~~Table~~UNITED ofSTATES ~~Contents~~

~~UNITED~~SECURITIES ~~STATES~~AND EXCHANGE COMMISSION

~~SECURITIES~~Washington, ~~AND~~DC ~~EXCHANGE~~20549 ~~COMMISSION~~

~~Washington,~~FORM DC10-Q ~~20549~~

~~FORM~~(Mark ~~10-Q~~one)

~~(Mark~~☒ ~~one~~QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☒For ~~QUARTERLY~~the ~~REPORT~~quarterly ~~PURSUANT~~period TOended ~~SECTION~~March 31, 132021 ~~OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~For~~OR ~~the quarterly period ended September 30, 2020~~

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

☐For ~~TRANSITION~~the ~~REPORT~~transition ~~PURSUANT~~period ~~TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~from to

~~For~~COMMISSION ~~the~~FILE ~~transition~~NUMBER: ~~period~~2-65481 ~~from to~~

~~COMMISSION~~SADDLEBROOK ~~FILE~~RESORTS, ~~NUMBER:~~INC. ~~2-65481~~

~~SADDLEBROOK~~(Exact ~~RESORTS,~~name ~~INC.~~of registrant as specified in its charter)

(Exact name of registrant as specified in its charter)


Florida		59-1917822
(State of incorporation)		(IRS employer identification no.)

Florida		59-1917822
(State of incorporation)		(IRS employer identification no.)

5700 Saddlebrook Way, Wesley Chapel, Florida 33543-4499

~~5700~~(Address ~~Saddlebrook~~of ~~Way,~~principal ~~Wesley~~executive ~~Chapel,~~offices) ~~Florida 33543-4499~~

~~(Address~~813-973-1111 ~~of principal executive offices)~~

~~813-973-1111~~(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (~~Registrant’s~~1) has ~~telephone~~filed ~~number,~~all ~~including~~reports ~~area~~required ~~code~~to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐

Indicate by check mark whether the registrant ~~(1)~~ has submitted ~~filed~~electronically ~~all~~every ~~reports~~Interactive Data File required to be ~~filed~~submitted byand ~~Section 13~~posted orpursuant ~~15(d)~~to Rule 405 of ~~the~~Regulation ~~Securities~~S-T ~~Exchange~~(229.405 ~~Act~~ of ~~1934~~this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to ~~file~~submit ~~such reports),~~ and ~~(2) has~~post ~~been subject to~~ such ~~filing requirements for the past 90 days~~files). YES ☒ NO ☐

Indicate by check mark whether the registrant ~~has submitted~~is ~~electronically~~a ~~every~~large ~~Interactive~~accelerated ~~Data~~filer, ~~File~~an ~~required~~accelerated tofiler, bea ~~submitted~~non-accelerated filer, ~~and~~a ~~posted~~smaller ~~pursuant~~reporting tocompany, ~~Rule~~or ~~405~~an ofemerging ~~Regulation~~growth ~~S-T (229~~company.~~405~~ ofSee ~~this~~definition ~~chapter)~~of ~~during~~“accelerated ~~the~~filer,” ~~preceding~~“large 12accelerated ~~months~~filer”, ~~(or~~“smaller ~~for~~reporting ~~such~~company” ~~shorter period~~and ~~that~~“emerging ~~the~~growth ~~registrant~~company” ~~was~~in ~~required~~Rule to12b-2 ~~submit~~of ~~and~~the ~~post~~Exchange ~~such files)~~Act. ~~YES ☒ NO ☐~~:

~~Indicate~~Large ~~by check mark whether the registrant is a large~~ accelerated filer, an☐ ~~accelerated~~Accelerated filer, a☐ ~~non~~Non-accelerated ~~filer,~~ ~~a smaller reporting company, or an emerging growth company. See definition of “accelerated~~ filer,” ~~“large~~☐ ~~accelerated~~Smaller ~~filer”, “smaller~~ reporting company” ~~and~~☒ ~~“emerging~~Emerging growth company” ~~in Rule 12b-2 of the Exchange Act.:~~ ☐

~~Large~~If ~~accelerated~~an ~~filer~~emerging ☐growth ~~Accelerated~~company, ~~filer~~indicate ☐by ~~Non-accelerated~~check ~~filer~~mark ☐if ~~Smaller~~the ~~reporting~~registrant ~~company~~has ☒elected ~~Emerging~~not ~~growth~~to ~~company~~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.

IfIndicate ~~an emerging growth company, indicate~~ by check mark ifwhether the registrant ~~has~~is ~~elected~~a ~~not~~shell tocompany ~~use~~(as ~~the~~defined ~~extended~~in ~~transition~~Rule ~~period for~~12b-2 ~~complying with any new or revised financial accounting standards provided pursuant to Section 13(a)~~ of the Exchange Act). YES ☐ NO ☒

~~Indicate~~Registrant byhas ~~check~~100,000 ~~mark~~shares ~~whether~~of ~~the~~common ~~registrant~~stock outstanding, isall aof ~~shell~~which ~~company~~are ~~(as~~held ~~defined~~by inan ~~Rule~~affiliate ~~12b-2~~ of the ~~Exchange Act)~~Registrant. ~~YES ☐ NO ☒~~

~~Registrant~~INDEX ~~has 100,000 shares of common stock outstanding, all of which are held by an affiliate of the Registrant.~~


	Page

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Saddlebrook Resorts, Inc.

Balance Sheets at March 31, 2021 and December 31, 2020		3

Statements of Operations and (Accumulated Deficit) Retained Earnings for the three months ended March 31, 2021 and 2020		4

Statements of Cash Flows for the three months ended March 31, 2021 and 2020		5

Notes to Financial Statements		6

Saddlebrook Rental Pool Operation

Balance Sheets at March 31, 2021 and December 31, 2020		11

Statements of Operations for the three months ended March 31, 2021 and 2020		12

Statements of Changes in Participants’ Fund Balance for the three months ended March 31, 2021 and 2020		13

Notes to Financial Statements		14

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		15

Item 3. Quantitative and Qualitative Disclosures About Market Risk		17

Item 4. Controls and Procedures		17

PART II—OTHER INFORMATION

Item 1. Legal Proceedings		17

Item 6. Exhibits		18

Signature		19

~~INDEX~~- 2 -

	Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Saddlebrook Resorts, Inc.
Balance Sheets at September 30, 2020 and December 31, 2019		3
Statements of Operations and Retained Earnings (Accumulated Deficit) For the three and nine months ended September 30, 2020 and 2019		4
Statements of Cash Flows for the three and nine months ended September 30, 2020 and 2019		5
Notes to Financial Statements		6
Saddlebrook Rental Pool Operation
Balance Sheets at September 30, 2020 and December 31, 2019		11
Statements of Operations for the three and nine months ended September 30, 2020 and 2019		12
Statements of Changes in Participants’ Fund Balance for the three and nine months ended September 30, 2020 and 2019		13
Notes to Financial Statements		14
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
Item 3. Quantitative and Qualitative Disclosures About Market Risk		17
Item 4. Controls and Procedures		17
PART II - OTHER INFORMATION
Item 1. Legal Proceedings		17
Item 6. Exhibits		18
Signature		19

PART I—FINANCIAL INFORMATION

-Item 21. -Financial Statements

~~Table~~SADDLEBROOK RESORTS, ofINC. ~~Contents~~

~~PART~~BALANCE ISHEETS ~~- FINANCIAL INFORMATION~~

Item 1. Financial Statements


	March 31, 2021 (Unaudited)			December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	1,744,560		$	235,245
Escrowed cash		942,488			977,391
Trade accounts receivable, net		654,559			483,561
Due from related parties		3,048,250			2,539,401
Resort inventory and supplies		801,223			847,527
Prepaid expenses and other assets		356,942			542,233

Total current assets		7,548,022			5,625,358
Property, buildings and equipment, net		12,739,819			13,106,914
Operating lease right-of-use assets		54,507			73,573

Total assets	$	20,342,348		$	18,805,845

Liabilities and Shareholder’s equity
Current liabilities
Current portion of long-term debt	$	6,654,621		$	6,664,219
Current portion of Paycheck Protection Program loan		2,784,746			1,474,278
Current portion of finance lease liabilities		104,326			102,649
Current portion of operating lease liabilities		54,507			73,573
Escrowed deposits		942,488			977,391
Accounts payable		506,424			477,024
Accrued rental distribution		766,913			221,528
Accrued expenses and other liabilities		1,204,025			1,007,001
Current portion of deferred income		585,777			696,544
Guest deposits		1,233,527			2,002,139
Due to related parties		1,475,620			1,186,165

Total current liabilities		16,312,974			14,882,511
Long-term portion of Economic Injury Disaster loan		150,000			150,000
Long-term portion of Paycheck Protection Program loan		2,163,806			1,474,278
Long-term finance lease liabilities		121,521			149,714
Deferred income		710,280			643,307

Total liabilities		19,458,581			17,299,810

Commitments and contingencies (Note 11)
Shareholder’s equity
Common stock, $1 par, 100,000 shares authorized, issued and outstanding		100,000			100,000
Additional paid-in capital		1,013,127			1,013,127
(Accumulated deficit) retained earnings		(229,360	)		392,908

Total shareholder’s equity		883,767			1,506,035

Total liabilities and shareholder’s equity	$	20,342,348		$	18,805,845

~~SADDLEBROOK RESORTS,~~The ~~INC.~~accompanying Notes to Financial Statements are an integral part of these financial statements

~~BALANCE~~- ~~SHEETS~~3 -

	September 30,2020(Unaudited)		December 31,2019
Assets
Current assets:
Cash and cash equivalents	$	—	$	325,696
Escrowed cash		983,340		1,124,074
Trade accounts receivable, net		114,372		1,129,572
Due from related parties		1,591,472		465,623
Resort inventory and supplies		875,755		1,011,923
Prepaid expenses and other assets		402,287		350,539
Total current assets		3,967,226		4,407,427
Property, buildings and equipment, net		13,468,555		14,800,528
Operating lease right-of-use assets		92,353		147,223
Total assets	$	17,528,134	$	19,355,178
Liabilities and Shareholder’s Equity
Current liabilities:
Checks issued in excess of cash and cash equivalents	$	22,984	$	—
Current portion of long-term debt, less deferred financing of $2,922		6,785,540		6,953,178
Current portion of Paycheck Protection Program loan		1,801,895
Current portion of finance lease liabilities		101,000		96,206
Current portion of operating lease liabilities		76,642		73,650
Escrowed deposits		983,340		1,124,074
Accounts payable		299,881		492,452
Accrued rental distribution		123,115		344,367
Accrued expenses and other liabilities		771,456		1,089,527
Current portion of deferred income		742,334		786,125
Guest deposits		1,115,030		1,393,571
Total current liabilities		12,823,217		12,353,150
Long-term portion of Economic Injury Disaster loan		150,000		—
Long-term portion of Payroll Protection Program loan		1,146,660		—
Long-term finance lease liabilities		177,476		258,258
Long-term operating lease liabilities		15,711		73,573
Deferred income		652,345		627,685
Total liabilities		14,965,409		13,312,666
Shareholder’s equity:
Common stock, $1.00 par value, 100,000 shares authorized and outstanding		100,000		100,000
Additional paid-in capital		1,013,127		1,013,127
Retained earnings		1,449,598		4,929,385
Total shareholder’s equity		2,562,725		6,042,512
Total liabilities and shareholder’s equity	$	17,528,134	$	19,355,178

SADDLEBROOK RESORTS, INC.

