Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 26, 2020 | Jun. 30, 2019 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CANTERBURY PARK HOLDING CORPORATION | ||
Entity Central Index Key | 0001672909 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 4,676,959 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 29,985,225 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 355,399 | $ 4,895,359 |
Restricted cash | 2,308,955 | 5,058,639 |
Short-term investments | 103,886 | 206,545 |
Accounts receivable, net of allowance of $19,250 for both periods | 302,037 | 241,743 |
Current portion of notes receivable | 1,063,650 | |
Inventory | 390,118 | 297,209 |
Prepaid expenses | 501,493 | 625,025 |
Income taxes receivable | 417,003 | |
Total current assets | 3,961,888 | 12,805,173 |
LONG-TERM ASSETS | ||
Deposits | 49,500 | 49,500 |
Restricted cash - long-term portion | 1,262,744 | 1,250,000 |
TIF receivable | 9,708,856 | 1,908,065 |
Notes receivable - long-term portion | 1,078,861 | |
Related party receivable (Note 15) | 3,528,927 | 3,208,400 |
Operating lease right-of-use assets | 74,832 | |
Equity investment (Note 13) | 2,992,633 | 2,995,010 |
Land, buildings and equipment, net (Note 3) | 43,833,702 | 38,131,052 |
TOTAL ASSETS | 65,413,082 | 61,426,061 |
CURRENT LIABILITIES | ||
Accounts payable | 3,495,238 | 3,587,328 |
Card Casino accruals | 2,167,056 | 1,740,926 |
Accrued wages and payroll taxes | 2,254,379 | 2,268,351 |
Cash dividend payable | 324,439 | 316,938 |
Accrued property taxes | 1,019,658 | 1,001,200 |
Deferred revenue | 1,482,130 | 979,358 |
Payable to horsepersons | 557,696 | 706,122 |
Line of credit | 0 | |
Income taxes payable | 120,960 | |
Current portion of finance lease obligations | 24,500 | 23,216 |
Current portion of operating lease obligations | 29,776 | |
Total current liabilities | 11,475,832 | 10,623,439 |
LONG-TERM LIABILITIES | ||
Deferred income taxes (Note 4) | 4,404,300 | 3,970,000 |
Finance lease obligations, net of current portion | 71,784 | 98,272 |
Operating lease obligations, net of current portion | 45,056 | |
Total long-term liabilities | 4,521,140 | 4,068,272 |
TOTAL LIABILITIES | 15,996,972 | 14,691,711 |
STOCKHOLDERS’ EQUITY | ||
Common stock, $.01 par value, 10,000,000 shares authorized, 4,644,522 and 4,527,685, respectively, shares issued and outstanding | 46,445 | 45,277 |
Additional paid-in capital | 22,733,933 | 21,420,886 |
Retained earnings | 26,635,732 | 25,268,187 |
Total stockholders' equity | 49,416,110 | 46,734,350 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 65,413,082 | $ 61,426,061 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance | $ 19,250 | $ 19,250 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,644,522 | 4,527,685 |
Common stock, shares outstanding | 4,644,522 | 4,527,685 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING REVENUES: | ||
Operating revenues | $ 59,226,857 | $ 59,141,570 |
OPERATING EXPENSES: | ||
Purse expense | 6,979,508 | 7,181,683 |
Minnesota Breeders' Fund | 1,052,682 | 1,039,452 |
Other pari-mutuel expenses | 1,332,321 | 1,423,980 |
Salaries and benefits | 25,527,560 | 24,322,840 |
Cost of food and beverage and other sales | 4,075,313 | 3,586,617 |
Depreciation and amortization | 2,679,728 | 2,563,579 |
Utilities | 1,531,029 | 1,527,942 |
Advertising and marketing | 2,152,260 | 2,499,345 |
Professional and contracted services | 4,983,587 | 4,491,719 |
Loss on disposal of assets | 261,728 | 120,940 |
Gain on insurance recoveries | (198,874) | (21,064) |
Gain on sale of assets | (12,141) | (129,580) |
Gain on transfer of land | (2,241,206) | |
Other operating expenses | 5,226,392 | 5,128,394 |
Total Operating Expenses | 55,591,093 | 51,494,641 |
INCOME FROM OPERATIONS | 3,635,764 | 7,646,929 |
OTHER INCOME | ||
Interest income, net | 326,773 | 61,515 |
Net Other Income | 326,773 | 61,515 |
INCOME BEFORE INCOME TAXES | 3,962,537 | 7,708,444 |
INCOME TAX EXPENSE (Note 4) | (1,244,263) | (1,990,000) |
NET INCOME | $ 2,718,274 | $ 5,718,444 |
Basic earnings per share | $ 0.59 | $ 1.28 |
Diluted earnings per share | $ 0.59 | $ 1.26 |
Weighted Average Basic Shares Outstanding | 4,594,118 | 4,481,667 |
Weighted Average Diluted Shares | 4,607,809 | 4,534,936 |
Cash dividends declared per share | $ 0.28 | $ 0.28 |
Pari-mutuel | ||
OPERATING REVENUES: | ||
Operating revenues | $ 9,832,945 | $ 10,639,029 |
Card Casino | ||
OPERATING REVENUES: | ||
Operating revenues | 34,406,195 | 33,919,928 |
Food and beverage | ||
OPERATING REVENUES: | ||
Operating revenues | 8,894,985 | 8,017,747 |
Other | ||
OPERATING REVENUES: | ||
Operating revenues | $ 6,092,732 | $ 6,564,866 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 44,145 | $ 19,865,273 | $ 20,807,679 | $ 40,717,097 |
Balance, shares at Dec. 31, 2017 | 4,414,492 | |||
Exercise of stock options | $ 674 | 569,194 | 569,868 | |
Exercise of stock options, shares | 67,440 | |||
Stock-based compensation | 345,626 | 345,626 | ||
Dividend distribution | (1,257,936) | (1,257,936) | ||
401(K) stock match | $ 344 | 527,325 | 527,669 | |
401(K) stock match, shares | 34,383 | |||
Issuance of restricted stock | $ 28 | (28) | ||
Issuance of restricted stock, shares | 2,788 | |||
Shares issued under Employee Stock Purchase Plan | $ 86 | 113,496 | 113,582 | |
Shares issued under Employee Stock Purchase Plan, shares | 8,582 | |||
Net income | 5,718,444 | 5,718,444 | ||
Balance at Dec. 31, 2018 | $ 45,277 | 21,420,886 | 25,268,187 | 46,734,350 |
Balance, shares at Dec. 31, 2018 | 4,527,685 | |||
Exercise of stock options | $ 413 | 272,869 | 273,282 | |
Exercise of stock options, shares | 41,310 | |||
Other share retirements | $ (59) | (27,915) | (62,048) | (90,022) |
Other share retirements, shares | (5,863) | |||
Stock-based compensation | 235,105 | 235,105 | ||
Dividend distribution | (1,288,681) | (1,288,681) | ||
401(K) stock match | $ 521 | 687,979 | 688,500 | |
401(K) stock match, shares | 52,089 | |||
Issuance of restricted stock | $ 110 | (55,044) | (54,934) | |
Issuance of restricted stock, shares | 10,968 | |||
Shares issued under Employee Stock Purchase Plan | $ 183 | 200,053 | 200,236 | |
Shares issued under Employee Stock Purchase Plan, shares | 18,333 | |||
Net income | 2,718,274 | 2,718,274 | ||
Balance at Dec. 31, 2019 | $ 46,445 | $ 22,733,933 | $ 26,635,732 | $ 49,416,110 |
Balance, shares at Dec. 31, 2019 | 4,644,522 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | ||
Net income | $ 2,718,274 | $ 5,718,444 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 2,679,728 | 2,563,579 |
Stock-based compensation expense | 235,105 | 345,626 |
Stock-based employee match contribution | 688,500 | 525,100 |
Deferred income taxes | 434,300 | 968,000 |
Loss on disposal of assets | 261,728 | 120,940 |
Loss from equity investment | 2,377 | |
Gain on insurance recoveries | (198,874) | (21,064) |
Gain on sale of assets | (12,141) | (129,580) |
Gain on transfer of land | (2,241,206) | |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | (60,294) | 24,346 |
Decrease (increase) in other current assets | 30,623 | (97,611) |
Decrease (increase) in income taxes payable/receivable | 537,963 | (420,833) |
Decrease in operating lease right-of-use assets | 28,914 | |
Decrease in operating lease liabilities | (28,914) | |
Decrease in accounts payable | (1,364,430) | (133,802) |
Increase in deferred revenue | 502,772 | 184,328 |
Increase (decrease) in Card Casino accruals | 426,130 | (1,190,279) |
Decrease in accrued wages and payroll taxes | (13,972) | (22,910) |
Increase in accrued property taxes | 18,458 | 64,638 |
(Decrease) increase in payable to horsepersons | (148,426) | 75,201 |
Net cash provided by operating activities | 6,737,821 | 6,332,918 |
Investing Activities: | ||
Additions to land, buildings, and equipment | (15,165,716) | (5,501,468) |
Issuance of related party note receivable | (320,527) | (3,208,400) |
Decrease in notes receivable | 2,142,511 | 1,048,655 |
Proceeds from insurance recoveries | 204,174 | 1,033,264 |
Sale (purchase) of investments | 102,659 | (540) |
Net cash used in investing activities | (13,036,899) | (6,628,489) |
Financing Activities: | ||
Proceeds from issuance of common stock | 383,496 | 686,019 |
Borrowings on line of credit | 5,932,532 | |
Payments against line of credit | (5,932,532) | |
Cash dividend paid to shareholders | (1,281,180) | (1,206,111) |
Payments for taxes related to net share settlement of equity awards | (54,934) | |
Principal payments on finance lease | (25,204) | (5,892) |
Net cash used in financing activities | (977,822) | (525,984) |
Net decrease in cash, cash equivalents, and restricted cash | (7,276,900) | (821,555) |
Cash, cash equivalents, and restricted cash at beginning of year | 11,203,998 | 12,025,553 |
Cash, cash equivalents, and restricted cash at end of year | 3,927,098 | 11,203,998 |
Schedule of non-cash investing and financing activities | ||
Additions to buildings and equipment funded through accounts payable | 1,272,000 | 867,000 |
Transfer of future TIF reimbursed costs from PP&E | 7,801,000 | 1,908,000 |
Dividend declared | 324,000 | 317,000 |
ROU assets obtained in exchange for operating lease obligations | 104,000 | 127,000 |
Expiration of buyback option on land | 110,000 | |
Transfer of assets to Doran Canterbury I | 754,000 | |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 740,000 | 1,356,000 |
Interest paid | $ 42,000 | $ 12,000 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
OVERVIEW AND BASIS OF PRESENTATION | |
OVERVIEW AND BASIS OF PRESENTATION | 1. OVERVIEW AND BASIS OF PRESENTATION Business – The Company’s Racetrack operations are conducted at facilities located in Shakopee, Minnesota, approximately 25 miles southwest of downtown Minneapolis. In May 1994, the Company commenced year-round horse racing simulcast operations and hosted the first annual live race meet during the summer of 1995. The Company’s live racing operations are a seasonal business as it hosts live race meets each year from May until September. The Company earns additional pari-mutuel revenue by televising its live racing to out-of-state racetracks around the country. Canterbury Park’s Card Casino operates 24 hours a day, seven days a week and is limited by Minnesota State law to conducting card play on a maximum of 80 tables. The Card Casino currently offers a variety of poker and table games. The Company’s three largest sources of revenues include: Card Casino operations, pari-mutuel operations and food and beverage sales. The Company also derives revenues from related services and activities, such as admissions, advertising signage, publication sales, and from other entertainment events and activities held at the Racetrack. Additionally, the Company is redeveloping approximately 140 acres of underutilized land surrounding the Racetrack in a project known as Canterbury Commons. The Company is pursuing several mixed-use development opportunities for this land, directly and through joint ventures. Basis of Presentation - The consolidated financial statements include the accounts of the Company, Canterbury Park Concessions, Inc. (CPC) and Canterbury Development LLC after elimination of intercompany accounts and transactions. Effective January 1, 2019, we adopted the requirements of Accounting Standards Updated (“ASU”) No. 2016-02, Leases as discussed in Note 2. All amounts and disclosures set forth in this Form 10-K have been updated to comply with the new standards. Estimates – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
ACCOUNTING STANDARDS AND SIGNIF
ACCOUNTING STANDARDS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
OVERVIEW AND BASIS OF PRESENTATION | |
ACCOUNTING STANDARDS AND SIGNIFICANT ACCOUNTING POLICIES | 2. ACCOUNTING STANDARDS AND SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies Revenue Recognition – The Company’s primary revenues with customers consist of Card Casino operations, pari-mutuel wagering on simulcast and live horse races, and food and beverage transactions. We determine revenue recognition through the following steps: · Identification of the contract, or contracts, with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligation in the contract · Recognition of revenue when, or as, we satisfy a performance obligation The transaction price for a Card Casino contract is a set percentage of wagers and is recognized at the time that the wagering process is complete. The transaction price for pari-mutuel wagering is the commission received on a wager, exclusive of any track fees and is recognized upon occurrence of the live race that is presented for wagering and after that live race is made official by the respective state’s racing regulatory body. The transaction price for food and beverage contracts is the net amount collected from the customer for these goods. Food and beverage services have been determined to be separate, stand-alone performance obligations and the transaction price is recorded as revenue as the good is transferred to the customer when delivery is made. Contracts for Card Casino operations and pari-mutuel wagering involve two performance obligations for those customers earning points under the Company’s loyalty program and a single performance obligation for customers who do not participate in the program. The Company applies a practical expedient by accounting for its gaming contracts on a portfolio basis as these wagers have similar characteristics and the Company reasonably expects the effects on the financial statements of applying the revenue recognition guidance to the portfolio will not differ materially from that which would result if applying the guidance to an individual wagering contract. For purposes of allocating the transaction price in a wagering contract between the wagering performance obligation and the obligation associated with the loyalty points earned, the Company allocates an amount to the loyalty point contract liability based on the stand-alone redemption value of the points earned, which is determined by the value of a point that can be redeemed for a cash voucher, food and beverage voucher, racing admission, valet parking, or racing forms. Based on past experience, the majority of customers redeem their points for cash vouchers. We have two general types of liabilities related to Card Casino contracts with customers: (1) our MVP Loyalty Program and (2) outstanding chip liability. These are included in the line item Card Casino accruals on the consolidated balance sheet. We defer the full retail value of these complimentary reward items until the future revenue transaction occurs. The Company offers certain promotional allowances at no charge to patrons who participate in its player rewards program. The retail value of these promotional items is included as a deduction from pari-mutuel revenues and no longer shown as a separate line item on the Company’s consolidated statements of operations. We evaluate our on-track revenue, export revenue, and import revenue contracts to determine whether we are acting as the principal or as the agent when providing services, which we consider in determining if revenue should be reported gross or net. An entity is a principal if it controls the specified service before that service is transferred to a customer. The revenue we recognize for on-track revenue and import revenue is the commission we are entitled to retain for providing a wagering service to our customers. For these arrangements, we are the principal as we control the wagering service; therefore, any charges, including simulcast fees, we incur for delivering the wagering service are presented as operating expenses. For export revenue, our customer is the third party wagering site such as a race track, OTB, or advance deposit wagering provider. Therefore, the revenue we recognize for export revenue is the simulcast host fee we earn for exporting our racing signal to the third party wagering site. Cash and Cash Equivalents – Cash and cash equivalents include all investments with original maturities of three months or less or which are readily convertible into known amounts of cash and are not legally restricted. