Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024.

☐	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: 001-37858

CANTERBURY PARK HOLDING CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

	Minnesota		47-5349765
	(State or Other Jurisdiction of Incorporation or		(I.R.S. Employer
	Organization)		Identification No.)

	1100 Canterbury Road
	Shakopee, MN 55379

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (952) 445-7223

Securities registered pursuant Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of each exchange on which registered
Common Stock Common stock, $.01 par value	CPHC	Nasdaq

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 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

☒

☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

Yes

☒

☐

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. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

	Large accelerated filer	☐		Accelerated filer	☐
	Non-accelerated filer	☒		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 Exchange Act Rule 12b-2).

Yes

☐

☒

The Company had 5,019,609 shares of common stock, $.01 par value, outstanding as of November 7, 2024.

Canterbury Park Holding Corporation

INDEX

			Page

PART I.	FINANCIAL INFORMATION

	Item 1.	Financial Statements (unaudited)

		Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	2

		Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023	3

		Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2024 and 2023	4

		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023	5

		Notes to Condensed Consolidated Financial Statements	7

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

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	20

	Item 4.	Controls and Procedures	20

PART II.	OTHER INFORMATION

	Item 1.	Legal Proceedings	21

	Item 1A.	Risk Factors	21

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21

	Item 3.	Defaults Upon Senior Securities	21

	Item 4.	Mine Safety Disclosures	21

	Item 5.	Other Information	21

	Item 6.	Exhibits	22

	Signatures		22

PART 1 – FINANCIAL INFORMATION

CANTERBURY PARK HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	*September 30,*		*December 31,*
	*2024*		*2023*
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	16,713,056	$	21,936,210
Restricted cash		5,714,338		3,905,544
Short-term investments		5,000,000		5,000,000
Accounts receivable, net of allowance of $7,670 for both periods		2,457,780		484,092
Inventory		292,986		249,370
Prepaid expenses		1,706,038		645,422
Income taxes receivable and prepaid income taxes		2,127,349		4,083,364
Total Current Assets		34,011,547		36,304,002

LONG-TERM ASSETS
Other prepaid expenses		38,182		10,978
TIF receivable		16,969,097		13,972,875
Related party receivable		4,616,067		3,526,071
Operating lease right-of-use asset		27,674		53,026
Equity investment		8,046,985		6,612,712
Land held for development		1,229,475		1,229,475
Land, buildings, and equipment, net		49,288,093		42,969,529
Total Long-term Assets		80,215,573		68,374,666
TOTAL ASSETS	$	114,227,120	$	104,678,668

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	5,783,824	$	4,599,391
Casino accruals		2,240,551		2,667,499
Accrued wages and payroll taxes		2,806,975		1,662,927
Cash dividend payable		350,555		346,125
Accrued property taxes		726,331		741,215
Deferred revenue		325,883		274,898
Payable to horsepersons		2,906,622		763,383
Current portion of finance lease obligations		32,259		1,604
Current portion of operating lease obligations		27,674		25,352
Total Current Liabilities		15,200,674		11,082,394

LONG-TERM LIABILITIES
Deferred income taxes		9,708,000		10,300,015
Investee losses in excess of equity investment		4,003,146		1,464,218
Finance lease obligations, net of current portion		125,682		7,770
Operating lease obligations, net of current portion		—		27,674
Total Long-term Liabilities		13,836,828		11,799,677
TOTAL LIABILITIES		29,037,502		22,882,071

STOCKHOLDERS’ EQUITY
Common stock, $.01 par value, 10,000,000 shares authorized, 5,019,609 and 4,962,573 respectively, shares issued and outstanding		50,196		49,626
Additional paid-in capital		28,445,226		27,351,509
Retained earnings		56,694,196		54,395,462
Total Stockholders’ Equity		85,189,618		81,796,597
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	114,227,120	$	104,678,668

See notes to condensed consolidated financial statements.

CANTERBURY PARK HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	*Three Months Ended September 30,*						*Nine Months Ended September 30,*
	*2024*			*2023*			*2024*			*2023*
OPERATING REVENUES:
Casino	$	9,878,660		$	10,224,216		$	29,780,059		$	30,322,149
Pari-mutuel		3,327,332			3,405,010			7,100,316			7,009,710
Food and beverage		3,102,706			3,310,759			6,930,086			6,808,242
Other		2,975,669			2,328,564			5,774,290			4,769,694
Total Net Revenues		19,284,367			19,268,549			49,584,751			48,909,795

OPERATING EXPENSES:
Purse expense		2,796,644			2,594,270			6,474,049			6,034,508
Minnesota Breeders’ Fund		292,740			308,038			810,141			822,797
Other pari-mutuel expenses		186,745			210,212			708,911			691,519
Salaries and benefits		7,290,780			7,245,775			20,280,955			19,922,853
Cost of food and beverage and other sales		1,166,693			1,161,665			2,661,404			2,567,561
Depreciation and amortization		936,033			831,379			2,676,092			2,308,272
Utilities		479,361			568,022			1,209,039			1,366,742
Advertising and marketing		668,572			887,197			1,214,788			1,817,180
Professional and contracted services		1,915,498			2,284,181			4,613,426			4,857,229
Gain on disposal of assets		-			(19,265	)		-			(19,265	)
Other operating expenses		1,637,026			1,390,339			4,137,582			4,117,388
Total Operating Expenses		17,370,092			17,461,813			44,786,387			44,486,784
Gain on transfer/sale of land		1,732,353			-			1,732,353			6,489,976
INCOME FROM OPERATIONS		3,646,628			1,806,736			6,530,717			10,912,987
OTHER INCOME (LOSS)
(Loss) gain from equity investment		(1,374,401	)		(674,341	)		(3,401,147	)		561,991
Interest income, net		521,579			536,904			1,592,676			1,433,353
Net Other (Loss) Income		(852,822	)		(137,437	)		(1,808,471	)		1,995,344
INCOME BEFORE INCOME TAXES		2,793,806			1,669,299			4,722,246			12,908,331
INCOME TAX EXPENSE		(772,000	)		(533,000	)		(1,364,000	)		(3,709,000	)
NET INCOME	$	2,021,806		$	1,136,299		$	3,358,246		$	9,199,331

Basic earnings per share	$	0.40		$	0.23		$	0.67		$	1.87
Diluted earnings per share	$	0.40		$	0.23		$	0.67		$	1.86
Weighted average basic shares outstanding		5,008,048			4,933,961			4,986,609			4,913,560
Weighted average diluted shares		5,029,850			4,950,524			5,021,622			4,941,100
Cash dividends declared per share	$	0.07		$	0.07		$	0.21		$	0.21

See notes to condensed consolidated financial statements.

CANTERBURY PARK HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

For the three months ended September 30, 2024

	*Number of*		*Common*		*Additional*		*Retained*
	*Shares*		*Stock*		*Paid-in Capital*		*Earnings*			*Total*
Balance at June 30, 2024		5,007,921	$	50,079	$	28,086,304	$	55,022,946		$	83,159,329

Stock-based compensation		—		—		147,837		—			147,837
Dividend declared		—		—		—		(350,556	)		(350,556	)
401(k) stock match		11,688		117		211,085		—			211,202
Net income		—		—		—		2,021,806			2,021,806

Balance at September 30, 2024		5,019,609	$	50,196	$	28,445,226	$	56,694,196		$	85,189,618

For the nine months ended September 30, 2024

	*Number of*		*Common*		*Additional*			*Retained*
	*Shares*		*Stock*		*Paid-in Capital*			*Earnings*			*Total*
Balance at December 31, 2023		4,962,573	$	49,626	$	27,351,509		$	54,395,462		$	81,796,597

Stock-based compensation		—		—		418,957			—			418,957
Dividend declared		—		—		—			(1,059,512	)		(1,059,512	)
401(K) stock match		32,024		320		655,120			—			655,440
Issuance of deferred stock awards		17,475		175		(109,062	)		—			(108,887	)
Shares issued under Employee Stock Purchase Plan		7,537		75		128,702			—			128,777
Net income		—		—		—			3,358,246			3,358,246

Balance at September 30, 2024		5,019,609	$	50,196	$	28,445,226		$	56,694,196		$	85,189,618

For the three months ended September 30, 2023

	*Number of*		*Common*		*Additional*		*Retained*
	*Shares*		*Stock*		*Paid-in Capital*		*Earnings*			*Total*
Balance at June 30, 2023		4,933,844	$	49,338	$	26,538,005	$	52,586,742		$	79,174,085

Stock-based compensation		—		—		132,436		—			132,436
Dividend declared		—		—		—		(345,372	)		(345,372	)
401(k) stock match		10,798		108		209,373		—			209,481
Net income		—		—		—		1,136,299			1,136,299

Balance at September 30, 2023		4,944,642	$	49,446	$	26,879,814	$	53,377,669		$	80,306,929

For the nine months ended September 30, 2023

	*Number of*		*Common*		*Additional*			*Retained*
	*Shares*		*Stock*		*Paid-in Capital*			*Earnings*			*Total*
Balance at December 31, 2022		4,888,975	$	48,890	$	25,914,644		$	45,221,509		$	71,185,043

Stock-based compensation		—		—		398,269			—			398,269
Dividend distribution		—		—		—			(1,043,171	)		(1,043,171	)
401(K) stock match		28,597		286		644,287			—			644,573
Issuance of deferred stock awards		22,197		221		(171,970	)		—			(171,749	)
Shares issued under Employee Stock Purchase Plan		4,873		49		94,584			—			94,633
Net Income		—		—		—			9,199,331			9,199,331

Balance at September 30, 2023		4,944,642	$	49,446	$	26,879,814		$	53,377,669		$	80,306,929

See notes to condensed consolidated financial statements.