~~The~~STATEMENTS ~~accompanying~~OF ~~Notes~~OPERATIONS ~~to Financial Statements are an integral part of these financial statements~~

-AND (ACCUMULATED 3DEFICIT) -RETAINED EARNINGS

~~Table~~(Unaudited) ~~of Contents~~

SADDLEBROOK RESORTS, INC.


	Three Months ended March 31,
	2021			2020
Resort revenues	$	4,312,338		$	7,251,566

Costs and expenses:
Operating costs of resort		3,741,586			5,707,139
Sales and marketing		78,360			350,781
General and administrative		611,616			693,187
Depreciation		368,780			498,027

Total costs and expenses		4,800,342			7,249,134


Net operating (loss) income before other (income) expense		(488,004	)		2,432

Other (income) expense:
Other income		(5,466	)		(5,312	)
Interest expense		139,730			90,472

Total other expenses, net		134,264			85,160

Net loss		(622,268	)		(82,728	)
Retained earnings at beginning of period		392,908			4,929,385

(Accumulated deficit) retained earnings at end of period	$	(229,360	)	$	4,846,657

~~STATEMENTS~~The OFaccompanying ~~OPERATIONS~~notes are an integral part of these financial statements

~~AND~~- ~~RETAINED~~4 ~~EARNINGS~~- ~~(ACCUMULATED DEFICIT)~~

~~(Unaudited)~~SADDLEBROOK RESORTS, INC.

	Three months endedSeptember 30,						Nine Months endedSeptember 30,
	2020			2019			2020			2019
Revenues	$	1,724,182		$	3,505,158		$	10,853,689		$	21,940,324
Costs and expenses:
Operating costs		2,417,908			4,186,070			10,113,103			17,803,226
Sales and marketing		117,334			390,470			659,503			1,467,987
General and administrative		665,487			683,172			2,037,871			2,122,557
Depreciation		394,393			512,646			1,375,427			1,547,052
Total costs and expenses		3,595,122			5,772,358			14,185,904			22,940,822
Net operating loss before other income (expenses)		(1,870,940	)		(2,267,200	)		(3,332,215	)		(1,000,498	)
Other income (expenses)
Other income		3,363			1,267			13,425			819
Interest expense		(62,785	)		(102,715	)		(160,997	)		(313,774	)
Total other income (expenses), net		(59,422	)		101,448			(147,572	)		314,594
Net loss		(1,930,362	)		(2,368,648	)		(3,479,787	)		(1,315,092	)
Retained earnings (accumulated deficit) at beginning of period		3,379,960			(4,337,717	)		4,929,385			(5,391,273	)
Retained earnings (accumulated deficit) at end of period	$	1,449,598		$	(6,706,365	)	$	1,449,598		$	(6,706,365	)

STATEMENTS OF CASH FLOWS

~~The~~(Unaudited) ~~accompanying notes are an integral part of these financial statements~~

- 4 -


	Three months ended March 31,
	2021			2020
Operating activities:
Net loss	$	(622,268	)	$	(82,728	)
Non-cash items included in net loss:
Depreciation		368,780			498,027
Gain on the disposal of assets		-			(6,000	)
Bad debt expense		-			3,143
Amortization of debt financing costs		89,152			2,881
Amortization of operating lease right-of-use assets		19,066			18,048
Interest paid on finance leases		3,670			(5,161	)
Decrease (increase) in:
Accounts receivable		(170,998	)		(159,616	)
Inventory and supplies		46,304			15,313
Prepaid expenses and other assets		185,291			(116,620	)
(Decrease) increase in:
Checks issued in excess of cash and cash equivalents		-			301,116
Escrowed deposits		(34,903	)		(147,586	)
Accounts payable		29,400			14,409
Accrued rental distribution		545,385			428,389
Guest deposits		(768,612	)		(871,190	)
Accrued expenses and other liabilities		197,020			(206,748	)
Deferred income		(43,794	)		7,836
Operating lease liabilities		(19,066	)		(18,048	)

Cash flows from operating activities		(175,573	)		(324,535	)


Investing activities:
Capital expenditures		(1,685	)		(56,369	)

Cash flows from investing activities		(1,685	)		(56,369	)


Financing activities:
Payments on long-term debt		(98,750	)		(88,141	)
Proceeds from Paycheck Protection Program loan		2,000,000			-
Payments on finance lease obligations		(30,186	)		(19,782	)
Net (payments to) advances from related parties		(219,394	)		15,545

Cash flows from financing activities		1,651,670			(92,378	)


Net change in cash, cash equivalents, and escrowed cash		1,474,412			(473,282	)
Cash, cash equivalents, and escrowed cash at beginning of period		1,212,636			1,449,770

Cash, cash equivalents, and escrowed cash at end of period	$	2,687,048		$	976,488


Supplemental disclosure of cash flow information:
Cash paid for interest	$	29,239		$	87,591

~~Table~~The accompanying notes are an integral part of ~~Contents~~these financial statements

~~SADDLEBROOK~~- ~~RESORTS,~~5 ~~INC.~~-

~~STATEMENTS~~SADDLEBROOK OFRESORTS, ~~CASH~~INC. ~~FLOWS~~

~~(Unaudited)~~NOTES TO FINANCIAL STATEMENTS

	Nine months endedSeptember 30,
	2020			2019
Operating activities:
Net loss	$	(3,479,787	)	$	(1,315,093	)
Non-cash items included in net loss:
Depreciation		1,375,427			1,547,053
Gain on the disposal of assets		(6,000	)		—
Bad debt expense		3,143			—
Amortization of debt financing costs		8,644			14,906
Amortization of operating lease right-of-use assets		54,870			52,062
Interest paid on finance leases		(14,570	)		(19,062	)
Decrease (increase) in:
Accounts receivable		1,012,057			267,928
Inventory and supplies		136,168			27,630
Prepaid expenses and other assets		(51,748	)		793,768
(Decrease) increase in:
Checks issued in excess of cash and cash equivalents		22,984			—
Escrowed deposits		(140,734	)		(637,031	)
Accounts payable		(192,571	)		(131,403	)
Accrued rental distribution		(221,252	)		(301,615	)
Guest deposits		(278,541	)		(1,673,372	)
Accrued expenses and other liabilities		(318,071	)		(320,688	)
Deferred income		(19,131	)		(58,099	)
Operating lease liabilities		(54,870	)		(52,062	)
Cash flows from operating activities		(2,163,982	)		(1,805,078	)
Investing activities:
Capital expenditures		(37,454	)		(404,474	)
Cash flows from investing activities		(37,454	)		(404,474	)
Financing activities:
Payments on long-term debt		(176,282	)		(264,424	)
Proceeds from line of credit		—			1,500,000
Proceeds from long-term debt		150,000			—
Proceeds from payroll protection program loan		2,948,555			—
Payments on finance lease obligations		(61,418	)		(22,465	)
Net advances from (payments to) related parties		(1,125,849	)		164,363
Cash flows from financing activities		1,735,006			1,377,474
Net decrease in cash, cash equivalents and escrowed cash		(466,430	)		(715,880	)
Cash, cash equivalents and escrowed cash at beginning of period		1,449,770			2,625,471
Cash, cash equivalents and escrowed cash at end of period	$	983,340		$	1,909,591
Supplemental disclosure of cash flow information:
Cash paid for interest	$	92,449		$	313,774

(Unaudited)

~~The~~Note ~~accompanying~~1. ~~notes~~Basis ~~are an integral part~~ of ~~these~~Presentation ~~financial statements~~

-Saddlebrook 5Resorts, -Inc. (the “Company”) developed and operates Saddlebrook Resort, which is a condominium hotel and resort located in Wesley Chapel, Florida.

~~Table~~The Company’s accompanying balance sheet for March 31, 2021, and its statements of ~~Contents~~operations and accumulated earnings and cash flows for the three month periods ended March 31, 2021 and 2020, are unaudited but reflect all adjustments which are, in the opinion of management, necessary for the fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The balance sheet at December 31, 2020 has been derived from the audited financial statements as of that date.

~~SADDLEBROOK~~The ~~RESORTS~~Company’s business is seasonal. Therefore, ~~INC~~the results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for future interim periods or the full fiscal year.

