UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

Commission file number 0-8463

PISMO COAST VILLAGE, INC.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 codecode.

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

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]

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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 [  ]

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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[X] non-accelerated filer

                  [X][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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  [ X ]

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of registrant included in the filing reflect the correction of an error to previously issued financial statements.          [  ]               

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 [ X ]                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.                              1,7751,774

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's Notice of 20212023 Definitive Proxy Statement for the Annual Meeting of Shareholders to be held January 15, 2022,20, 2024, are incorporated by reference into Part III.

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FORM 10-K

PART I

ITEM 1.                 BUSINESSBUSINESS.

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,company exclusively operates within the ownershiprealm of owning and operation of themanaging Pismo Coast Village RV Resort. The Company generatesIts revenue streams originate from rental of camping sites,site rentals, recreational vehicle storage, recreational vehicle repairtow services, and retail sales fromthrough a general storestore. With all activities consolidated within this single industry segment, the company's financials and recreational vehicle parts store. Accordingly, all of the revenues, operating profit (loss) and identifiable assets of the Company are entirely attributable to a single industry segment.its Resort operations.

Pismo Coast Village RV Resort isstands as a comprehensive, full-service 400-spacefacility featuring 400 spaces for recreational vehicle resort. Its Resortvehicles. The scope of resort operations includeencompasses site rentals, RV storage business,and tow services, a video arcade, laundromat, and othervarious income sources relatedlinked to the operation.its overall functioning. The retail facet of the operations includeis represented by a general store, RV parts store, and RV repair shop. In addition,store. Additionally, the Company hascompany hosts a recreation department that providesorchestrates activities and facilitates the rental of recreational equipment.  In summary, the company's sole business focus is the ownership and operation of Pismo Coast Village RV Resort, showcasing a summer season youth program anddiverse range of offerings underpinned by a unified commitment to exceptional recreational equipment rentals.experiences.

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 timeprime-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 the 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.

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COMPETITION

The Company is infaces competition withfrom nine other RV parks located within a five-mile radius. Sinceradius, but its property isdistinct advantage lies in being the onlysole property located adjacent to the beach, it has a competitive edge. The Company is recognizedbeach. Recognized as a recreational vehicle resort, rather than a park because ofit stands out for its upgraded facilities and amenities, which include 66 channels ofincluding a restaurant, general store, satellite TV, high-speed wireless internet, service throughout the property, a heated pool, a miniature golf course, and a comprehensive 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 industryIndustry travel guides based on resort appearance, facilities offered, and recreational programs. In November 2007,consistently rate Pismo Coast Village RV Resort was awardedhighly for its appearance, facilities, and recreational offerings, earning it the prestigious designation of 2007/2008"Best of Pismo Beach – 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 honorsResort" 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.September 2023.

Competition forIn the competitive tourist market is strong between the cities onof the Central Coast of California.California, the Resort management and staff are involvedactively collaborates with the City of Pismo Beach, Chamber of Commerce, Conference and Visitors Bureau, and areparticipating as major sponsors in cooperativejoint events and advertising. The Resort continues to market off-season discounts and place advertisementsadvertising initiatives. Ongoing marketing efforts include placements in trade publications, industry directories, and industry directories. In addition,collaboration with RV-related companies. Leveraging the Company placeseffectiveness of its brochure with companies selling or renting recreational vehicles and has found the Resort's website and social media, to be very effective. the Resort successfully engages with its target audience.

The marketing program also targetsstrategy extends to groups and clubs, by offering incentives such as group discounts, meeting facilities, and catering services. The Company'sDespite a competitive landscape, the Company allocated $58,944 to its marketing plan was funded $38,690 for the fiscal year 2021, which was developed out of operating revenues. The major source of the Company's business is repeat business, which has been developed by attention2022-2023, demonstrating a commitment to goodsustained growth. Emphasizing customer service and providing qualityhigh-quality recreational facilities.facilities, the Resort has cultivated a robust source of repeat business, underlining its success in building lasting relationships with patrons.

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 upcleanup 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, 2021,2023, the Company employed approximately 6160 people, with 1312 of these on a part-time basis and 48 on a full-time basis. Due to the seasonal nature of the business, additional staff isare needed during peak periods and fewer during the off-season. Staffing levels during the fiscal year ranged from approximately 5760 employees to 6371 employees. Management considers its labor relations to be good.