CANTERBURY PARK HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	*Nine Months Ended September 30,*
	*2024*			*2023*
Operating Activities:
Net income	$	3,358,246		$	9,199,331
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,676,092			2,308,272
Stock-based compensation expense		418,957			398,269
Stock-based employee match contribution		655,440			644,573
Gain on disposal of assets		—			(19,265	)
Gain on sale of land		—			(6,489,976	)
Gain on transfer of land		(1,732,353	)		—
Deferred income taxes		(592,015	)		776,000
Loss (gain) from equity investment		3,401,147			(561,991	)
Changes in operating assets and liabilities:
Accounts receivable		(1,973,688	)		(1,001,522	)
Employee retention credit		—			6,103,236
Increase in TIF receivable		(510,064	)		(502,644	)
Inventory and prepaid expenses		(1,131,436	)		96,360
Income taxes receivable and prepaid income taxes		1,956,015			(374,000	)
Operating lease right-of-use asset		25,352			24,524
Operating lease liabilities		(25,352	)		(24,524	)
Accounts payable		(142,261	)		116,379
Deferred revenue		50,985			(46,443	)
Casino accruals		(426,948	)		3,152
Accrued wages and payroll taxes		1,144,048			581,448
Accrued property taxes		(14,884	)		(262,755	)
Payable to horsepersons		2,143,239			(767,731	)
Net cash provided by operating activities		9,280,520			10,200,693

Investing Activities:
Additions to land, buildings, and equipment		(8,080,229	)		(5,577,116	)
Proceeds from disposal of assets		—			22,500
Proceeds from sale of land		—			8,336,359
Additions for TIF eligible improvements		(2,486,158	)		(4,160	)
Increase in related party receivable		(1,089,996	)		(382,987	)
Proceeds from sale of short-term investments		5,000,000			500,000
Purchase of short-term investments		(5,000,000	)		—
Cash dividends received from investments		19,158			—
Net cash (used in) provided by investing activities		(11,637,225	)		2,894,596

Financing Activities:
Proceeds from issuance of common stock		128,777			94,633
Cash dividend paid to shareholders		(1,055,082	)		(1,039,404	)
Payments for taxes related to net share settlement of equity awards		(108,887	)		(171,749	)
Principal payments on finance leases		(22,463	)		(9,219	)
Net cash used in financing activities		(1,057,655	)		(1,125,739	)

Net (decrease) increase in cash, cash equivalents, and restricted cash		(3,414,360	)		11,969,550

Cash, cash equivalents, and restricted cash at beginning of period		25,841,754			16,106,003

Cash, cash equivalents, and restricted cash at end of period	$	22,427,394		$	28,075,553

CANTERBURY PARK HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(Unaudited)

Schedule of non-cash investing and financing activities
Additions to land, buildings, and equipment funded through accounts payable	$	1,327,000	$	28,000
Dividend declared but not yet paid		351,000		345,000
Change in investee losses in excess of equity investments		2,539,000		(636,000	)
ROU assets obtained in exchange for lease obligations		171,000		77,550
Transfer of assets to Trackside Investments, LLC		583,000		—

Supplemental disclosure of cash flow information:
Income taxes paid, net of refunds	$	—	$	3,257,000
Interest paid		10,000		—

See notes to condensed consolidated financial statements.

CANTERBURY PARK HOLDING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business – Canterbury Park Holding Corporation’s (the “Company,” “we,” “our,” or “us”) Racetrack operations are conducted at facilities located in Shakopee, Minnesota, approximately 20 miles southwest of downtown Minneapolis. In May 1994, the Company commenced year-round horse racing simulcast operations and hosted the first annual live race meet during the summer of 1995. The Company’s live racing operations are a seasonal business, as it typically hosts live race meets each year from May until September. The Company earns additional pari-mutuel revenue by televising its live racing to out-of-state racetracks around the country. Canterbury Park’s Casino typically operates 24 hours a day, seven days a week and is limited by Minnesota State law to conducting card play on a maximum of 80 tables. The Casino currently offers a variety of poker and table games. The Company’s three largest sources of revenues are from Casino operations, pari-mutuel operations, and food and beverage sales. The Company also derives revenues from related services and activities, such as admissions, advertising signage, publication sales, and from other entertainment events and activities held at the Racetrack. Additionally, the Company is developing underutilized land surrounding the Racetrack in a project known as Canterbury Commons™, with approximately 140 acres originally designated as underutilized. The Company has obtained and is pursuing several mixed-use development opportunities for this land, directly and through joint ventures.

Basis of Presentation and Preparation – The accompanying condensed consolidated financial statements include the accounts of the Company (Canterbury Park Holding Corporation and its direct and indirect subsidiaries Canterbury Park Entertainment, LLC; Canterbury Park Concessions, Inc.; and Canterbury Development, LLC). Intercompany accounts and transactions have been eliminated. The preparation of these condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2023, included in its Annual Report on Form 10-K (the “2023 Form 10-K”).

The condensed consolidated balance sheets and the related condensed consolidated statements of operations, stockholders’ equity, and the cash flows for the periods ended September 30, 2024 and 2023 have been prepared by Company management. In the opinion of management, all adjustments (which include only normal recurring adjustments, except where noted) necessary to present fairly the financial position, results of operations, statement of stockholders’ equity, and cash flows at September 30, 2024 and 2023 and for the periods then ended have been made.

Summary of Significant Accounting Policies – A detailed description of our significant accounting policies can be found in the 2023 Form 10-K. There were no material changes in significant accounting policies during the three and nine months ended September 30, 2024.

Reclassifications – Certain amounts in prior period financial statements have been reclassified to conform to current period presentations.

Restricted Cash – Restricted cash represents refundable deposits and amounts due to horsemen for purses, stakes and awards, collateral needed for joint venture operations, and amounts accumulated in card game progressive jackpot pools, the player pool and poker promotional fund to be used to repay card players in the form of promotions, giveaways, prizes, or by other means.

Accounts Receivable - Accounts receivable are initially recorded for amounts due from other tracks for simulcast revenue, net of amounts due to other tracks, and for amounts due from customers related to catering and events. Credit is granted in the normal course of business without collateral. Accounts receivable are stated net of allowances for credit losses, which represent estimated losses resulting from the inability of customers to make the required payments. Accounts that are outstanding longer than the contractual terms are considered past due. We evaluate our allowance for credit losses and estimate collectability of current and non-current accounts receivable based on historical bad debt experience, our assessment of the financial condition of individual companies with which we do business, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, our estimates and judgments with respect to the collectability of our receivables are subject to greater uncertainty than in more stable periods. The Company does not have accounts receivable with original maturities greater than one year. The allowance for credit losses and activity as of September 30, 2024 and December 31, 2023 was not material.

Deferred Revenue – Deferred revenue includes advance sales related to racing, events and corporate partnerships. Revenue from these advance billings is recognized when the related event occurs or services have been performed.

Payable to Horsepersons - The Minnesota Pari-mutuel Horse Racing Act requires the Company to segregate a portion of funds (recorded as purse expense in the statements of operations) received from Casino operations and wagering on simulcast and live horse races, for future payment as purses for live horse races or other uses of the horsepersons’ association. Pursuant to an agreement with the Minnesota Horsemen’s Benevolent and Protective Association (“MHBPA”), the Company transferred into a trust account or paid directly to the MHBPA, $7,694,000 and $6,174,000 for the nine months ended September 30, 2024 and 2023, respectively, related to thoroughbred races. Minnesota Statutes provide that amounts transferred into the trust account are the property of the trust and not of the Company, and therefore these amounts are not recorded on the Company’s Condensed Consolidated Balance Sheet.

Revenue Recognition – The Company’s primary revenues with customers consist of Casino operations, pari-mutuel wagering on simulcast and live horse races, and food and beverage transactions. We determine revenue recognition through the following steps:

●

Identification of the contract, or contracts, with a customer

●

Identification of the performance obligations in the contract

●

Determination of the transaction price

●

Allocation of the transaction price to the performance obligation in the contract

●

Recognition of revenue when, or as, we satisfy a performance obligation

The transaction price for a Casino contract is a set percentage of wagers and is recognized at the time that the wagering process is complete. The transaction price for pari-mutuel wagering is the commission received on a wager, exclusive of any track fees and is recognized upon occurrence of the live race that is presented for wagering and after that live race is made official by the respective state’s racing regulatory body. The transaction price for food and beverage contracts is the net amount collected from the customer for these goods. Food and beverage services have been determined to be separate, stand-alone performance obligations and the transaction price is recorded as revenue as the good is transferred to the customer when delivery is made.