~~NOTES~~These TOfinancial ~~FINANCIAL~~statements ~~STATEMENTS~~and related notes are presented for interim periods in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X, and, consequently, do not include all disclosures normally required by accounting principles generally accepted in the United States. Accordingly, these financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

~~(Unaudited)~~- 6 -

Note 12. ~~Basis~~Revenue ~~of Presentation~~

~~Saddlebrook~~Revenue ~~Resorts,~~Recognition ~~Inc. (the “Company”) developed and operates Saddlebrook Resort, which is a condominium hotel and resort located in Wesley Chapel, Florida.~~

~~The~~Resort ~~Company’s~~revenues ~~accompanying~~are ~~balance~~recognized ~~sheet~~as ~~for~~services are ~~September 30,~~performed ~~2020,~~or ~~and~~products ~~its~~are ~~statements~~delivered ofwith ~~operations and accumulated earnings and cash flows for~~ the ~~nine~~exception ~~month~~of ~~periods~~initiation ~~ended~~fee ~~September 30~~revenue, ~~2020~~which ~~and~~is ~~2019,~~recognized ~~are~~over ~~unaudited~~the ~~but~~average ~~reflect~~life ~~all~~of ~~adjustments~~the ~~which~~memberships. ~~are,~~Resort inrevenues ~~the~~also ~~opinion~~include ofrental ~~management,~~revenues ~~necessary~~ for ~~the~~condominium ~~fair~~units ~~presentation~~owned ofby ~~the~~third ~~results~~parties participating ~~for~~in the ~~interim~~Rental ~~periods presented~~Pool. ~~All~~ ~~such~~If ~~adjustments~~these ~~are~~rental ofunits awere owned by the Company, normal ~~recurring~~costs ~~nature.~~associated ~~The~~with ~~balance~~ownership ~~sheet~~such atas ~~December 31~~depreciation, ~~2019~~real ~~has~~estate ~~been~~taxes, ~~derived~~unit ~~from~~maintenance ~~the~~and ~~audited~~other ~~financial~~costs ~~statements~~would ashave ofbeen ~~that date~~incurred.

~~The~~Contract ~~Company’s~~Balances business is seasonal. Therefore, the results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for future interim periods or the full fiscal year.

~~These~~Timing ~~financial~~differences ~~statements~~among ~~and~~revenue recognition ~~related~~may ~~notes~~result ~~are~~in ~~presented~~contract ~~for~~assets ~~interim~~or ~~periods in~~liabilities. ~~accordance~~Contract ~~with~~liabilities ~~the~~consists ~~requirements~~ of ~~Form~~guest ~~10-Q~~deposits and ~~Article~~deferred 10income ofand ~~Regulation~~totaled ~~S-X~~approximately $2,530,000 and, ~~consequently~~$3,342,000 doas ~~not~~of ~~include~~March 31, ~~all~~2021 ~~disclosures~~and ~~normally~~December 31, ~~required~~2020, ~~by accounting~~respectively. ~~principles~~Contract ~~generally~~assets ~~accepted~~consist inof ~~the~~escrowed ~~United~~cash ~~States.~~relating ~~Accordingly,~~to ~~these~~rental ~~financial~~pool ~~statements~~owner ~~and~~deposits ~~related~~for ~~notes~~the ~~should~~maintenance bereserve ~~read~~fund inand ~~conjunction~~long-term ~~with~~security ~~the~~deposits ~~Company’s~~and ~~Annual~~totaled ~~Report~~approximately on$942,000 ~~Form~~and ~~10-K~~$977,000 ~~for~~as ~~the~~of ~~year~~March 31, ~~ended~~ 2021 and December 31, ~~2019~~2020, respectively.

-The 6Company’s -net trade accounts receivables were $655,000 and $484,000 as of March 31, 2021 and December 31, 2020, respectively. Trade accounts receivable are stated in the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to the allowance of doubtful accounts based on its assessment of the current status of individual accounts. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance of doubtful accounts and a credit to trade accounts receivable. Changes in the allowance for doubtful accounts have not been material to the consolidated financial statements.

~~Table~~Performance Obligations ~~of Contents~~

~~Note~~A 2performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under the new revenue recognition standard. ~~Revenue~~The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our revenue transactional and the contracts performance obligation is generally satisfied at the time of the transaction.

~~Revenue~~Note ~~Recognition~~3. Trade Accounts Receivable

Resort revenues are recognized as services are performed or products are delivered with the exception of initiation fee revenue, which is recognized over the average life of the memberships. Resort revenues also include rental revenues for condominium units owned by third parties participating in the Rental Pool. If these rental units were owned by the Company, normal costs associated with ownership such as depreciation, real estate taxes, unit maintenance and other costs would have been incurred.


	Actual
	3/31/2021			12/31/2020
Trade accounts receivable	$	655,176		$	484,178
Less reserve for bad debts		(617	)		(617	)

	$	654,559		$	483,561

~~Contract~~- ~~Balances~~7 -

~~Timing~~Note ~~differences among revenue recognition may result in contract assets or liabilities~~4. ~~Contract~~Management’s ~~liabilities~~Plans ~~consists~~Regarding ofLiquidity ~~guest deposits~~ and ~~deferred~~Capital ~~income~~Resources and totaled approximately $1,902,000 and $2,807,000 as of September 30, 2020 and December 31, 2019, respectively. Contract assets consist of escrowed cash relating to rental pool owner deposits for the maintenance reserve fund and long-term security deposits and totaled approximately $983,000 and $1,124,000 as of September 30, 2020 and December 31, 2019, respectively.

The Company’s ~~net~~experienced ~~trade~~a ~~accounts~~significant ~~receivables~~decrease ~~were~~in ~~$114,000~~revenue ~~and~~for ~~$1,130,000~~the asquarter ofending ~~September~~March ~~30, 2020 and December~~ 31, ~~2019,~~ ~~respectively.~~2021 ~~Trade~~compared ~~accounts~~to ~~receivable are stated in~~ the ~~amount~~previous ~~management expects to collect from outstanding balances~~year. ~~Management~~The ~~provides~~Company ~~for~~is ~~probable uncollectible amounts through a charge to earnings and a credit to~~ optimistic the ~~allowance~~trend ~~of doubtful~~will ~~accounts~~improve ~~based~~during on2021; ~~its~~however, ~~assessment~~actual ofresults ~~the~~may ~~current~~differ ~~status~~from ~~of individual accounts~~expectations. ~~Balances~~The ~~still~~decrease ~~outstanding~~in ~~after~~expenses ~~management~~for ~~has~~the ~~used~~quarter ~~reasonable~~ending ~~collection~~March 31, ~~efforts~~2021 ~~are~~as ~~written~~compared ~~off through a charge~~ to the ~~allowance~~prior ofyear ~~doubtful~~is ~~accounts and~~ a ~~credit~~ toresult ~~trade~~of ~~accounts~~decreased ~~receivable.~~occupancy ~~Changes~~and reductions in ~~the~~wages, benefits, ~~allowance~~and ~~for~~operating ~~doubtful accounts have not been material to the consolidated financial statements~~expenses.

~~Performance~~The ~~Obligations~~Company continues its marketing efforts toward the social clientele by developing packages designed to target more social guests, including families. These social packages are being promoted through the Company’s website as well as through travel wholesalers and with emphasis on e-commerce sites. Management has implemented programs and measures to help the Company get back to positive operating income. These programs and measures include cost control programs, consolidation of restaurant operations and efforts to increase brand awareness and recognition of the Resort.

ATowards ~~performance~~the ~~obligation~~end isof ~~a promise~~December in2019, aan ~~contract~~outbreak toof ~~transfer~~ a ~~distinct~~novel ~~good~~strain orof ~~service~~coronavirus to(“COVID-19”) emerged ~~the~~globally. ~~customer~~The ~~and~~COVID-19 isoutbreak ~~the~~in ~~unit of account under~~ the ~~new~~United ~~revenue~~States ~~recognition~~has ~~standard.~~resulted ~~The~~in ~~transaction~~a ~~price~~reduction isof ~~allocated~~hotel tooccupancy ~~each~~and ~~distinct~~cancellations ~~performance~~of ~~obligation~~future ~~and~~reservations. ~~recognized~~It asis ~~revenue when,~~difficult orto ~~as,~~estimate the ~~performance~~length ~~obligation~~or isseverity ~~satisfied.~~of ~~The~~this outbreak; ~~majority~~however, ofa ~~our~~significant ~~revenue~~reduction ~~transactional~~in ~~and~~occupancy ~~the~~caused ~~contracts~~by ~~performance~~COVID-19 ~~obligation~~ is ~~generally~~expected ~~satisfied~~to ataffect the ~~time~~Company’s results of ~~the~~operations ~~transaction~~and financial position.

~~Note~~These 3financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next fiscal year. ~~Trade~~The ~~Accounts~~continuation ~~Receivable~~of the Company as a going concern is dependent upon financial support from the Company’s current stockholder and the Company’s ability to generate sufficient cash flows from operations. As there can be no assurance that the Company will be able to achieve positive cash flows (become profitable), there is substantial doubt about the Company’s ability to continue as a going concern.

	September 30,2020(Unaudited)			December 31,2019
Trade accounts receivable	$	114,989		$	1,161,500
Less reserve for bad debts		(617	)		(31,928	)
	$	114,372		$	1,129,572

These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

-Note 75. -Operating Leases

~~Table~~The Company leases certain equipment under non-cancellable operating leases, which begin to expire in 2021. The leases are classified as operating leases in conformity with the provisions of ~~Contents~~Topic 842. Accordingly, the Company recorded a right-of-use asset and related operating lease liability totaling approximately $217,000 upon adoption of Topic 842 as of January 1, 2019. Aggregated information regarding the leases as of and for the three months ended March 31, 2021 is as follows:

Note 4. Management’s Plans Regarding Liquidity and Capital Resources


Lease costs (included in operating costs)	$	19,032
Incremental borrowing rate		5.32	%

~~The~~Note ~~Company experienced a significant decrease in revenue for the nine months ended September 30, 2020 compared to the previous year~~6. ~~Towards the end of December 2019~~Property, anBuildings ~~outbreak of a novel strain of coronavirus (“COVID-19”) emerged globally. The COVID-19 outbreak in the United States has resulted in a reduction of hotel occupancy~~ and ~~cancellations~~Equipment of future reservations. It is difficult to estimate the length or severity of this outbreak; however, a significant reduction in occupancy caused by COVID-19 is expected to affect the Company’s results of operations and financial position.

In April 2020, the Company received approximately $2,949,000 of proceeds from a note payable funded under the Payroll Protection Program as part of the CARES Act. The note bears interest at 1% per annum, matures in April 2022, and requires monthly interest and principal payments of $165,529 beginning in November 2020 and through maturity. The currently issued guidelines of the program allow for the loan proceeds to be forgiven if certain requirements are met. If the Company is unable to or does not follow those guidelines, the Company would be required to repay a portion of or the entire balance of the loan proceeds in full.


