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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended December 31, 2025

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

For the transition period from __________ to ___________

Commission file number 0-8463

PISMO COAST VILLAGE, INC.

(Exact name of registrant as specified in its charter)

California	95-2990441
(State or other jurisdiction of	(IRS Employer ID No.)
incorporation or organization)

165 South Dolliver Street, Pismo Beach, CA	93449
(Address of Principal Executive Offices)	(Zip Code)

(805) 773-5649

Registrant's telephone number, including area code.

____________________________________________________________________________________

(Former name, former address, and former fiscal year, if changed since last report)

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

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

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.

[ ] Large accelerated filer	[ ] Accelerated filer
[X] Non-accelerated filer	[X] Smaller reporting company
	[ ] Emerging growth company

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

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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

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

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION	4

ITEM 1. Financial Statements	4

Balance Sheets as of December 31, 2025 (unaudited) and September 30, 2025	4

Statements of Comprehensive Loss for the Three Months Ended December 31, 2025 and 2024 (unaudited)	5

Statements of Changes in Stockholders' Equity & Accumulated Other Comprehensive Loss for the Three Months Ended December 31, 2025 and 2024 (unaudited)	6

Statements of Cash Flows for the Three Months Ended December 31, 2025 and 2024 (unaudited)	7

Notes to Unaudited Financial Statements	8

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	16

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	22

ITEM 4. Controls and Procedures	22

PART II -- OTHER INFORMATION	24

ITEM 1. Legal Proceedings	24

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	24

ITEM 3. Defaults Upon Senior Securities	24

ITEM 4. Mine Safety Disclosures	24

ITEM 5. Other Information	24

ITEM 6. Exhibits	25

SIGNATURES	26

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

Pismo Coast Village, Inc.

Balance Sheets
as of December 31, 2025 (unaudited) and September 30, 2025

						December 31,		September 30,
						2025		2025
						(unaudited)
Assets
	Current assets
		Cash and cash equivalents			$	1,405,000	$	1,348,000
		Cash reserved for capital improvements and deferred maintenance				11,625,000		11,935,000
		Accounts receivable, net of allowance for credit losses of $32,000 and $29,000, respectively				93,000		35,000
		Inventories, net				90,000		75,000
		Prepaid income taxes				94,000		100,000
		Prepaid expenses				388,000		448,000
			Total current assets			13,695,000		13,941,000

	Property and equipment, net					16,596,000		16,588,000

			Total assets		$	30,291,000	$	30,529,000

Liabilities and Stockholders' Equity
	Current liabilities
		Accounts payable and accrued liabilities			$	289,000	$	450,000
		Accrued wages and related				111,000		295,000
		Customer deposits				2,626,000		2,596,000
		Current portion of operating lease obligation				19,000		31,000
		Current portion of finance lease obligations				126,000		113,000
			Total current liabilities			3,171,000		3,485,000

	Long-term liabilities
		Deferred income taxes				483,000		483,000
		Building security deposits				25,000		25,000
		Finance lease obligations, net of current portion				606,000		539,000
			Total liabilities			4,285,000		4,532,000

	Stockholders' equity
		Common stock - no par value, 1,800 shares authorized, 1,774 shares issued and outstanding				5,566,000		5,566,000
		Retained earnings				20,440,000		20,431,000
			Total stockholders' equity			26,006,000		25,997,000

				Total liabilities and stockholders' equity	$	30,291,000	$	30,529,000

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

Pismo Coast Village, Inc.

Statements of Comprehensive Income (Loss)
for the Three Months Ended December 31, 2025 and 2024
(unaudited)

				Three months ended December 31,
				2025			2024
Revenue
	Resort operations		$	2,125,000		$	1,846,000
	Retail operations			140,000			150,000
	Property lease income			48,000			57,000
		Total revenue		2,313,000			2,053,000

Cost and expenses
	Operating expenses			2,143,000			2,001,000
	Cost of goods sold			93,000			76,000
	Depreciation and amortization			155,000			137,000
		Total cost and expenses		2,391,000			2,214,000

	Loss from operations			(78,000	)		(161,000	)

Other income and expense, net				91,000			102,000

Income (loss) before provision for income tax				13,000			(59,000	)

Income tax provision (benefit)				4,000			(4,000	)

Net income (loss)			$	9,000		$	(55,000	)

Weighted average shares (basic and diluted)				1,774			1,774

Net income (loss) per share (basic and diluted)			$	5		$	(31	)

Net income (loss)			$	9,000		$	(55,000	)

Other comprehensive loss
	Change in unearned gain on investments						(6,000	)
Comprehensive income (loss)			$	9,000		$	(61,000	)

Total comprehensive income (loss) per share			$	5		$	(34	)

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

Pismo Coast Village, Inc.