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Restricted Cash – Restricted cash represents refundable deposits and amounts due to horsemen for purses, stakes and awards, and amounts accumulated in card game progressive jackpot pools, the player pool, and poker promotional fund to be used to repay card players in the form of promotions, giveaways, prizes, or by other means. Restricted cash also includes a deposit related to its development operations. In 2018, the Company recorded a deposit with a bank with the purpose of assisting Doran Canterbury I in completing financing for a construction loan. The bank will release the deposit back to the Company when the construction loan is repaid by Doran Canterbury I and converted into a term loan. As this is expected to occur in 2021 or 2022, the Company classified this as long term restricted cash on the consolidated balance sheet. Short-term Investments – Securities are classified as held to maturity when the Company has the positive intent and ability to hold them to maturity, and are measured at amortized cost. At December 31, 2019 and 2018, all investments were classified as held-to-maturity. The Company continually reviews its investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in earnings. Short-term investments consist of certificates of deposit at December 31, 2019 and 2018. Amortized cost approximated fair value for both periods. Accounts Receivable – Accounts receivable are initially recorded for amounts due from other tracks for simulcast revenue, net of amounts due to other tracks, and for amounts due from customers related to catering and events. Credit is granted in the normal course of business without collateral. Accounts receivable are stated net of allowances for doubtful accounts, which represent estimated losses resulting from the inability of customers to make the required payments. Accounts that are outstanding longer than the contractual terms are considered past due. When determining the allowances for doubtful accounts, the Company takes several factors into consideration including the overall composition of the accounts receivable aging, its prior history of accounts receivable write-offs, the type of customers and its day-to-day knowledge of specific customers. The Company writes off accounts receivable when they become uncollectible. Changes in the allowances for doubtful accounts are recorded as bad debt expense and are included in other operating expenses in the Company’s consolidated statements of operations. Property Tax Increment Financing (TIF) Receivable – In connection with the Contract for Private Redevelopment (“Redevelopment Agreement”) between the City of Shakopee Economic Development Authority and Canterbury Development LLC signed in August 2018, the City of Shakopee has agreed that a portion of the tax increment revenue generated from the developed property will be paid to the Company to reimburse it for expenses in constructing infrastructure improvements. The interest rate on the TIF Receivable is 6%. Inventory – Inventory consists primarily of food and beverages, small wares and supplies and retail goods and is recorded at the lower of cost (first-in, first-out) or net realizable value. Unredeemed Pari-mutuel Tickets – The Company records a liability for winning tickets and vouchers upon the completion of a race and when a voucher is printed, respectively. As uncashed winning tickets and vouchers are redeemed, this liability is reduced for the respective cash payment. The Company recognizes revenue associated with the uncashed winning tickets and vouchers when the likelihood of redemption, based on historical experience, is remote. While the Company continues to honor all winning tickets and vouchers presented for payment, management may determine the likelihood of redemption to be remote due to the length of time that has elapsed since the ticket was issued. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, uncashed winning tickets and vouchers may then be recognized as revenue in the Company’s Consolidated Statement of Operations. Deferred Revenue – Deferred revenue includes advance sales related to racing, events and corporate partnerships. Revenue from these advance billings are recognized when the related event occurs or services have been performed. Deferred revenue also includes advanced Cooperative Marketing Agreement (“CMA”) promotional funds, and revenue is recognized when expenses are incurred. Due to Minnesota Horsemen’s Benevolent and Protective Association, Inc. (“MHBPA”) – The Minnesota Pari-mutuel Horse Racing Act specifies that the Company is required to segregate a portion of funds (recorded as purse expense in the statements of operations), received from Card Casino operations and wagering on simulcast and live horse races, for future payment as purses for live horse races or other uses of the horsepersons’ associations. Pursuant to an agreement with the MHBPA, the Company transferred into a trust account or paid directly to the MHBPA, approximately $6,314,000 and $6,442,000 for the years ended December 31, 2019 and 2018, respectively, related to thoroughbred races. Minnesota Statutes specify that amounts transferred into the trust account are the property of the trust and not of the Company. Impairment of Long-Lived Assets – The Company reviews its long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In the event that facts and circumstances indicate that the carrying value of any long-lived assets may be impaired, an evaluation of recoverability would be performed. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. During 2019 and 2018, the Company determined that no evaluations of recoverability were necessary. Advertising and Marketing – Advertising and marketing costs are charged to expense as incurred. The related amounts are presented separately in the Company’s consolidated statements of operations. Land, Buildings, and Equipment – Land, buildings, equipment, and building improvements are capitalized at a level of $2,000 or greater and are recorded at cost. Repair and maintenance costs are charged to operations when incurred. Furniture, fixtures, and equipment are depreciated using the straight-line method over estimated useful lives ranging from 5 – 7 years, while buildings are depreciated over 15 – 39 years. Building improvements are amortized using the straight-line method over the useful life of the assets. Pre-development costs are incurred prior to vertical construction and for certain land held for development during the due diligence phase. This includes legal, engineering, architecture, and other professional fees incurred in pursuit of new development opportunities for which we believe future development is probable. Future development is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and availability of capital. Pre-development costs incurred for which future development is not yet considered probable are expensed as incurred. The Company capitalizes property taxes incurred on its land held for development during periods in which activities necessary to get the property ready for its intended use are in progress. Costs incurred after the property is substantially complete and ready for its intended use are charged to expense as incurred. Card Casino Accruals – Minnesota law allows the Company to collect amounts from patrons to fund progressive jackpot pools in the Card Casino. These amounts, along with amounts earned by the player pool, promotional pools, and the outstanding chip liability, are accrued as short-term liabilities at each balance sheet date. Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to reverse. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Interest and penalties associated with uncertain income tax positions are presented in income tax expense. For the years ended December 31, 2019 and 2018, the Company did not recognize any expense related to interest and penalties. Net Income Per Share – Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share takes into effect the dilutive effect of potential common shares outstanding. The Company’s only potential common shares outstanding are stock options. Fair Values of Financial Instruments – Due to the current classification of all financial instruments and given the short-term nature of the related account balances, carrying amounts reported in the consolidated balance sheets approximate fair value. Stock-Based Employee Compensation – The Company accounts for share-based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized as expense over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. For more information on the Company’s stock-based compensation plans, see Note 5. Recently Adopted Accounting Standards ASU No. 2014-09 In February 2016, the FASB issued ASU No. 2016-02 codified as Accounting Standards Codification (“ASC”) 842, Leases, (“ASC 842”) which addresses the recognition and measurement of leases. Under the new guidance, for all leases (with the exception of short-term leases), at the commencement date, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to control the use of a specified asset for the lease term. The effective date for this update is for the annual and interim periods beginning after December 15, 2018 with early adoption permitted. ASC 842 requires a transition adoption election using either (1) a modified retrospective approach with periods prior to the adoption date being recast or (2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods continuing to be reported under previous lease accounting guidance. The Company adopted ASC 842 on January 1, 2019 using the prospective adoption approach, and therefore, comparative periods will continue to be reported under previous lease accounting guidance consistent with previously issued financial statements. The Company also elected to adopt the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allows us to carry forward the historical lease identification, lease classification and treatment of initial direct costs for leases entered into prior to January 1, 2019. We have also made an accounting policy election to not record short-term leases with an initial term of 12 months or less on the balance sheet for all classes of underlying assets. The adoption of ASC 842 did not have a material impact on our consolidated financial statements. Refer to Note 8 for further detail. |
LAND, BUILDINGS AND EQUIPMENT
LAND, BUILDINGS AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Land, Buildings And Equipment [Abstract] | |
LAND, BUILDINGS AND EQUIPMENT | 3 . LAND, BUILDINGS AND EQUIPMENT Land, buildings and equipment, at cost, consist of the following at December 31, 2019 and 2018: 2019 2018 Land $ 2,507,298 $ 2,507,926 Land held for development 9,191,107 8,164,589 Buildings and building improvements 38,858,798 34,439,339 Furniture and equipment 22,821,447 22,097,711 Construction in progress 3,174,664 2,113,226 76,553,314 69,322,791 Accumulated depreciation (32,719,612) (31,191,739) $ 43,833,702 $ 38,131,052 Land held for development represents land owned for potential real estate development. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
INCOME TAXES | 4 . INCOME TAXES A reconciliation between income taxes computed at the statutory federal income tax rate and the effective tax rate for the years ended December 31, 2019 and 2018 is as follows: 2019 2018 Federal tax expense at statutory rates $ 928,000 $ 1,618,800 Nondeductible lobbying expense 15,100 15,100 State expense, net of federal impact 316,000 615,300 Stock option expense (14,200) (74,200) Federal deferred remeasurement — (175,600) Other (637) (9,400) $ 1,244,263 $ 1,990,000 On December 22, 2017, the U.S. Tax Cuts and Jobs Act ("TCJA") was signed into law. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. The Tax Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the highest U.S. corporate tax rate of 35% to a flat 21% effective for tax years starting after December 31, 2017. As a result, we recorded a tax benefit of $175,600 in the fourth quarter of 2018 as a result of a revaluation of the net deferred tax liabilities due to the corporate tax rate change from 34% to 21% starting in 2018. Income tax expense for the years ended December 31, 2019 and 2018 consists of the following: 2019 2018 Current Federal $ 449,000 $ 290,000 State 361,000 732,000 810,000 1,022,000 Deferred, Federal 479,263 1,164,000 Deferred, State (45,000) (196,000) $ 1,244,263 $ 1,990,000 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax assets (liabilities) Vacation accrual $ 72,800 $ 62,500 Player rewards program accrual 143,200 136,200 Stock options 75,100 37,400 Long-Term Incentive Plan 114,300 126,800 Other 5,500 5,600 Land, building and equipment - cost and depreciation (4,062,800) (3,507,500) Investment in JV (729,000) (729,000) Prepaid Expenses (7,700) (102,000) TIF receivable accrued interest (43,600) — Lease Obligations 27,900 — Net long-term deferred tax liabilities $ (4,404,300) $ (3,970,000) The Company is subject to U.S. and Minnesota taxation. The Company is no longer subject to U.S. federal, state, or local examinations by tax authorities for years before 2016. |