	March 31, 2021 (Unaudited)			December 31, 2020
Land and land improvements	$	8,830,867		$	8,830,867
Buildings and recreational facilities		32,105,124			32,105,124
Machinery and equipment		21,807,186			21,805,495
Construction in progress		96,235			96,235

		62,839,412			62,837,721
Less accumulated depreciation		(50,099,593	)		(49,730,807	)

	$	12,739,819		$	13,106,914

InThe ~~September 2020, the~~ Company’s ~~received $150~~property,~~000~~ ofbuildings ~~proceeds from an Economic Injury Disaster Loan (“EIDL”) note payable funded by the U.S. Small Business Administration. The note bears interest at 3.75% per annum, matures in September 2050,~~ and ~~requires~~equipment ~~monthly~~are ~~interest~~pledged ~~and~~as ~~principal~~security ~~payments~~for ofits ~~$731~~debt ~~beginning~~(see ~~in September 2021 and through maturity~~Note 7).

~~The~~- ~~current~~8 ~~economic~~- conditions, expected effect on the Company’s results of operations and financial position, and uncertainty of the length or severity of the outbreak raise substantial doubt about the Company’s ability to continue as a going concern.

Note 5 7. ~~Operating~~Notes ~~Leases~~Payable and Finance Lease Liabilities

~~The~~On December 6, 2015 the Company’s ~~leases~~financing ~~certain~~agreement ~~equipment~~with ~~under~~a ~~non~~third-~~cancellable~~party ~~operating~~lender ~~leases,~~was ~~which~~modified ~~begin~~ to include renewal for the existing principal balance of ~~expire~~$4,875,000, inalong ~~2021~~with an advance of an additional $2,000,000. The ~~leases~~term ~~are~~note ~~classified~~required asmonthly ~~operating~~principal ~~leases~~payments inof ~~conformity~~$29,380 ~~with~~plus ~~the~~interest ~~provisions~~ of ~~Topic~~3% ~~842~~over the one month LIBOR. ~~Accordingly~~In April 2020, the Company’s ~~recorded~~lender adeferred ~~right-of-use~~interest ~~asset~~ and principal ~~related~~payments ~~operating~~from ~~lease~~April 6, ~~liability~~2020 ~~totaling~~through ~~approximately $217~~June 6,~~000~~ ~~upon~~2020 ~~adoption~~(the of“deferral ~~Topic~~period”) ~~842~~and asmonthly ofpayments ~~January~~resumed in July 16, ~~2019~~2020. ~~Aggregated~~There ~~information~~was ~~regarding~~no ~~the~~change ~~leases~~to interest rate or maturity date as part of the deferral. In December 2020, this term loan was modified and ~~for~~consolidated with the ~~nine~~existing ~~months~~revolving ~~ended~~line ~~September 30,~~of ~~2020~~credit is as ~~follows:~~described below.

Lease costs (included in operating costs)		$	54,870
Incremental borrowing rate			5.32	%

On April 24, 2017, the Company entered into a revolving line of credit agreement with the same third-party lender with maximum borrowings of $1,500,000 to be used as working capital as needed. The agreement was cross collateralized with the existing term note under the same terms and conditions. Amounts borrowed under the revolving line of credit bears interest at 3% over the one month LIBOR index. In April 2020, the Company’s lender deferred interest and principal payments from April 24, 2020 through June 24, 2020 (the “deferral period”) and monthly payments resumed on July 24, 2020. There was no change to interest rate or maturity date as part of the deferral. In December 2020, this revolving line of credit was modified and consolidated with the existing term loan as described below.

On December 6, 2020, the Company entered into a Renewal and Consolidation Promissory Note (the “renewal note”) with the same third-party lender, which consolidated the existing balances on the term note and revolving line of credit. The renewal note requires monthly principal payments of $28,040 plus interest of 3% over the Prime Rate with a minimum interest rate of no lower than 6.25% ~~Property~~(6.25% at December 31, ~~Buildings~~2020). The renewal term note is collateralized by all current and ~~Equipment~~subsequently acquired real and personal property. The renewal term note requires the Company to maintain a Debt Service Ratio, as defined, of 1.25%. The Company was in default of this covenant as of December 31, 2020; however, the Company received a waiver for this default from its lender. Effective on March 6, 2021, the Company entered into a loan modification and forbearance agreement with the lender which extended the maturity date to June 6, 2021, at which any unpaid principal and interest will be due. The loan modification requires monthly principal payments of $28,040 plus interest of 4% over the Prime Rate with a minimum interest rate of no lower than 7.25%.

	September 30,2020(Unaudited)			December 31,2019
Land and land improvements	$	8,830,867		$	8,830,867
Buildings and recreational facilities		32,105,123			32,093,233
Machinery and equipment		21,798,595			21,863,715
Construction in progress		96,234			94,379
		62,830,819			62,882,194
Less accumulated depreciation		(49,362,264	)		(48,081,666	)
	$	13,468,555		$	14,800,528

On May 25, 2021, the third-party lender assigned the renewal note to a separate third-party lender. Effective the same day, the Company and the assignee entered into a loan extension and modification agreement which extended the maturity date to December 6, 2021, at which any unpaid principal and interest will be due. The loan modification requires interest-only payments through maturity at a rate of 4% over the Prime rate with a minimum interest rate of no lower than 7.50%. At March 31, 2021, $6,701,661 was outstanding under the extended and modified note.

~~The~~In April 2020, the Company’s ~~property~~entered into a term note agreement with the same third-party lender for approximately $2,949,000 ~~buildings~~funded under the Paycheck Protection Program (“PPP”) as part of the Coronavirus Aid, Relief and ~~equipment~~Economic Security Act (“CARES Act”). The note bears interest of 1% per annum, matures in April 2022, and requires a monthly interest and principal payments of $165,529 beginning in November 2020 and through maturity. The currently issued guidelines of the program allow for the loan proceeds to be forgiven if certain requirements are ~~pledged~~met. asThe ~~security~~Company applied for forgiveness ~~its~~with the SBA in which on June 10, 2021, the SBA had forgiven the PPP loan in full. As a result, the Company recognized approximately $2,949,000 of gain on debt ~~(see~~forgiveness ~~Note~~in 7)June 2021.

In March 2021, the Company entered into a term note agreement with the same third-party 8lender for a second draw Paycheck Protection Program loan (“PPP2”) for $2,000,000. The note bears interest of 1% per annum, matures in March 2026, and requires monthly interest and principal payments after the ten-month deferral period. The currently issued guidelines of the program allow for the loan proceeds to be forgiven if certain requirements are met. At March 31, 2021, $2,000,000 was outstanding under the note.

~~Table~~On September 25, 2020, the Company entered into an Economic Injury Disaster Loan (“EIDL”) for $150,000 funded by the U.S. Small Business Administration. The note bears interest at 3.75% per annum, matures in September 2050, and requires monthly interest and principal payments of ~~Contents~~$731 beginning in September 2021 and through maturity. At March 31, 2021, $150,000 was outstanding under the note.

~~Note~~On 7March 1, 2018, the Company entered into a finance lease liability for equipment in the amount of $332,206. ~~Notes~~The ~~Payable~~assets associated with this lease cost $461,506, of which $129,300 was reduced through the Company’s trade-in of existing equipment. This finance lease is secured by the equipment purchased, matures in February 2023 and ~~Finance~~requires ~~Lease~~monthly ~~Liabilities~~payments of $6,500, including interest at 6.5%. At March 31, 2021, the amount due on this finance lease liability was $140,205.

On ~~December 6~~April 1, ~~2015~~2018, the Company’s ~~financing~~entered ~~agreement~~into ~~with~~ a ~~third~~finance ~~party~~lease ~~lender~~liability ~~was~~for ~~modified~~equipment toin ~~include renewal for~~ the ~~existing~~amount ~~principal balance~~ of ~~$4,875,000,~~ ~~along with an advance of an additional~~ $2156,~~000,000~~942. The ~~new~~assets ~~term~~associated ~~note~~with ~~expires~~this ~~December 6,~~lease ~~2020. At September 30, 2020,~~ cost $5178,~~288~~942,~~462~~ ~~was outstanding under the note. The term note requires monthly principal payments~~ of which $2922,~~380~~000 ~~plus interest~~was ofreduced 3%through ~~over~~ the ~~one~~Company’s ~~month~~trade-in ~~LIBOR~~of ~~index~~existing (3equipment.~~14%)~~ atThis ~~September 30,~~finance ~~2020).~~lease ~~The term note~~ is ~~collateralized~~secured by ~~all~~the ~~current~~equipment ~~and~~purchased, ~~subsequently~~matures ~~acquired~~in ~~real~~March 2023 and ~~personal property. The term note~~ requires ~~the~~monthly ~~Company~~payments toof ~~maintain a Debt Service Ratio~~$3,071, asincluding ~~defined,~~interest ofat 16.255%. ~~The Company was in default of this covenant as of December~~At March 31, ~~2019; however~~2021, the ~~Company~~amount ~~received~~due aon ~~waiver for~~ this ~~default~~finance ~~from~~lease ~~its~~liability ~~lender.~~was ~~The Company is currently discussing refinancing of its current mortgage~~$68,934.

On- ~~April 24,~~9 ~~2017,~~- the Company entered in to a revolving line of credit agreement with the same third party lender with maximum borrowings of $1,500,000 to be used as working capital as needed. The agreement is cross collateralized with the existing term note under the same terms and conditions. Amounts borrowed under the revolving line of credit will bear interest at 3% over the one month LIBOR index (3.14%) at September 30, 2020). The line of credit will terminate on December 6, 2020. As of September 30, 2020, the Company had $1,500,000 in outstanding borrowings on this agreement. Lender hereby agrees to defer payment of principal plus interest (the “Payment Deferral”) through and including June 6, 2020 with regularly scheduled payments of principal plus interest to resume July 6, 2020.

