future periods because of changes in conditions or due to deterioration in the degree of compliance with our established policies and procedures.

As of September 30, ~~2020,~~2022, management assessed the effectiveness of the Company's internal control over financial reporting (ICFR) based on the criteria for effective ICFR established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and SEC guidance on conducting such assessments by smaller reporting companies and non-accelerated filers. Based on that assessment, management concluded that, during the period covered by this report, such internal controls and procedures were effective as of September 30, ~~2021.~~2022.

This Annual Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management's report in this Annual Report.

There were no changes in our internal control over financial reporting during the fiscal year ended September 30, ~~2021~~2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

a. The Company's Directors were chosen at the Shareholders’ Annual Meeting held January ~~16, 2021.~~15, 2022. The Directors serve for one year, or until their successors are elected. The names, ages, background and other information concerning the Directors, including other offices held by the Directors with the Company, are set forth below.

The following is a list of the Company's Directors and Executive Officers setting forth their functions and experience. There is no understanding or agreement under which the Directors hold office.

There are no familial relationships between the Directors nor between the Directors and the Officers.

To the knowledge of the Company, none of the officers or directors have been personally involved in any bankruptcy or insolvency proceedings. To the knowledge of the Company, none of the directors or officers have been convicted in any criminal proceedings (excluding traffic violations and other minor offenses) or are the subject of a criminal proceeding which is presently pending, nor have such persons been the subject of any order, judgment, or decree of any court of competent jurisdiction, permanently or temporarily enjoining them from acting as an investment advisor, underwriter, broker or dealer in securities, or as an affiliated person, director or insurance company, or from engaging in or continuing in any conduct or practice in connection with any such activity or in connection with the purchase or sale of any security, nor were any of such persons the subject of a federal or state authority barring or suspending, for more than 60 days, the right of such person to be engaged in any such activity, which order has not been reversed or suspended.

Our Board of Directors has determined that it does not have a member of its Audit Committee that qualifies as an "audit committee financial expert" as defined in Item 401(e) of Regulation S-B, and is "independent" as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended.

We believe that the members of our Audit Committee are collectively capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. Due to the fact that the Directors of Pismo Coast Village, Inc. do not receive compensation for the services they provide in that capacity, the Company has been unable to nominate and retain a director with the required expertise to stand for election to the Board of Directors. However, until the time that our Audit Committee has a qualified audit committee financial expert, we believe our engagement of Glenn Burdette (GB), Certified Public Accountants, satisfies this requirement. GB provides the Company's quarterly compilation of the balance sheets and the related statements of income and retained earnings, and cash flows in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

On November 8, 2003, the Company's Board of Directors adopted the introduction to our code of ethical conduct. After further review, consideration was given to adopting a more comprehensive and detailed Code. At the meeting of the Executive Committee held June 19, 2009, the committee approved a recommendation to present a revised Code of Ethics to the full Board for adoption. At the Board of Directors’ meeting held July 18, 2009, the Board unanimously approved the revised and complete Code of Ethics that applies to all the Company's employees and directors, including our principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions.

The complete text of the revised Code of Ethics is filed with this Form 10-K as Exhibit 14. In addition, the Company has posted the Code of Ethics on its website, www.pismocoastvillage.com.

A copy of the Company’s Code of Ethics will be provided to any person, without charge, upon written request. Requests for the Company’s Code of Ethics should be addressed to:

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Company’s directors, officers, and persons who beneficially own more than ten percent of a registered class of our equity securities within specified time periods to file with the SEC initial reports (“Form 3”) of beneficial ownership and reports of changes (“Form 4” and “Form 5”) in beneficial ownership of Common Stock of the Company. To the Company’s knowledge, based solely on a review of the copies of such reports furnished to us and written representations that no other reports were required, all of the Company’s officers, directors and beneficial owners of greater than ten percent of the outstanding Common Stock complied with the Section 16(a) filing requirements for the fiscal year ended September 30, ~~2021.~~2022.