Statements of Changes in Stockholders' Equity & Accumulated Other Comprehensive Income (Loss)
for the Three Months Ended December 31, 2025 and 2024
(unaudited)

								Accumulated
								Other
	Common Stock				Retained			Comprehensive
	Shares		Amount		Earnings			Income (Loss)			Total

Balance - September 30, 2024	1,774	$	5,566,000	$	19,523,000		$	6,000		$	25,095,000

Net loss	-		-		(55,000	)		-			(55,000	)

Other comprehensive loss	-		-		-			(6,000	)		(6,000	)

Balance - December 31, 2024	1,774	$	5,566,000	$	19,468,000		$	-		$	25,034,000

Balance - September 30, 2025	1,774	$	5,566,000	$	20,431,000		$	-		$	25,997,000

Net income	-		-		9,000			-			9,000

Other comprehensive income	-		-		-			-			-

Balance - December 31, 2025	1,774	$	5,566,000	$	20,440,000		$	-		$	26,006,000

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

Pismo Coast Village, Inc.

Statements of Cash Flows
for the Three Months Ended December 31, 2025 and 2024
(unaudited)

						Three months ended December 31,
						2025			2024
Cash flows from operating activities
	Net income (loss)				$	9,000		$	(55,000	)
		Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation and amortization			154,000			137,000
			Deferred income tax expense			-			14,000
			Amortization of operating lease right-of-use asset			11,000			-
			Other non-cash expenses			9,000			-
			Changes in operating assets and liabilities:
				Accounts receivable		(61,000	)		-
				Inventories		(15,000	)		(8,000	)
				Prepaid income taxes		6,000			(4,000	)
				Prepaid expenses		60,000			106,000
				Accounts payable and accrued liabilities		(161,000	)		(10,000	)
				Accrued wages and related		(184,000	)		(205,000	)
				Customer deposits		30,000			220,000
				Operating lease liability		(11,000	)		(12,000	)
				Net cash provided by (used in) operating activities		(153,000	)		183,000

Cash flows from investing activities
	Capital expenditures					(69,000	)		(44,000	)
	Redemption (purchase) of investments, net					-			1,092,000
			Net cash provided by (used in) investing activities			(69,000	)		1,048,000

Cash flows from financing activities
	Principal payments on finance lease obligations					(31,000	)		(29,000	)
	Principal payments on notes payable					-			(58,000	)
			Net cash used in financing activities			(31,000	)		(87,000	)

			Net increase (decrease) in cash and cash equivalents			(253,000	)		1,144,000

Cash and cash equivalents - beginning of period						13,283,000			10,786,000

Cash and cash equivalents - end of period					$	13,030,000		$	11,930,000

Reconciliation of Cash and Cash Equivalents Per Balance Sheets:
	Cash and equivalents					1,405,000			1,367,000
	Cash reserved for capital improvements					11,625,000			10,563,000
	Cash and cash equivalents per statement of cash flows					13,030,000		$	11,930,000

Schedule of payments of interest and taxes
	Cash paid for income tax				$	-		$	-
	Cash paid for interest				$	20,000		$	20,000

Supplemental schedule of non-cash investing and financing activities
	Assets acquired under finance leases				$	111,000		$	-

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

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Note 1: Nature of Business and Basis of Presentation

Description of Business

Pismo Coast Village, Inc. (the "Company" or "we" or "our" or "Resort") owns and manages a recreational vehicle ("RV") camping resort. Its revenue streams originate primarily from camping site rentals, recreational vehicle storage, tow services, and retail sales through a general store.