InNote ~~April 2020, the Company entered into a term note agreement with the same third party lender for approximately $2,949,000 funded under the Paycheck Protection Program as part of the CARES Act~~8. ~~The~~Related ~~note~~Party ~~bears~~Receivables interest of 1% per annum, matures in April 2022, and requires a monthly interest and principal payments of $165,529 beginning in November 2020 and through maturity. The currently issued guidelines of the program allow for the loan proceeds to be forgiven if certain requirements are met. If the Company is unable to or does not follow those guidelines, the Company would be required to repay a portion of or the entire balance of the entire balance of the loan proceeds in full. At September 30, 2020, $2,948,555 was outstanding under the note.

OnRelated ~~September 25,~~party ~~2020,~~receivables ~~the Company~~at ~~entered~~March 31, ~~into~~2021 anand ~~EIDL note payable for $150~~December 31,~~000~~ ~~funded~~2020 byare the ~~U.S.~~result ~~Small~~of ~~Business~~net ~~Administration.~~intercompany ~~The~~transactions ~~note~~and ~~bears~~cash ~~interest~~transfers atbetween ~~3.75%~~the Company ~~per annum, matures in September 2050,~~ and ~~requires~~its ~~monthly~~shareholder ~~interest~~ and ~~principal~~affiliated ~~payments~~companies. ofRelated ~~$731~~party ~~beginning~~receivables ~~in September~~are ~~2021~~unsecured and ~~through~~non-interest ~~maturity~~bearing. ~~At September 30, 2020, $150,000 was outstanding under the note.~~

OnNote ~~March 1, 2018, the Company entered into a finance lease liability for equipment in the amount of $332,206~~9. ~~The~~Income ~~assets~~Taxes associated with this lease cost $461,506, of which $129,300 was reduced through the Company’s trade-in of existing equipment. This finance lease is secured by the equipment purchased, matures in February 2023 and requires monthly payments of $6,500, including interest at 6.5%. At September 30, 2020, the amount due on this finance lease liability was $174,005.

OnThe ~~April 1, 2018, the~~ Company ~~entered~~is ~~into~~currently a ~~finance~~member ~~lease~~of ~~liability~~a Qualified ~~for~~Subchapter ~~equipment~~S inSubsidiary ~~the amount of $156,942~~Group. ~~The assets associated with this lease cost $178~~Accordingly,~~942,~~ ofno ~~which~~income ~~$22,000~~tax expense was ~~reduced~~reflected ~~through~~in the Company’s ~~trade-in~~operating ofresults ~~existing~~as ~~equipment.~~the ~~This~~tax ~~finance lease~~ is ~~secured~~assessed byto the ~~equipment~~shareholders ~~purchased, matures in March 2023 and requires monthly payments~~ of ~~$3,071, including interest at 6.5%. At September 30, 2020,~~ the ~~amount~~Company’s ~~due~~parent ~~on this finance lease liability was $84,817~~company.

- 910 -

~~Table~~SADDLEBROOK ofRENTAL ~~Contents~~POOL OPERATION

~~Note~~BALANCE 8.SHEETS ~~Related Party Receivables~~

~~Related~~DISTRIBUTION ~~party~~FUND receivables at September 30, 2020 and December 31, 2019 are the result of net intercompany transactions and cash transfers between the Company and its shareholder and affiliated companies. Related party receivables are unsecured and non-interest bearing.

Note 9. Income Taxes


	March 31, 2021 (Unaudited)		December 31, 2020
Assets
Receivable from Saddlebrook Resorts, Inc.	$	766,912	$	221,527

Liabilities and Participants’ Fund Balance
Due to participants for rental pool distribution	$	638,043	$	184,099
Due to maintenance escrow fund		128,869		37,428

	$	766,912	$	221,527

~~The~~MAINTENANCE ~~Company~~ESCROW isFUND currently a member of a Qualified Subchapter S Subsidiary Group. Accordingly, no income tax expense was reflected in the Company’s operating results as the tax is assessed to the shareholders of the Company’s parent company.

- 10 -


	March 31, 2021 (Unaudited)		December 31, 2020
Assets
Cash and cash equivalents	$	928,512	$	964,616
Receivables:
Distribution fund		128,869		37,428
Prepaid expenses and other assets		113,865		60,018
Linen Inventory		14,531		—
Furniture Inventory		39,651		41,433

	$	1,225,428	$	1,103,495

Liabilities and Participants’ Fund Balance
Due to Saddlebrook Resorts, Inc.	$	179,988	$	106,689
Participants’ fund balance		1,045,440		996,806

	$	1,225,428	$	1,103,495

~~Table~~- of11 ~~Contents~~-

SADDLEBROOK RENTAL POOL OPERATION

~~BALANCE~~STATEMENTS ~~SHEETS~~OF OPERATIONS

~~DISTRIBUTION~~(Unaudited) ~~FUND~~

	September 30,2020(Unaudited)			December 31,2019
	Three months endedMarch 31,
Assets
	2021			2020
Receivable from Saddlebrook Resorts, Inc.	$	123,115			344,366
Rental pool revenues	$	1,861,970		$	1,975,818
Liabilities and Participants’ Fund Balance
Deductions:
Due to participants for rental pool distribution	$	106,205		$	299,020
Marketing fee		139,648			148,186
Due to maintenance escrow fund		16,910			45,346
Management fee		232,746			246,977
	$	123,115		$	344,366
Travel agent commissions		15,938			69,230
Credit card expense		55,765			58,349
		444,097			522,742
Net rental income		1,417,873			1,453,076
Less operator share of net rental income		(638,043	)		(653,884	)
Other revenues (expenses):
Complimentary room revenues		4,680			6,251
Minor repairs and replacements		(17,598	)		(32,686	)
Amount available for distribution	$	766,912		$	772,757

~~MAINTENANCE~~The ~~ESCROW~~accompanying ~~FUND~~notes are an integral part of these financial statements

	September 30,2020(Unaudited)		December 31,2019
Assets
Cash and cash equivalents	$	970,565	$	1,108,892
Receivables:
Distribution fund		16,910		45,346
Prepaid expenses and other assets		43,269		14,605
Linen Inventory		15,419		—
Furniture Inventory		39,651		39,651
	$	1,085,814	$	1,208,494
Liabilities and Participants’ Fund Balance
Due to Saddlebrook Resorts, Inc.	$	98,469	$	127,354
Participants’ fund balance		987,345		1,081,140
	$	1,085,814	$	1,208,494

- 12 -

-SADDLEBROOK 11RENTAL -POOL OPERATION

~~Table~~STATEMENTS ofOF ~~Contents~~CHANGES IN PARTICIPANTS’ FUND BALANCES

~~SADDLEBROOK~~(Unaudited) ~~RENTAL POOL OPERATION~~

~~STATEMENTS~~DISTRIBUTION ~~OF OPERATIONS~~ FUND

(Unaudited)


	Three months ended March 31,
	2021			2020
Balance at beginning of period	$	—		$	—

Additions:
Amount available for distribution		766,912			772,757

Reductions:
Amount withheld for maintenance escrow fund		(128,869	)		(118,873	)
Amount accrued or paid to participants		(638,043	)		(653,884	)

Balance at end of period	$	—		$	—

	Three months endedSeptember 30,						Nine months endedSeptember 30,
	2020			2019			2020			2019
Rental pool revenues	$	319,049		$	614,217		$	2,524,646		$	5,885,397
Deductions:
Marketing fee		23,929			46,066			189,348			441,405
Management fee		39,881			76,777			315,580			735,674
Travel agent commissions		15,295			90,840			180,524			474,728
Credit card expense		3,933			20,839			75,135			153,926
		83,038			234,522			760,587			1,805,733
Net rental income		236,011			379,695			1,764,059			4,079,664
Less operator share of net rental income		(106,205	)		(170,863	)		(793,826	)		(1,835,849	)
Other revenues (expenses):
Complimentary room revenues		4,307			4,083			11,162			25,957
Minor repairs and replacements		(10,998	)		(11,464	)		(86,407	)		(59,387	)
Amount available for distribution	$	123,115		$	201,451		$	894,988		$	2,210,385

MAINTENANCE ESCROW FUND

The accompanying notes are an integral part of these financial statements


	Three months ended March 31,
	2021			2020
Balance at beginning of period	$	996,806			1,081,140

Additions:
Amount withheld from distribution fund		128,869			118,873
Unit owner payments		25,444			120,777
Interest earned		48			2,617
Reductions:
Escrow account refunds		(28,611	)		(94,419	)
Maintenance charges		(68,796	)		(80,974	)
Unit renovations		—			(8,393	)
Linen replacement		(8,320	)		(30,002	)


Balance at end of period	$	1,045,440		$	1,109,619

-The 12accompanying -notes are an integral part of these financial statements

~~Table~~- of13 ~~Contents~~-

SADDLEBROOK RENTAL POOL OPERATION

~~STATEMENTS~~NOTES OFTO ~~CHANGES~~FINANCIAL INSTATEMENTS ~~PARTICIPANTS’ FUND BALANCES~~

(Unaudited)

~~DISTRIBUTION~~Note ~~FUND~~1. Rental Pool Operations and Rental Pool Agreement

	Nine months endedSeptember 30,
	2020			2019
Balance at beginning of period	$	—		$	—
Additions:
Amount available for distribution		894,988			2,210,385
Reductions:
Amount withheld for maintenance escrow fund		{101,162	)		(374,535	)
Amount accrued or paid to participants		(793,826	)		(1,835,850	)
Balance at end of period	$	—		$	—

Condominium units are provided as rental (hotel) accommodations by their owners under the Rental Pool and Agency Appointment Agreement (the “Agreement”) with Saddlebrook Resorts, Inc. (collectively, the “Rental Pool”). Saddlebrook Resorts, Inc. (“Saddlebrook”) acts as operator of the Rental Pool which provides for the distribution of a percentage of net rental income, as defined, to the owners.

~~MAINTENANCE~~The ~~ESCROW~~Saddlebrook ~~FUND~~Rental Pool Operation consists of two funds: the Rental Pool Income Distribution Fund (“Distribution Fund”) and the Maintenance and Furniture Replacement Escrow Fund (“Maintenance Escrow Fund”). The operations of the Distribution Fund reflect the earnings of the Rental Pool. The Distribution Fund balance sheets reflect amounts due from Saddlebrook for the rental pool distribution payable to participants and amounts due to the Maintenance Escrow fund. The amounts due from Saddlebrook are required to be distributed no later than forty-five days following the end of each calendar quarter. The Maintenance Escrow Fund reflects the accounting for escrowed assets used to maintain unit interiors and replace furniture as it becomes necessary.

