NOTE 4. LONG-TERM DEBT

On June 18, 2021, the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed a refinancing transaction with Synovus Bank. The 2021 Term Loan included an original principal amount of $1.95 million. The 2021 Term Loan bears interest at a rate of 3.75% per annum and is payable in monthly installments of approximately $26,480, based on a seven-year amortization period. The 2021 Term Loan has a maturity date of June 18, 2028. The 2021 Term Loan is secured by a security deed on the assets of Wild Animal – Georgia. The Company paid a total of approximately $1,514 in fees and expenses in connection with the 2021 refinancing transaction. The outstanding balance of the 2021 Term Loan was $0.61 million and $0.83 million as of June 28, 2026 and September 28, 2025, respectively.

PARKS! AMERICA, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 4. LONG-TERM DEBT (CONTINUED)

On April 27, 2020, the Company, through its wholly owned subsidiary Aggieland-Parks Inc., acquired Aggieland Wild Animal – Texas. In part, this acquisition was financed with the 2020 Term Loan from First Financial Bank (“First Financial”). The 2020 Term Loan in the original principal amount of $5.0 million from First Financial is secured by substantially all the Aggieland Wild Animal – Texas assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan had an interest rate of 5.0% per annum, had a maturity date of April 27, 2031, and required interest only monthly payments through April 2021. The 2020 Term Loan required monthly payments of approximately $53,213 beginning in May 2021. The Company paid a total of approximately $62,375 in fees and expenses in connection with the 2020 Term Loan. On June 30, 2021, the Company used the incremental proceeds of the 2021 Term Loan, combined with additional funds, to pay down $1.0 million against the 2020 Term Loan, which had an outstanding balance of $2.39 million as of September 29, 2024. On September 30, 2024, the 2020 Term Loan with First Financial was fully paid off with the proceeds of the Former 2025 Term Loan.

On September 30, 2024, Aggieland-Parks, Inc., completed a refinancing transaction for the Former 2025 Term Loan with Cendera Bank, N.A. The Former 2025 Term Loan provided an original principal amount of $2.5 million, the proceeds of which were used to repay all the indebtedness under the 2020 Term Loan, with interest at a daily adjusted rate equal to the Prime Rate minus 0.50%. The initial interest rate was 7.50%. As of June 16, 2026, the effective interest rate was 6.25%. The Former 2025 Term Loan had a term of 10 years, with a 15-year amortization and a balloon payment of the outstanding principal balance due September 30, 2034. The initial monthly loan payment was $23,200 and was reduced with the decrease in the effective interest rate to $21,619 as of June 16, 2026. Aggieland-Parks, Inc., paid approximately $60,716 of fees and expenses in connection with the Former 2025 Term Loan.

The Former 2025 Term Loan was secured by substantially all the assets of Aggieland-Parks, Inc., as well as a cash collateral reserve of $2.5 million established by Focused Compounding Fund, L.P., with Cendera Bank, N.A. Geoffrey Gannon and Andrew Kuhn control Focused Compounding Fund, L.P., and each serve on the Board of the Company, and Mr. Gannon serves as the Company’s President. Focused Compounding did not receive a fee or any other benefit in connection with establishing the above-described cash collateral reserve.

On June 17, 2026, the Company, through its wholly owned subsidiary Aggieland Wild Animal – Texas, completed a refinancing transaction with Cendera Bank resulting in the amendment and restatement of the Term Loan Agreement dated September 30, 2024 between Aggieland-Parks, Inc. and Cendera Bank, N.A., predecessor to Cendera Bank (“Current 2025 Term Loan”).

The Current 2025 Term Loan provided a principal balance of $2.33 million and will mature on June 1, 2033. The Current 2025 Term Loan has a term of seven years, with a 25-year amortization, and a balloon payment of the outstanding principal balance due on June 1, 2033. The monthly loan payment will be $16,561.

The applicable interest rate of the Current 2025 Term Loan is based on an adjusted rate equal to the Chicago Mercantile Exchange (“CME”) 1-month term SOFR plus 2.70%. The CME 1-month term SOFR was 3.64% as of June 17, 2026, providing an initial interest rate of 6.34%. As of June 28, 2026, the CME 1-month term SOFR rate was 3.64%. Concurrently, the Company, through its wholly owned subsidiary, Aggieland Wild Animal – Texas entered into a Rate Conversion Agreement with third-party provider, SouthState Bank, N.A., doing business as ARC Fixed Rate Provider, with Cendera Bank acting as servicing agent. The Rate Conversion Agreement is coterminous with the Current 2025 Term Loan and effectively converts the variable adjusted rate interest payments into a fixed rate obligation, resulting in a fixed interest rate of 6.99% over the term of the loan. Aggieland-Parks, Inc. paid $14,896 in fees and expenses in connection with the Current 2025 Term Loan.

The Rate Conversion Agreement, interest rate swap, is designated as a cash flow hedge and the fair value of the derivative is recorded on the Consolidated Balance Sheets at fair value, and changes in fair value qualifying for cash-flow-hedge accounting are recorded in Other comprehensive income (loss) and Accumulated other comprehensive income (loss), with amounts reclassified to interest expense when the hedged interest payments affect earnings.

The Current 2025 Term Loan is secured by substantially all the Aggieland-Parks, Inc.’s assets. Pursuant to the Guaranty Agreement, the Current 2025 Term Loan is guaranteed by the parent company, Parks! America, Inc. The Current 2025 Term Loan refinancing removes the requirement of the cash collateral reserve of $2.5 million established by Focused Compounding Fund, L.P. with Cendera Bank included in the original Term Loan Agreement dated September 30, 2024.

The Guaranty Agreement and Amended and Restated Loan Agreement are subject to certain financial covenants including that, Parks! America, Inc., as guarantor, and Aggieland Parks, Inc., as borrower, independently maintain a minimum Debt Service Coverage Ratio of at least 1.20 to 1.00 on a trailing twelve-month basis. Both the Guaranty Agreement and Amended and Restated Loan Agreement contain certain affirmative covenants, including, among other things, reporting requirements such as delivery of financial statements, federal or state income tax filings and such other reports.

The outstanding balance of the Current 2025 Term Loan was $2.33 million and the Former 2025 Term Loan was $2.41 million as of June 28, 2026 and September 28, 2025, respectively.

PARKS! AMERICA, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 4. LONG-TERM DEBT (CONTINUED)

Interest expense of $45,292 and $53,970 for the 13 weeks ended June 28, 2026 and June 29, 2025, respectively, includes amortization of debt issuance costs of $1,625 and $1,572, respectively. Interest expense of $139,903 and $166,148 for the 39 weeks ended June 28, 2026 and June 29, 2025, respectively, includes amortization of debt issuance costs of $4,769 and $4,716, respectively.

The following table presents the aggregate of the Company’s outstanding long-term debt:

 SCHEDULE OF OUTSTANDING LONG TERM DEBT

As of June 28, 2026, the future scheduled principal maturities of the Company’s long-term debt by fiscal year are as follows:

 SCHEDULE OF MATURITIES OF LONG-TERM DEBT