STOCKHOLDERS' EQUITY AND STOCK-
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | |
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 5. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Stockholders’ Equity Employee Stock Purchase Plan: The Company offers an Employee Stock Purchase Plan (the “ESPP”) that is open to all employees working more than 15 hours per week. Shares of the Company’s common stock may be purchased by employees at six-month intervals at 85% of the fair market value on the last trading day of each six-month period. Employees purchased 18,333 and 8,582 shares in 2019 and 2018, respectively. As of December 31, 2019, a total of 324,504 shares have been issued from the 350,000 shares originally authorized. KSOP: The Company offers a KSOP Plan (the “KSOP”) that includes the Employee Stock Ownership Plan (the “ESOP”) and the 401(k) Plan. The KSOP allows the Company to use Company stock to match contributions from its employees should it so choose. The KSOP is available to eligible employees who had completed six months of service. Beginning January 1, 2016, the matching of employee contributions were issued in Company stock. Employer contributions charged to operations for stock matching of employee contributions for the year ended December 31, 2019 and 2018 totaled $688,000 and $527,000, respectively. Stock Repurchase Plan: In 2007, the Company’s Board of Directors adopted a plan that authorized the repurchase of up to 250,000 shares of the Company’s common stock in open market transactions or block purchases of privately negotiated transactions. The Company repurchased 216,543 shares under the 2008 Stock Repurchase Plan and in 2012, authorized the repurchase of an additional 100,000 shares of the Company’s common stock. No shares were repurchased in 2019 or 2018, and currently the Company is authorized to repurchase up to 128,871 shares under the Stock Repurchase Plan Stock-Based Compensation Stock-based compensation is recorded at fair value as of the date of grant, is included in the salaries and benefits expense line item on the consolidated statements of operations and amounted to $235,000 and $346,000 for the years ended December 31, 2019 and 2018, respectively. Stock Options: The Company’s 1994 Stock Plan, as amended, (the “Plan”) provides for the granting of awards in the form of stock options, restricted stock, stock appreciation rights, and deferred stock to key employees and non-employees, including directors of and consultants to the Company and any subsidiary, to purchase up to a maximum of 1,650,000 shares of common stock. The Company currently has 364,928 shares available for grant under the Plan. The Plan is administered by the Board of Directors which determines the persons who are to receive awards under the Plan, the type of award to be granted, the number of shares subject to each award and, if an option, the exercise price of each option. The Plan provides that payment of the exercise price may be made in the form of unrestricted shares of common stock already owned by the optionee. The Company calculates the fair market value of unrestricted shares as the average of the high and low sales prices on the date of the option exercise. The Company’s common stock is purchased upon the exercise of stock options, and restricted stock awards are settled in shares of the Company’s common stock. Stock option activity related to the Plan during the years ended December 31, 2019 and 2018 is summarized below: 2019 2018 Weighted Weighted Average Average Number of Exercise Number of Exercise Options Price Shares Price Outstanding at beginning of year 75,062 $ 7.95 142,502 $ 8.19 Granted — — — — Exercised (41,310) 6.62 (67,440) 8.45 Expired/Forfeited (502) 6.00 — — Outstanding at end of year 33,250 $ 9.64 75,062 $ 7.95 Options exercisable at end of year 33,250 $ 9.64 75,062 $ 7.95 The grant-date fair value of options outstanding and exercisable at December 31, 2019 and 2018 was $148,000 and $224,000, respectively. The weighted average remaining contractual term of these options is 0.4 years. There were no options granted in 2019 or 2018. The total fair value of options exercised during the years ended December 31, 2019 and 2018 was $75,000 and $183,000, respectively. The total intrinsic value of options exercised during 2019 and 2018 was $313,000 and $494,000, respectively. The following table summarizes information concerning all options outstanding and options exercisable as of December 31, 2019: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Aggregate Average Aggregate Range of Number Life (Years) Exercise Intrinsic Number Exercise Intrinsic Exercise Price Outstanding Remaining Price Value Exercisable Price Value $ 6.00 - 8.00 — — $ — $ — — $ — $ — $ 8.01 - 11.00 24,250 0.2 $ 8.28 99,910 24,250 $ 8.28 99,910 $ 11.01 - 14.00 9,000 2.1 $ 13.30 — 9,000 $ 13.30 — Total 33,250 0.9 $ 9.64 $ 99,910 33,250 $ 9.64 $ 99,910 Board of Directors Stock Option and Restricted Stock Grants The Company’s Stock Plan was amended to authorize annual grants of restricted stock, deferred stock, stock options, or any combination of the three, to non-employee members of the Board of Directors at the time of the Company’s annual shareholders’ meeting as determined by the Board prior to each such meeting. Options granted under the Plan generally expire 10 years after the grant date. Restricted stock and deferred stock grants generally vest 100% one year after the date of the annual meeting at which they were granted, are subject to restrictions on resale for an additional year, and are subject to forfeiture if a board member terminates his or her board service prior to the shares vesting. Below is a summary of changes in Board of Directors unvested restricted and deferred stock: Weighted Restricted/ Average Deferred Fair Value Stock Per Share Non-Vested Balance, December 31, 2017 11,264 $ 10.65 Granted 7,456 16.10 Vested (11,264) 10.65 Forfeited — — Non-Vested Balance, December 31, 2018 7,456 $ 16.10 Granted 12,604 12.69 Vested (7,456) 16.10 Forfeited — — Non-Vested Balance, December 31, 2019 12,604 $ 12.69 At December 31, 2019, there was approximately $75,000 of total unrecognized stock-based compensation expense related to unvested deferred stock awards the Company expects to recognize in 2020. Long Term Incentive Plan and Award of Deferred Stock In 2016, the Board of Directors of the Company approved a new plan for long-term incentive compensation of the Company’s named executive officers (NEOs) and other Senior Executives called the Canterbury Park Holding Corporation Long Term Incentive Plan (the “LTI Plan”). The LTI Plan authorizes the grant of Long Term Incentive Awards that provide an opportunity to NEOs and other Senior Executives to receive a payment in cash or shares of the Company’s common stock to the extent of achievement at the end of a period greater than one year (the “Performance Period”) as compared to Performance Goals established at the beginning of the Performance Period. The Company uses three years as the Performance Period. The LTI is a sub-plan of the Company’s Stock Plan which authorizes the grant of Deferred Stock awards that represent the right to receive Company common stock if conditions specified in the awards are satisfied. The Board has approved granting opportunities in 2017, 2018, and 2019 to Company officers and key employees to earn long-term incentive compensation under the LTI Plan. Each officer and key employee was granted an Incentive Award (that was also a Deferred Stock Award under the Stock Plan) which provided an opportunity to receive a payout of shares of the Company’s common stock to the extent of achievement compared to Performance Goals at the end of the three year Performance Period. The Company expects to pay out 24,681 shares of deferred stock in the 2020 first quarter, related to the Performance Period ended December 31, 2019. The number of shares to be paid out for the Performance Period ending December 31, 2020 and 2021 will be determined based on actual achievement compared to Performance Goals. Compensation expense related to the LTI plan for 2019 and 2018 was $100,000 and $216,000, respectively. |
NET INCOME PER SHARE COMPUTATIO
NET INCOME PER SHARE COMPUTATIONS | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME PER SHARE COMPUTATIONS | |
NET INCOME PER SHARE COMPUTATIONS | 6. NET INCOME PER SHARE COMPUTATIONS The following is a reconciliation of the numerator and denominator of the net income per common share computations for the years ended December 31, 2019 and 2018 Year Ended December 31, 2019 2018 Net income (numerator) amounts used for basic and diluted per share computations: $ 2,718,274 $ 5,718,444 Weighted average shares (denominator) of common stock outstanding: Basic 4,594,118 4,481,667 Plus dilutive effect of stock options 13,691 53,269 Diluted 4,607,809 4,534,936 Net income per common share: Basic $ 0.59 $ 1.28 Diluted 0.59 1.26 Options to purchase 9,000 shares of common stock at an average price of $13.30 per share were outstanding but not included in the computation of diluted net income per share for the year ended December 31, 2019 because the exercise price of the options exceeded the market price of the Company’s common stock at December 31, 2019. There were no out of the money options at December 31, 2018, thus, all outstanding options to purchase shares of common stock were included in the computation of diluted net income per share. |
GENERAL CREDIT AGREEMENT
GENERAL CREDIT AGREEMENT | 12 Months Ended |
Dec. 31, 2019 | |
GENERAL CREDIT AGREEMENT | |
GENERAL CREDIT AGREEMENT | 7. GENERAL CREDIT AGREEMENT The Company has a general credit and security agreement with a financial institution, which provides a revolving credit line of up to $8,000,000 and allows for a letter of credit in the aggregate amount of up to $2,000,000 to be issued under the credit agreement. This agreement was amended as of September 30, 2019 to extend the maturity date to September 30, 2020. The line of credit is collateralized by all receivables, inventory, equipment, and general intangibles of the Company. The Company had borrowings of $5,933,000 under the credit line during the year ended December 31, 2019. As of December 31, 2019, the outstanding balance on the line of credit was $0. The credit agreement contains covenants requiring the Company to maintain certain financial ratios. The Company was in compliance with these requirements as of December 31, 2019. |
LEASES AND COMMITMENTS
LEASES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
LEASES AND COMMITMENTS [Abstract] | |
LEASES AND COMMITMENTS | 8. LEASES AND COMMITMENTS The Company determines if an arrangement is a lease or contains a lease at inception. The Company leases certain office equipment under finance leases. We also lease equipment related to our horse racing operations under operating leases. For lease accounting purposes, we do not separate lease and nonlease components, nor do we record operating or finance lease assets and liabilities for short term leases. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. We recognize expense for operating leases on a straight-line basis over the lease term. The Company’s lease agreements do not contain any variable lease payments, material residual value guarantees or any restrictive covenants. Lease costs related to operating leases were $33,519 for the year ended December 31, 2019. The total lease expenses for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or liability was $558,233 for the year ended December 31, 2019. Lease costs included in depreciation and amortization related to our finance leases were $23,795 for the year ended December 31, 2019. Interest expense related to our finance leases was immaterial. The following table shows the classification of the right of use assets on our consolidated balance sheets: Balance Sheet Location December 31, 2019 Assets Finance Land, buildings and equipment, net (1) 96,284 Operating Operating lease right-of-use assets 74,832 Total Leased Assets $ 171,116 1 – Finance lease assets are net of accumulated amortization of $23,795 for the year ended December 31, 2019. The following table shows the lease terms and discount rates related to our leases: December 31, 2019 Weighted average remaining lease term (in years): Finance Operating Weighted average discount rate (%): Finance Operating The maturity of operating leases and finance leases for the year ended December 31, 2019 are as follows: Year Ended December 31, 2019 Operating leases Finance leases 2020 31,349 28,743 2021 23,100 28,743 2022 23,100 28,743 2023 — 19,331 Total minimum lease obligations 77,549 105,560 Less: amounts representing interest (2,717) (9,276) Present value of minimum lease payments 74,832 96,284 Less: current portion (29,776) (24,500) Lease obligations, net of current portion $ 45,056 $ 71,784 Purchase Obligations In March 2014, the Company entered into a seven-year agreement with a new totalizator provider. Pursuant to the agreement, the vendor provides totalizator equipment and related software which records and processes all wagers and calculates odds and payoffs. The amounts charged to operations for totalizator expenses for the years ended December 31, 2019 and 2018 were $233,000 and $230,000, respectively. Future minimum purchase obligations are as follows: Payment due by period Total Amount Obligations Committed 2020 Purchases 235,000 $ 235,000 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
CONTINGENCIES | |