	Nine months endedSeptember 30,
	2020			2019
Balance at beginning of period	$	1,081,140			2,135,913
Additions:
Amount withheld from distribution fund		101,162			374,535
Unit owner payments		157,133			292,213
Interest earned		2,783			13,789
Reductions:
Escrow account refunds		(99,968	)		(306,483	)
Maintenance charges		(114,829	)		(172,493	)
Unit renovations		(75,284	)		(957,807	)
Linen replacement		(64,792	)		(96,789	)
Balance at end of period	$	987,345		$	1,282,878

Rental pool participants and Saddlebrook share rental revenues according to the provisions of the Agreement. Net Rental Income shared consists of rentals received less a marketing surcharge of 7.5%, a 12.5% management fee, travel agent commissions, credit card expenses and provision for bad debts, if warranted. Saddlebrook receives 45% of Net Rental Income as operator of the Rental Pool. The remaining 55% of Net Rental Income, after adjustments for complimentary room revenues (ten percent of the normal unit rental price paid by Saddlebrook for promotional use of the unit) and certain minor repair and maintenance charges, is available for distribution to the participants and Maintenance Escrow Fund based upon each participant’s respective participation factor (computed using the value of a furnished unit and the number of days it was available to the pool). Quarterly, 45% of Net Rental Income is distributed to participants and 10%, as adjusted for complimentary room revenues and minor interior maintenance and replacement charges, is deposited in an escrow account until a maximum of 20% of the set value of the individual owner’s furniture package has been accumulated. Excess escrow balances are refunded to participants.

~~The~~Note ~~accompanying~~2. ~~notes~~Summary ~~are an integral part~~ of ~~these~~Significant ~~financial~~Accounting Policies ~~statements~~

-Basis 13of -Accounting

~~Table~~The accounting records of ~~Contents~~the funds are maintained on the accrual basis of accounting.

~~SADDLEBROOK~~Income ~~RENTAL~~Taxes ~~POOL OPERATION~~

~~NOTES~~No TOfederal ~~FINANCIAL~~or ~~STATEMENTS~~state taxes have been reflected in the accompanying financial statements as the tax effect of fund activities accrues to the rental pool participants and Saddlebrook.

~~(Unaudited)~~- 14 -

~~Note~~Item 12. ~~Rental~~Management’s ~~Pool~~Discussion ~~Operations~~and Analysis of Financial Condition and ~~Rental~~Results ~~Pool~~of ~~Agreement~~Operations

~~Condominium~~General units are provided as rental (hotel) accommodations by their owners under the Rental Pool and Agency Appointment Agreement (the “Agreement”) with Saddlebrook Resorts, Inc. (collectively, the “Rental Pool”). Saddlebrook Resorts, Inc. (“Saddlebrook”) acts as operator of the Rental Pool which provides for the distribution of a percentage of net rental income, as defined, to the owners.

The Company operates Saddlebrook ~~Rental~~Resort ~~Pool~~(the ~~Operation~~“Resort”) ~~consists~~in ofWesley ~~two~~Chapel, ~~funds:~~Florida, ~~the~~which ~~Rental~~contains ~~Pool~~condominium ~~Income Distribution~~units ~~Fund~~that ~~(“Distribution~~have ~~Fund”)~~been ~~and~~sold ~~the~~to ~~Maintenance~~third ~~and~~parties ~~Furniture~~or ~~Replacement~~to ~~Escrow~~affiliates ~~Fund~~of ~~(“Maintenance~~the ~~Escrow Fund”)~~Company. The ~~operations~~majority of the ~~Distribution~~condominium ~~Fund~~units ~~reflect~~are ~~the~~hotel ~~earnings~~accommodations that ofparticipate in a rental-pooling program (the “Rental Pool.”) ~~The~~that ~~Distribution~~provides ~~Fund balance~~its ~~sheets~~owners ~~reflect~~with ~~amounts~~a ~~due~~percentage ~~from~~distribution ~~Saddlebrook~~of ~~for~~related ~~the~~room ~~rental~~revenues ~~pool~~minus ~~distribution~~certain ~~payable~~fees ~~to participants~~ and ~~amounts~~expenses. ~~due~~The toremainder of the ~~Maintenance~~condominium ~~Escrow~~units ~~fund.~~participate ~~The~~in ~~amounts~~a ~~due~~non-pooling ~~from~~rental ~~Saddlebrook~~program, are ~~required~~owner-occupied toor beare ~~distributed~~designated noas ~~later~~hospitality ~~than~~suites ~~forty-five days~~or ~~following~~housing ~~the~~for ~~end~~young athletes independent of ~~each~~the ~~calendar~~rental ~~quarter~~programs. ~~The~~Other ~~Maintenance~~resort ~~Escrow~~property ~~Fund~~owned ~~reflects~~by the ~~accounting~~Company ~~for~~and ~~escrowed~~its ~~assets~~affiliates include ~~used~~golf tocourses, ~~maintain~~tennis ~~unit~~courts, ~~interiors~~a ~~and~~spa, ~~replace~~restaurants ~~furniture~~and asconference itcenter ~~becomes necessary~~facilities.

~~Rental~~Results ~~pool participants and Saddlebrook share rental revenues according to the provisions~~ of ~~the~~Operations Agreement. Net Rental Income shared consists of rentals received less a marketing surcharge of 7.5%, a 12.5% management fee, travel agent commissions, credit card expenses and provision for bad debts, if warranted. Saddlebrook receives 45% of Net Rental Income as operator of the Rental Pool. The remaining 55% of Net Rental Income, after adjustments for complimentary room revenues (ten percent of the normal unit rental price paid by Saddlebrook for promotional use of the unit) and certain minor repair and maintenance charges, is available for distribution to the participants and Maintenance Escrow Fund based upon each participant’s respective participation factor (computed using the value of a furnished unit and the number of days it was available to the pool). Quarterly, 45% of Net Rental Income is distributed to participants and 10%, as adjusted for complimentary room revenues and minor interior maintenance and replacement charges, is deposited in an escrow account until a maximum of 20% of the set value of the individual owner’s furniture package has been accumulated. Excess escrow balances are refunded to participants.

~~Note~~Three 2.months ~~Summary~~ended ofMarch 31, ~~Significant~~2021 ~~Accounting Policies~~compared to three months ended March 31, 2020

~~Basis~~The ofCompany’s ~~Accounting~~total revenues decreased approximately $2,939,000 or about 41%, for the three months ended March 31, 2021 compared to the same period in the prior year. Total revenues for the Rental Pool decreased about $114,000, or about 6%.

~~The~~Total ~~accounting~~costs ~~records~~and ofexpenses ~~the~~decreased approximately $2,449,000 ~~funds~~or ~~are~~about ~~maintained~~34%, onfor the ~~accrual~~Company, ~~basis~~and ofapproximately ~~accounting~~$79,000 or about 15%, for the Rental Pool Operation.

~~Income~~The ~~Taxes~~Company experienced a net loss for the quarter in the amount of approximately $622,000 compared to the net loss of the prior comparable quarter of approximately $83,000. Amounts available for distribution for the Rental Pool Operation decreased approximately $6,000 from the comparable period last year.

NoImpact ~~federal or state taxes have been reflected in the accompanying financial statements as the tax effect~~ of ~~fund~~Current ~~activities~~Economic ~~accrues~~Conditions ~~to the rental pool participants and Saddlebrook.~~

-The 14Company -experienced a significant decrease in revenue for the period ending March 31, 2021 compared to the previous year.

~~Table~~The Company continues its marketing efforts toward the social clientele by developing packages designed to target more social guests, including families. These social packages are being promoted through the Company’s website as well as through travel wholesalers and with emphasis on e-commerce sites. Management has implemented programs and measures to help the Company get back to positive operating income. These programs and measures include cost control programs, consolidation of ~~Contents~~restaurant operations and efforts to increase brand awareness and recognition of the Resort.

~~Item~~Toward 2the end of December 2019, an outbreak of a novel strain of coronavirus (“COVID-19”) emerged globally. The ~~Management’s~~COVID-19 ~~Discussion~~outbreak ~~and~~in ~~Analysis~~the United States has resulted in a reduction of ~~Financial~~hotel ~~Condition~~occupancy and cancellations of future reservations. It is difficult to estimate the length or severity of the outbreak; however, ~~Results~~a significant reduction in occupancy caused by COVID-19 is expected to affect the Company’s results of ~~Operations~~operations and financial position.

~~General~~- 15 -

~~The~~Liquidity Company operates Saddlebrook Resort (the “Resort”) in Wesley Chapel, Florida, which contains condominium units that have been sold to third parties or to affiliates of the Company. The majority of the condominium units are hotel accommodations that participate in a rental-pooling program (the “Rental Pool”) that provides its owners with a percentage distribution of related room revenues minus certain fees and ~~expenses.~~Capital ~~The~~Resources remainder of the condominium units participate in a non-pooling rental program, are owner-occupied or are designated as hospitality suites or housing for young athletes independent of the rental programs. Other resort property owned by the Company and its affiliates include golf courses, tennis courts, a spa, restaurants and conference center facilities.

~~Results~~Net loss for the 3 months ended March 31, 2021 was $622,000. Excluding non-cash expenses such as Depreciation and Amortization of ~~Operations~~$369,000 the company’s actual operating cash deficit was $253,000.

~~Three~~Future ~~months~~operating ~~ended~~costs ~~September 30,~~and ~~2020~~planned ~~compared~~expenditures for minor capital additions and improvements are expected to ~~three~~be ~~months~~adequately ~~ended~~funded ~~September 30,~~by ~~2019~~the Company and its affiliates’ current cash reserves and cash generated by the Resort’s operations.