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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 storagetowing fees $6$10 per monthtow transfer effective JanuaryAugust 1, 2021.2022. The Board also voted at the September 2020 meeting to increase all nightly rates $5 per night effective MarchOctober 1, 2021.2023. It is anticipated the proposed rates will continue to market site usage at itstheir highest value and not negatively impact the Company's ability to capture an optimum market share.

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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 aton 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 1A.                              RISK FACTORS.

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 new 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 are 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.  Recent events beyond our control, including an economic slowdown and extreme weather conditions 2Q2023, harmed the operating performance of the Central Coast leisure industry generally.   If these or similar events occur again, our operating and financial results may be harmed by declines in average daily rates or occupancy.

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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 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 necessary capital expenditure 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.

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 continued success depends, to a significant extent, on the efforts and abilities of our General Manager, Lesley Marr. Ms. Marr is important to our business and strategy and to the extent that were she to depart and is not replaced with an experienced substitute, Ms. Marr’s departure could harm our operations, financial condition, and operating results.

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

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.

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ITEM 1B.                            REMOVED AND RESERVED.

ITEM 1C.                            CYBERSECURITY.

Disclosure of cybersecurity risk, management, & strategy

CompuData Supports Pismo Coast Village through their Managed IT Services. This is done through patch management, a managed Network, Managed Security, and Managed 24/7 support.  Pismo Coast Village has a comprehensive risk management process that all nodes on the network are set to follow. All external Vendors are SOC II compliant. Our users access all applications utilizing a two-factor authentication method at the Domain level and SSO for third Party applications. 

 Pismo Coast Village has not had a material or data breach. Our strategy is to mitigate risks preventatively. The is implemented through best-in-class cybersecurity strategies preventative measures carried out by our vendor CompuData.  Our identifiable risk areas are twofold: First within accounting and second, within taking payments. Our accounting department is hosted on a cloud system utilizing SSL for access and encryption. Our Managed Services company, CompuData, manages risk and preventative cyber security to that server.  Within our taking of payments, we are fully PCI compliant within our payment processing service, Clover.  No Credit card information is stored or transferred outside of that system.

We engage a third-party Vendor as mentioned above, CompuData.  Our vendors are whitelisted and are SOC II certified. Our Whitelisted Vendor applications are Newbook, Sage, Clover, and Office 365.

ITEM 2.                                 PROPERTIESPROPERTIES.

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 the 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 the lessee terminates the lease at the end of the current term.

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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. TheIn April 2023, the Company enlarged its recreational vehicle repair operation, added RV storage for approximately eleven units and developed the storefrontentered 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.

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a long-term single tenant gross lease with Trailer Hitch RV.  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. StorageThe 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 the 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.  On April 16, 2023, the Company entered into a long-term single tenant gross lease with Trailer Hitch RV.

On April 19, 2023, the Company closed escrow on a 19.55-acre property located at 255 N. Oak Glen Avenue in Nipomo, California, to be developed for RV storage. The purchase price was $1.2 million for the undeveloped land and was a cash purchase with no additional encumbrances to the Corporate.  On April 1, 2023, the Company entered into a long-term lease with OUTFRONT Media for the existing billboard. The lease term is for ten (10) years.

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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.

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1.            TRAILER STORAGE LEASED 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.holdover at $3,575 monthly.

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. MonthlyThe lease was extended to June of 2022.  The monthly lease is set at $3,737currently $3,924 with an annual adjustment based on the 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 belowterms described in the 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, 2016,2013, was renewed for another seventen 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 allwill replace 18 washers and 18 dryers with new equipment. Continued renewal is expected without significant impact.equipment prior to Q3.

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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, 20202023, 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.

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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 termsterms.

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 the 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 tall22-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 the 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 the 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 expireexpiring December 31, 2022. Continued renewal is expected without significant impact.2023. This lease has been renewed for one-year terms for the years 2023 and 2024. Termination or cancellation may be made by either Lessor or Lessee by giving the other party thirty (30) days written notice.

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ITEM 3.                                 LEGAL PROCEEDINGS

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

ITEM 4.                                 (REMOVED AND RESERVED).