CONTINGENCIES | 9. CONTINGENCIES Canterbury Park Holding Corporation was incorporated on March 24, 1994. On March 29, 1994, the Company acquired all the outstanding securities of Jacobs Realty, Inc. (“JRI”) from Irwin Jacobs and IMR Fund, L.P. (an investment fund for various pension plans and trusts). JRI was merged into the Company, and the acquisition was accounted for under the purchase method of accounting whereby the acquired assets and liabilities have been recorded at the Company’s cost. The primary asset of JRI was Canterbury Downs Racetrack and the 325 acres of surrounding land. On May 20, 1994, the Company adopted a plan of Reorganization pursuant to which the sole shareholder of Canterbury Park Concessions, Inc. (“CPC”), and majority shareholder of the Company, agreed to exchange his shares of CPC stock for 198,888 shares of the Company’s common stock concurrent with the closing of a public offering. Pursuant to the Plan of Reorganization, CPC became a wholly-owned subsidiary of the Company in August 1994 when the Company completed the initial public offering of its common stock. This reorganization was treated in a manner similar to a pooling of interests. Net proceeds received by the Company from the public offering were approximately $4,847,000, which along with additional borrowings under the Company’s line of credit with the majority shareholder, were used to pay off the remaining notes payable from the acquisition of JRI. In connection with the purchase of the Racetrack, the Company entered into an Earn Out Promissory Note dated March 29, 1994. In accordance with the Earn Out Note, if (i) off-track betting becomes legally permissible in the State of Minnesota and (ii) the Company begins to conduct off-track betting with respect to or in connection with its operations, the Company will be required to pay to the IMR Fund, L.P. the greater of $700,000 per operating year, as defined, or 20% of the net pretax profit, as defined for each of five operating years. At this time, management believes that the likelihood that these two conditions will be met and that the Company will be required to pay these amounts is remote. At the date (if any) that these two conditions are met, the five minimum payments will be discounted back to their present value and the sum of those discounted payments will be capitalized as part of the purchase price in accordance with generally accepted accounting principles. The purchase price will be further increased if payments become due under the “20% of Net Pretax Profit” calculation. The first payment is to be made 90 days after the end of the third operating year in which off-track betting is conducted by the Company. Remaining payments would be made within 90 days of the end of each of the next four operating years. Effective on June 15, 2012, the Company entered into a Cooperative Marketing Agreement (the “CMA”) with the Shakopee Mdewakanton Sioux Community (“SMSC”). The CMA was amended in January 2015, 2016, 2017, and 2018. The CMA contains certain covenants which, if breached, would trigger an obligation to repay a specified amount related to such covenant. At this time, management believes that the likelihood that the breach of a covenant will occur and that the Company will be required to pay the specified amount related to such covenant is remote. The Company is periodically involved in various claims and legal actions arising in the normal course of business. Management believes that the resolution of any pending claims and legal actions at December 31, 2019 and as of the date of this report will not have a material impact on the Company’s consolidated financial positions or results of operations. The Company has committed to payment of statutory distributions under a $500,000 bond issued to the Minnesota Racing Commission as required by Minnesota statute. The Company was not required to make any payments related to this bond in 2019 or 2018, and there is no liability related to this bond on the balance sheet as of December 31, 2019. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
OPERATING SEGMENTS | |
OPERATING SEGMENTS | 10. OPERATING SEGMENTS The Company has four reportable operating segments: horse racing, Card Casino, food and beverage, and development. The horse racing segment primarily represents simulcast and live horse racing operations. The Card Casino segment represents operations of Canterbury Park’s Card Casino, the food and beverage segment represents food and beverage operations provided during simulcast and live racing, in the Card Casino, and during special events, and the development segment represents our real estate development operations. The Company’s reportable operating segments are strategic business units that offer different products and services. They are managed separately because the segments differ in the nature of the products and services provided as well as process to produce those products and services. The Minnesota Racing Commission regulates the horse racing and Card Casino segments. Depreciation, interest expense, and income taxes are allocated to the segments but no allocation is made to food and beverage for shared facilities. However, the food and beverage segment pays approximately 25% of gross revenues earned on live racing and special event days to the horse racing segment for use of the facilities. The following tables represent a disaggregation of revenues from contracts with customers along with the Company’s operating segments (in 000’s): Year Ended December 31, 2019 Horse Racing Card Casino Food and Beverage Development Total Net revenues from external customers $ 15,370 $ 34,406 $ 9,430 $ 21 $ 59,227 Intersegment revenues 999 — 1,425 — 2,424 Net interest (expense) income (38) — — 365 327 Depreciation 2,262 186 232 — 2,680 Segment (loss) income before income taxes (2,695) 6,400 715 65 4,485 Segment tax expense (benefit) (1,011) 2,009 225 21 1,244 At December 31, 2019 Segment Assets $ 31,618 $ 3,327 $ 25,430 $ 29,074 $ 89,449 Year Ended December 31, 2018 Horse Racing Card Casino Food and Beverage Development Total Net revenues from external customers $ 16,764 $ 33,920 $ 8,458 $ — $ 59,142 Intersegment revenues 806 — 1,393 — 2,199 Net interest income 25 — — 37 62 Depreciation 2,371 5 188 — 2,564 Segment income before income taxes 279 7,195 1,197 2,350 11,021 Segment tax expense (benefit) (784) 1,858 309 607 1,990 At December 31, 2018 Segment Assets $ 35,992 $ 623 $ 23,680 $ 24,647 $ 84,942 The following are reconciliations of reportable segment revenues, income before income taxes, and assets, to the Company’s consolidated totals for the years ended December 31, 2019 and 2018 (in 000’s): Year Ended December 31, 2019 2019 2018 Revenues Total net revenue for reportable segments $ 61,651 $ 61,341 Elimination of intersegment revenues (2,424) (2,199) Total consolidated net revenues $ 59,227 $ 59,142 Income before income taxes Total segment income before income taxes $ 4,485 $ 11,021 Elimination of intersegment income before income taxes (522) (3,313) Total consolidated income before income taxes $ 3,963 $ 7,708 December 31, December 31, 2019 2018 Assets Total assets for reportable segments $ 89,449 $ 84,942 Elimination of intercompany balances (24,036) (23,516) Total consolidated assets $ 65,413 $ 61,426 |
SUPPLEMENTARY FINANCIAL INFORMA
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) | 11. SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) 2019 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 11,590,798 $ 16,433,177 $ 18,600,641 $ 12,602,241 Operating expenses 11,613,559 15,128,423 17,127,279 11,721,832 Net income 56,572 957,757 1,150,485 553,460 Basic net income per share 0.01 0.21 0.25 0.12 Diluted net income per share 0.01 0.21 0.25 0.12 2018 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 12,219,946 $ 16,512,724 $ 18,370,511 $ 12,038,389 Operating expenses 10,863,193 15,513,258 16,338,866 8,779,324 Net income 989,690 725,351 1,632,845 2,370,558 Basic net income per share 0.22 0.16 0.36 0.52 Diluted net income per share 0.22 0.16 0.36 0.52 |
COOPERATIVE MARKETING AGREEMENT
COOPERATIVE MARKETING AGREEMENT | 12 Months Ended |
Dec. 31, 2019 | |
COOPERATIVE MARKETING AGREEMENT | |
COOPERATIVE MARKETING AGREEMENT | 12. COOPERATIVE MARKETING AGREEMENT On June 4, 2012, the Company entered into the CMA with the SMSC. The primary purpose of the CMA is to increase purses paid during live horse racing at Canterbury Park’s Racetrack in order to strengthen Minnesota’s thoroughbred and quarter horse industry. Under the CMA, as amended, this is achieved through “Purse Enhancement Payments to Horsemen” paid directly to the MHBPA. Such payments have no direct impact on the Company’s consolidated financial statements or operations. Under the terms of the CMA, as amended, the SMSC paid the horsemen $7.3 million for purse enhancements for each of the years ended December 31, 2019 and 2018. Under the CMA, SMSC also agreed to make “Marketing Payments” to the Company relating to joint marketing efforts for the mutual benefit of the Company and SMSC, including signage, joint promotions, player benefits and events. Under the CMA, the SMSC paid the Company $1,620,000 for marketing purposes for each of the years ended December 31, 2019 and 2018. The CMA was amended in January 2015, January 2016, January 2018, and March 2018 to adjust the payment amounts between the “Purse Enhancement Payments to Horsemen” and “Marketing Payments to Canterbury Park.” Under the CMA as most recently amended, the SMSC has agreed to make the following purse enhancement and marketing payments for 2020 through 2022: Purse Enhancement Payments to Marketing Payments to Canterbury Year Horsemen (1) Park 2020 $ 7,380,000 $ 1,620,000 2021 7,380,000 1,620,000 2022 7,380,000 1,620,000 (1) - Includes $100,000 each year payable to various horsemen associations The amounts earned from the marketing payments are recorded as a component of other revenue and the related expenses are recorded as a component of advertising and marketing expense and depreciation in the Company’s condensed consolidated statements of operations. For the year ended December 31, 2019, the Company recorded $1,114,000 in other revenue and incurred $888,000 in advertising and marketing expense and incurred $226,000 in depreciation related to the SMSC marketing funds. For the year ended December 31, 2018, the Company recorded $1,275,000 in other revenue and incurred $1,049,000 in advertising and marketing expense and $226,000 in depreciation related to the SMSC marketing funds. Under the CMA, the Company agreed for the term of the CMA that it would not promote or lobby the Minnesota legislature for expanded gambling authority and will support the SMSC’s lobbying efforts against expanding gambling authority. |
REAL ESTATE DEVELOPMENT
REAL ESTATE DEVELOPMENT | 12 Months Ended |
Dec. 31, 2019 | |
REAL ESTATE DEVELOPMENT | |
REAL ESTATE DEVELOPMENT | 13. REAL ESTATE DEVELOPMENT Land Sale and Repurchase On October 6, 2015, the Company sold six acres of land adjacent to the Racetrack for $1,459,000 and recorded a gain of $660,000 on the Consolidated Statements of Operations – Gain on sale of land . Under the agreement with the buyer, the Company had the option to repurchase up to one acre within three years from closing date at the sale price of approximately $240,000 per acre. According to ASC 360‑20‑40‑38 - Derecognition , the Company recorded the repurchase option acre as a deferred gain liability in the amount of $240,000 on the Consolidated Balance Sheets. Since the risks and rewards were not completely transferred to the buyer based on the repurchase option, the Company maintained the asset on our financials in the amount of $110,000. The repurchase option lapsed on October 6, 2018, and the Company did not repurchase the one acre of land. Therefore, a gain on sale of land of $129,500 was recognized on the Consolidated Statements of Operations for the year ended December 31, 2018. Equity Investment On April 2, 2018, the Company’s subsidiary Canterbury Development LLC entered into an Operating Agreement (“Operating Agreement”) with an affiliate of Doran Companies (“Doran”), a national commercial and residential real estate developer, as the two members of a Minnesota limited liability company named Doran Canterbury I, LLC (“Doran Canterbury I”). Doran Canterbury I was formed as part of a joint venture between Doran and Canterbury Development LLC to construct an upscale apartment complex on land adjacent to the Company’s Racetrack (the “Project”). Doran Canterbury is developing Phase I of the Project, which will include approximately 300 units, a heated parking ramp, and a clubhouse. In connection with the execution of the Amended Doran Canterbury I Agreement, on August 18, 2018, Canterbury Development LLC entered into an Operating Agreement with Doran Shakopee, LLC as the two members of a Minnesota limited liability company entitled Doran Canterbury II, LLC (“Doran Canterbury II”). Under the Doran Canterbury II Operating Agreement, Doran Canterbury II will pursue development of Phase II of the Project, which is expected to begin upon rental stabilization of Phase I. Phase II will include an additional 300 apartment units. Canterbury Development’s equity contribution to Doran Canterbury for Phase II will be approximately 10 acres of land. In connection with its contribution, Canterbury Development will become a 27.4% equity member in Doran Canterbury II with Doran owning the remaining 72.6%. On September 27, 2018, Canterbury Development LLC contributed approximately 13 acres of land as its equity contribution in the joint venture and became a 27.4% equity member. On December 20, 2018, financing for Doran Canterbury I was secured. As the Company is able to assert significant influence, but not control, over Doran Canterbury I’s operational and financial policies, the Company will account for the joint venture as an equity method investment. In accordance with ASC 610-20, we determined that we do not have a controlling financial interest in the joint venture and the arrangement meets the criteria to be accounted for as a contract. Therefore, we derecognized the land and recognized a full gain (approximately $2,241,000) between the carrying amount of the land and the estimated fair value of the land transferred. The Company recognize its proportionate share of Doran Canterbury I’s earnings (after the effect of basis differences) as an increase or decrease in its Investment in Doran Canterbury I and as Income or Loss from Investment in Doran Canterbury I. Tax Increment Financing On August 8, 2018, the City Council of the City of Shakopee, Minnesota approved a Contract for Private Redevelopment (“Redevelopment Agreement”) between the City of Shakopee Economic Development Authority (“Shakopee EDA”) and Canterbury Park Holding Corporation and its subsidiary Canterbury Development LLC in connection with a Tax Increment Financing District (“TIF District”) that the City had approved in April 2018. The City of Shakopee, the Shakopee EDA and the Company entered into the Redevelopment Agreement on August 10, 2018. Under the Redevelopment Agreement, the Company has agreed to undertake a number of specific infrastructure improvements within the TIF District, including the development of public streets, utilities, sidewalks, and other public infrastructure. More specifically, the Company is obligated to construct improvements on Shenandoah Drive and Barenscheer Boulevard with these improvements required to be substantially complete on or before December 31, 2019 and December 31, 2020, respectively. As of December 31, 2019, improvements to Shenandoah Drive were substantially complete. Under the Redevelopment Agreement, the City of Shakopee has agreed that a portion of the tax increment revenue generated from the developed property will be paid to the Company to reimburse it for its expense in constructing infrastructure improvements. The total estimated cost of TIF eligible improvements to be borne by the Company is $23,336,500. A detailed Schedule of the Public Improvements under the Redevelopment Agreement, the timeline for their construction and the source and amount of funding is set forth on Exhibit C of the Redevelopment Agreement, which was filed as Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended June 30, 2018. The total amount of funding that Canterbury will be paid as reimbursement under the TIF program for these improvements is not guaranteed, however, and will depend on future tax revenues generated from the developed property. As of December 31, 2019, the Company recorded a TIF receivable of $9,709,000, which represents $9,557,000 of principal and $152,000 of interest. Management believes no allowance for doubtful accounts is necessary. As of December 31, 2018, the Company recorded a TIF receivable of $1,909,000, which represented only principal. The Company expects to finance its improvements under the Redevelopment Agreement with funds from its current operating resources and existing credit facility and, potentially, third-party financing sources. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