The Company operates in one reporting unit and one operating segment, as an RV resort. We determine our operating segment considering our overall management structure, how forecasts are approved, how executive compensation is determined, as well as how our board of directors, who represent our chief operating decision maker ("CODM"), regularly review our operating results, assess performance, allocate resources, and make decisions regarding the Company's operations.

Basis of Presentation

The accompanying unaudited Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions on Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. In accordance with these rules and regulations, we have omitted certain information and notes normally provided in our annual financial statements. The Company qualifies as a "smaller reporting company" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, and, as such, may take advantage of specified reduced reporting requirements and deferred accounting standards adoption dates, and is relieved of other requirements that are otherwise generally applicable to other public companies.

In the opinion of management, the unaudited Financial Statements contain all adjustments, consisting only of normal recurring items, necessary for the fair presentation of our financial position and results of operations for the interim periods. The results of operations for the three months ended December 31, 2025 are not necessarily indicative of the results expected for the entire fiscal year.

These unaudited Financial Statements should be read in conjunction with the audited Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Seasonality

The Company's business is seasonal in nature with the three months ending September 30, the summer, being its busiest quarter, as illustrated by the following table which depicts quarterly revenue and income (loss) from operations for the past eight quarters:

Revenue for the three months ended
			2025		2024
	March 31	$	1,966,000	$	1,935,000
	June 30	$	2,911,000	$	2,680,000
	September 30	$	3,152,000	$	3,027,000
	December 31	$	2,313,000	$	2,053,000

Paid Occupancy for the three months ended
			2025		2024
	March 31		14,571		14,958
	June 30		19,800		20,339
	September 30		22,128		22,914
	December 31		15,210		15,921

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect certain reported amounts and disclosures. We base our estimates on both positive and negative evidence, historical experience and information available at the time these estimates are made. Examples of such estimates include estimates of the useful life of long-lived assets, assessments of long-lived asset impairments and allowances for credit losses. Actual results could differ materially from these estimates.

Note 2: Significant Accounting Policies

During the three months ended December 31, 2025, there have been no changes in our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

Disaggregation of Revenue

The following table summarizes disaggregated revenue totals and percentages of revenue for the three months ended December 31, 2025 and 2024 (unaudited):

		Three months ended December 31,
		2025			2024
RV camping site rentals	$	1,587,000	68%	$	1,340,000	65%
RV storage and towing fees		498,000	22%		464,000	23%
Retail store sales		140,000	6%		150,000	7%
Property lease income		48,000	2%		57,000	3%
Other ancillary services		40,000	2%		42,000	2%
	$	2,313,000	100%	$	2,053,000	100%

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Tourism Taxes

As of December 31, 2025 and September 30, 2025, the Company had $59,000, and $82,000 in Transient Occupancy Taxes (TOT) and Tourism Business Improvement District (TBID) assessments due to the City of Pismo Beach and the County of San Luis Obispo included in accrued liabilities on the Balance Sheets, respectively.

Concentration of Credit Risk

The Company maintains its cash at several commercial banks in the United States and has significantly more cash and cash equivalents than would be covered by Federal Deposit Insurance Corporate ("FDIC") insurance with one bank. To ensure that cash remains protected by FDIC insurance, the Company has placed its Cash Reserved for Capital Improvements and Deferred Maintenance in a Certificate of Deposit Account Registry Service ("CDARS") account. By using a CDARS account, the Company's large deposits are divided into smaller amounts and placed with multiple FDIC insured banks that are members of the CDARS network. Each member bank issues CDs in amounts under $250,000, so that the entire deposit balance is eligible for FDIC insurance.

The Company keeps day-to-day operating cash with a single bank in a non-CDARS account. Due to large fluctuations in operating cash from timing of customer deposits and vendor payments, there may be times when the amount of operating cash is above the $250,000 FDIC threshold. At December 31, 2025 and September 30, 2025, the operating account balance was fully insured because it was less than the FDIC threshold.

Fair Value Measurements

Our financial assets and liabilities consist principally of cash, cash equivalents, investments, accounts receivable, accounts payable, and rental deposits, and are reported at fair value.

The Company had no US Treasury instruments with an original maturity longer than three months as of December 31, 2025 or 2024.