ITEM 11. EXECUTIVE COMPENSATION STOCK OPTIONS AND STOCK APPRECIATION RIGHTS GRANTED DURING THE LAST FISCAL YEAR

This information required by Item 11 is incorporated by reference in the Company’s Definitive Proxy Statement for the Annual Meeting of Shareholders to be held January ~~15, 2022,~~21, 2023, under the caption “Compensation of Directors and Executive Officers.” The Definitive Proxy Statement is expected to be filed with the Commission on or before December ~~17, 2021.~~14, 2022.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following sets forth the securities beneficially owned, directly, by all directors and officers as a group as of September 30, ~~2021:~~2022:

* Amount of Ownership: All such shares are owned beneficially and of record, and there are no additional shares known to the Company for which the listed beneficial owner has the right to acquire beneficial ownership as specified in Rule 13D-3(d)(1) of the Exchange Act.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

There have been no transactions during the past two years, or proposed transactions, to which the Company was or is to be a party, in which any of the officers, directors, nominees, named shareholders, or family members of any such persons, had or is to have a direct or indirect material interest, other than transactions where competitive bids determine the rates or charges involved, or where the amount involved does not exceed $120,000, or where the interest of the party arises solely from the ownership of securities of the Company and the party received no extra or special benefit that was not shared by all shareholders.

See Item 11, Executive Compensation - Employment contracts and termination of employment and change in control arrangements, for a discussion of the current employment contracts between Pismo Coast Village, Inc. Mr. Jamison and ~~Mr. Jamison.~~Lesley Marr.

During the fiscal years ~~2021~~2022 and ~~2020,~~2021, Pismo Coast Village, Inc. paid for various hospitality functions and for travel, lodging and hospitality expenses for spouses who occasionally accompanied directors when they were traveling on company business. Management believes that the expenditures were to Pismo Coast Village, Inc.'s benefit.

Our Board of Directors consists of shareholders of the Resort and therefore are not considered to be "independent" as defined by Section 121A of the American Stock Exchange Listing Standards. The Board considers all relevant facts and circumstances in its determination of independence of all members of the Board (including any relationships set forth in this Form 10-K under the heading "Certain Related Person Transactions"). As disclosed above, the Audit Committee, the Nominating Committee and the Personnel and Compensation/Benefits Committee members are not considered to be independent.

The shareholders will vote on the independent audit firm for the fiscal year ending September 30, ~~2022~~2023 at the annual shareholders’ meeting held on January ~~15, 2022.~~21, 2023.

The following table discloses the fees that the Company was billed for professional services rendered by its independent public accounting firm, Brown Armstrong Accountancy Corporation, in each of the last two fiscal years.

The previous table reflects fees billed for the audit of the Company's consolidated financial statements included in its Form 10-K and review of its quarterly reports on Form 10-Q.

(1) Reflects fees, if any, for consulting services related to financial accounting and reporting matters.

(2) Reflects fees billed for tax compliance, tax advice and preparation of the Company's federal tax return.

(3) Reflects fees, if any, for other products or professional services not related to the audit of the Company's consolidated financial statements and review of its quarterly reports, or for tax services.

For the fiscal years ended September 30, ~~2021~~2022, and September 30, ~~2020,~~2021, all audit related services, tax services and other services were pre-approved by the Audit Committee, which concluded that the provision of such services by Brown Armstrong were compatible with the maintenance of that firm's independence in the conduct of its auditing function.

(5) No effort expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year was attributed to work performed by persons other than the accountant's full-time, permanent employees.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	2021		2020		2022		2021
A 2016 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,159, including Interest at 4.532% per annum, through January 2023.	$	16,373	$	29,261
A 2016 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,167, including interest at 4.532% per annum, through December 2022.					$	2,837	$	16,373

A 2018 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,147, including interest at 4.644% per annum, through September 2024.		36,762		48,552
A 2018 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,154, including interest at 4.644% per annum, through August 2024.						24,358		36,762

A 2019 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,151, including interest at 4.181% per annum, through May 2025.		44,677		56,411
A 2019 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,162, including interest at 4.181% per annum, through March 2025.						32,364		44,677

A 2019 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,151, including interest at 4.101% per annum, through December 2025.		51,419		62,874		39,482		51,419

A 2020 Hino truck leased from Donahue Transportation Services Corp, payable in monthly installments of $1,166, including interest at 5.406% per annum, through May 2027.		68,164		78,176		57,597		68,164
	$	217,395	$	275,274	$	156,638	$	217,395
Less current portion		(60,757)		(54,749)		(52,256)		(60,757)

Total capital lease obligations, net of current portion	$	156,638	$	220,525	$	104,382	$	156,638

For the Twelve Months Ending September 30,
2022	$	69,611
2023		58,468	$	58,468
2024		53,374		53,374
2025		34,615		34,615
2026		13,992		13,992
Thereafter		9,328		9,328
Present value of future minimum payments		239,388		169,777
Less amount representing interest		(21,993)		(13,139)
		217,395		156,638
Less current portion of capital lease obligations		(60,757)		(52,256)
Total capital lease obligations, net of current portion	$	156,638	$	104,382