NOTES RECEIVABLE [Abstract] | |
NOTES RECEIVABLE | 14. NOTES RECEIVABLE During May 2016, the Company sold approximately 24 acres of land adjacent to the Racetrack for a total consideration of approximately $4.3 million. Promissory notes receivable consisted of two promissory notes totaling $3,191,000 bearing interest at the mid-term applicable federal rate, which equaled 1.43%. On November 1, 2019, the Company received a final payment of $982,639, which represented $975,363 of principal and $7,276 in interest related to the note receivable. This resulted in an increase to Cash and cash equivalents of $982,639 and a decrease to our Current portion of notes receivable for the same amount. The remaining difference between the Current portion of notes receivable balance and payment received was recorded as a loss on disposal of assets. |
RELATED PARTY RECEIVABLES
RELATED PARTY RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY RECEIVABLES | |
RELATED PARTY RECEIVABLES | 15. RELATED PARTY RECEIVABLES On December 20, 2018, the Company entered into a loan agreement with Doran Family Holdings, a related party that is the controlling partner in the Doran Canterbury I joint venture. The Company loaned Doran Family Holdings $2,910,000 and received a promissory note totaling $2,940,000 bearing interest at 5%. The note will mature at the earliest of (i) the date of closing by Doran Canterbury II, LLC on Phase II Project Financing; (ii) the closing on any purchase of the Phase II Land by Doran Shakopee, LLC pursuant to its option under Section 3.9(a) of the Operating Agreement; (iii) the date of final determination that the Phase II Project will not be developed by either Doran Canterbury II, LLC; or (iv) three (3) years following the date of the note. The promissory note is fully and unconditionally guaranteed by Doran Family Holdings. Management believes no allowance for doubtful accounts is necessary. For the year ended December 31, 2019, the Company recorded $147,000 of interest income related to this note. In 2018, the Company incurred $269,000 of costs for preliminary grading work on parcels of land the Company has designated for Doran Canterbury II. The Company will be fully reimbursed for these costs upon the commencement of the Doran Canterbury II project and thus, recorded the amount as a receivable for the year ended December 31, 2018 and 2019. Although there is a possibility Doran Canterbury II will not materialize, the Company currently believes the likelihood of that is remote. In 2019, the Company contributed two member loans to the Doran Canterbury I joint venture totaling $178,100 and $137,000, respectively. The member loans bears interest at the rate equal to the Prime Rate plus two percent annum. The Company expects to be fully reimbursed for the member loans upon positive cash flow from the joint venture. For the year ended December 31, 2019, the Company recorded $5,000 of interest income related to these loans. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS On March 16, 2020, the Company announced that, based on the advice of Minnesota state and regulatory bodies, it was temporarily suspending all card casino, simulcast, and special events operations at Canterbury Park at noon on March 16, 2020 in response to concerns about the COVID-19 coronavirus. Canterbury Park determined this voluntary suspension of activities was in the best interest of the health and safety of its guests and team members and would provide the Company an opportunity to review and update operational best practices and strategies based on what was currently known about this public health situation and future developments. The Company will continue to monitor developments with respect to the COVID-19 coronavirus and provide updated information on its website, or in press releases. As a result of the temporary suspension of operations, the Company’s three main sources of income and cash flow, revenues from simulcasting, card casino, and food and beverage ceased operating on March 16, 2020. In the second quarter ended June 30, 2019, the Company had revenue of $2,546,000 from live racing and simulcasting, $8,891,000 from the Card Casino and $2,544,000 from food and beverage. The Company cannot currently predict when it will be able to resume simulcasting or reopen its Card Casino, or whether it will be able to commence live racing on its projected May 15, 2020 date. The Company’s food and beverage revenue is driven primarily by its simulcasting, live racing, and card casino guests. In a separate press also issued on March 16, 2020, the Company announced that in conjunction with its determination to temporarily shut down operations due to concerns and uncertainty about the effect of the COVID-19 coronavirus, the Company’s Board of Directors had suspended declaring and paying its $0.07 quarterly cash dividend, that would normally be paid in April 2020. |
OVERVIEW AND SUMMARY OF SIGNIFI
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
OVERVIEW AND BASIS OF PRESENTATION | |
Basis of Presentation and Preparation | Basis of Presentation - The consolidated financial statements include the accounts of the Company, Canterbury Park Concessions, Inc. (CPC) and Canterbury Development LLC after elimination of intercompany accounts and transactions. Effective January 1, 2019, we adopted the requirements of Accounting Standards Updated (“ASU”) No. 2016-02, Leases as discussed in Note 2. All amounts and disclosures set forth in this Form 10-K have been updated to comply with the new standards. |
Estimates | Estimates – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include all investments with original maturities of three months or less or which are readily convertible into known amounts of cash and are not legally restricted. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Restricted Cash | Restricted Cash – Restricted cash represents refundable deposits and amounts due to horsemen for purses, stakes and awards, and amounts accumulated in card game progressive jackpot pools, the player pool, and poker promotional fund to be used to repay card players in the form of promotions, giveaways, prizes, or by other means. Restricted cash also includes a deposit related to its development operations. In 2018, the Company recorded a deposit with a bank with the purpose of assisting Doran Canterbury I in completing financing for a construction loan. The bank will release the deposit back to the Company when the construction loan is repaid by Doran Canterbury I and converted into a term loan. As this is expected to occur in 2021 or 2022, the Company classified this as long term restricted cash on the consolidated balance sheet. |
Short-term Investments | Short-term Investments – Securities are classified as held to maturity when the Company has the positive intent and ability to hold them to maturity, and are measured at amortized cost. At December 31, 2019 and 2018, all investments were classified as held-to-maturity. The Company continually reviews its investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in earnings. Short-term investments consist of certificates of deposit at December 31, 2019 and 2018. Amortized cost approximated fair value for both periods. |
Accounts Receivable | Accounts Receivable – Accounts receivable are initially recorded for amounts due from other tracks for simulcast revenue, net of amounts due to other tracks, and for amounts due from customers related to catering and events. Credit is granted in the normal course of business without collateral. Accounts receivable are stated net of allowances for doubtful accounts, which represent estimated losses resulting from the inability of customers to make the required payments. Accounts that are outstanding longer than the contractual terms are considered past due. When determining the allowances for doubtful accounts, the Company takes several factors into consideration including the overall composition of the accounts receivable aging, its prior history of accounts receivable write-offs, the type of customers and its day-to-day knowledge of specific customers. The Company writes off accounts receivable when they become uncollectible. Changes in the allowances for doubtful accounts are recorded as bad debt expense and are included in other operating expenses in the Company’s consolidated statements of operations. |
Property Tax Increment Financing (TIF) Receivable | Property Tax Increment Financing (TIF) Receivable – In connection with the Contract for Private Redevelopment (“Redevelopment Agreement”) between the City of Shakopee Economic Development Authority and Canterbury Development LLC signed in August 2018, the City of Shakopee has agreed that a portion of the tax increment revenue generated from the developed property will be paid to the Company to reimburse it for expenses in constructing infrastructure improvements. The interest rate on the TIF Receivable is 6%. |
Inventory | Inventory – Inventory consists primarily of food and beverages, small wares and supplies and retail goods and is recorded at the lower of cost (first-in, first-out) or net realizable value. |
Unredeemed Pari-mutuel Tickets | Unredeemed Pari-mutuel Tickets – The Company records a liability for winning tickets and vouchers upon the completion of a race and when a voucher is printed, respectively. As uncashed winning tickets and vouchers are redeemed, this liability is reduced for the respective cash payment. The Company recognizes revenue associated with the uncashed winning tickets and vouchers when the likelihood of redemption, based on historical experience, is remote. While the Company continues to honor all winning tickets and vouchers presented for payment, management may determine the likelihood of redemption to be remote due to the length of time that has elapsed since the ticket was issued. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, uncashed winning tickets and vouchers may then be recognized as revenue in the Company’s Consolidated Statement of Operations. |
Deferred Revenue | Deferred Revenue – Deferred revenue includes advance sales related to racing, events and corporate partnerships. Revenue from these advance billings are recognized when the related event occurs or services have been performed. Deferred revenue also includes advanced Cooperative Marketing Agreement (“CMA”) promotional funds, and revenue is recognized when expenses are incurred. |
Due to Minnesota Horsemen's Benevolent and Protective Association, Inc. ("MHBPA") | Due to Minnesota Horsemen’s Benevolent and Protective Association, Inc. (“MHBPA”) – The Minnesota Pari-mutuel Horse Racing Act specifies that the Company is required to segregate a portion of funds (recorded as purse expense in the statements of operations), received from Card Casino operations and wagering on simulcast and live horse races, for future payment as purses for live horse races or other uses of the horsepersons’ associations. Pursuant to an agreement with the MHBPA, the Company transferred into a trust account or paid directly to the MHBPA, approximately $6,314,000 and $6,442,000 for the years ended December 31, 2019 and 2018, respectively, related to thoroughbred races. Minnesota Statutes specify that amounts transferred into the trust account are the property of the trust and not of the Company. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets – The Company reviews its long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In the event that facts and circumstances indicate that the carrying value of any long-lived assets may be impaired, an evaluation of recoverability would be performed. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. During 2019 and 2018, the Company determined that no evaluations of recoverability were necessary. |
Advertising and Marketing | Advertising and Marketing – Advertising and marketing costs are charged to expense as incurred. The related amounts are presented separately in the Company’s consolidated statements of operations. |
