Parks America Shifts to OTCQX, Faces Weather & Economic Headwinds

TL;DR

**PRKA's upgrade to OTCQX is a positive signal, but its high seasonality and vulnerability to external shocks make it a risky bet for traders.**

AI Summary

PARKS AMERICA, INC. (PRKA) operates three regional safari parks in Georgia, Missouri, and Texas, generating approximately 98% of revenue from park visits and 2% from animal sales. For Fiscal 2025, the company experienced significant seasonality, with 64.0% of annual park revenue realized in the third and fourth fiscal quarters, compared to 61.4% in Fiscal 2024. A key business change was the Reverse/Forward Stock Split effective April 30, 2025, which saw the stock temporarily trade as 'PRKAD' before reverting to 'PRKA' on the OTCQX Market, up from the OTC Pink Market. The company faces risks from conditions beyond its control, such as the tornado damage experienced at its Georgia park in 2023, and economic conditions impacting consumer discretionary spending. Strategic outlook involves acquiring, developing, and operating local and regional entertainment assets, with a focus on multichannel marketing and maintaining high animal care standards across its 500-acre Georgia Park, 255-acre Missouri Park, and 450-acre Texas Park.

Why It Matters

PARKS AMERICA's move to the OTCQX Market from the OTC Pink Market could signal increased visibility and liquidity for investors, potentially attracting a broader base. However, the company's heavy reliance on discretionary consumer spending and susceptibility to natural disasters, as evidenced by the 2023 Georgia park tornado, poses significant risks. This competitive landscape, including other theme parks and entertainment options like Callaway Gardens and Great Wolf Lodge near its Georgia Park, means PRKA must continually innovate to attract customers and maintain market share. Employees and local economies around Pine Mountain, GA, Strafford, MO, and Bryan/College Station, TX, depend on the parks' consistent operation and profitability.

Risk Assessment

Risk Level: high — The company faces high risk due to its dependence on consumer discretionary spending, which is sensitive to economic conditions like inflation and unemployment. Furthermore, the filing explicitly states that the Georgia park experienced "extensive damage caused by a tornado" in 2023, highlighting significant vulnerability to natural disasters and extreme weather, which could lead to prolonged closures and substantial repair costs not fully covered by insurance.

Analyst Insight

Investors should closely monitor PRKA's quarterly revenue reports, particularly the third and fourth fiscal quarters which historically generate 60%+ of annual park revenue. Evaluate the impact of any adverse weather events on park attendance and assess the adequacy of the company's insurance coverage for such incidents before considering an investment.

Revenue Breakdown

Key Numbers

• $10.08 million — Aggregate market value of common stock held by non-affiliates (as of March 30, 2025, based on $37.00 per share)
• 753,577 — Outstanding shares of Common Stock (as of December 9, 2025)
• 98% — Revenue generated from park guests (approximately 2% from animal sales)
• 64.0% — Annual park revenue in Q3 and Q4 Fiscal 2025 (compared to 61.4% in Fiscal 2024, highlighting seasonality)
• 1-for-500 — Reverse Stock Split ratio (effective April 30, 2025, immediately followed by a 5-for-1 forward split)
• 50 — Full-time employees (plus an additional 50-75 part-time/seasonal employees)
• 500 acres — Georgia Park property size (200-acre portion used for the park)
• 255 acres — Missouri Park property size (entire property used for the park)
• 450 acres — Texas Park property size (250 acres used for the park)
• 2023 — Year of tornado damage (Georgia park experienced extensive damage)

Key Players & Entities

• PARKS AMERICA, INC. (company) — registrant
• Geoffrey Gannon (person) — President and Chief Executive Officer
• Rebecca McGraw (person) — Chief Financial Officer
• First Financial Bank (company) — lender for 2020 Term Loan
• Synovus Bank (company) — lender for 2021 Term Loan
• Cendera Bank N.A. (company) — lender for 2025 Term Loan
• Wild Animal Safari, Inc. (company) — wholly owned subsidiary (Georgia)
• Wild Animal, Inc. (company) — wholly owned subsidiary (Missouri)
• Aggieland-Parks, Inc. (company) — wholly owned subsidiary (Texas)
• Focused Compounding Fund (company) — owns 41.27% of common stock