~~The~~On December 6, 2015 the Company’s ~~total~~financing ~~revenues~~agreement ~~decreased~~with ~~approximately~~a third-party lender was modified to include renewal for the existing principal balance of $14,~~781~~875,000, oralong ~~about~~with ~~50%~~an advance of an additional $2,000,000. ~~for~~The term note required monthly principal payments of $29,380 plus interest of 3% over the ~~three~~one ~~months~~month ~~ended~~LIBOR. ~~September~~In April 2020, the Company’s lender deferred interest and principal payments from April 306, 2020 ~~compared~~through toJune 6, 2020 (the ~~same~~ “deferral period”) and monthly payments resumed in ~~the~~July 6, ~~prior~~2020. ~~year~~There was no change to interest rate or maturity date as part of the deferral. ~~Total~~In ~~revenues~~December ~~for~~2020, this term loan was modified and consolidated with the ~~Rental~~existing ~~Pool~~revolving ~~decreased~~line ~~about~~of ~~$295,000,~~credit oras ~~about~~described ~~53%~~below.

~~Total~~On ~~costs~~April 24, ~~and~~2017, ~~expenses~~the ~~decreased~~Company ~~approximately~~entered into a revolving line of credit agreement with the same third-party lender with maximum borrowings of $21,~~177~~500,000 orto ~~about~~be 38used as working capital as needed. The agreement was cross collateralized with the existing term note under the same terms and conditions. Amounts borrowed under the revolving line of credit bears interest at 3%, ~~for~~over the one month LIBOR index. In April 2020, the Company’s lender deferred interest and principal payments from April 24, 2020 through June 24, 2020 (the “deferral period”) and ~~approximately~~monthly ~~$151~~payments resumed on July 24,~~000~~ 2020. There was no change to interest rate or ~~about~~maturity ~~36%~~date as part of the deferral. In December 2020, ~~for~~this revolving line of credit was modified and consolidated with the ~~Rental~~existing ~~Pool~~term ~~Operation~~loan as described below.

~~The~~On December 6, 2020, the Company ~~experienced~~entered into a ~~net~~Renewal ~~loss~~and ~~for~~Consolidation Promissory Note (the “renewal note”) with the ~~quarter~~same inthird-party lender, which consolidated the ~~amount~~existing balances on the term note and revolving line of ~~approximately~~credit. The renewal note requires monthly principal payments of $128,~~930,000~~040 ~~compared~~plus tointerest of 3% over the ~~net~~Prime Rate ~~loss~~with a minimum interest rate of no lower than 6.25% (6.25% at December 31, 2020). The renewal term note is collateralized by all current and subsequently acquired real and personal property. The renewal term note requires the ~~prior~~Company ~~comparable~~to maintain ~~quarter~~a ofDebt ~~approximately~~Service $2Ratio,~~267~~ as defined,~~000~~ of 1.25%. ~~Amounts~~The ~~available~~Company ~~for~~was ~~distribution~~in default of this covenant as of December 31, 2020; however, the Company received a waiver for this default from its lender. Effective on March 6, 2021, the ~~Rental~~Company entered ~~Pool~~into ~~Operation~~a ~~decreased~~loan ~~approximately~~modification and forbearance agreement with the lender which extended the maturity date to June 6, 2021, at which any unpaid principal and interest will be due. The loan modification requires monthly principal payments of $7828,~~000~~040 ~~from~~plus interest of 4% over the ~~comparable~~ ~~period~~Prime ~~last~~Rate ~~year~~with a minimum interest rate of no lower than 7.25%.

~~Nine~~On ~~months ended September~~May 3025, ~~2020~~2021, ~~compared~~the third-party lender assigned the renewal note to ~~nine~~a ~~months~~separate ~~ended~~third-party ~~September~~lender. Effective the same day, the Company and the assignee entered into a loan extension and modification agreement which extended the maturity date to December 306, ~~2019~~2021, at which any unpaid principal and interest will be due. The loan modification requires interest-only payments through maturity at a rate of 4% over the Prime rate with a minimum interest rate of no lower than 7.50%. At March 31, 2021, $6,701,661 was outstanding under the extended and modified note.

~~The~~In April 2020, the Company’s ~~total~~entered ~~revenues~~into ~~decreased~~a ~~approximately~~term note agreement with the same third-party lender for approximately $112,~~087~~949,000 orfunded ~~about~~under 50the Paycheck Protection Program (“PPP”) as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The note bears interest of 1% per annum, ~~for~~matures ~~the~~in ~~nine~~April ~~months~~2022, ~~ended~~and ~~September 30~~requires a monthly interest and principal payments of $165,529 beginning in November 2020 ~~compared~~and tothrough maturity. The currently issued guidelines of the ~~same period~~program inallow for the ~~prior~~loan ~~year~~proceeds to be forgiven if certain requirements are met. ~~Total~~The ~~revenues~~Company applied for forgiveness with the ~~Rental~~SBA ~~Pool~~in ~~decreased~~which ~~about~~on June 10, 2021, the SBA had forgiven the PPP loan in full. As a result, the Company recognized approximately $32,~~360~~949,000, orof ~~about~~gain ~~43%~~on debt forgiveness in June 2021.

~~Total~~In ~~costs~~March ~~and~~2021, ~~expenses~~the ~~decreased~~Company ~~approximately~~entered into a term note agreement with the same third-party lender for a second draw Paycheck Protection Program loan (“PPP2”) for $82,~~755~~000,000. orThe ~~about~~note 62bears interest of 1% per annum, ~~for~~matures ~~the~~in ~~Company~~March 2026, and ~~approximately~~requires ~~$1,045,000~~monthly orinterest ~~about~~and ~~57%,~~principal payments after the ten-month deferral period. The currently issued guidelines of the program allow for the loan ~~Rental~~proceeds ~~Pool~~to ~~Operation~~be forgiven if certain requirements are met. At March 31, 2021, $2,000,000 was outstanding under the note.

~~The~~On September 25, 2020, the Company ~~experienced~~entered ainto ~~net~~an ~~loss for~~Economic ~~the~~Injury ~~period~~Disaster ofLoan ~~approximately~~(“EIDL”) for $3150,~~480,~~000 ~~compared~~funded toby the ~~net~~U.S. ~~loss~~Small ofBusiness ~~the~~Administration. ~~prior~~The ~~period~~note ofbears ~~approximately~~interest ~~$1,315,000~~at 3.75% ~~Amounts~~per ~~available~~annum, ~~for~~matures ~~distribution~~in ~~for~~September ~~the~~2050, ~~Rental~~and ~~Pool~~requires ~~Operations~~monthly ~~decreased~~interest ~~approximately~~and principal payments of $1731 beginning in September 2021 and through maturity. At March 31,~~315~~ 2021, $150,000 ~~over~~was ~~the~~outstanding ~~same~~under ~~period in~~ the ~~prior~~ ~~year~~note.

~~Impact~~The current economic conditions, expected effect on the Company’s results of ~~Current~~operations ~~Economic Conditions~~and financial position, and uncertainty of the length or severity of the outbreak raise substantial doubt about the Company’s ability to continue as going concern.

The Company’s ~~experienced~~ultimate ashareholder ~~significant~~has ~~decrease~~the infinancial ~~revenue~~ability ~~for~~and intent to continue to fund operations through affiliated companies that are 100% owned by the ~~period~~Company’s ~~ending~~ultimate ~~September 30,~~shareholder ~~2020~~to ~~compared~~the extent required to support the ~~previous~~Company’s operations. In addition to the shareholders’ financial ability, these affiliated Companies are expected to continue to generate positive cash flows during fiscal year 2021 should additional funding be required to support the Company’s operations.

~~The~~- ~~Company~~16 continues its marketing efforts toward the social clientele by developing packages designed to target more social guests, including families. These social packages are being promoted through the Company’s website as well as through travel wholesalers and with emphasis on e-~~commerce~~ sites. Management has implemented programs and measures to help the Company get back to positive operating income. These programs and measures include cost control programs, consolidation of restaurant operations and efforts to increase brand awareness and recognition of the Resort.

~~Toward~~The ~~the~~Company’s ~~end~~operation of ~~December~~the ~~2019,~~Resort anis ~~outbreak~~not ofconsidered ato ~~novel~~be ~~strain~~dependent ofon ~~coronavirus~~any ~~(“COVID-19”)~~individual ~~emerged~~or ~~globally.~~small ~~The~~group ~~COVID-19 outbreak in the United States has resulted in a reduction~~ of ~~hotel~~customers, ~~occupancy and cancellations of future reservations. It is difficult to estimate~~ the ~~length~~loss ~~or severity~~ of ~~the~~which ~~outbreak;~~would ~~however,~~ have a ~~significant~~material ~~reduction~~adverse ineffect ~~occupancy~~on ~~caused by COVID-19 is expected to affect~~ the Company’s ~~results~~business ofor ~~operations and~~ financial ~~position~~condition.

-Seasonality ~~15 -~~

~~Table~~The Company’s operations are seasonal with the highest volume of ~~Contents~~revenue generally occurring in the first quarter of each calendar year.

~~Liquidity~~Due ~~and~~to ~~Capital~~the ~~Resources~~seasonal business of the Company, the results of operations for the interim period shown in this report are not necessarily indicative of results to be expected for the full fiscal year.

~~Net~~ Item ~~loss for the~~ 3 ~~months ended September 30, 2020 was $1,930,000~~. ~~Excluding~~Quantitative ~~non-cash expenses such as Depreciation~~ and ~~Amortization~~Qualitative ofDisclosures ~~$1,384,000~~about ~~the~~Market ~~company’s~~Risk ~~actual operating cash deficit was $546,000.~~

~~Future~~The ~~operating~~Company’s ~~costs~~invested ~~and~~cash ~~planned expenditures~~is ~~for~~subject ~~minor~~to ~~capital~~changes ~~additions~~in ~~and~~market ~~improvements~~interest ~~are~~rates. Otherwise, ~~expected~~the toCompany bedoes ~~adequately~~not ~~funded~~have bysignificant ~~the~~market ~~Company~~risk ~~and~~with ~~its~~respect ~~affiliates’~~to ~~current~~foreign ~~cash~~currency ~~reserves~~exchanges ~~and~~or ~~cash~~other ~~generated~~market ~~by the Resort’s operations~~rates.