Revenue Recognition | Revenue Recognition – The Company’s primary revenues with customers consist of Card Casino operations, pari-mutuel wagering on simulcast and live horse races, and food and beverage transactions. We determine revenue recognition through the following steps: · Identification of the contract, or contracts, with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligation in the contract · Recognition of revenue when, or as, we satisfy a performance obligation The transaction price for a Card Casino contract is a set percentage of wagers and is recognized at the time that the wagering process is complete. The transaction price for pari-mutuel wagering is the commission received on a wager, exclusive of any track fees and is recognized upon occurrence of the live race that is presented for wagering and after that live race is made official by the respective state’s racing regulatory body. The transaction price for food and beverage contracts is the net amount collected from the customer for these goods. Food and beverage services have been determined to be separate, stand-alone performance obligations and the transaction price is recorded as revenue as the good is transferred to the customer when delivery is made. Contracts for Card Casino operations and pari-mutuel wagering involve two performance obligations for those customers earning points under the Company’s loyalty program and a single performance obligation for customers who do not participate in the program. The Company applies a practical expedient by accounting for its gaming contracts on a portfolio basis as these wagers have similar characteristics and the Company reasonably expects the effects on the financial statements of applying the revenue recognition guidance to the portfolio will not differ materially from that which would result if applying the guidance to an individual wagering contract. For purposes of allocating the transaction price in a wagering contract between the wagering performance obligation and the obligation associated with the loyalty points earned, the Company allocates an amount to the loyalty point contract liability based on the stand-alone redemption value of the points earned, which is determined by the value of a point that can be redeemed for a cash voucher, food and beverage voucher, racing admission, valet parking, or racing forms. Based on past experience, the majority of customers redeem their points for cash vouchers. We have two general types of liabilities related to Card Casino contracts with customers: (1) our MVP Loyalty Program and (2) outstanding chip liability. These are included in the line item Card Casino accruals on the consolidated balance sheet. We defer the full retail value of these complimentary reward items until the future revenue transaction occurs. The Company offers certain promotional allowances at no charge to patrons who participate in its player rewards program. The retail value of these promotional items is included as a deduction from pari-mutuel revenues and no longer shown as a separate line item on the Company’s consolidated statements of operations. We evaluate our on-track revenue, export revenue, and import revenue contracts to determine whether we are acting as the principal or as the agent when providing services, which we consider in determining if revenue should be reported gross or net. An entity is a principal if it controls the specified service before that service is transferred to a customer. The revenue we recognize for on-track revenue and import revenue is the commission we are entitled to retain for providing a wagering service to our customers. For these arrangements, we are the principal as we control the wagering service; therefore, any charges, including simulcast fees, we incur for delivering the wagering service are presented as operating expenses. For export revenue, our customer is the third party wagering site such as a race track, OTB, or advance deposit wagering provider. Therefore, the revenue we recognize for export revenue is the simulcast host fee we earn for exporting our racing signal to the third party wagering site. |
Land, Buildings, and Equipment | Land, Buildings, and Equipment – Land, buildings, equipment, and building improvements are capitalized at a level of $2,000 or greater and are recorded at cost. Repair and maintenance costs are charged to operations when incurred. Furniture, fixtures, and equipment are depreciated using the straight-line method over estimated useful lives ranging from 5 – 7 years, while buildings are depreciated over 15 – 39 years. Building improvements are amortized using the straight-line method over the useful life of the assets. Pre-development costs are incurred prior to vertical construction and for certain land held for development during the due diligence phase. This includes legal, engineering, architecture, and other professional fees incurred in pursuit of new development opportunities for which we believe future development is probable. Future development is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and availability of capital. Pre-development costs incurred for which future development is not yet considered probable are expensed as incurred. The Company capitalizes property taxes incurred on its land held for development during periods in which activities necessary to get the property ready for its intended use are in progress. Costs incurred after the property is substantially complete and ready for its intended use are charged to expense as incurred. |
Card Casino Accruals | Card Casino Accruals – Minnesota law allows the Company to collect amounts from patrons to fund progressive jackpot pools in the Card Casino. These amounts, along with amounts earned by the player pool, promotional pools, and the outstanding chip liability, are accrued as short-term liabilities at each balance sheet date. |
Income Taxes | Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to reverse. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Interest and penalties associated with uncertain income tax positions are presented in income tax expense. For the years ended December 31, 2019 and 2018, the Company did not recognize any expense related to interest and penalties. |
Net Income Per Share | Net Income Per Share – Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share takes into effect the dilutive effect of potential common shares outstanding. The Company’s only potential common shares outstanding are stock options. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments – Due to the current classification of all financial instruments and given the short-term nature of the related account balances, carrying amounts reported in the consolidated balance sheets approximate fair value. |
Stock-Based Employee Compensation | Stock-Based Employee Compensation – The Company accounts for share-based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized as expense over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. For more information on the Company’s stock-based compensation plans, see Note 5. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Standards ASU No. 2014-09 In February 2016, the FASB issued ASU No. 2016-02 codified as Accounting Standards Codification (“ASC”) 842, Leases, (“ASC 842”) which addresses the recognition and measurement of leases. Under the new guidance, for all leases (with the exception of short-term leases), at the commencement date, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to control the use of a specified asset for the lease term. The effective date for this update is for the annual and interim periods beginning after December 15, 2018 with early adoption permitted. ASC 842 requires a transition adoption election using either (1) a modified retrospective approach with periods prior to the adoption date being recast or (2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods continuing to be reported under previous lease accounting guidance. The Company adopted ASC 842 on January 1, 2019 using the prospective adoption approach, and therefore, comparative periods will continue to be reported under previous lease accounting guidance consistent with previously issued financial statements. The Company also elected to adopt the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allows us to carry forward the historical lease identification, lease classification and treatment of initial direct costs for leases entered into prior to January 1, 2019. We have also made an accounting policy election to not record short-term leases with an initial term of 12 months or less on the balance sheet for all classes of underlying assets. The adoption of ASC 842 did not have a material impact on our consolidated financial statements. Refer to Note 8 for further detail. |
LAND, BUILDINGS AND EQUIPMENT (
LAND, BUILDINGS AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Land, Buildings And Equipment [Abstract] | |
Land, Buildings And Equipment, At Cost | 2019 2018 Land $ 2,507,298 $ 2,507,926 Land held for development 9,191,107 8,164,589 Buildings and building improvements 38,858,798 34,439,339 Furniture and equipment 22,821,447 22,097,711 Construction in progress 3,174,664 2,113,226 76,553,314 69,322,791 Accumulated depreciation (32,719,612) (31,191,739) $ 43,833,702 $ 38,131,052 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Reconciliation of Effective Tax Rate | 2019 2018 Federal tax expense at statutory rates $ 928,000 $ 1,618,800 Nondeductible lobbying expense 15,100 15,100 State expense, net of federal impact 316,000 615,300 Stock option expense (14,200) (74,200) Federal deferred remeasurement — (175,600) Other (637) (9,400) $ 1,244,263 $ 1,990,000 |
Schedule of Income Tax Expense | 2019 2018 Current Federal $ 449,000 $ 290,000 State 361,000 732,000 810,000 1,022,000 Deferred, Federal 479,263 1,164,000 Deferred, State (45,000) (196,000) $ 1,244,263 $ 1,990,000 |
Schedule of Deferred Tax Assets and Liabilities | 2019 2018 Deferred tax assets (liabilities) Vacation accrual $ 72,800 $ 62,500 Player rewards program accrual 143,200 136,200 Stock options 75,100 37,400 Long-Term Incentive Plan 114,300 126,800 Other 5,500 5,600 Land, building and equipment - cost and depreciation (4,062,800) (3,507,500) Investment in JV (729,000) (729,000) Prepaid Expenses (7,700) (102,000) TIF receivable accrued interest (43,600) — Lease Obligations 27,900 — Net long-term deferred tax liabilities $ (4,404,300) $ (3,970,000) |
STOCKHOLDERS' EQUITY AND STOC_2
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | |
Schedule of Stock Option Activity | 2019 2018 Weighted Weighted Average Average Number of Exercise Number of Exercise Options Price Shares Price Outstanding at beginning of year 75,062 $ 7.95 142,502 $ 8.19 Granted — — — — Exercised (41,310) 6.62 (67,440) 8.45 Expired/Forfeited (502) 6.00 — — Outstanding at end of year 33,250 $ 9.64 75,062 $ 7.95 Options exercisable at end of year 33,250 $ 9.64 75,062 $ 7.95 |
Schedule of Stock Options by Exercise Price Range | Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Aggregate Average Aggregate Range of Number Life (Years) Exercise Intrinsic Number Exercise Intrinsic Exercise Price Outstanding Remaining Price Value Exercisable Price Value $ 6.00 - 8.00 — — $ — $ — — $ — $ — $ 8.01 - 11.00 24,250 0.2 $ 8.28 99,910 24,250 $ 8.28 99,910 $ 11.01 - 14.00 9,000 2.1 $ 13.30 — 9,000 $ 13.30 — Total 33,250 0.9 $ 9.64 $ 99,910 33,250 $ 9.64 $ 99,910 |
Summary of Changes in Board of Directors Unvested Restricted Stock | Weighted Restricted/ Average Deferred Fair Value Stock Per Share Non-Vested Balance, December 31, 2017 11,264 $ 10.65 Granted 7,456 16.10 Vested (11,264) 10.65 Forfeited — — Non-Vested Balance, December 31, 2018 7,456 $ 16.10 Granted 12,604 12.69 Vested (7,456) 16.10 Forfeited — — Non-Vested Balance, December 31, 2019 12,604 $ 12.69 |
NET INCOME PER SHARE COMPUTAT_2
NET INCOME PER SHARE COMPUTATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME PER SHARE COMPUTATIONS | |
Schedule Of Earnings Per Share Reconciliation | Year Ended December 31, 2019 2018 Net income (numerator) amounts used for basic and diluted per share computations: $ 2,718,274 $ 5,718,444 Weighted average shares (denominator) of common stock outstanding: Basic 4,594,118 4,481,667 Plus dilutive effect of stock options 13,691 53,269 Diluted 4,607,809 4,534,936 Net income per common share: Basic $ 0.59 $ 1.28 Diluted 0.59 1.26 |
LEASES AND COMMITMENTS (Tables)
LEASES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES AND COMMITMENTS [Abstract] | |
Schedule of classification of right of use assets | Balance Sheet Location December 31, 2019 Assets Finance Land, buildings and equipment, net (1) 96,284 Operating Operating lease right-of-use assets 74,832 Total Leased Assets $ 171,116 1 – Finance lease assets are net of accumulated amortization of $23,795 for the year ended December 31, 2019. |
Schedule of lease terms and discount rates | December 31, 2019 Weighted average remaining lease term (in years): Finance Operating Weighted average discount rate (%): Finance Operating |
Schedule of maturities of operating and financing leases | The maturity of operating leases and finance leases for the year ended December 31, 2019 are as follows: Year Ended December 31, 2019 Operating leases Finance leases 2020 31,349 28,743 2021 23,100 28,743 2022 23,100 28,743 2023 — 19,331 Total minimum lease obligations 77,549 105,560 Less: amounts representing interest (2,717) (9,276) Present value of minimum lease payments 74,832 96,284 Less: current portion (29,776) (24,500) Lease obligations, net of current portion $ 45,056 $ 71,784 |
Schedule Of Future Minimum And Purchase Obligations | Payment due by period Total Amount Obligations Committed 2020 Purchases 235,000 $ 235,000 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OPERATING SEGMENTS | |
Schedule of the Company's Operating Segments | The following tables represent a disaggregation of revenues from contracts with customers along with the Company’s operating segments (in 000’s): Year Ended December 31, 2019 Horse Racing Card Casino Food and Beverage Development Total Net revenues from external customers $ 15,370 $ 34,406 $ 9,430 $ 21 $ 59,227 Intersegment revenues 999 — 1,425 — 2,424 Net interest (expense) income (38) — — 365 327 Depreciation 2,262 186 232 — 2,680 Segment (loss) income before income taxes (2,695) 6,400 715 65 4,485 Segment tax expense (benefit) (1,011) 2,009 225 21 1,244 At December 31, 2019 Segment Assets $ 31,618 $ 3,327 $ 25,430 $ 29,074 $ 89,449 Year Ended December 31, 2018 Horse Racing Card Casino Food and Beverage Development Total Net revenues from external customers $ 16,764 $ 33,920 $ 8,458 $ — $ 59,142 Intersegment revenues 806 — 1,393 — 2,199 Net interest income 25 — — 37 62 Depreciation 2,371 5 188 — 2,564 Segment income before income taxes 279 7,195 1,197 2,350 11,021 Segment tax expense (benefit) (784) 1,858 309 607 1,990 At December 31, 2018 Segment Assets $ 35,992 $ 623 $ 23,680 $ 24,647 $ 84,942 |
Reconciliation of Revenues | Year Ended December 31, 2019 2019 2018 Revenues Total net revenue for reportable segments $ 61,651 $ 61,341 Elimination of intersegment revenues (2,424) (2,199) Total consolidated net revenues $ 59,227 $ 59,142 |