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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 28, 2023, at a price of $44,000$58,000 for one share conveyed. This price was used for the 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, 2021,2023, 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, 2021,2023, compared with September 30, 2020.2022. 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.

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OVERVIEW

Pismo Coast Village, Inc. operates as a 400-space recreational vehicle resort. The Company includes additional business operations to provide its users with athe 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,stores, 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 dueAccording to the impacts of COVID-19. Revenues from ancillary operations,industry reports such as the General Store, RV service, laundromat, arcade,2023 KOA Camping Report published May 12, 2023, it indicates that camping continues to be robust and bike rental, were significantly decreased dueresilient, even in economic downturns. Camping is increasingly popular, with more people than ever viewing it as a way to the COVID-19 closurerelax, unwind, and ongoing impact.connect with family, friends, and nature.

FollowingCamping is an important leisure activity for many people. This may be because, even in an economic downturn, camping remains economically accessible for most individuals. Faced with a failing economic climate, 38% of campers are willing to give up other vacation activities to go camping. 80% of survey respondents from 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.2023 KOA Camping Report said they would give up other leisure travel options to camp more.

Most (56%) RVers plan to RV camp the same amount or more in the event of an economic downturn. 33% of RVers say they’ll use their RVs more, and 23% said they would use their RVs the same amount as usual. This is significant and helps demonstrate the economic resilience of outdoor hospitality.

RV storage continuesand towing continue to providebe a significant portionprimary source of revenue for the Company’s revenue.Company. In April 2023, the company purchased 4.42 acres to develop a 150 site self-storage lot due to having a 300+ waitlist for new clients.  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. RV storage continues to have a strong demand for both self and tow storage.

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Ongoing investment in Resortresort improvements has assured Resort guests and shareholders a top quality, up-to-date facility. This quality and pride of ownership was evident whenas the National Association of RV Parksresort continues to maintain high standards 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 nationallyagain, has been recognized with quality ratings by Guest Reviews.Good Sam.  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.

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The Company'sCompany’s commitment to quality, value, and enjoyment is underscored by the business'business’s success due to word of mouth and referrals from guests. In addition, investment for online marketing, social media content, ads in the leading national directories,directory, 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 2022,2024, which projects a positive cash flow of approximately $2,757,241$1,205,030 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.2023. The 20222024 budget plan includes a $5 per night increase for all site rentals effective JanuaryOctober 1, 2022.2023. While the Company projects a positive cash flow, this cannot be assured for fiscal year 2022.2024.

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.recreation.

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 $3,001,4051,188,155 in 2021,2023, compared to $1,424,339$1,710,003 for the 20202022 fiscal year.  Reduction in Net Cash provided by operating activities in 2023 of $521,848 can largely be attributed to the closing of the PCV RV Service Shop in April 2023.  RV Service Shop income for 2023 was $255,424 versus $632,983 in 2022.  

During fiscal year 2021,2023, capital investment of $169,180$1,412,193 was made that included purchasing 19.55-acre property located at 255 N. Oak Glen Avenue in Nipomo, California, to be developed for RV storage.  In addition to the purchase of a new street sweeper, a garbage compactor container,lowboy tilt-trailer to haul equipment, redesign, upgrade for Square common area including patio furniture, electrical 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,lighting.  Two golf carts were purchased for maintenance and a new Hino trailer tow truck.one for Security.  These projects were completed on timetime. 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 within budget.electrical panel, pool heater, and two golf carts.

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Fiscal year 2021's2023's current ratio (current assets to current liabilities) of 3.064.12 increased from fiscal year 2019's current2022’s ratio of 2.60.3.82. The increase in the current ratio is the result of increased cash and cash equivalents.reduced accrued liabilities as well as reduced Rental deposits.

Working Capital increased to $6,377,259$8,511,851 at the end of fiscal year 2021,2023, compared to $4,288,675$8,499,383 at the end of fiscal year 2020.2022. This increase is primarily a result of increased cash and cash equivalents as a result of increased incomeinterest received from Resort operations and postponement of some capital projects.investments.