FAQ

Risk Factors

• Natural Disasters Impacting Parks [high — operational]: The company's parks are susceptible to damage from natural events, as evidenced by the tornado damage at the Georgia park in 2023. Such events can lead to significant repair costs and operational disruptions, impacting revenue and profitability.
• Economic Downturns and Discretionary Spending [high — market]: PRKA's revenue is heavily reliant on consumer discretionary spending. Economic conditions that reduce disposable income can lead to decreased park attendance and revenue. The company's reliance on park visits (98% of revenue) makes it particularly vulnerable.
• Seasonality of Operations [medium — operational]: A significant portion of PRKA's revenue is concentrated in the third and fourth fiscal quarters (64.0% in FY2025). This seasonality exposes the company to risks associated with weather patterns and holiday periods, potentially impacting cash flow and operational planning.
• Animal Welfare and Care Standards [medium — regulatory]: Maintaining high animal care standards is crucial for PRKA's reputation and operations. Failure to meet these standards could result in regulatory scrutiny, fines, and damage to brand image, impacting park attendance and revenue.
• Competition in Entertainment Assets [medium — market]: The company's strategic outlook involves acquiring and developing entertainment assets, placing it in a competitive landscape. Failure to effectively compete or differentiate could hinder growth and market share.
• Stock Split Impact on Trading [low — operational]: The reverse/forward stock split effective April 30, 2025, temporarily changed the stock ticker to 'PRKAD' before reverting to 'PRKA' on the OTCQX Market. While intended to improve market perception, such corporate actions can sometimes lead to short-term volatility or investor confusion.

Industry Context

PARKS AMERICA, INC. operates within the regional entertainment and amusement park industry. This sector is characterized by significant seasonality and a strong reliance on consumer discretionary spending. Key trends include the increasing importance of unique experiences, multichannel marketing, and maintaining high standards of animal welfare and park safety to attract and retain visitors.

Regulatory Implications

PRKA faces regulatory considerations primarily related to animal welfare and park safety standards. Compliance with these regulations is critical to avoid penalties, operational disruptions, and reputational damage. Changes in environmental or safety regulations could also impact operational costs and procedures.

What Investors Should Do

1. Monitor seasonality impact on quarterly results.
2. Assess impact of economic conditions on discretionary spending.
3. Evaluate management's strategy for diversification and growth.
4. Track operational resilience post-natural disaster.

Key Dates

• 2023-XX-XX: Tornado Damage at Georgia Park — Demonstrates vulnerability to natural disasters and potential for significant operational disruption and repair costs.
• 2025-04-30: Reverse/Forward Stock Split Effective — A significant corporate action impacting share structure and trading, moving from OTC Pink to OTCQX Market.

Glossary

Reverse Stock Split

A corporate action where a company reduces the number of outstanding shares by consolidating them. For PRKA, this was a 1-for-500 split. (Affects share count and per-share price, often used to meet exchange listing requirements or improve stock perception.)

Forward Stock Split

A corporate action where a company increases the number of outstanding shares by dividing existing shares. PRKA followed its reverse split with a 5-for-1 forward split. (Increases the number of shares and decreases the per-share price, often done to make shares more accessible to investors.)

OTC Market

Over-the-Counter market, a decentralized market where securities are traded directly between parties without a central exchange. PRKA trades on the OTCQX Market. (Indicates the company's stock is not listed on major exchanges like NYSE or Nasdaq, which can affect liquidity and investor visibility.)

Discretionary Spending

Money that consumers can spend on non-essential goods and services after covering basic needs. PRKA's revenue is highly sensitive to this. (Highlights a key economic risk factor for PRKA, as park visits are typically considered discretionary.)

Year-Over-Year Comparison

Information comparing key metrics to the previous year, such as revenue growth, margin changes, and new risks, is not available in the provided text. The filing does indicate an increase in revenue concentration during Q3 and Q4 of Fiscal 2025 (64.0%) compared to Fiscal 2024 (61.4%), suggesting a potentially growing seasonality effect.