Reconciliation of Income Before Income Taxes | Income before income taxes Total segment income before income taxes $ 4,485 $ 11,021 Elimination of intersegment income before income taxes (522) (3,313) Total consolidated income before income taxes $ 3,963 $ 7,708 |
Reconciliation of Assets | December 31, December 31, 2019 2018 Assets Total assets for reportable segments $ 89,449 $ 84,942 Elimination of intercompany balances (24,036) (23,516) Total consolidated assets $ 65,413 $ 61,426 |
SUPPLEMENTARY FINANCIAL INFOR_2
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |
Schedule Of Supplementary Financial Information | 2019 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 11,590,798 $ 16,433,177 $ 18,600,641 $ 12,602,241 Operating expenses 11,613,559 15,128,423 17,127,279 11,721,832 Net income 56,572 957,757 1,150,485 553,460 Basic net income per share 0.01 0.21 0.25 0.12 Diluted net income per share 0.01 0.21 0.25 0.12 2018 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 12,219,946 $ 16,512,724 $ 18,370,511 $ 12,038,389 Operating expenses 10,863,193 15,513,258 16,338,866 8,779,324 Net income 989,690 725,351 1,632,845 2,370,558 Basic net income per share 0.22 0.16 0.36 0.52 Diluted net income per share 0.22 0.16 0.36 0.52 |
COOPERATIVE MARKETING AGREEME_2
COOPERATIVE MARKETING AGREEMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COOPERATIVE MARKETING AGREEMENT | |
Purse Enhancement and Marketing Payments | Purse Enhancement Payments to Marketing Payments to Canterbury Year Horsemen (1) Park 2020 $ 7,380,000 $ 1,620,000 2021 7,380,000 1,620,000 2022 7,380,000 1,620,000 (1) - Includes $100,000 each year payable to various horsemen associations |
OVERVIEW AND BASIS OF PRESENT_2
OVERVIEW AND BASIS OF PRESENTATION (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)aitem | Dec. 31, 2018USD ($) | |
OVERVIEW AND BASIS OF PRESENTATION | ||
Casino open, number of hours daily | PT24H | |
Casino open, number of days weekly | 7 days | |
Minnesota State law, maximum number of game tables | item | 80 | |
Numbers of acres to be developed | a | 140 | |
Funds Due To Organization | $ 6,314,000 | $ 6,442,000 |
Restricted Cash, Noncurrent | $ 1,262,744 | $ 1,250,000 |
ACCOUNTING STANDARDS AND SIGN_2
ACCOUNTING STANDARDS AND SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest rate on financing receivable | 6.00% | |
Funds Due To Organization | $ 6,314,000 | $ 6,442,000 |
Property, plant and equipment, minimum cost capitalization | $ 2,000 | |
Furniture, Fixtures And Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment, useful life | 5 years | |
Furniture, Fixtures And Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment, useful life | 7 years | |
Building [Member] | Minimum [Member] | ||
Property, plant and equipment, useful life | 15 years | |
Building [Member] | Maximum [Member] | ||
Property, plant and equipment, useful life | 39 years |
LAND, BUILDINGS AND EQUIPMENT_2
LAND, BUILDINGS AND EQUIPMENT (Land, Buildings And Equipment, At Cost) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 76,553,314 | $ 69,322,791 |
Accumulated depreciation | (32,719,612) | (31,191,739) |
Net | 43,833,702 | 38,131,052 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 2,507,298 | 2,507,926 |
Net | 110,000 | |
Land Held for Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 9,191,107 | 8,164,589 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 38,858,798 | 34,439,339 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 22,821,447 | 22,097,711 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 3,174,664 | $ 2,113,226 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 21, 2017 |
Federal corporate income tax rate | 21.00% | 34.00% | 21.00% | |
Federal deferred remeasurement | $ (175,600) | |||
Maximum [Member] | ||||
Federal corporate income tax rate | 35.00% |
INCOME TAXES (Reconciliation Of
INCOME TAXES (Reconciliation Of Effective Tax Rate) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Federal tax expense at statutory rates | $ 928,000 | $ 1,618,800 |
Nondeductible lobbying expense | 15,100 | 15,100 |
State expense, net of federal impact | 316,000 | 615,300 |
Stock option expense | (14,200) | (74,200) |
Federal deferred remeasurement | (175,600) | |
Other | (637) | (9,400) |
Income tax expense | $ 1,244,263 | $ 1,990,000 |
INCOME TAXES (Income Tax Expens
INCOME TAXES (Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current | ||
Federal | $ 449,000 | $ 290,000 |
State | 361,000 | 732,000 |
Total | 810,000 | 1,022,000 |
Deferred | ||
Deferred, Federal | 479,263 | 1,164,000 |
Deferred, State | (45,000) | (196,000) |
Income tax expense | $ 1,244,263 | $ 1,990,000 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets And Liabilities) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets (liabilities) | ||
Vacation accrual | $ 72,800 | $ 62,500 |
Player rewards program accrual | 143,200 | 136,200 |
Stock options | 75,100 | 37,400 |
Long-Term incentive plan | 114,300 | 126,800 |
Other | 5,500 | 5,600 |
Land, building and equipment - cost and depreciation | (4,062,800) | (3,507,500) |
Investment in JV | (729,000) | (729,000) |
Prepaid Expenses | (7,700) | (102,000) |
TIF receivable accrued interest | (43,600) | |
Lease Obligations | 27,900 | |
Net long-term deferred tax liabilities | $ (4,404,300) | $ (3,970,000) |
STOCKHOLDERS_ EQUITY AND STOCK-
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2008 | Dec. 31, 2012 | Dec. 31, 2007 | |
Share-based compensation by Plan | ||||||
Employer contributions to 401(k) plan | $ 688,000 | $ 527,000 | ||||
Stock-based compensation | $ 235,000 | $ 346,000 | ||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based compensation by Plan | ||||||
Minimum hours per week required to participate in ESPP | 15 hours | |||||
Period of intervals after which common stock may be purchased by employees | 6 months | |||||
Percentage of fair market value of common stock purchased at by employees | 85.00% | |||||
Number of shares purchased by employees under Employee Stock purchase plan | 18,333 | 8,582 | ||||
Number of shares purchased under ESPP | 324,504 | |||||
Shares authorized under plan | 350,000 | |||||
KSOP [Member] | ||||||
Share-based compensation by Plan | ||||||
Period of service required to be eligible for KSOP | 6 months | |||||
Stock Repurchase Plan [Member] | ||||||
Share-based compensation by Plan | ||||||
Number of additional shares authorized for repurchase | 100,000 | |||||
Number of shares authorized for repurchase | 128,871 | 250,000 | ||||
Shares repurchased | 0 | 0 | 216,543 |
STOCKHOLDERS' EQUITY AND STOC_3
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION - Stock Options Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||
Outstanding, Beginning Balance, Number of Options | 75,062 | 142,502 |
Granted, Number of Options | ||
Exercised, Number of Options | (41,310) | (67,440) |
Expired/Forfeited, Number of Options | (502) | |
Outstanding, Ending Balance, Number of Options | 33,250 | 75,062 |
Weighted Average Exercise Price | ||
Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 7.95 | $ 8.19 |
Granted, Weighted Average Exercise Price | ||
Exercised, Weighted Average Exercise Price | 6.62 | 8.45 |
Expired/Forfeited, Weighted Average Exercise Price | 6 | |
Outstanding, Ending Balance, Weighted Average Exercise Price | $ 9.64 | $ 7.95 |
Additional information | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 10 months 24 days | |
Options exercisable at end of year (in shares) | 33,250 | 75,062 |
Options exercisable at end of year, Weighted Average Exercise Price | $ 9.64 | $ 7.95 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized under plan | 1,650,000 | |
Shares available for grant | 364,928 | |
Number of Options | ||
Granted, Number of Options | 0 | 0 |
Additional information | ||
Weighted average remaining contractual term | 4 months 24 days | |
Grant date fair value of options outstanding and exercisable | $ 148,000 | $ 224,000 |
Fair value of options exercised | 75,000 | 183,000 |
Total intrinsic value of options exercised | $ 313,000 | $ 494,000 |
STOCKHOLDERS_ EQUITY AND STOC_2
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Stock Options By Exercise Price Range) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number Outstanding | 33,250 | |
Options Outstanding, Weighted Average Remaining Contractual Term | 10 months 24 days | |
Options Outstanding, Weighted Average Exercise Price | $ 9.64 | |
Options Outstanding, Aggregate Intrinsic Value | $ 99,910 | |
Options Exercisable, Number Exercisable | 33,250 | |
Options Exercisable, Weighted Average Exercise Price | $ 9.64 | $ 7.95 |
Options Exercisable, Aggregate Intrinsic Value | $ 99,910 | |
$6.00 - 8.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower Range Limit | $ 6 | |
Exercise Price Range, Upper Range Limit | 8 | |
$8.01 - 11.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower Range Limit | 8.01 | |
Exercise Price Range, Upper Range Limit | $ 11 | |
Options Outstanding, Number Outstanding | 24,250 | |
Options Outstanding, Weighted Average Remaining Contractual Term | 2 months 12 days | |
Options Outstanding, Weighted Average Exercise Price | $ 8.28 | |
Options Outstanding, Aggregate Intrinsic Value | $ 99,910 | |
Options Exercisable, Number Exercisable | 24,250 | |
Options Exercisable, Weighted Average Exercise Price | $ 8.28 | |
Options Exercisable, Aggregate Intrinsic Value | $ 99,910 | |
$11.00 - 14.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower Range Limit | $ 11.01 | |
Exercise Price Range, Upper Range Limit | $ 14 | |
Options Outstanding, Number Outstanding | 9,000 | |
Options Outstanding, Weighted Average Remaining Contractual Term | 2 years 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price | $ 13.30 | |
Options Exercisable, Number Exercisable | 9,000 | |
Options Exercisable, Weighted Average Exercise Price | $ 13.30 |
STOCKHOLDERS_ EQUITY AND STOC_3
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - Board of Directors Stock Option and Restricted Stock Grants (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock [Member] | ||
Restricted Stock | ||
Non-Vested Balance, Beginning of Period | 7,456 | 11,264 |
Granted | 12,604 | 7,456 |
Vested | (7,456) | (11,264) |
Forfeited | ||
Non-Vested Balance, End of Period | 12,604 | 7,456 |
Weighted Average Fair Value Per Share | ||
Non-Vested Balance at Beginning of Period | $ 16.10 | $ 10.65 |
Granted | 12.69 | 16.10 |
Vested | 16.10 | 10.65 |
Forfeited | ||
Non-Vested Balance at End of Period | $ 12.69 | $ 16.10 |
Non-Employee Board Member Stock Options [Member] | Board of Directors [Member] | ||
Board of Directors Stock Option and Restricted Stock Grants | ||
Expiration period | 10 years | |
Non-Employee Board Member stock option and Restricted Stock [Member] | Board of Directors [Member] | ||
Board of Directors Stock Option and Restricted Stock Grants | ||
Vesting rights percentage | 100.00% | |
Vesting period | 1 year | |
Employee Deferred Stock Award [Member] | ||
Board of Directors Stock Option and Restricted Stock Grants | ||
Unrecognized compensation costs | $ 75,000 |
STOCKHOLDERS_ EQUITY AND STOC_4
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - Employee Deferred Stock Award Grants (Details) | Dec. 31, 2019USD ($) |
Employee Deferred Stock Award [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Unrecognized compensation costs | $ 75,000 |
STOCKHOLDERS_ EQUITY AND STOC_5
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - Long Term Incentive Plan (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 235,000 | $ 346,000 | |
CPHC Long Term Incentive Plan (LTI Plan) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Period | P3Y | ||
Stock-based compensation | $ 100,000 | $ 216,000 | |
CPHC Long Term Incentive Plan (LTI Plan) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Period | P1Y | ||
CPHC Long Term Incentive Plan (LTI Plan) [Member] | Employee Deferred Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares payout | 24,681 |
NET INCOME PER SHARE COMPUTAT_3
NET INCOME PER SHARE COMPUTATIONS (Narrative ) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Granted, Weighted Average Exercise Price | ||
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9,000 | |
Granted, Weighted Average Exercise Price | $ 13.30 |
NET INCOME PER SHARE COMPUTAT_4
NET INCOME PER SHARE COMPUTATIONS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
NET INCOME PER SHARE COMPUTATIONS | ||||||||||
Net income (numerator) amounts used for basic and diluted per share computations: | $ 553,460 | $ 1,150,485 | $ 957,757 | $ 56,572 | $ 2,370,558 | $ 1,632,845 | $ 725,351 | $ 989,690 | $ 2,718,274 | $ 5,718,444 |
Weighted average shares (denominator) of common stock outstanding: | ||||||||||
Basic | 4,594,118 | 4,481,667 | ||||||||
Plus dilutive effect of stock options | 13,691 | 53,269 | ||||||||
Diluted | 4,607,809 | 4,534,936 | ||||||||
Net income per common share: | ||||||||||
Basic | $ 0.12 | $ 0.25 | $ 0.21 | $ 0.01 | $ 0.52 | $ 0.36 | $ 0.16 | $ 0.22 | $ 0.59 | $ 1.28 |
Diluted | $ 0.12 | $ 0.25 | $ 0.21 | $ 0.01 | $ 0.52 | $ 0.36 | $ 0.16 | $ 0.22 | $ 0.59 | $ 1.26 |
GENERAL CREDIT AGREEMENT (Narra
GENERAL CREDIT AGREEMENT (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Short-term Debt [Line Items] | |
Line of Credit, Current | $ 0 |
Credit line, maturity date | Sep. 30, 2020 |
Revolving Credit Facility | |
Short-term Debt [Line Items] | |
Credit line maximum borrowing amount | $ 8,000,000 |
Debt Instrument, Covenant Compliance | The Company was in compliance with these requirements as of December 31, 2019. |
Letter of Credit | |
Short-term Debt [Line Items] | |
Credit line maximum borrowing amount | $ 2,000,000 |
Credit line maximum amount outstanding during period | $ 5,933,000 |
LEASES AND COMMITMENTS (Narrati
LEASES AND COMMITMENTS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
LEASES AND COMMITMENTS [Abstract] | ||
Length of service agreement to totalizator provider | 7 years | |
Service agreement charges | $ 233,000 | $ 230,000 |
Operating Leases, Rent Expense, Net [Abstract] | ||
Operating lease rent expense | 558,233 | |
Capital lease obligation | 96,284 | |
Operating lease cost | 33,519 | |
Total lease cost | 558,233 | |
Amortization of finance lease | $ 23,795 |
LEASES AND COMMITMENTS (Schedul
LEASES AND COMMITMENTS (Schedule of classification of right of use assets) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Land, buildings and equipment, net (Note 3) | $ 43,833,702 | $ 38,131,052 |
Operating | 74,832 | |
Total Leased Assets | 171,116 | |
Accumulated amortization | 32,719,612 | $ 31,191,739 |
Finance | ||