During the three months ended December 31, 2025, there was no material change in the items we measure and record at fair value on a recurring basis. Additionally, there were no transfers between levels of the fair value hierarchy for the three months ended December 31, 2025.

Advertising

Advertising expense was $6,000 and $11,000 for the three months ended December 31, 2025 and 2024, respectively.

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Recent Accounting Pronouncements Issued But Not Yet Adopted

ASU 2025-12 Codification Improvements

In December 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2025-12, Codification Improvements ("ASU 2025-12"). ASU 2025-12 makes thirty-three incremental improvements to generally accepted accounting principles. ASU 2025-12 is effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Company is currently evaluating the impact of ASU 2025-12 on its financial statements and related disclosures.

ASU 2025-11 Interim Reporting

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). ASU 2025-11 is intended to improve the navigability of required interim disclosures and clarify when that guidance is applicable, and also to provide additional guidance on what disclosures should be provided in interim reporting periods. ASU 2025-11 is effective for public business entities for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2025-11 on its financial statements and related disclosures.

ASU 2024-03 Expense Disaggregation

In November 2024, the FASB issued ASU No. 2024-03, Income Statement -Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 requires additional disclosures about the nature of expenses included in the income statement, such as purchases of inventory, employee compensation and depreciation. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026 and interim reporting periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2024-03 on its financial statements and related disclosures.

ASU 2023-09 Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 expands income tax disclosures to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of ASU 2023-09 on its financial statements and related disclosures.

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Note 3: Balance Sheet Components

Property and Equipment

At December 31, 2025 and September 30, 2025, property and equipment include the following:

		December 31,			September 30,
		2025			2025
		(unaudited)
Land	$	11,609,000		$	11,609,000
Building and resort improvements		13,581,000			13,531,000
Furniture, fixtures and equipment		1,105,000			1,105,000
Transportation equipment		1,176,000			1,092,000
Operating lease right-of-use asset		85,000			85,000
Construction in progress		182,000			171,000
		27,738,000			27,593,000
Less accumulated depreciation and amortization		(11,142,000	)		(11,005,000	)
	$	16,596,000		$	16,588,000

Transportation equipment includes assets under finance leases. Refer to Note 5 for additional information.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities include trade payables, tourism taxes payable, property taxes payable, and other liabilities. The following table summarizes accounts payable and accrued liabilities as of December 31, 2025 and September 30, 2025:

		December 31,		September 30,
		2025		2025
		(unaudited)
Trade accounts payable	$	70,000	$	111,000
Accrued expenses		92,000		127,000
Tourism taxes payable		59,000		82,000
Property taxes payable		-		68,000
Other		68,000		62,000
	$	289,000	$	450,000

Accrued expenses in the table above relate primarily to accrued utilities and other accrued operating expenses. Other accrued liabilities in the table above relate primarily to unclaimed property and gift certificates.

Accrued Wages and Related

Accrued wages and related are primarily related to the Company's annual bonus and employee vacation liabilities. The Company's annual bonus for the prior fiscal year is typically paid during the first quarter of the following year.

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Note 4: Financing Transactions

Line of Credit

The Company has a revolving line of credit with Columbia Bank for $500,000, expiring April 1, 2026. There was no outstanding balance on the line of credit as of December 31, 2025 or September 30, 2025.

Note 5: Leases

The Company has both finance and operating leases. Finance leases are primarily for transportation equipment and are generally 60-84 months in duration with maturities through September 2032. The Company's one operating lease is for a storage lot and has a maturity date in 2026.

The following table summarizes the future minimum payments under lease liabilities as of December 31, 2025:

For the Fiscal Year Ending September 30,		Finance Leases			Operating Lease
2026 (9 months)	$	153,000		$	19,000
2027		199,000			-
2028		199,000			-
2029		176,000			-
2030		106,000			-
Thereafter		132,000			-
Total future minimum payments		965,000			19,000
Less amount representing interest		(233,000	)		-
Total lease obligations		732,000			19,000
Less current portion of lease obligations		(126,000	)		(19,000	)
Lease obligations, net of current portion	$	606,000		$	-

The following table summarizes the components of the lease cost for the three months ended December 31, 2025 and 2024 (unaudited):