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CAPITAL RESOURCES AND PLANNED EXPENDITURES

The Company plans capital expenditures up to $223,000$1,611,000 in fiscal year 20222024 to further enhance the Resort facilities and services. This would include upgradingremodeling the resort WiFi system, installing six surveillanceGeneral Store, Mini Golf Course and Guest Services Building, development of L Lot in Nipomo for RV Storage and environmental studies for Z Lot.  In addition to replacement of all restroom and laundry water heaters and adding security cameras onfor Lots of B and E.  The Board of Directors continues to evaluate the resort, replacing two older pickups,property Solar project with an initial cost of $4M before tax credits and replacing a tractor.rebates.  Funding for these projects is expected to come from normal operating cash flows and, if necessary, be 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, by $2,379,128, or 32.0%.

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.

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20212023 COMPARED WITH 20202022

Resort operations income increased $2,124,531, or 33.3%,decreased $292,733 primarily due to COVID-19significant rains in the months of late Dec 2022, and the resort campsites being closed from March 23, 2020 until May 22, 2020. Paid site revenue increased  $1,951,626, or 43.7%, due to an increase of 26,372, or 38.2% in paid site night occupancy. Due to 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.

Retailfirst quarter 2023.  The retail operations income increased $255,620, or 24.3%,decreased $359,732 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, or 21.1% above the previous year.closing and liquidation in April 2023. The General Store revenuewas impacted by a 1Q reduction in occupancy, increased $150,879, or 27.2% above the previous year.costs of goods and staffing challenges. In an effort to maximize revenue, management continues to stock more appropriate items, more effectively merchandise,effective merchandising, margin reviews 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, or 51.0%, belowincreased $128,618 above the previous year. This increase was primarily due to interest income from treasury bills purchased in 2023.   Interest Expense decreasedincreased to $13,545($14,532) in 20212023 compared to $17,413($11,849) the previous year.

The Company also received an Employee Retention Credit payment of $245,280 in June of 2022 which was not available in 2023.

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Operating Expenses increased $581,865, or 11.1%, as a result of labor, small equipment, credit card service expense, land lease, utilities including water/sewer, gas, electricity, and garbage, 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.

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$814,852 due 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, a 172.3% increase above last year, is reflective of increased income from operations.

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

INFLATION has not had a significant impact on our profit position. The Company has increased rates, which have more than compensated for the rate ofemployee compensation taxes, benefits and insurances expenses, Stockholder expenses due to Carol Lyons expenses, non-capitalized property improvements, extraordinary outside consultant expenses, and maintenance supplies and contract repair effected by inflation.

FUTURE OPERATING RESULTS couldThe Prior Management Team focused on keeping expenses under budget to maximum net profit.  Choosing to be unfavorably impactedreactionary in regard to maintenance, internal operating systems and equipment needs had a definite effect on the extent that changing prices result in lower discretionary income2022-2023 operating expenditures.  The Operations Team is working on the development of a preventative maintenance plan, as well as a systems and equipment road map.  A proactive approach will allow us to better control our budget.

Inflation has had an impact on our profit position for customers and/or increased transportation costs to the Resort. In addition, increasing prices affect2023.  Inflation has affected 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 commonThe Company has implemented minor rate increases 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 duesite rents 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;

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

• adverse effects of market conditions, which may diminishinflation and work towards maintaining a more favorable profit position.  Should the desire for leisure travel; and

• adverse effects of a downturn incurrent economic situation continue, Operations would recommend increasing 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 usrate 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 improvementsStorage customers which 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:currently below market.

• 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;

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

• possible environmental issues.

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

Our continued success will depend, to a significant extent, on the efforts and abilities of our C.E.O. and General Manager, Jay Jamison. Mr. Jamison is important to our business and strategy and to the extent that were he to depart and is not replaced with an experienced substitute, Mr. Jamison'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 supplementedcurrently under review by the selectionManagement and Interim Audit Chairperson.  Additional training of qualified financialaccounting personnel and an organizational structure that providesrestructuring for appropriate segregationadded layers of duties.review are being considered.

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Table of Contents

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

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, 20212023, and 2020, and2022; 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 and 2020,2023; 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, 20212023, and 2020,2022, and the results of its operations and its cash flows for each of the years in the two-year period ended September 30, 2021,2023 and 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 auditaudits 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.

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Table of Contents

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 ourare especially challenging, subjective, or involve 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 GAAPaccounting principles generally accepted in the United States of America (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.judgment.

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

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Auditor Firm ID:  #237

Bakersfield, California

November 12, 2021December 13, 2023

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