Lessee, Lease, Description [Line Items] | ||
Land, buildings and equipment, net (Note 3) | 96,284 | |
Accumulated amortization | $ 23,795 |
LEASES AND COMMITMENTS (Sched_2
LEASES AND COMMITMENTS (Schedule of lease terms and discount rates) (Details) | Dec. 31, 2019 |
LEASES AND COMMITMENTS [Abstract] | |
Finance - Weighted average remaining lease term (in years) | 3 years 8 months 12 days |
Operating - Weighted average remaining lease term (in years) | 1 year 3 months 18 days |
Finance - Weighted average discount rate (as a percent) | 5.00% |
Operating - Weighted average discount rate (as a percent) | 5.40% |
LEASES AND COMMITMENTS (Sched_3
LEASES AND COMMITMENTS (Schedule of maturities of operating and financing leases) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Operating leases | ||
2020 | $ 31,349 | |
2021 | 23,100 | |
2022 | 23,100 | |
Total minimum lease obligations | 77,549 | |
Less: amounts representing interest | (2,717) | |
Present value of minimum lease payments | 74,832 | |
Less: current portion | (29,776) | |
Lease obligations, net of current portion | 45,056 | |
Finance leases | ||
2020 | 28,743 | |
2021 | 28,743 | |
2022 | 28,743 | |
2023 | 19,331 | |
Total minimum lease obligations | 105,560 | |
Less: amounts representing interest | (9,276) | |
Present value of minimum lease payments | 96,284 | |
Less: current portion | (24,500) | $ (23,216) |
Lease obligations, net of current portion | $ 71,784 | $ 98,272 |
LEASES AND COMMITMENTS (Sched_4
LEASES AND COMMITMENTS (Schedule Of Future Minimum And Purchase Obligations) (Details) | Dec. 31, 2019USD ($) |
Future minimum payments - Purchase obligations | |
Purchases, Total Amount Committed | $ 235,000 |
Purchases, 2020 | $ 235,000 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)aitemshares | |
Other Commitments [Line Items] | |
Area of land | a | 325 |
Number of shares agreed to exchange | shares | 198,888 |
Proceeds from issuance Initial Public Offering | $ 4,847,000 |
Off-track betting payment to the IMR Fund, L.P., per operating year | $ 700,000 |
Off-track betting payment to the IMR Fund, L.P. as percentage of net pretax profit | 20.00% |
Number of years defined by off-track betting agreement | 5 years |
Earn out note conditions | item | 2 |
Minimum number of payments to IMR Fund, L.P. | item | 5 |
Maximum term for first payment to be made to IMR Fund, L.P. | 90 days |
Maximum term for remaining payments to be made to the IMR Fund, L.P. | 90 days |
Remaining years, payments to the IMR Fund, L.P. | 4 years |
Minnesota Racing Commission Bond | |
Other Commitments [Line Items] | |
Bond face amount | $ 500,000 |
Bond liability | $ 0 |
OPERATING SEGMENTS (Narrative)
OPERATING SEGMENTS (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
OPERATING SEGMENTS | |
Number of reportable segments | 4 |
Number of operating segments | 4 |
Percent of gross concession segment revenue paid to horse racing segment | 25.00% |
OPERATING SEGMENTS (Schedule of
OPERATING SEGMENTS (Schedule of Operating Segments) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | $ 12,602,241 | $ 18,600,641 | $ 16,433,177 | $ 11,590,798 | $ 12,038,389 | $ 18,370,511 | $ 16,512,724 | $ 12,219,946 | $ 59,227,000 | $ 59,142,000 |
Net interest (expense) income | (326,773) | (61,515) | ||||||||
Depreciation | 2,679,728 | 2,563,579 | ||||||||
Segment (loss) income before income taxes | 3,962,537 | 7,708,444 | ||||||||
Segment tax expense (benefit) | 1,244,263 | 1,990,000 | ||||||||
Segment Assets | 65,413,082 | 61,426,061 | 65,413,082 | 61,426,061 | ||||||
External Customers [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 59,227,000 | 59,142,000 | ||||||||
Reportable Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 61,651,000 | 61,341,000 | ||||||||
Net interest (expense) income | 327,000 | 62,000 | ||||||||
Depreciation | 2,680,000 | 2,564,000 | ||||||||
Segment (loss) income before income taxes | 4,485,000 | 11,021,000 | ||||||||
Segment tax expense (benefit) | 1,244,000 | 1,990,000 | ||||||||
Segment Assets | 89,449,000 | 84,942,000 | 89,449,000 | 84,942,000 | ||||||
Intersegment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 2,424,000 | 2,199,000 | ||||||||
Horse Racing [Member] | External Customers [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 15,370,000 | 16,764,000 | ||||||||
Horse Racing [Member] | Reportable Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net interest (expense) income | (38,000) | 25,000 | ||||||||
Depreciation | 2,262,000 | 2,371,000 | ||||||||
Segment (loss) income before income taxes | (2,695,000) | 279,000 | ||||||||
Segment tax expense (benefit) | (1,011,000) | (784,000) | ||||||||
Segment Assets | 31,618,000 | 35,992,000 | 31,618,000 | 35,992,000 | ||||||
Horse Racing [Member] | Intersegment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 999,000 | 806,000 | ||||||||
Card Casino [Member] | External Customers [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 34,406,000 | 33,920,000 | ||||||||
Card Casino [Member] | Reportable Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Depreciation | 186,000 | 5,000 | ||||||||
Segment (loss) income before income taxes | 6,400,000 | 7,195,000 | ||||||||
Segment tax expense (benefit) | 2,009,000 | 1,858,000 | ||||||||
Segment Assets | 3,327,000 | 623,000 | 3,327,000 | 623,000 | ||||||
Food and beverage | External Customers [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 9,430,000 | 8,458,000 | ||||||||
Food and beverage | Reportable Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Depreciation | 232,000 | 188,000 | ||||||||
Segment (loss) income before income taxes | 715,000 | 1,197,000 | ||||||||
Segment tax expense (benefit) | 225,000 | 309,000 | ||||||||
Segment Assets | 25,430,000 | 23,680,000 | 25,430,000 | 23,680,000 | ||||||
Food and beverage | Intersegment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 1,425,000 | 1,393,000 | ||||||||
Development [Member] | External Customers [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 21,000 | |||||||||
Development [Member] | Reportable Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net interest (expense) income | 365,000 | 37,000 | ||||||||
Segment (loss) income before income taxes | 65,000 | 2,350,000 | ||||||||
Segment tax expense (benefit) | 21,000 | 607,000 | ||||||||
Segment Assets | $ 29,074,000 | $ 24,647,000 | $ 29,074,000 | $ 24,647,000 |
OPERATING SEGMENTS (Reconciliat
OPERATING SEGMENTS (Reconciliation Of Revenues) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Total consolidated net revenues | $ 12,602,241 | $ 18,600,641 | $ 16,433,177 | $ 11,590,798 | $ 12,038,389 | $ 18,370,511 | $ 16,512,724 | $ 12,219,946 | $ 59,227,000 | $ 59,142,000 |
Reportable Segment [Member] | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Total consolidated net revenues | 61,651,000 | 61,341,000 | ||||||||
Elimination Of Intersegment [Member] | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Total consolidated net revenues | $ (2,424,000) | $ (2,199,000) |
OPERATING SEGMENTS (Reconcili_2
OPERATING SEGMENTS (Reconciliation Of Income Before Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total consolidated income before income taxes | $ 3,962,537 | $ 7,708,444 |
Reportable Segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total consolidated income before income taxes | 4,485,000 | 11,021,000 |
Elimination Of Intersegment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total consolidated income before income taxes | $ (522,000) | $ (3,313,000) |
OPERATING SEGMENTS (Reconcili_3
OPERATING SEGMENTS (Reconciliation Of Assets) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $ 65,413,082 | $ 61,426,061 |
Reportable Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 89,449,000 | 84,942,000 |
Elimination Of Intersegment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $ (24,036,000) | $ (23,516,000) |
SUPPLEMENTARY FINANCIAL INFOR_3
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||
Net revenues | $ 12,602,241 | $ 18,600,641 | $ 16,433,177 | $ 11,590,798 | $ 12,038,389 | $ 18,370,511 | $ 16,512,724 | $ 12,219,946 | $ 59,227,000 | $ 59,142,000 |
Operating expenses | 11,721,832 | 17,127,279 | 15,128,423 | 11,613,559 | 8,779,324 | 16,338,866 | 15,513,258 | 10,863,193 | 55,591,093 | 51,494,641 |
Net income | $ 553,460 | $ 1,150,485 | $ 957,757 | $ 56,572 | $ 2,370,558 | $ 1,632,845 | $ 725,351 | $ 989,690 | $ 2,718,274 | $ 5,718,444 |
Basic net income per share | $ 0.12 | $ 0.25 | $ 0.21 | $ 0.01 | $ 0.52 | $ 0.36 | $ 0.16 | $ 0.22 | $ 0.59 | $ 1.28 |
Diluted net income per share | $ 0.12 | $ 0.25 | $ 0.21 | $ 0.01 | $ 0.52 | $ 0.36 | $ 0.16 | $ 0.22 | $ 0.59 | $ 1.26 |
COOPERATIVE MARKETING AGREEME_3
COOPERATIVE MARKETING AGREEMENT (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cooperative Marketing Agreement | ||
Operating revenues | $ 59,226,857 | $ 59,141,570 |
Advertising and marketing expense | 2,152,260 | 2,499,345 |
Depreciation | 2,679,728 | 2,563,579 |
Cooperative Marketing Agreement (CMA) | ||
Cooperative Marketing Agreement | ||
Amount received under agreement for joint marketing activities | 1,620,000 | 1,620,000 |
Advertising and marketing expense | 888,000 | 1,049,000 |
Depreciation | 226,000 | 226,000 |
SMSC | Cooperative Marketing Agreement (CMA) | ||
Cooperative Marketing Agreement | ||
Purse enhancements paid directly to horsemen | 7,300,000 | |
Other | ||
Cooperative Marketing Agreement | ||
Operating revenues | 6,092,732 | 6,564,866 |
Other | Cooperative Marketing Agreement (CMA) | ||
Cooperative Marketing Agreement | ||
Operating revenues | 1,114,000 | 1,275,000 |
Pari-mutuel | ||
Cooperative Marketing Agreement | ||
Operating revenues | $ 9,832,945 | $ 10,639,029 |
COOPERATIVE MARKETING AGREEME_4
COOPERATIVE MARKETING AGREEMENT (Purse Enhancement And Marketing Payments) (Details) - SMSC | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cooperative Marketing Agreement (CMA) | |
Receivables due per agreement | |
Amount to various horsemen associations included each year in purse enhancement payments to horsemen | $ 100,000 |
Purse Enhancement Payments To Horsemen | |
Obligations due per agreement | |
2020 | 7,380,000 |
2021 | 7,380,000 |
2022 | 7,380,000 |
Marketing Payments To Canterbury Park | |
Receivables due per agreement | |
2020 | 1,620,000 |
2021 | 1,620,000 |
2022 | $ 1,620,000 |
REAL ESTATE DEVELOPMENT (Narrat
REAL ESTATE DEVELOPMENT (Narrative) (Details) | May 13, 2016a | Oct. 06, 2015USD ($)a$ / a | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Land Sales and Purchase [Line Items] | ||||
Number of acres sold | a | 24 | 6 | ||
Sale price of land | $ 1,459,000 | |||
Gain on sale of land | $ 660,000 | $ 12,141 | $ 129,580 | |
Number of acres able to be purchased | a | 1 | |||
Period of repurchase right, years | 3 years | |||
Repurchase price per acre | $ / a | 240,000 | |||
Deferred gain on sale of property | 240,000 | |||
Land asset maintained in Financials | 43,833,702 | 38,131,052 | ||
TIF receivable | 9,708,856 | 1,908,065 | ||
State and Local Jurisdiction [Member] | ||||
Land Sales and Purchase [Line Items] | ||||
TIF receivable | 9,709,000 | $ 1,909,000 | ||
TIF receivable, principal | 9,557,000 | |||
TIF receivable, interest | 152,000 | |||
Land [Member] | ||||
Land Sales and Purchase [Line Items] | ||||
Land asset maintained in Financials | $ 110,000 |
REAL ESTATE DEVELOPMENT (Detail
REAL ESTATE DEVELOPMENT (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)a | Dec. 31, 2018USD ($) | Aug. 18, 2018a | |
Area of Land | 325 | ||
Gain on transfer of land | $ | $ 2,241,206 | ||
Estimated TIF improvement costs to be borne by Company | $ | $ 23,336,500 | ||
Doran Canterbury I [Member] | |||
Area of Land | 13 | ||
Doran Canterbury II [Member] | |||
Area of Land | 10 | ||
Ownership percentage in investment project | 27.40% | ||
Doran Canterbury II, LLC [Member] | Doran Canterbury II [Member] | |||
Ownership percentage in investment project | 72.60% |
NOTES RECEIVABLE (Narrative) (D
NOTES RECEIVABLE (Narrative) (Details) | Nov. 01, 2019USD ($) | May 13, 2016USD ($)a | Oct. 06, 2015a | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) |
Number of acres sold | a | 24 | 6 | |||
Land revenue | $ 59,226,857 | $ 59,141,570 | |||
Number of promissory notes | item | 2 | ||||
Interest rate on promissory notes receivable | 1.43% | ||||
Notes Receivable [Member] | |||||
Total amount of promissory notes | $ 3,191,000 | ||||
Proceeds from collection of notes receivable | $ 982,639 | ||||
Proceeds from collection of notes receivable, principal | 975,363 | ||||
Proceeds from collection of notes receivable, interest | 7,276 | ||||
Increase in cash and cash equivalent | $ 982,639 | ||||
Real Estate Development [Member] | |||||
Land revenue | $ 4,300,000 | ||||
Pari-mutuel | |||||
Land revenue | $ 9,832,945 | $ 10,639,029 |
RELATED PARTY RECEIVABLES (Deta
RELATED PARTY RECEIVABLES (Details) - USD ($) | Dec. 20, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||
Interest income, net | $ 326,773 | $ 61,515 | |
Doran family holding | |||
Related Party Transaction [Line Items] | |||
Costs incurred for preliminary grading work | $ 269,000 | ||
Interest income, net | $ 147,000 | ||
Doran Canterbury I joint venture | |||
Related Party Transaction [Line Items] | |||
Debt instrument basis rate | member loans bears interest at the rate equal to the Prime Rate plus two percent annum | ||
Interest income, net | $ 5,000 | ||
Doran Canterbury I joint venture | Doran family holding | |||
Related Party Transaction [Line Items] | |||
Loan receivable | $ 2,910,000 | ||
Promissory note | $ 2,940,000 | ||
Interest rate | 5.00% | ||
Loan maturity term | 3 years | ||
Allowance for doubtful accounts | $ 0 | ||
Doran Canterbury I joint venture | Prime Rate [Member] | |||
Related Party Transaction [Line Items] | |||
Spread on interest rate | 2.00% | ||
Dorian Canterbury Loan One [Member] | |||
Related Party Transaction [Line Items] | |||
Loan receivable | $ 178,100 | ||
Dorian Canterbury Loan Two [Member] | |||
Related Party Transaction [Line Items] | |||
Loan receivable | $ 137,000 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 16, 2020 | |
Subsequent Event [Line Items] | ||||
Operating revenues | $ 59,226,857 | $ 59,141,570 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividend declared and suspended | $ 0.07 | |||
Horse Racing [Member] | ||||
Subsequent Event [Line Items] | ||||
Operating revenues | $ 2,546,000 | |||
Card Casino [Member] | ||||
Subsequent Event [Line Items] | ||||
Operating revenues | 8,891,000 | |||
Food and beverage | ||||
Subsequent Event [Line Items] | ||||
Operating revenues | $ 2,544,000 |