Contracts for Casino operations and pari-mutuel wagering involve two performance obligations for those customers earning points under the Company’s loyalty program and a single performance obligation for customers who do not participate in the program. The Company applies a practical expedient by accounting for its gaming contracts on a portfolio basis as these wagers have similar characteristics and the Company reasonably expects the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from what would result if the guidance were applied on an individual wagering contract. For purposes of allocating the transaction price in a wagering contract between the wagering performance obligation and the obligation associated with the loyalty points earned, the Company allocates an amount to the loyalty point contract liability based on the stand-alone redemption value of the points earned, which is determined by the value of a point that can be redeemed for a cash voucher, food and beverage voucher, racing admission, valet parking, or racing forms. Based on past experience, the majority of customers redeem their points for cash vouchers. Therefore, there are no further performance obligations by the Company.

We have two general types of liabilities related to contracts with customers: (1) our MVP Loyalty Program and (2) outstanding chip liability. These are included in the line item Casino accruals on the consolidated balance sheet. We defer the full retail value of these complimentary reward items until the future revenue transaction occurs.

The Company offers certain promotional allowances at no charge to patrons who participate in its player rewards program.

We evaluate our on-track revenue, export revenue (as described below), and import revenue (as described below) contracts to determine whether we are acting as the principal or as the agent when providing services, to determine if we should report revenue on a gross or net basis. An entity acts as a principal if it controls a specified service before that service is transferred to a customer.

For on-track revenue and “import revenue,” that is revenue we generate for racing held elsewhere that our patrons wager on, we are entitled to retain a commission for providing a wagering service to our customers. For these arrangements, we are the principal because we control the wagering service; therefore, any charges, including simulcast fees, we incur for delivering the wagering service are presented as operating expenses.

For “export revenue,” when the wagering occurs outside our premises, our customer is the third-party wagering site such as a racetrack, Off Track Betting (“OTB”), or advance deposit wagering (“ADW”) provider. Therefore, the revenue we recognize for export revenue is the simulcast host fee we earn for exporting our racing signal to the third-party wagering site.

2. STOCK-BASED COMPENSATION

Long Term Incentive Plan and Award of Deferred Stock

The Long Term Incentive Plan (the “LTI Plan”) authorizes the grant of Long Term Incentive Awards that provide an opportunity to Named Executive Officers (“NEOs”) and other Senior Executives to receive a payment in cash or shares of the Company’s common stock to the extent of achievement at the end of a period greater than one year (the “Performance Period”) as compared to Performance Goals established at the beginning of the Performance Period. Beginning in 2020, the Company suspended the granting of performance awards under its LTI Plan, and instead granted deferred stock awards designed to retain NEOs and other senior executives in lieu of LTI Plan awards from 2020 through 2024. In February 2022, the Compensation Committee made determinations regarding the achievement of 2021 performance goals and payouts under the 2019-2021 LTI Plan, which completed the performance period and awards under the 2019-2021 LTI Plan, and the last outstanding awards under the LTI Plan. Accordingly, there are no awards outstanding under the LTI Plan.

Board of Directors Stock Options, Deferred Stock Awards, and Restricted Stock Grants

The Company’s Stock Plan currently authorizes annual grants of restricted stock, deferred stock, stock options, or any combination of the three, to non-employee members of the Board of Directors at the time of the Company’s annual shareholders’ meeting as determined by the Board prior to each such meeting. Deferred stock awards represent the right to receive shares of the Company's common stock upon vesting. Restricted stock and deferred stock grants to non-employee directors generally vest 100% one year after the date of the annual meeting at which they were granted, are subject to restrictions on resale for an additional year, and are subject to forfeiture if a board member terminates his or her board service prior to the shares vesting. The unvested deferred stock awards outstanding as of September 30, 2024 to our non-employee directors consists only of the grants of deferred stock on June 6, 2024 of an aggregate 10,734 shares with a weighted average fair value per share of $22.35. There were no unvested restricted stock or stock options outstanding to any non-employee director at September 30, 2024.

Board of Directors deferred stock transactions during the nine months ended September 30, 2024 are summarized as follows:

				*Weighted*
				*Average*
	*Deferred*			*Fair Value*
	*Stock*			*Per Share*
Non-Vested Balance, December 31, 2023		7,818		$	23.01
Granted		10,734			22.35
Vested		(7,818	)		23.01
Forfeited		—			—
Non-Vested Balance, September 30, 2024		10,734		$	22.35

Employee Deferred Stock Awards

The Company's Stock Plan permits its Compensation Committee to grant stock-based awards, including deferred stock awards, to key employees and non-employee directors. The Company has made deferred stock grants to key employees that vest over one to four years. Deferred stock awards represent the right to receive shares of the Company's common stock upon vesting.

During the nine months ended September 30, 2024, the Company granted employees deferred stock awards totaling 22,100 shares of common stock, with a vesting term of approximately four years and a fair value of $21.08 per share. During the nine months ended September 30, 2023, the Company granted employees deferred stock awards totaling 19,020 shares of common stock, with a vesting term of approximately four years and a fair value of $25.52 per share.

Employee deferred stock transactions during the nine months ended September 30, 2024 are summarized as follows:

				*Weighted*
				*Average*
	*Deferred*			*Fair Value*
	*Stock*			*Per Share*
Non-Vested Balance, December 31, 2023		36,920		$	22.00
Granted		22,100			21.08
Vested		(15,230	)		19.15
Forfeited		—			—
Non-Vested Balance, September 30, 2024		43,790		$	22.52

There were no stock options outstanding to any employee or other person at September 30, 2024. Stock-based compensation expense related to deferred stock awards and restricted stock awards is included on the Condensed Consolidated Statements of Operations and totaled approximately $419,000 and $398,000 for the nine months ended September 30, 2024 and 2023. At September 30, 2024, there was approximately $905,000 of total unrecognized stock-based compensation expense related to unvested employee and board of director deferred stock awards that is expected to be recognized over a period of approximately 3.5 years.

3. NET INCOME PER SHARE COMPUTATIONS

The following is a reconciliation of the numerator and denominator of the earnings per common share computations for the three and nine months ended September 30, 2024 and 2023:

	*Three Months Ended September 30, 2024*				*For the Nine Months Ended September 30,*
	*2024*		*2023*		*2024*		*2023*
Net income (numerator) amounts used for basic and diluted per share computations:	$	2,021,806	$	1,136,299	$	3,358,246	$	9,199,331

Weighted average shares (denominator) of common stock outstanding:
Basic		5,008,048		4,933,961		4,986,609		4,913,560
Plus dilutive effect of deferred stock awards		21,802		16,563		35,013		27,540
Diluted		5,029,850		4,950,524		5,021,622		4,941,100

Net income per common share:
Basic	$	0.40	$	0.23	$	0.67	$	1.87
Diluted		0.40		0.23		0.67		1.86

4. GENERAL CREDIT AGREEMENT

The Company has a general credit and security agreement with a financial institution. The agreement was amended as of February 28, 2021 to extend the maturity date to January 31, 2024 and increase its revolving credit line up to $10,000,000. The line of credit was collateralized by all receivables, inventory, equipment, and general intangibles of the Company, as well as a mortgage on certain real property. The credit agreement contains covenants requiring the Company to maintain certain financial ratios. The general credit and security agreement was further amended as of January 31, 2024 to extend the maturity date to January 31, 2027 and reduce the maximum borrowing under the line of credit to $5,000,000. In connection with the amendment, the financial institution terminated a mortgage to release certain Company real property as collateral and the parties entered into a negative pledge agreement under which the Company agreed not to create any liens or encumbrances on certain Company real property. The outstanding balance on the line of credit was $0 at both September 30, 2024 and December 31, 2023.

5. OPERATING SEGMENTS

The Company has four reportable operating segments: horse racing, Casino, food and beverage, and development. The horse racing segment primarily represents simulcast and live horse racing operations. The Casino segment represents operations of Canterbury Park’s Casino. The food and beverage segment represents food and beverage operations provided during simulcast and live racing, in the Casino, and during special events. The development segment represents our real estate development operations. The Company’s reportable operating segments are strategic business units that offer different products and services. They are managed separately because the segments differ in the nature of the products and services provided as well as process to produce those products and services. The Minnesota Racing Commission regulates the horse racing and Casino segments.

Depreciation, interest, and income taxes are allocated to the segments, but no allocation is made to the food and beverage segment for shared facilities. However, the food and beverage segment pays approximately 25% of gross revenues earned on special event days to the horse racing segment for use of the facilities.