	2021		2020		2022		2021
Current:
Federal	$	661,700	$	291,200	$	524,500	$	661,700
State		375,400		126,200		218,500		375,400
		1,037,100		417,400		743,000		1,037,100
Deferred:
Federal		24,400		(20,900)		(12,900)		24,400
State		(4,300)		(800)		(5,400)		(4,300)
						(18,300)		20,100
Provision for income taxes	$	1,057,200	$	395,700	$	724,700	$	1,057,200

	2021		2020		2022		2021
Deferred tax assets (liabilities):
Federal	$	(390,800)	$	(366,400)	$	(377,800)	$	(390,800)
State		(52,500)		(56,700)		(47,100)		(52,500)

Net deferred income taxes	$	(443,300)	$	(423,100)	$	(424,900)	$	(443,300)

	2021		2020		2022		2021

Depreciation	$	(552,900)	$	(492,200)	$	(525,400)	$	(552,900)
Unrealized gain on investments		-		-
Total gross deferred tax liabilities		(552,900)		(492,200)		(525,400)		(552,900)

Vacation accrual		30,100		30,700		34,400		30,100
Federal benefit of state taxes		79,500		38,400		66,100		79,500
Total gross deferred tax assets		109,600		69,100		100,500		109,600

	$	(443,300)	$	(423,100)	$	(424,900)	$	(443,300)

Page

Description of Exhibit

For the Twelve Months Ending September 30,
2021	$	4,608
2022		1,920
	$	6,528

~~Board Member~~	~~Title of Class~~	*Amount of Ownership	~~Percent of Class~~0.059%
Rodney Enns 2577 Sandell Avenue Kingsburg CA 93631	Common Stock	1 Share	~~0.056%~~0.059%
William Fischer 2496 Figleaf Rd Camarillo, CA 93012	Common Stock	1 Share	~~0.056%~~0.059%
Wayne Hardesty 8651 Foothill Boulevard, Space 110 Rancho Cucamonga CA 91730	Common Stock	1 Share	~~0.056%~~
~~Dennis Hearne~~ ~~45075 Merritt Street~~ ~~King City CA 93930~~	~~Common Stock~~	~~2 Shares~~	~~0.111%~~0.059%
Terris Hughes ~~2426 Sunset Street~~3516 Cedar Knolls Way ~~Wasco~~Shafter CA ~~93280~~93263	Common Stock	1 Share	~~0.056%~~0.059%
Marcus Johnson 700 Trout Lake Drive Sanger CA 93657	Common Stock	~~1 Share~~2 Shares	~~0.056%~~0.118%
Karen King 52 Maxine Drive Camarillo CA 93010	Common Stock	1 Share	~~0.056%~~0.059%
Garry Nelson 727 Acacia Avenue Shafter CA 93263	Common Stock	1 Share	~~0.056%~~0.059%
Ronald Nunlist 1105 Minter Avenue Shafter CA 93263	Common Stock	4 Shares	~~0.222%~~0.236%
George Pappi, Jr. 5728 Via De Mansion La Verne CA 91750	Common Stock	1 Share	~~0.056%~~0.059%
Dwight Plumley 4212 West Hemlock Avenue Visalia CA 93277	Common Stock	3 Shares	~~0.166%~~0.177%
Jerry Roberts 16230 Camino Del Sol Los Gatos CA 95032	Common Stock	3 Shares	~~0.166%~~0.177%
Brian Skaggs 371 Northstar Drive Hanford CA 93230	Common Stock	1 Share	~~0.056%~~0.059%
Gary Willems 2015 Dorking Avenue Cambria CA 93428	Common Stock	1 Share	~~0.056%~~0.059%

	Years Ended September 30,				Years ended
	Years Ended September 30,				September 30,
	2021		2020		2022		2021
Audit fees (1)	$	51,900		53,100	$	60,300	$	51,900
Audit-related fees (2)		-		-		-		-
Tax fees (3)		-		-		-		-
All other fees (4)		2,500		2,500		2,500		2,500
Total	$	54,400	$	55,600	$	62,800	$	54,400

Description	Page

Report of Independent Registered Accounting Firm	16

Balance Sheets as of September 30, ~~2021~~2022 and ~~2020~~2021	18

Statements of Income and Comprehensive Income for the years ended September 30, ~~2021~~2022 and ~~2020~~2021	19

Statements of Changes in Stockholders’ Equity for the years ended September 30, ~~2021~~2022 and ~~2020~~2021	20

Statements of Cash Flows for the years ended September 30, ~~2021~~2022 and ~~2020~~2021	21

Notes to Financial Statements for the years ended September 30, ~~2021~~2022 and ~~2020~~2021	22