OnThe ~~December 6, 2015 the~~ Company’s ~~financing agreement with a third party lender was modified to include renewal for the existing principal balance of $4,875,000, along with an advance of an additional $2,000,000. The new~~ term note ~~expires~~bears ~~December 6, 2020. At September 30, 2020, $5,376,603 was outstanding under the note. The term note requires monthly principal payments of $29,380 plus~~ interest ofat 34.0% over the ~~one~~Prime ~~month~~Rate ~~LIBOR~~with ~~index~~a ~~(3.14%)~~minimum atinterest ~~September 30,~~rate ~~2020).~~of ~~The~~no ~~term~~lower ~~note~~than ~~is collateralized by all current and subsequently acquired real and personal property~~7. ~~The term note requires the Company to maintain a Debt Service Ratio, as defined, of 1.~~25%. ~~The~~and ~~Company~~matures ~~was~~on ~~in default of this covenant as of December~~June 31 6, ~~2019; however, the Company received a waiver for this default from its lender~~2021. ~~The Company is currently discussing refinancing of its current mortgage.~~

OnItem ~~April 24, 2017, the Company entered in to a revolving line of credit agreement with the same third party lender with maximum borrowings of $1,500,000 to be used as working capital as needed~~4. ~~The~~Controls ~~agreement is cross collateralized with the existing term note under the same terms~~ and ~~conditions.~~Procedures Amounts borrowed under the revolving line of credit will bear interest at 3% over the one month LIBOR index. (3.14%) at September 30, 2020). The line of credit will terminate on December 6, 2020. As of September 30, 2020, the Company had $1,500,000 in outstanding borrowings on this agreement. Effective April 24, 2020, the lender agreed to defer payment of interest (the ”Payment Deferral”) through and including June 24, 2020 with regularly scheduled payments interest resuming July 24, 2020.

InThe ~~April~~Company’s ~~2020~~management, including the ~~Company~~Chief ~~entered~~Executive ~~into~~Officer aand ~~term~~the ~~note~~Chief ~~agreement~~Financial ~~with~~Officer, ~~the~~carried ~~same~~out ~~third~~an ~~party~~evaluation ~~lender~~of ~~for~~the ~~approximately~~effectiveness ~~$2,949,000~~of ~~funded under~~ the ~~Paycheck~~ ~~Protection~~design ~~Program~~and asoperation ~~part~~ of the ~~CARES~~disclosure ~~Act.~~controls ~~The note bears interest at 1% per annum, matures in April 2022,~~ and ~~requires~~procedures ~~monthly~~as ~~interest and principal payments~~ of ~~$165~~March 31,~~529~~ ~~beginning~~2021, inpursuant ~~November~~to ~~2020~~Exchange ~~and~~Act ~~through~~Rule ~~maturity~~15d-15. ~~The~~Based ~~currently~~upon ~~issued guidelines~~that ofevaluation, the ~~program~~Company’s ~~allow~~Chief ~~for~~Executive ~~the~~Officer ~~loan~~and ~~proceeds~~the Chief toFinancial beOfficer ~~forgiven~~concluded ifthat ~~certain requirements are met. If~~ the Company’s isdisclosure ~~unable~~controls toand orprocedures ~~does~~were ~~not~~effective ~~follow~~as ~~those~~of ~~guidelines~~March 31, ~~the~~2021 ~~Company~~in ~~would~~timely bealerting ~~required~~them to ~~repay~~material ainformation ~~portion~~required ofto orbe ~~the~~included ~~entire~~in ~~balance of~~ the ~~loan~~ ~~proceeds~~Company’s inperiodic ~~full.~~SEC ~~At September 30, 2020, $2,948,555 was outstanding under the note~~filings.

OnThe ~~September 25,~~Company’s ~~2020~~management, ~~the~~including ~~Company~~its ~~entered~~Chief ~~into~~Executive ~~an EIDL~~Officer ~~note~~and ~~payable~~Chief ~~for~~Financial ~~$150~~Officer,~~000~~ ~~funded~~does bynot ~~the~~expect ~~U.S.~~that ~~Small~~its ~~Business~~disclosure ~~Administration.~~controls ~~The~~and procedures ~~note~~over ~~bears~~internal ~~interest~~controls atwill 3prevent all error and all fraud.~~75%~~ ~~per~~A ~~annum~~control system, ~~matures~~no inmatter ~~September~~how ~~2050,~~well conceived and ~~requires~~operated, ~~monthly~~can ~~interest~~provide ~~and~~only ~~principal~~reasonable, ~~payments~~not absolute, assurance that the objectives of ~~$731~~the ~~beginning~~control insystem ~~September~~are ~~2021~~met. ~~and~~Further, the ~~through~~design ~~maturity~~of a control system must be considered relative to their costs. AtBecause ~~September 30,~~of ~~2020,~~the ~~$150~~inherent limitation in all control systems,~~000~~ ~~was~~no ~~outstanding~~evaluation ~~under~~of controls can provide absolute assurance that all control issues within the ~~note.~~Company have been detected.

~~The~~There ~~Company~~were ~~experienced~~no achanges ~~significant decrease~~ in ~~revenue for~~ the ~~three~~ ~~months~~Company’s ~~ended~~internal ~~September 30,~~controls ~~2020~~over ~~compared~~financial toreporting ~~the~~during ~~previous year. Towards~~ the ~~end~~three ofmonths ~~December~~ended ~~2019~~March 31, an2021 ~~outbreak~~that ~~of a novel strain of coronavirus emerged globally. The COVID-19 outbreak in the United~~materially ~~States~~affected, ~~has~~or ~~resulted~~are inreasonably alikely ~~reduction of hotel occupancy and cancellations of future reservations. It is difficult~~ to ~~estimate~~materially ~~the length or severity of this outbreak; however~~affect, ~~a significant reduction in occupancy caused by COVID-19 is expected to affect~~ the Company’s ~~results~~internal ofcontrols ~~operations~~over ~~and~~ financial ~~position~~reporting.

~~The~~PART ~~current~~II ~~economic~~- OTHER ~~conditions,~~INFORMATION expected effect on the Company’s results of operations and financial position, and uncertainty of the length or severity of the outbreak raise substantial doubt about the Company’s ability to continue as going concern.

~~The~~Item Company’s ultimate shareholder has the financial ability and intent to continue to fund operations through affiliated companies that are 100% owned by the Company’s ultimate shareholder to the extent required to support the Company’s operations1. InLegal ~~addition~~Proceedings to the shareholders’ financial ability, these affiliated Companies are expected to continue to generate positive cash flows during fiscal year 2020 should additional funding be required to support the Company’s operations.

-The 16Company -is involved in litigation in the ordinary course of business. In the opinion of the Company’s management, insurance or indemnification from other third parties adequately covers these matters. Accordingly, the effect, if any, of these claims is considered immaterial to the Company’s financial condition and results of operations.

~~Table~~- of17 ~~Contents~~-

~~The~~Item ~~Company’s~~6. ~~operation~~Exhibits of the Resort is not considered to be dependent on any individual or small group of customers, the loss of which would have a material adverse effect on the Company’s business or financial condition.

~~Seasonality~~The following exhibits are included in this Form 10-Q:

The Company’s operations are seasonal with the highest volume of revenue generally occurring in the first quarter of each calendar year.


31.1 -		Chief Executive Officer Rule 15d-14(a) Certification

31.2 -		Chief Financial Officer Rule 15d-14(a) Certification

32.1 -		Chief Executive Officer Section 1350 Certification

32.2 -		Chief Financial Officer Section 1350 Certification

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

~~Due~~- to18 ~~the~~- ~~seasonal business of the Company, the results of operations for the interim period shown in this report are not necessarily indicative of results to be expected for the full fiscal year.~~

~~Item~~SIGNATURE ~~3. Quantitative and Qualitative Disclosures about Market Risk~~

~~The~~Pursuant ~~Company’s~~to ~~invested~~the ~~cash~~requirements isof ~~subject~~the toSecurities ~~changes~~Exchange inAct ~~market~~of ~~interest rates. Otherwise~~1934, the ~~Company~~Registrant ~~does~~has ~~not~~duly ~~have~~caused ~~significant~~this ~~market~~report ~~risk~~to ~~with~~be ~~respect~~signed toon ~~foreign~~its ~~currency~~behalf ~~exchanges~~by orthe ~~other~~undersigned, thereunto ~~market~~duly ~~rates~~authorized.

The Company’s term note and its line of credit bear interest at 3.0% over the one month LIBOR index and mature in December 2020.


						SADDLEBROOK RESORTS, INC.
						(Registrant)

Date: August 11, 2021						/s/ Donald L. Allen
						Donald L. Allen
						Vice President and Treasurer
						(Principal Financial and Accounting Officer)

~~Item~~- 4.19 ~~Controls and~~- ~~Procedures~~

The Company’s management, including the Chief Executive Officer and the Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the disclosure controls and procedures as of September 30, 2020, pursuant to Exchange Act Rule 15d-15. Based upon that evaluation, the Company’s Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2020 in timely alerting them to material information required to be included in the Company’s periodic SEC filings.

The Company’s management, including its Chief Executive Officer and Chief Financial Officer, does not expect that its disclosure controls and procedures over internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must be considered relative to their costs. Because of the inherent limitation in all control systems, no evaluation of controls can provide absolute assurance that all control issues within the Company have been detected.

There were no changes in the Company’s internal controls over financial reporting during the three months ended September 30, 2020 that materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in litigation in the ordinary course of business. In the opinion of the Company’s management, insurance or indemnification from other third parties adequately covers these matters. Accordingly, the effect, if any, of these claims is considered immaterial to the Company’s financial condition and results of operations.

- 17 -

Item 6. Exhibits

The following exhibits are included in this Form 10-Q:

31.1 - Chief Executive Officer Rule 15d-14(a) Certification

31.2 - Chief Financial Officer Rule 15d-14(a) Certification

32.1 - Chief Executive Officer Section 1350 Certification

32.2 - Chief Financial Officer Section 1350 Certification

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

- 18 -

SIGNATURE

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.

				SADDLEBROOK RESORTS, INC.
				(Registrant)
Date: November 16, 2020				/s/ Donald L. Allen
				Donald L. Allen
				Vice President and Treasurer
				(Principal Financial and
				Accounting Officer)

- 19 -

Table of Contents

Table of Contents

Table of Contents

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