The following tables represent a disaggregation of revenues from contracts with customers along with the Company’s operating segments (in 000’s):

	*For the Nine Months Ended September 30, 2024*
	*Horse Racing*			*Casino*		*Food and Beverage*		*Development*			*Total*
Net revenues from external customers	$	12,093		$	29,780	$	7,712	$	—		$	49,585
Intersegment revenues		238			—		1,044		—			1,282
Net interest income		809			—		—		784			1,593
Depreciation		2,328			225		123		—			2,676
Segment income (loss) before income taxes		(1,962	)		5,636		2,086		(1,038	)		4,722
Segment tax expense (benefit)		(567	)		1,628		603		(300	)		1,364

		*September 30, 2024*
Segment Assets		$	104,133			$	1,899			$	35,912			$	39,381			$	181,325

	*For the Nine Months Ended September 30, 2023*
	*Horse Racing*			*Casino*		*Food and Beverage*		*Development*		*Total*
Net revenues from external customers	$	11,186		$	30,322	$	7,402	$	—	$	48,910
Intersegment revenues		194			—		893		—		1,087
Net interest income		754			—		—		679		1,433
Depreciation		1,954			225		129		—		2,308
Segment income (loss) before income taxes		(3,745	)		6,940		2,137		7,576		12,908
Segment tax expense (benefit)		(1,076	)		1,994		614		2,177		3,709

		*December 31, 2023*
Segment Assets		$	92,970			$	2,125			$	33,175			$	34,892			$	163,162

The following are reconciliations of reportable segment revenues, income before income taxes, and assets, to the Company’s consolidated totals (in 000’s):

	*For the Nine Months Ended September 30,*
	*2024*			*2023*
Revenues
Total net revenue for reportable segments	$	50,867		$	49,997
Elimination of intersegment revenues		(1,282	)		(1,087	)
Total consolidated net revenues	$	49,585		$	48,910

Income before income taxes
Total segment income before income taxes	$	7,401		$	15,833
Elimination of intersegment income loss before income taxes		(2,679	)		(2,925	)
Total consolidated income before income taxes	$	4,722		$	12,908

	*September 30,*			*December 31,*
	*2024*			*2023*
Assets
Total assets for reportable segments	$	181,325		$	163,162
Elimination of intercompany balances		(67,098	)		(58,483	)
Total consolidated assets	$	114,227		$	104,679

6. COMMITMENTS AND CONTINGENCIES

Effective on December 21, 2021, the Company entered into a Contribution and Indemnity Agreement ("Indemnity Agreement") with affiliates of Doran Companies ("Doran") in connection with the debt refinancing on the Doran Canterbury I, LLC joint venture. Under the Indemnity Agreement, the Company is obligated to indemnify Doran for loan payment amounts up to $5,000,000 only if the lender demands the loan guarantee by Doran. Effective on October 27, 2022, the Indemnity Agreement was amended to increase the maximum indemnification by an additional $700,000. Effective December 12, 2023, the Indemnity Agreement was amended to increase the maximum indemnification by an additional $1,300,000, bringing the total to a maximum of $7,000,000.

Effective December 21, 2023, the Company entered into its annual live race meet and purse fund contribution agreement with the Minnesota Horsemen’s Benevolent & Protective Association (“MHBPA”) and the Minnesota Quarter Horse Racing Association ("MQHRA") regarding the upcoming 2024 live race meet. In an effort to increase field size and improve the quality of racing for the 2024 season, the Company has guaranteed purses for overnight races at $23,000 per race. The parties recognize there is likely to be a significant financial cost to the Company in establishing a 2024 thoroughbred purse structure intended to average $23,000 per conducted overnight race and that to maintain that average purse structure, the Company will be making an overpayment that may be repaid to the Company through reimbursement in subsequent racing years. This anticipated overpayment of purses by the Company is intended to create a short-term bridge until additional purse supplements can be obtained from other sources. In the event that additional purse revenue is secured within the next five years through additional forms of gaming at the Company, new revenue streams, or legislative action, the Company will be eligible for reimbursement of the actual 2024 overpayment amount from those purse supplements. In addition, the Company agreed to allocate approximately $400,000 to be used as recruiting and participation incentives to attract thoroughbred trainers, owners, and stables for the 2024 live meet in an effort to generate additional pari-mutuel handle through improved field size. For the three and nine months ended September 30, 2024, the Company has recognized expenses of $257,000 and $418,000, respectively, related to these incentives.

The Company is periodically involved in various claims and legal actions arising in the normal course of business. Management believes that the resolution of any pending claims and legal actions at September 30, 2024 and as of the date of this report, will not have a material impact on the Company’s consolidated financial positions or results of operations.

In August 2018, the Company entered into a Contract for Private Redevelopment with the City of Shakopee in connection with a Tax Increment Financing District (“TIF District”). On January 25, 2022, the Company received the fully executed First Amendment to the Contract for Redevelopment among the Master Developer, the City and the Authority, which is effective as of September 7, 2021. Under this contract, the Company is obligated to construct certain infrastructure improvements within the TIF District, and will be reimbursed for the cost of TIF eligible improvements by the City of Shakopee by future tax increment revenue generated from the developed property, up to specified maximum amounts. The total amount of funding that Canterbury will be paid as reimbursement under the TIF program for these improvements is not guaranteed and will depend on future tax revenues generated from the developed property.

7. REAL ESTATE DEVELOPMENT

Equity Investments

Doran Canterbury I, LLC

On April 2, 2018, the Company’s subsidiary Canterbury Development LLC, entered into an Operating Agreement (“Operating Agreement”) with an affiliate of Doran Companies (“Doran”), a national commercial and residential real estate developer, as the two members of a Minnesota limited liability company named Doran Canterbury I, LLC (“Doran Canterbury I”). Doran Canterbury I was formed as part of a joint venture between Doran and Canterbury Development LLC to construct an upscale apartment complex on land adjacent to the Company’s Racetrack (the “Project”).

On September 27, 2018, Canterbury Development LLC contributed approximately 13 acres of land as its equity contribution in the Doran Canterbury I joint venture and became a 27.4% equity member. On December 20, 2018, financing for Doran Canterbury I was secured. Doran Canterbury I completed Phase I of the Project, which includes 321 units, a heated parking ramp, and a clubhouse. As the Company is able to assert significant influence, but not control, over Doran Canterbury I’s operational and financial policies, the Company accounts for the joint venture as an equity method investment. For the three and nine months ended September 30, 2024, the Company recorded losses of $927,000 and $2,539,000, respectively, on equity method investment related to this joint venture. For the three and nine months ended September 30, 2023, the Company recorded a loss of $650,000 and income of $636,000, respectively, on equity method investment related to this joint venture. The increased income for the first nine months of 2023 is due to a gain recognized on insurance proceeds received by Doran Canterbury I related to an outstanding claim. In accordance with U.S. GAAP, since we are committed to provide future capital contributions to Doran Canterbury I, we also present as a liability in the accompanying Condensed Consolidated Balance Sheets the net balance recorded for our share of Doran Canterbury I's losses in excess of the amount funded into Doran Canterbury I, which was $4,003,000 and $1,464,000 at September 30, 2024 and December 31, 2023, respectively. See Note 9 of Notes to Financial Statements for a summary of member loans to Doran Canterbury I.

We are a party to a contribution and indemnity agreement with affiliates of Doran relating to debt financing by Doran Canterbury I as borrower, which is guaranteed by Doran affiliates. Under the contribution and indemnity agreement, as amended, the Company is obligated to reimburse and indemnify each loan guarantor for any amounts paid by such loan guarantor to the lender on debt financing by Doran Canterbury I, up to a maximum of $7,000,000 as of September 30, 2024. See Note 6. “Commitments and Contingencies.”

Doran Canterbury II, LLC

In connection with the execution of the Amended Doran Canterbury I Agreement, on August 18, 2018, Canterbury Development LLC entered into an Operating Agreement with Doran Shakopee, LLC as the two members of a Minnesota limited liability company entitled Doran Canterbury II, LLC (“Doran Canterbury II”). The Operating Agreement was amended and restated by the members effective July 30, 2020. On September 30, 2020, Canterbury Development LLC contributed approximately 10 acres of land as its equity contribution in the Doran Canterbury II joint venture and became a 27.4% equity member. Doran Canterbury II has completed developing Phase II of the project which includes an additional 300 apartment units. As the Company is able to assert significant influence, but not control, over Doran Canterbury II’s operational and financial policies, the Company accounts for the joint venture as an equity method investment. For the three and nine months ended September 30, 2024, the Company recorded losses of $364,000 and $781,000, respectively, on equity method investment related to this joint venture. As of September 30, 2023, the proportionate share of Doran Canterbury II's earnings was immaterial as Doran Canterbury II was not placed into service until January 2024. Under the Operating Agreement, we are required to provide future member loans to Doran Canterbury II to cover the costs of construction or operating deficiencies. See Note 9 of Notes to Financial Statements for a summary of member loans to Doran Canterbury II.