Independent Auditor's Report on Additional Information	3130

Statements of Income (Unaudited) for the three months ended September 30, ~~2021~~2022 and ~~2020~~2021	3231

Exhibit No.	Description of Exhibit
14	Code of Ethics
31.1	Certification of the President of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Chief Executive Officer (principal executive officer) of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3	Certification of the Chief Financial Officer (principal financial officer and principal accounting officer) of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the President of the Company Pursuant to 18 U.S.C. Subsection 1350, as adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002
32.2	Certification of the Chief Executive Officer (principal executive officer) of the Company pursuant to 18 U.S.C. Subsection 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
32.3	Certification of the Chief Financial Officer (principal financial officer and principal accounting officer) of the Company pursuant to 18 U.S.C. Subsection 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002

By:	/s/ JAY JAMISON Jay Jamison, Chief Executive Officer, General Manager and Assistant Corporate Secretary (principal executive officer)	Date:	November ~~12, 2021~~11, 2022

By:	/s/ GARRY NELSON Garry Nelson, President and Chairman of the Board, and Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ JACK WILLIAMS Jack Williams, Chief Financial Officer, Vice President – Finance, and Director (principal financial officer and principal accounting officer)	Date:	November ~~12, 2021~~11, 2022

By:	/s/ GEORGE PAPPI, JR. George Pappi, Jr., Executive Vice President and Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ ~~BRIAN J. SKAGGS~~KAREN KING ~~Brian J. Skaggs,~~Karen King, Vice President - Secretary and Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ RODNEY ENNS Rodney Enns, Vice President - Operations and Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ DAVID BESSOM David Bessom, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ SAM BLANK Sam Blank, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ HARRY BUCHAKLIAN Harry Buchaklian, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ WILLIAM FISCHER William Fischer, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ WAYNE HARDESTY Wayne Hardesty, Director	Date:	November ~~12, 2021~~

~~By:~~	~~/s/ DENNIS HEARNE~~ ~~Dennis Hearne, Director~~	~~Date:~~	~~November 12, 2021~~11, 2022

By:	/s/ TERRIS HUGHES Terris Hughes, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ MARCUS JOHNSON Marcus Johnson, Director	Date:	November ~~12, 2021~~

~~By:~~	~~/s/ KAREN KING~~ ~~Karen King, Director~~	~~Date:~~	~~November 12, 2021~~11, 2022

By:	/s/ RONALD NUNLIST Ronald Nunlist, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ DWIGHT PLUMLEY Dwight Plumley, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ JERRY ROBERTS Jerry Roberts, Director	Date:	November ~~12, 2021~~11, 2022

By:	/s/ BRIAN SKAGGS Brian Skaggs, Director	Date:	November 11, 2022

By:	/s/ GARY WILLEMS Gary Willems, Director	Date:	November ~~12, 2021~~11, 2022

	2021		2020		2022		2021

Administrative salaries	$	665,879	$	565,767	$	731,182	$	665,879
Advertising and promotion		38,690		39,589		58,944		38,690
Auto and truck expense		100,628		98,201		164,520		100,628
Bad debts		1,237		2,192		1,042		1,237
Contract services		40,051		69,744		68,703		40,051
Corporation expense		43,886		35,794		47,361		43,886
Custodial supplies		27,060		23,049		39,133		27,060
Direct labor		2,067,476		1,756,135		2,405,668		2,067,476
Employee travel and training		23,904		30,975		34,648		23,904
Equipment lease		5,178		5,080		5,389		5,178
Insurance		512,414		511,556		643,325		512,414
Miscellaneous		56,312		40,538		109,420		56,312
Office supplies and expense		83,937		78,981		101,991		83,937
Payroll tax expense		216,173		193,100		223,849		216,173
Payroll service		36,518		47,625		47,042		36,518
Pension plan match		64,148		64,089		73,679		64,148
Professional services		94,236		117,041		121,634		94,236
Property taxes		230,197		227,009		215,930		230,197
Recreational supplies		962		519		3,521		962
Rent - storage lots		50,767		21,011		53,011		50,767
Repairs and maintenance		201,268		298,569		283,124		201,268
Retail operating supplies		6,805		4,397		5,653		6,805
Security		13,738		14,281		14,808		13,738
Service charges		294,955		209,820		354,231		294,955
Taxes and licenses		11,917		11,251		11,343		11,917
Telephone		34,658		31,748		34,371		34,658
Uniforms		32,604		27,505		32,225		32,604
Utilities		860,655		708,822		852,252		860,655

Total operating expenses	$	5,816,253	$	5,234,388	$	6,737,999	$	5,816,253