		Three months ended December 31,
		2025		2024
Finance lease cost:
Amortization of right-of-use assets	$	42,000	$	34,000
Interest on lease liabilities		20,000		17,000
Total finance lease cost	$	62,000	$	51,000

Operating lease cost	$	10,667	$	14,000

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Supplemental balance sheet information related to leases as of December 31, 2025 and September 30, 2025 are as follows:

		December 31,			September 30,
		2025			2025
		(unaudited)
Right-of-use assets, gross	$	895,000		$	784,000
Accumulated amortization		(224,000	)		(184,000	)
Net asset value included in property and equipment, net	$	671,000		$	600,000

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate as of December 31, 2025 and September 30, 2025:

		December 31,	September 30,
		2025	2025
		(unaudited)
Weighted-average remaining lease term
	Finance leases	5.1 years	5.0 years
	Operating lease	0.5 years	0.75 years

Weighted-average discount rate
	Finance leases	11.3%	11.4%
	Operating lease	12.0%	12.0%

Note 6: Property Leases - Lessor

The Company is the lessor on various property leases, which currently represent approximately $16,000 in monthly income and extend over periods through 2038. These leases relate to one building, as well as several cell towers and a billboard on our storage properties. The leases have durations ranging from two to twenty years and are generally renewable for additional five-year durations. On December 1, 2025, the Company terminated a 10-year lease in its third year, subject to reservation of claims against tenant by written agreement with the tenant, for one of its premises because of the tenant’s vacating the premise in default of that lease. The property is currently being evaluated for future use.

The following table summarizes the future minimum operating lease income under these leases:

For the Fiscal Year Ending September 30,
	2026 (9 months)	$	108,000
	2027		117,000
	2028		118,000
	2029		119,000
	2030		119,000
	Thereafter		465,000
		$	1,046,000

Pismo Coast Village, Inc.
Notes to Unaudited Financial Statements
December 31, 2025

Note 7: Common Stock

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

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

Note 8: Income Taxes

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

Note 9: Employee Retirement Plans

The Company is the sponsor of a 401(k) profit sharing pension plan, which covers substantially all full-time employees. Employer contributions are discretionary and are determined on an annual basis. The Company's matching portion of the 401(k) safe harbor plan was $18,000 for the each of the three months ended December 31, 2025 and 2024.

Note 10: Subsequent Events

Events subsequent to December 31, 2025 have been evaluated through February 12, 2026, which is the date the financial statements were issued, and management did not identify any subsequent events that require adjustment or disclosure in the financial statements.

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Statement on Forward Looking Information

The following analysis discusses the Company's financial condition as of December 31, 2025, compared with December 31, 2024. The discussion should be read in conjunction with the unaudited financial statements and the related notes to the financial statements included elsewhere in this Form 10-Q.

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

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

This section is organized as follows:

Overview: A discussion of the Company's business operations.

Liquidity and Capital Resources: An analysis of changes in our balance sheets and cash flows, and a discussion of our financial condition and potential sources of liquidity.

Results of Operations: An analysis and discussion of our financial results comparing our results of operations for the current fiscal year to the prior fiscal year, and of the prior fiscal year compared to the previous fiscal year.

Critical Accounting Estimates: A discussion of the accounting estimates that we believe are most important to understand the assumptions and judgments incorporated in our reported financial results and forecasts, as well as recent accounting pronouncements that have had or are expected to have a material impact on our results of operations.

Overview

Pismo Coast Village, Inc. operates as a 400-space recreational vehicle resort located along the coast of Central California. The resort offers a full range of services, such as a general store, video arcade, laundromat, and an RV storage operation.

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

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

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

The Central Coast remains a highly sought-after destination for RV enthusiasts actively seeking quality accommodations. RVing continues to provide an affordable and immersive outdoor experience, and the Company is proud to deliver top-tier facilities and services in this popular location.

The outdoor hospitality industry continues to demonstrate resilience and appeal in the first quarter of FY2026. According to KOA's 2025 Camping & Outdoor Hospitality Report (the most recent comprehensive annual survey available), the sector remains strong overall, with camping participation having grown significantly over the past decade-including over 11 million additional households camping in 2024 compared to 2019. Looking ahead, the industry is stabilizing in 2025-2026, with projections for continued interest: around one million new households expected to try camping, 71-72% of campers planning trips, and many viewing it as a cost-effective travel option amid economic considerations. Key attractions of the outdoor experience include spending time in nature (emphasized by a majority of campers), access to classic amenities like fire pits and outdoor seating, and traditional camping accommodations in RVs or tents.