Canterbury DBSV Development, LLC

On June 16, 2020, Canterbury Development LLC, entered into an Operating Agreement with an affiliate of Greystone Construction, as the two members of a Minnesota limited liability company named Canterbury DBSV Development, LLC ("Canterbury DBSV"). Canterbury DBSV was formed as part of a joint venture between Greystone and Canterbury Development LLC for a multi-use development on the 13-acre land parcel located on the southwest portion of the Company’s racetrack. Canterbury Development LLC's equity contribution to Canterbury DBSV was approximately 13 acres of land, which were contributed to Canterbury DBSV on July 1, 2020. In connection with its contribution, Canterbury Development became a 61.87% equity member in Canterbury DBSV. As the Company is able to assert significant influence, but not control, over Canterbury DBSV’s operational and financial policies, the Company accounts for the joint venture as an equity method investment. Canterbury DBSV has since entered into multiple other joint venture investments, all related to the multi-use development of the 13-acre parcel mentioned before. All such investments are accounted for under the equity method by Canterbury DBSV. For the three and nine months ended September 30, 2024, the Company recorded losses of $84,000 and $81,000, respectively, on equity method investments related to this joint venture. For the three and nine months ended September 30, 2023, the Company recorded losses of $24,000 and $76,000, respectively, on equity method investments related to this joint venture. For the three and nine months ended September 30, 2024, the Company also received dividend distributions of $6,000 and $19,000, respectively, related to this joint venture.

Trackside Investments, LLC

On September 20, 2023, Canterbury Development, entered into an Operating Agreement with Trackside Hospitality, LLC as the two members of a Minnesota limited liability company named Trackside Investments, LLC ("Trackside Investments"). Trackside Investments was formed as a joint venture for the development of an approximately 16,000 square foot restaurant and entertainment venue. Canterbury Development, LLC's equity contribution to Trackside Investments was approximately 3.5 acres of land, which were contributed to Trackside Investments on August 20, 2024. In connection with its contribution, Canterbury Development became a 50% equity member in Trackside Investments. In addition, Canterbury Development is guaranteed an annual 6% preferred return on the balance of Canterbury Development's undistributed base capital. As the Company is able to assert significant influence, but not control, over Trackside Investments' operational and financial policies, the Company accounts for the joint venture as an equity method investment.

In accordance with ASC 610-20, we determined that we do not have a controlling financial interest in the Trackside Investments joint venture and the arrangements meet the criteria to be accounted for as a contract. Therefore, we derecognized the land and recognized a full gain (approximately $1,732,000) between the carrying amount of the land and the estimated fair value of the land transferred. In future periods, the Company will recognize its proportionate share of Trackside Investments' earnings as an increase or decrease in its Equity investment and as Income or Loss from Investment in this joint venture.

The following table summarizes changes to the Equity investment and Investee losses in excess of equity investment lines on our consolidated balance sheets for the nine months ended September 30, 2024:

	*Equity investment*			*Investee losses in excess of equity investment*			*Equity investment, net*
Net Equity Investment Balance at 12/31/23	$	6,612,712		$	(1,464,218	)	$	5,148,494

Q1 Equity investment loss		(87,841	)		(764,406	)		(852,247	)

Q2 Equity investment loss		(326,482	)		(848,017	)		(1,174,499	)

Q3 Equity investment loss		(447,896	)		(926,505	)		(1,374,401	)

Contribution to equity investment		2,315,650			—			2,315,650

Dividends received from investments		(19,158	)		—			(19,158	)

Net Equity Investment Balance at 9/30/24	$	8,046,985		$	(4,003,146	)	$	4,043,839

Tax Increment Financing

On August 8, 2018, the City Council of the City of Shakopee, Minnesota approved a Contract for Private Redevelopment (“Redevelopment Agreement”) between the City of Shakopee Economic Development Authority (“Shakopee EDA”) and Canterbury Park Holding Corporation and its subsidiary Canterbury Development LLC in connection with a Tax Increment Financing District (“TIF District”) that the City had approved in April 2018. The City of Shakopee, the Shakopee EDA and the Company entered into the Redevelopment Agreement on August 10, 2018.

Under the Original Agreement, the Company agreed to undertake a number of specific infrastructure improvements within the TIF District, and the City agreed that a portion of the tax revenue generated from the developed property will be paid to the Company to reimburse it for its expense in constructing these improvements. Under the Original Agreement, the total estimated cost of TIF eligible improvements to be borne by the Company was $23,336,500.

On January 25, 2022, the Company received the fully executed First Amendment to the Contract for Private Redevelopment (the “First Amendment”) among the Company, the City of Shakopee, and the Shakopee EDA, which is effective as of September 7, 2021. Under the First Amendment and as part of the authorized changes regarding the responsibilities of the Company and the City, improvements on Unbridled Avenue will be primarily constructed by the City of Shakopee. As a result, the total estimated cost of TIF eligible improvements to be borne by the Company was reduced by $5,744,000 to an amount not to exceed $17,592,881. In order to reimburse the Company for the qualified costs related to constructing the developer improvements, the Authority will issue and the Company will receive a TIF Note in the maximum principal amount of $17,592,881. The First Amendment also memorialized that the Company completed the Shenandoah Drive improvements as required prior to December 31, 2019. The City is obligated to issue bonds to finance the portion of the improvements required to be constructed by the City.

A detailed Schedule of the Public Improvements under the First Amendment, the timeline for their construction and the source and amount of funding is set forth in the First Amendment, which is filed as Exhibit 10.1 of the Form 8-K filed on January 31, 2022. The Company expects to substantially complete the remaining developer improvements by July 17, 2027 and will be reimbursed for costs of the developer improvements incurred by no later than July 17, 2027. The total amount of funding that the Company will be paid as reimbursement under the TIF program for these improvements is not guaranteed, however, and will depend in part on future tax revenues generated from the developed property.

As of September 30, 2024, the Company recorded a TIF receivable of approximately $16,969,000, which represents $13,793,000 of principal and $3,176,000 of interest. Management believes future tax revenues generated from current development activity will exceed the Company's development costs and thus, management believes no allowance related to this receivable is necessary. As of December 31, 2023, the Company recorded a TIF receivable of approximately $13,973,000, which represented $11,307,000 of principal and $2,666,000 of interest.

The Company expects to finance its improvements under the Redevelopment Agreement with funds from its current operating resources and existing credit facility and, potentially, third-party financing sources.

8. LEASES

The Company determines if an arrangement is a lease or contains a lease at inception. The Company leases some office equipment under finance leases. We also lease equipment related to our horse racing operations under operating leases. For lease accounting purposes, we do not separate lease and nonlease components, nor do we record operating or finance lease assets and liabilities for short term leases.

As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. We recognize expense for operating leases on a straight-line basis over the lease term. The Company’s lease agreements do not contain any variable lease payments, material residual value guarantees or any restrictive covenants.

Lease costs related to operating leases were $25,353 for both the nine months ended September 30, 2024 and 2023. The total lease expenses for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or liability was $386,044 and $378,134 for the nine months ended September 30, 2024 and 2023, respectively.

Lease costs included in depreciation and amortization related to our finance leases were $24,999 and $18,701 for the nine months ended September 30, 2024 and 2023, respectively. Interest expense related to our finance leases was immaterial.

The following table shows the classification of the right of use assets on our consolidated balance sheets:

		*September 30,*		*December 31,*
	*Balance Sheet Location*	*2024*		*2023*
Assets
Finance	Land, buildings and equipment, net (1)	$	157,941	$	9,374
Operating	Operating lease right-of-use assets		27,674		53,026
Total Leased Assets		$	185,615	$	62,400

1 – Finance lease assets are net of accumulated amortization of $22,968 and $118,424 as of September 30, 2024 and December 31, 2023, respectively.

The following table shows the lease terms and discount rates related to our leases:

	*September 30,*			*December 31,*
	*2024*			*2023*
Weighted average remaining lease term (in years):
Finance		4.5			4.9
Operating		0.4			0.8
Weighted average discount rate (%):
Finance		8.5	%		4.8	%
Operating		8.0	%		8.0	%

The maturity of operating leases and finance leases as of September 30, 2024 are as follows:

Nine Months Ended September 30,	*Operating leases*			*Finance leases*
2024 remaining	$	—		$	11,111
2025		28,228			44,447
2026		—			44,447
2027		—			44,447
2028 and beyond		—			44,251
Total minimum lease obligations		28,228			188,703
Less: amounts representing interest		(554	)		(30,762	)
Present value of minimum lease payments		27,674			157,941
Less: current portion		(27,674	)		(32,259	)
Lease obligations, net of current portion	$	—		$	125,682

9. RELATED PARTY RECEIVABLES

Since 2019, the Company has made member loans to the Doran Canterbury I and the Doran Canterbury II joint ventures totaling approximately $3,812,000 and $2,957,000 as of September 30, 2024 and December 31, 2023, respectively. These member loans bear interest at the rate equal to the Prime Rate plus two percent per annum, and accrued interest totaled $796,000 and $522,000 as of September 30, 2024 and December 31, 2023, respectively. The Company expects to be fully reimbursed for these member loans as and when the joint ventures achieve positive cash flow. Under the Operating Agreements for Doran Canterbury I and Doran Canterbury II, the joint ventures must repay member loans before payments to members in accordance with their percentage interests.

The Company has also recorded related party receivables of approximately $8,000 and $47,000 as of September 30, 2024 and December 31, 2023, respectively, for various related costs incurred by the Company. The Company expects to be fully reimbursed for these costs by the related parties in 2024.