Key Financial Figures

• $0.001 — Exchange Act: Common Stock, par value $0.001 per share (Title of class) Indicate
• $37.00 — recently completed second quarter), of $37.00 per share was approximately $ 10.08 mil

Filing Documents

• form10-k.htm (10-K) — 1506KB
• ex4-1.htm (EX-4.1) — 10KB
• ex14-2.htm (EX-14.2) — 61KB
• ex21-1.htm (EX-21.1) — 4KB
• ex23-1.htm (EX-23.1) — 5KB
• ex31-1.htm (EX-31.1) — 19KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 10KB
• audit_001.jpg (GRAPHIC) — 30KB
• ex23-1_001.jpg (GRAPHIC) — 11KB
• 0001493152-25-027496.txt ( ) — 6994KB
• prka-20250928.xsd (EX-101.SCH) — 39KB
• prka-20250928_cal.xml (EX-101.CAL) — 65KB
• prka-20250928_def.xml (EX-101.DEF) — 145KB
• prka-20250928_lab.xml (EX-101.LAB) — 382KB
• prka-20250928_pre.xml (EX-101.PRE) — 291KB
• form10-k_htm.xml (XML) — 1188KB

Business

Business 3 Item 1A

Risk Factors

Risk Factors 6 Item 1B Unresolved Staff Comments 9 Item 1C Cybersecurity 9 Item 2

Properties

Properties 10 Item 3

Legal Proceedings

Legal Proceedings 10 Item 4 Mine Safety Disclosures 10 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 11 Item 6 Reserved 11 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 22 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 22 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 22 Item 9A

Controls and Procedures

Controls and Procedures 22 Item 9B Other Information 23 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 23 PART III Item 10 Directors, Executive Officers, and Corporate Governance 24 Item 11

Executive Compensation

Executive Compensation 24 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 24 Item 13 Certain Relationships and Related Transactions, and Director Independence 24 Item 14 Principal Accountant Fees and Services 24 PART IV Item 15 Exhibits and Financial Statement Schedules 25

Signatures

Signatures 26 2 PART I ITEM 1. BUSINESS As used in this Annual Report on Form 10-K, references to the "Company", "we", "our", "Parks! America" and similar terms refer to Parks! America, Inc. and its wholly owned subsidiaries. Our fiscal year ends on the Sunday closest to September 30. Other terms that are commonly used in this Annual Report on Form 10-K are defined as follows: "2020 Term Loan" – Term loan credit agreement, dated as of April 27, 2020, between the Company and First Financial Bank. "2021 Term Loan" – Term loan credit agreement, dated as of June 18, 2021, between the Company and Synovus Bank. "2025 Term Loan" – Term loan credit agreement, dated as of September 30, 2024, between the Company and Cendera Bank N.A. "Adjusted EBITDA" – Net income (loss) appearing on the Consolidated Statements of Operations net of Income tax expense/(benefit), Interest expense, Depreciation and amortization and other significant items. "Adjusted net income (loss)" – Net income (loss) appearing on the Consolidated Statements of Operations excluding significant non-recurring or non-operational items. Adjusted net income (loss) is also presented on a diluted per share basis. "First Quarter 2025" – The 13 weeks ended December 29, 2024. "First Quarter 2024" – The 13 weeks ended December 31, 2023. "Fiscal 2026" – The 52 weeks ending September 27, 2026. "Fiscal 2025" – The 52 weeks ended September 28, 2025. "Fiscal 2024" – The 52 weeks ended September 29, 2024. "GAAP" – Accounting principles generally accepted in the United States. "Reverse/Forward Stock Split" – 1-for-500 reverse stock split immediately followed by 5-for-1 forward stock split effective on April 30, 2025. "Second Quarter 2025" – The 13 weeks ended March 30, 2025. "SEC" – The United States Securities and Exchange Commission. "Third Quarter 2025" – The 13 weeks ended June 29, 2025. Overview Parks! America, Inc. owns and operates three regional safari parks and is in the bu

View Full Filing

View this 10-K filing on SEC EDGAR