Private campgrounds, such as Pismo Coast Village Resort, remain a top choice for travelers seeking authentic and high-quality outdoor hospitality. The Company was awarded the Best of the Best Award from RV LIFE, recognizing it as among the top 25% of campgrounds and RV parks in North America stated to be based on authentic reviews from verified RVers-highlighting the Company's guest satisfaction, prime beachfront location, and commitment to excellence.

Despite robust demand for bookings, economic factors continue to influence decisions. Recent industry trends show campers prioritizing affordability, with some reporting ongoing concerns about personal finances, inflation, and disposable income. These dynamics are encouraging value-driven choices, such as economical outdoor getaways that deliver meaningful experiences without excessive costs. At Pismo Coast Village Resort, we focus on providing accessible, high-value stays that align with these preferences while maintaining our award-winning standards.

RV storage remains in demand and a primary revenue source for the Company. As of January 2026, the waitlist for new storage clients exceeds 300. To meet this demand, the Company is progressing with plans to develop a storage facility on a 4.42-acre property in Nipomo. RV storage offers customers several advantages, including eliminating the stress of towing, reducing the need to own a tow vehicle, enabling shared use among family members, and providing added convenience.

Continued investment in resort enhancements remains a top priority to ensure a premier experience for both guests and shareholders. The resort is recognized as a leader in the industry, with accolades from reputable organizations such as Good Sam for its exceptional facilities and high standards. The Company's dedication to quality, value, and customer satisfaction is reflected in its success, driven by repeat business, positive word of mouth, and guest referrals.

The Company's marketing strategy focuses on digital platforms, social media content, advertising in national directories, and placements in leading trade magazines. These initiatives are designed to strengthen the Company's visibility and ensure sustained growth in the highly competitive outdoor hospitality market.

Liquidity and Capital Resources

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

Net cash used in operating activities was $153,000 in the three months ended December 31, 2025, compared to $183,000 of cash provided by operating activities in the same period of 2024. The increase in net cash used in operating activities is due primarily to the timing of customer and vendor payments.

Working capital was $10.5 million as of December 31, 2025 and September 30, 2025.

The Company plans approximately $1.8 million of capital expenditures in fiscal year 2026 to further enhance the Resort facilities and services. The most significant capital project is development of the 4.42-acre property in Nipomo for RV Storage. In addition, the Company plans to re-gravel additional campsites and repair the asphalt on Resort roads as part of its ongoing facility maintenance programs. Funding for these projects is expected to come from normal operating cash flows and cash reserves. These capital expenditures are expected to increase the Resort's value to its shareholders and the general public.

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

The Board of Directors continues its previously established policy of adopting a stringent conservative budget for fiscal year 2026, which projects a positive cash flow of approximately $1.0 million from operations. This projection is based on paid site occupancy reflecting similar occupancy as experienced in fiscal year 2025. The budget includes a $20 per night increase for site rentals. While the Company projects a positive cash flow, this cannot be assured for fiscal year 2026.

Results of Operations

The Company's revenue streams originate primarily from three sources: (a) RV camping site rentals, (b) RV storage & towing fees, and (c) retail sales through a general store. In addition, the Company generates revenue from leases of real property, such as our RV retail storefront, RV repair facility and cell towers on our real property and from other ancillary services, such as our restaurant, arcade and laundromat.

Three months ended December 31, 2025 compared to the three months ended December 31, 2024

		Three months ended December 31,
		2025			2024
RV camping site rentals	$	1,587,000	68%	$	1,340,000	65%
RV storage and towing fees		498,000	22%		464,000	23%
Retail store sales		140,000	6%		150,000	7%
Property lease income		48,000	2%		57,000	3%
Other ancillary services		40,000	2%		42,000	2%
	$	2,313,000	100%	$	2,053,000	100%

Overall, total revenue was higher in the three months ended December 31, 2025 compared to the same period of 2024 primarily due to site rental rate increases (a $260,000 or 13% increase).