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand Canterbury Park Holding Corporation and its subsidiaries, our operations, our financial results and financial condition and our present business environment. This MD&A is provided as a supplement to, and should be read in conjunction with, our condensed consolidated financial statements and the accompanying notes to the financial statements (the “Notes”).

Overview:

Canterbury Park Holding Corporation (the “Company,” “we,” “our,” or “us”) conducts pari-mutuel wagering operations and hosts “unbanked” card games at its Canterbury Park Racetrack and Casino facility (the “Racetrack”) in Shakopee, Minnesota, which is approximately 20 miles southwest of downtown Minneapolis. The Racetrack is the only facility in the State of Minnesota that offers live pari-mutuel thoroughbred and quarter horse racing.

The Company’s pari-mutuel wagering operations include both wagering on thoroughbred and quarter horse races during live meets at the Racetrack each year from May through September, and year-round wagering on races held at out-of-state racetracks that are televised simultaneously at the Racetrack (“simulcasting”). Unbanked card games, in which patrons compete against each other, are hosted in the Casino at the Racetrack. The Casino typically operates 24 hours a day, seven days a week. The Casino offers both poker and table games at up to 80 tables. The Company also derives revenues from related services and activities, such as concessions, parking, advertising signage, publication sales, and from other entertainment events and activities held at the Racetrack.

Operations Review for the Three and Nine Months Ended September 30, 2024:

Revenues:

Total net revenues for the three months ended September 30, 2024 were $19,284,000, an increase of $16,000, or 0.1%, compared to total net revenues of $19,268,000 for the three months ended September 30, 2023. Total net revenues for the nine months ended September 30, 2024 were $49,585,000, an increase of $675,000, or 1.4%, compared to total net revenues of $48,910,000 for the nine months ended September 30, 2023. See below for a further discussion of our sources of revenues.

Casino Revenue:

	Three Months Ended September 30, 2024				Nine Months Ended September 30,
	2024		2023		2024		2023
Poker Games Collection	$	1,902,000	$	1,844,000	$	5,711,000	$	5,665,000
Other Poker Revenue		600,000		739,000		1,961,000		2,253,000
Total Poker Revenue		2,502,000		2,583,000		7,672,000		7,918,000

Table Games Collection		6,343,000		7,037,000		19,558,000		20,567,000
Other Table Games Revenue		1,034,000		604,000		2,550,000		1,837,000
Total Table Games Revenue		7,377,000		7,641,000		22,108,000		22,404,000

Total Casino Revenue	$	9,879,000	$	10,224,000	$	29,780,000	$	30,322,000

The primary source of Casino revenue is a percentage of the wagers received from players as compensation for providing the Casino facility and services, which is referred to as “collection revenue.” Other Poker Revenue and Other Table Games Revenue presented above includes fees collected for the administration of tournaments and the poker jackpot and amounts earned as reimbursement of the administrative costs of maintaining table games jackpot funds, respectively.

As indicated by the table above, total Casino revenue decreased $345,000, or 3.4%, and $542,000, or 1.8%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The decrease for the three and nine months ended September 30, 2024 can be primarily attributed to both a decrease in drop and a lower average collection revenue rate in table games, somewhat offset by an increase in our other table games revenue due to increases related to our progressive jackpot revenue.

Pari-Mutuel Revenue:

	Three Months Ended September 30, 2024				Nine Months Ended September 30,
	2024		2023		2024		2023
Simulcast	$	809,000	$	906,000	$	2,823,000	$	2,848,000
Live Racing		1,017,000		1,047,000		1,557,000		1,526,000
Guest Fees		1,131,000		1,082,000		1,669,000		1,533,000
Other revenue		370,000		370,000		1,051,000		1,103,000
Total Pari-Mutuel Revenue	$	3,327,000	$	3,405,000	$	7,100,000	$	7,010,000

Total pari-mutuel revenue decreased $78,000, or 2.3%, and increased $90,000, or 1.3%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. For the three months ended September 30, 2024, the decrease in pari-mutuel revenues is primarily due to one fewer live race day (37 race days in 2024 compared to 38 race days in 2023). For the nine months ended September 30, 2024, the increase in pari-mutuel revenues is primarily due to an increase in live race days year-over-year (54 race days in 2024 compared to 53 race days in 2023 for the nine months ended September 30) as well as increased out-of-state handle due to increased field sizes on a per race basis.

Food and Beverage Revenue:

Food and beverage revenue decreased $208,000, or 6.3%, and increased $122,000, or 1.8%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The decrease for the three months ended September 30, 2024 is primarily due to one fewer race day compared to the same period last year. The increase for the nine months ended September 30, 2024 is primarily due to increased catering operations related to hosting large scale special events as well the one additional race day year-over-year mentioned above.

Other Revenue:

Other revenue increased $647,000, or 27.8%, and increased $1,005,000, or 21.1%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase is primarily due to admission revenue increases related to our first ever rodeo, our first comedy series, and our live racing events.

Operating Expenses:

Total operating expenses decreased $92,000, or 0.5%, and increased $300,000, or 0.7%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The following paragraphs provide further detail regarding certain operating expenses.

Purse expense increased $202,000, or 7.8%, and increased $440,000, or 7.3%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase is primarily due to the expenses incurred as part of our recruiting and participation incentives paid in 2024 under our annual live race meet and purse fund contribution agreement dated December 21, 2023. See Note 6. for further details.

Salaries and benefits increased $45,000, or 0.6%, and increased $358,000, or 1.8%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase is primarily due to annual wage increases along with the State of Minnesota annual mandated increase in the minimum wage.

Depreciation and amortization increased $105,000, or 12.6%, and increased $368,000, or 15.9%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase is primarily due to placing larger fixed assets into service towards the second half of 2023 as well as placing assets into service related to the first and second phases of our barn relocation and redevelopment plan in the second quarter of 2024.

Advertising and marketing costs decreased $219,000, or 24.6%, and decreased $602,000, or 33.1%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The decrease is primarily due to intentionally reducing overall spend in an effort to cut costs.

Professional and contracted services decreased $369,000, or 16.1%, and decreased $244,000, or 5.0%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The decrease is primarily due to higher costs in 2023 related to long-term strategic growth initiatives.

Other operating expenses increased $247,000, or 17.7%, and $20,000, or 0.5%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase is primarily due to higher promoter expenses related to special events.

During the 2024 third quarter, the Company recorded a gain on transfer of land of $1,732,000 as result of transferring approximately 3.5 acres of land to the Trackside Investments joint venture. See Note 7. for further details.

Other Income (Loss), Net:

Other loss, net, for the three months ended September 30, 2024 was $853,000, a decrease of $715,000, compared to other loss, net, of $137,000 for the three months ended September 30, 2023. Other loss, net, for the nine months ended September 30, 2024 was $1,808,000, a decrease of $3,804,000, compared to other income of $1,995,000 for the nine months ended September 30, 2023. The decrease for the nine months ended September 30, 2024 compared to the same period last year is primarily due to our share of insurance proceeds received on a claim by Doran Canterbury I during the nine months ended September 30, 2023. This decrease was partially offset by increased interest income due to the Company transferring available cash into certificates of deposit and money market funds as well as an increases to the principal balance related to our member loans to Doran Canterbury I and Doran Canterbury II.

Income Taxes:

The Company recorded a provision for income taxes of $772,000 and $533,000 for the three months ended September 30, 2024 and 2023, respectively. The Company recorded a provision for income taxes of $1,364,000 and $3,709,000 for the nine months ended September 30, 2024 and 2023, respectively. We record our quarterly provision for income taxes based on our estimated annual effective tax rate for the year. The decrease in our tax expense for the nine months ended September 30, 2024 compared to 2023 is primarily due to a decrease in income before taxes from operations. Our effective tax rate was 27.6% and 28.9% for three and nine months ended September 30, 2024, respectively. Our effective tax rate was 31.9% and 28.7% for the three and nine months ended September 30, 2023, respectively. The decrease in the effective tax rate is primarily the result of favorable discrete items that occurred during the three months ended September 30, 2024.

Net Income:

The Company recorded net income of $2,022,000, or $0.40 per basic and diluted share, and $3,358,000, or $0.67 per basic and diluted share, for the three and nine months ended September 30, 2024, respectively. The Company recorded net income of $1,136,000, or $0.23 per basic and diluted share, and $9,199,000, or $1.87 per basic and $1.86 diluted share, for the three and nine months ended September 30, 2023, respectively.

EBITDA

To supplement our financial statements, we also provide investors with information about our EBITDA and Adjusted EBITDA, each of which is a non-GAAP measure, which excludes certain items from net income, a GAAP measure. See the table below, which presents reconciliations of these measures to the GAAP equivalent financial measures. We define EBITDA as earnings before interest, income tax expense, and depreciation and amortization. We also compute Adjusted EBITDA, which reflects additional adjustments to Net Income to eliminate unusual or non-recurring items, as well as items relating to our real estate development operations and we believe the exclusion of these items allows for better comparability of our performance between periods and is useful in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA has economic substance because it is used by management as a performance measure to analyze the performance of our business, excluding the impact of our real estate segment, and provides a perspective on the current effects of operating decisions relating to our core, non-real estate business. For the three and nine months ended September 30, 2024, Adjusted EBITDA excluded stock-based compensation, as well as depreciation and amortization relating to equity investments, interest expense related to equity investments, and a gain on transfer of land. For the three and months ended September 30, 2023, Adjusted EBITDA also excluded a gain on disposal of assets, a gain on insurance proceeds received by the Company's equity investment, and a gain on sale of land. Neither EBITDA nor adjusted EBITDA is a measure of performance calculated in accordance with GAAP and should not be considered an alternative to, or more meaningful than, net income as an indicator of our operating performance. EBITDA is presented as a supplemental disclosure because we believe that, when considered with measures calculated in accordance with GAAP, EBITDA and Adjusted EBITDA provide a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes, and it is a widely used measure of performance and a basis for valuation of companies in our industry. Moreover, other companies that provide EBITDA or Adjusted EBITDA information may calculate EBITDA or Adjusted EBITDA differently than we do.

The following table sets forth a reconciliation of net income, a GAAP financial measure, to EBITDA and to adjusted EBITDA (defined above) which are non-GAAP financial measures, for the three and nine months ended September 30, 2024 and 2023:

Summary of EBITDA Data

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
NET INCOME	$	2,021,806		$	1,136,299		$	3,358,246		$	9,199,331
Interest income, net		(521,579	)		(536,904	)		(1,592,676	)		(1,433,353	)
Income tax expense		772,000			533,000			1,364,000			3,709,000
Depreciation and amortization		936,033			831,379			2,676,092			2,308,272
EBITDA		3,208,260			1,963,774			5,805,662			13,783,250
Stock-based compensation		358,922			341,809			1,074,077			1,042,556
Gain on disposal of assets		—			(19,265	)		—			(19,265	)
Gain on transfer/sale of land		(1,732,353	)		—			(1,732,353	)		(6,489,976	)
Gain on insurance proceeds related to equity investments		—			—			—			(2,528,901	)
Depreciation and amortization related to equity investments		605,138			438,011			1,667,927			1,313,986
Interest expense related to equity investments		840,504			467,571			2,085,327			1,292,627
ADJUSTED EBITDA	$	3,280,471		$	3,191,900			8,900,640			8,394,277

Adjusted EBITDA increased $89,000, or 2.8%, and $506,000, or 6.0%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase in Adjusted EBITDA is primarily due to an overall increase in Income from Operations. Furthermore, for the nine months ended September 30, 2023, Adjusted EBITDA was reduced by insurance proceeds received by the Company's equity investment related to an insurance claim by the Doran Canterbury I, LLC joint venture, which was not present in other periods. For the three and nine months ended September 30, 2024, Adjusted EBITDA as a percentage of net revenue was 17.0% and 18.0%, respectively. For the three and nine months ended September 30, 2023, Adjusted EBITDA as a percentage of net revenue was 16.6% and 17.2%, respectively.

Contingencies:

The Company continues to analyze the feasibility of various options related to the development of our underutilized land. The Company may incur substantial costs during the feasibility and predevelopment process, but the Company believes available funds are sufficient to cover the near-term costs. See Liquidity and Capital Resources for more information on liquidity and capital resource requirements.

Liquidity and Capital Resources:

The Company's primary source of liquidity and capital resources have been and are expected to be cash flow from operations and cash available under our revolving line of credit. The Company has a line of credit and security agreement with a financial institution. The agreement was amended as of February 28, 2021 to extend the maturity date to January 31, 2024 and increase its revolving credit line up to $10,000,000. The line of credit was collateralized by all receivables, inventory, equipment, and general intangibles of the Company, as well as a mortgage on certain real property. The credit agreement contains covenants requiring the Company to maintain certain financial ratios. The general credit and security agreement was further amended as of January 31, 2024 to extend the maturity date to January 31, 2027 and reduce the maximum borrowing under the line of credit to $5,000,000. In connection with the amendment, the financial institution terminated a mortgage to release certain Company real property as collateral and the parties entered into a negative pledge agreement under which the Company agreed not to create any liens or encumbrances on certain Company real property. As of September 30, 2024, the outstanding balance on the line of credit was $0. The Company did not borrow on the revolving line of credit during the quarter ended September 30, 2024. As of September 30, 2024, the Company was in compliance with the financial covenants of the credit and security agreement.

The Company’s cash, cash equivalents, and restricted cash balance at September 30, 2024 was $22,427,000 compared to $25,842,000 as of December 31, 2023. In August 2023, the Company received approval for a three-phase barn relocation and redevelopment plan totaling approximately $15 million over the course of two years. As of September 30, 2024, the Company has completed phases one and two of the project with phase three currently underway, with estimated remaining costs of approximately $5,000,000. In addition, the Company expects to spend the remaining $3,800,000 in tax increment financing over the next six months for the completion of the private redevelopment plan. The Company believes that unrestricted funds available in its cash accounts, amounts available under its revolving line of credit, along with funds generated from operations and potential future land sales, will be sufficient to satisfy its ongoing liquidity and capital resource requirements for regular operations, as well as these planned development expenses for at least the next twelve months. Furthermore, if the Company engages in additional significant real estate development, significant improvements to its facilities, the Racetrack or surrounding grounds, or strategic growth or diversification transactions, additional financing would more than likely be required and the Company may seek this additional financing through joint venture arrangements, through incurring debt, or through an equity financing, or a combination of any of these.

Operating Activities

Trends in our operating cash flows tend to follow trends in operating income but can be affected by changes in working capital, the timing of significant interest payments, and tax payments or refunds. Net cash provided by operating activities for the nine months ended September 30, 2024 was $9,281,000, primarily as a result of the following: the Company reported net income of $3,358,000, depreciation of $2,676,000, a loss from equity investment of $3,401,000, and stock-based compensation and 401(k) match totaling $1,074,000. This was partially offset by a gain recognized on a transfer of land of $1,732,000. The Company also experienced an increase in payable to horsepersons of $2,143,000, primarily due to the timing of our live racing season. This was offset by an increase in accounts receivable of $1,974,000, primarily due to purse payments made as part of the 2024 live meet and purse fund contribution agreement, and an increase in inventory and prepaid expenses of $1,131,000, primarily due to the prepayment of infrastructure development, for the nine months ended September 30, 2024.

Net cash provided by operating activities for the nine months ended September 30, 2023 was $10,201,000, primarily as a result of the following: the Company reported net income of $9,199,000, depreciation of $2,308,000, deferred income taxes of $776,000, and stock-based compensation and 401(k) match totaling $1,043,000, offset by a gain from equity investment of $562,000 and a gain on land sale of $6,490,000. The Company experienced an increase in cash related to an employee retention credit receivable of $6,103,000, offset by a decrease in amounts payable to horsepersons of $768,000 and an increase in accounts receivable of $1,002,000 for the nine months ended September 30, 2023.

Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2024 was $11,637,000, primarily due to additions to land, buildings, and equipment of $8,080,000 and an increase in TIF eligible improvements of $2,486,000, which are associated with the barn relocation and redevelopment plan.

Net cash provided by investing activities for the nine months ended September 30, 2023 was $2,895,000, primarily due to net proceeds received from the sale of land of $8,337,000, offset by $5,577,000 in additions to land, buildings, and equipment, which were associated with the barn relocation and redevelopment plan.

Financing Activities

Net cash used in financing activities for the nine months ended September 30, 2024 was $1,058,000, primarily due to cash dividends paid to shareholders and payments for taxes of equity awards. The Company declared a cash dividend of $0.07 per share payable during the three months ended September 30, 2024.

Net cash used in financing activities for the nine months ended September 30, 2023 was $1,126,000, primarily due to cash dividends paid to shareholders and payments for taxes of equity awards. The Company declared a cash dividend of $0.07 per share payable each quarter during the nine months ended September 30, 2023.

Critical Accounting Estimates:

The preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires us to make estimates and judgments that are subject to an inherent degree of uncertainty. The nature of the estimates and assumptions are material due to the levels of subjectivity and judgment necessary to account for highly uncertain factors or the susceptibility of such factors to change.

These accounting estimates are described in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Management made no changes to the Company’s critical accounting estimates during the quarter ended September 30, 2024. In applying its critical accounting estimates, management reassesses its estimates each reporting period based on available information. Changes in these estimates did not have a significant impact on earnings for the quarter ended September 30, 2024.

The development and selection of critical accounting estimates, and the related disclosures, have been reviewed with the Audit Committee of our Board of Directors. We believe the current assumptions and other considerations used to estimate amounts reflected in our Condensed Consolidated Financial Statements are appropriate. However, if actual experience differs from the assumptions and other considerations used in estimating amounts reflected in our Condensed Consolidated Financial Statements, the resulting changes could have a material adverse effect on our financial condition, results of operations and cash flows.