RV camping site rental revenues increased $247,000 to $1,587,000 in the three months ended December 31, 2025 compared to $1,340,000 in the same period of 2024 primarily due to a $20 per night rate increase during Q3 2025. Occupancy was lower in 2025 than 2024 because of the timing of weekends and holidays during the calendar quarter and site maintenance being performed in December 2025.

	Three months ended December 31,
	2025		2024
Paid RV camping site nights	15,210	62%	15,921	63%
Unpaid shareholder nights	9,323	38%	9,169	37%
Total Occupancy	24,533	100%	25,090	100%

Occupancy %	67%		68%

Sites Not Occupied	12,267	33%	11,710	32%
Total Capacity	36,800		36,800

RV storage & towing fees increased $34,000 to $498,000 in the three months ended December 31, 2025 compared to $464,000 in the same period of 2024, consistent with our storage lots being at full capacity, a rate increase as of January 2025 and fluctuations in occupancy that impact towing fees.

Retail store revenues decreased $10,000 to $140,000 in the three months ended December 31, 2025 compared to $150,000 in the same period of 2024 due to lower occupancy in December 2025.

Property lease income, which is primarily associated with rental of the RV repair facilities, decreased $9,000 to $48,000 in the three months ended December 31, 2025 compared to $57,000 in same period of 2024 due to the termination of one building lease because the tenant defaulted on its lease.

Operating expenses increased $142,000 to $2,143,000 in the three months ended December 31, 2025 compared to $2,001,000 in same period of 2024. The increase is primarily due to an increase in employee wages and professional fees associated with employment and legal services.

Cost of goods sold increased $17,000 to $93,000 in the three months ended December 31, 2025 compared to $76,000 in the same period of 2024 primarily due to the mix of products sold in the store.

Depreciation and amortization expense increased $18,000 to $155,000 in the three months ended December 31, 2025 compared to $137,000 in the same period of 2024 due primarily to depreciation on new tow vehicles that were put in service during 2025.

Other income and expense, net decreased $11,000 to $91,000 in the three months ended December 31, 2025, compared to $102,000 in the same period of 2024, primarily because of a decrease in interest rates offset by increased interest on truck leases.

Although the supply-demand balance generally remains favorable, future-operating results could be impacted by changes in inflation and the economy that lead to increases or decreases in demand. Depending on the nature of business and economic cycles and trends, rates may be adjusted accordingly, if deemed necessary. Changes in demand could limit the Company's ability to pass through inflationary increases in operating costs as higher rates.

Additionally, increases in transportation and fuel costs or sustained recessionary periods could unfavorably impact future results. However, the Company believes that its financial strength and market presence will enable it to remain extremely competitive. The company intends to continue to market site usage at its highest value and believes that currently this will not negatively impact the Company's ability to capture an optimum market share.

Seasonality

The business of the Company is seasonal and is concentrated on prime days of the year which are defined as follows: President's Day weekend, Easter week, Memorial Day weekend, summer vacation months, Labor Day weekend, September and October weekends, Thanksgiving week, and Christmas/New Year's week.

Occupancy is impacted by weather patterns, as demand decreases during the rainy season and also in years with more rain. Additionally, occupancy within any particular quarter is impacted by the timing of weekends and holidays within that calendar quarter.

Due the seasonal impact, fall and winter months derive less revenue and profit than the rest of the year. Revenue, paid occupancy and income (loss) from operations for the past eight quarters were as follows:

Revenue for the three months ended
			2025			2024
	March 31	$	1,966,000		$	1,935,000
	June 30	$	2,911,000		$	2,680,000
	September 30	$	3,152,000		$	3,027,000
	December 31	$	2,313,000		$	2,053,000

Paid Occupancy for the three months ended
			2025			2024
	March 31		14,571			14,958
	June 30		19,800			20,339
	September 30		22,128			22,914
	December 31		15,210			15,921

Income (loss) from operations for the three months ended
			2025			2024
	March 31	$	(187,000	)	$	(13,000	)
	June 30	$	810,000		$	832,000
	September 30	$	483,000		$	481,000
	December 31	$	(78,000	)	$	(161,000	)

Occupancy during the three months ended December 31, 2025 was less than the comparable three months of the prior year due primarily to the timing of weekends and holidays and site maintenance being performed in December 2025. Revenue for the three months ended December 31, 2025 increased compared to the comparable three months of the prior year due to a $20 per night rate increase during Q3 2025. Loss from operations for the three months ended December 31, 2025 decreased compared to the comparable three months of the prior year due primarily to the site rate increase of $20 per night in Q3 2025 offset by an increase in employee wages and professional fees associated with employment and legal services.

Occupancy during the quarter ending March 31, 2026 is expected to be seasonally lower, because it is winter, resulting in lower revenue and increased losses than the quarter ended December 31, 2025.

Critical Accounting Estimates

The Company's consolidated financial statements are prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as related disclosure of contingent assets and liabilities. In some cases, management could reasonably have used different accounting policies and estimates. In some cases, changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ materially from our estimates. To the extent that there are material differences between these estimates and actual results, the Company's financial condition or results of operations will be affected.

Management bases estimates upon past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. We refer to accounting estimates of this type as critical accounting policies and estimates. Our critical accounting policies are described in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of our 2025 Annual Report on Form 10-K.

Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon our Financial Statements, which have been prepared in accordance with U.S. GAAP. Our significant accounting policies are more fully described in Note 2, Significant Accounting Policies, in the Notes to Financial Statements of our 2025 Annual Report on Form 10-K. There were no changes to our significant accounting policies during the three months ended December 31, 2025.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

ITEM 4. Controls and Procedures

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing internal control over financial reporting ("ICFR") as defined in Rules 13a-I5(f) and 15(d)-15(f) under the 1934 Act. Our ICFR is intended to be designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our ICFR is expected to include policies and procedures that management believes are necessary that:

1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company

2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and our directors; and

3. provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

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

As of September 30, 2025, management with the participation of our CEO, General Manager and CFO, assessed the effectiveness of the Company's internal control over financial reporting (ICFR) based on the criteria for effective ICFR established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and SEC guidance on conducting such assessments by smaller reporting companies and non-accelerated filers. Based on that assessment, management concluded that our disclosure controls and procedures were not effective during periods covered by this report (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).

MATERIAL WEAKNESS

In connection with our management's assessment of controls over financial reporting during the years ended September 30, 2025 and 2024, we identified a material weakness. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

The material weakness that we identified is that we did not have sufficient qualified internal resources related to internal controls over financial reporting. To address this material weakness, we have evaluated our ongoing staffing requirements. During November 2025 we appointed a new accounting manager and in September 2024 we retained an experienced part-time temporary controller consultant who has been responsible for reviewing our internal control processes. As of December 31, 2025, we conclude that we have not sufficiently remediated this control deficiency because the additional personnel have not been on board for a sufficient period of time.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Except for the remediation efforts described above, there were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II -- OTHER INFORMATION

ITEM 1. Legal Proceedings

There are no pending legal proceedings against the Company other than routine litigation incidental to the business.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not Applicable

ITEM 3. Defaults Upon Senior Securities

Not Applicable

ITEM 4. Mine Safety Disclosures

Not Applicable

ITEM 5. Other Information

Not Applicable

ITEM 6. Exhibits

Exhibit No.	Description of Exhibit

31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (George Pappi, President and Chairman of the Board, and Chief Executive Officer/principal executive officer)

31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Suzanne M Colvin, Chief Financial Officer, principal financial officer, and principal accounting officer)

32.1	Certification Pursuant to 18 U. S. C. Subsection 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (George Pappi, President and Chairman of the Board, and Chief Executive Officer/principal executive officer and Suzanne M Colvin, Chief Financial Officer, principal financial officer, and principal accounting officer)

101.INS	Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PISMO COAST VILLAGE, INC.

(Registrant)

Date: February 12, 2025

Signature: /s/ GEORGE PAPPI

George Pappi, President, and Chairman of the Board
(Chief Executive Officer/Principal executive officer)

Date: February 12, 2025

Signature: /s/ SUZANNE M COLVIN

Suzanne M Colvin, V.P. - Finance/Chief Financial Officer

(Principal financial officer and principal accounting officer)

PISMO COAST VILLAGE INC 10-Q