Estimate of the allowance for doubtful accounts - Property Tax Increment Financing "TIF" Receivable

As of September 30, 2024, the Company recorded a TIF receivable on its Consolidated Balance Sheet of approximately $16,969,000, which represents $13,793,000 of principal and $3,176,000 of interest. The TIF receivable requires significant management estimates and judgement pertaining to whether an allowance for doubtful accounts is necessary. The TIF receivable was generated in connection with the Contract for Private Redevelopment, in which the City of Shakopee has agreed that a portion of the future tax increment revenue generated from the developed property around the Racetrack will be paid to the Company to reimburse it for expenses in constructing public infrastructure improvements.

The Company typically performs an annual collectability analysis of the TIF receivable in the fourth quarter of each year, or more frequently if indicators of potential uncollectability exist. The Company utilizes the assistance of a third party to assist with the projected tax increments. The quantitative analysis includes assumptions based on the market values of the completed development projects within Canterbury Commons, which derives the future projected tax increment revenue. The Company uses the analysis to determine if the future tax increment revenue will exceed the Company's development costs on infrastructure improvements. As a result of our analysis for the year ended December 31, 2023, management believes the TIF receivable will be fully collectible and no allowance related to this receivable is necessary. There were no indicators of potential uncollectability for the three months ended September 30, 2024.

Redevelopment Agreement:

As mentioned above in Note 7 of Notes to Financial Statements, on August 10, 2018, the City of Shakopee, the City of Shakopee Economic Development Authority, and the Company entered into a Redevelopment Agreement in connection with a Tax Increment Financing District (“TIF District”) that the City had approved in April 2018. Under the Redevelopment Agreement, the Company has agreed to undertake a number of specific infrastructure improvements within the TIF District, including the development of public streets, utilities, sidewalks, and other public infrastructure and the City of Shakopee agreed that a portion of the tax revenue generated from the developed property will be paid to the Company to reimburse it for its expense in constructing these improvements. The Company expects to finance its improvements under the Redevelopment Agreement with funds from its current operating resources and existing credit facility and, potentially, third-party financing sources.

On January 25, 2022, the Company received the fully executed First Amendment to the Contract for Private Redevelopment among the Company, the City of Shakopee, and the Shakopee EDA, which is effective as of September 7, 2021. Under the First Amendment and as part of the authorized changes regarding the responsibilities of the Company and the City, improvements on Unbridled Avenue will be primarily constructed by the City of Shakopee. As a result, the total estimated cost of TIF eligible improvements to be borne by the Company was reduced by $5,744,000 to an amount not to exceed $17,592,881.

Forward-Looking Statements:

From time-to-time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, we may make forward-looking statements concerning possible or anticipated future financial performance, prospective business activities or plans that are typically preceded by words such as “believes,” “expects,” “anticipates,” “intends” or similar expressions. For these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties that could affect our actual results and cause actual results to differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to:

●

We may not be successful at implementing our growth strategy.

●

Our business is sensitive to reductions in discretionary consumer spending as a result of downturns in the economy and other factors outside of our control.

●

We have experienced a decrease in revenue and profitability from live racing.

●

We may not be able to attract a sufficient number of horses and trainers to achieve above average field sizes.

●

We face significant competition, both directly from other racing and gaming operations and indirectly from other forms of entertainment and leisure time activities, which could have a material adverse effect on our operations.

●

Nationally, the popularity of horse racing has declined.

●

A lack of confidence in the integrity of our core businesses could affect our ability to retain our customers and engage with new customers.

●

Horse racing is an inherently dangerous sport and our racetrack is subject to personal injury litigation.

●

Our business depends on using totalizator services.

●

Inclement weather and other conditions may affect our ability to conduct live racing.

●

We are subject to changes in the laws that govern our business, including the possibility of an increase in gaming taxes, which would increase our costs, and changes in other laws may adversely affect our ability to compete.

●

We are subject to extensive regulation from gaming authorities that could adversely affect us.

●

We rely on the efforts of our partner Doran for the development and profitable operation of our Triple Crown Residences at Canterbury Park joint venture.

●

We rely on the efforts of our partner Greystone Construction for a new development project.

●

We may not be successful in executing our real estate development strategy.

●

We are obligated to make improvements in the TIF district and will be reimbursed only to the extent of future tax revenue.

●

We face competition from other real estate developers.

●

We may be adversely affected by the effects of inflation

●

An increase in the minimum wage mandated under Federal or Minnesota law could have a material adverse effect on our operations and financial results.

●

Our success may be affected if we are not able to attract, develop and retain qualified personnel.

●

The payment and amount of future dividends is subject to Board of Director discretion and to various risks and uncertainties.

●

Our information technology and other systems are subject to cyber security risk including misappropriation of customer information or other breaches of information security.

●

We process, store, and use personal information and other data, which subjects us to governmental regulation and other legal obligations related to privacy, and our actual or perceived failure to comply with such obligations could harm our business.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4: CONTROLS AND PROCEDURES

(a)

Evaluation of Disclosure Controls and Procedures:

The Company’s President and Chief Executive Officer, Randall D. Sampson, and Chief Financial Officer, Randy J. Dehmer, have reviewed the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based upon this review, these officers have concluded that the Company’s disclosure controls and procedures are effective.

(b)

Changes in Internal Control over Financial Reporting:

There have been no significant changes in our internal control over financial reporting (as defined in Rules 13a-15(f) under the Exchange Act) that occurred during our fiscal quarter ended September 30, 2024 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

Not Applicable.

Item 1A. Risk Factors

The most significant risk factors applicable to the Company are described in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes from the risk factors previously disclosed.

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

During the three months ended September 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (rules 13a-14 and 15d-14 of the Exchange Act).

31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (rules 13a-14 and 15d-14 of the Exchange Act).

32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

99.1	Press Release dated November 7, 2024 announcing 2024 Third Quarter Results.

101	The following financial information from Canterbury Park Holding Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, formatted in Inline eXtensible Business Reporting Language XBRL: (i) Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, (ii) Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and September 30, 2023, (iii) Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2024 and September 30, 2023, (iv) Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and September 30, 2023, and (v) Notes to Financial Statements.

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.


	Canterbury Park Holding Corporation

Dated: November 8, 2024	/s/ Randall D. Sampson
	Randall D. Sampson
	President and Chief Executive Officer (principal executive officer)


Dated: November 8, 2024	/s/ Randy J. Dehmer
	Randy J. Dehmer
	Chief Financial Officer (principal financial officer, principal accounting officer)

Exhibit 31.1

CERTIFICATION

I, Randall D. Sampson certify that:

I have reviewed this quarterly report on Form 10-Q of Canterbury Park Holding Corporation;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d- 15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case on an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and;

I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 8, 2024	CANTERBURY PARK HOLDING CORPORATION

	/s/ Randall D. Sampson
	Randall D. Sampson
	President and Chief Executive Officer (principal executive officer)

Exhibit 31.2

CERTIFICATION

I, Randy J. Dehmer certify that:

I have reviewed this quarterly report on Form 10-Q of Canterbury Park Holding Corporation;

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 8, 2024	CANTERBURY PARK HOLDING CORPORATION

	/s/ Randy J. Dehmer
	Randy J. Dehmer
	Chief Financial Officer (principal financial officer, principal accounting officer)

Exhibit 32

CERTIFICATION

Pursuant to 18 U.S.C. 1350, the undersigned Chief Executive Officer and Chief Financial Officer of Canterbury Park Holding Corporation (the “Company”) herby certifies that:

(1)

The accompanying quarterly report on Form 10-Q for the period ended September 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the accompanying Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	CANTERBURY PARK HOLDING CORPORATION

Dated: November 8, 2024	/s/ Randall D. Sampson
	Randall D. Sampson
	President and Chief Executive Officer (principal executive officer)


Dated: November 8, 2024	/s/ Randy J. Dehmer
	Randy J. Dehmer
	Chief Financial Officer (principal financial officer, principal accounting officer)

Exhibit 99.1

Canterbury Park Holding Corporation Reports

2024 Third Quarter Results

Shakopee, MN – November 7, 2024 – Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (Nasdaq: CPHC) today reported financial results for the three and nine months ended September 30, 2024.

($ in thousands, except per share data and percentages)

	Three Months Ended September 30,							Nine months ended September 30,
	2024		2023		Change			2024		2023		Change
Net revenues	$	19,284	$	19,269		0.1	%	$	49,585	$	48,910		1.4	%

Net income⁽¹⁾	$	2,022	$	1,136		77.9	%	$	3,358	$	9,199		-63.5	%

Adjusted EBITDA⁽²⁾	$	3,280	$	3,192		2.8	%	$	8,901	$	8,394		6.0	%

Basic EPS ⁽¹⁾	$	0.40	$	0.23		73.9	%	$	0.67	$	1.87		-64.2	%
Diluted EPS ⁽¹⁾	$	0.40	$	0.23		73.9	%	$	0.67	$	1.86		-64.0	%

(1)

Net income and basic and diluted EPS for the three and nine months ended September 30, 2024 include a $1.7 million gain related to the transfer of land to a new joint venture. Net income and basic and diluted EPS for the nine months ended September 30, 2023 include a $6.5 million gain on sale of land.

(2)

Adjusted EBITDA, a non-GAAP measure, excludes certain items from net income, a GAAP measure. Non-GAAP financial measures are not intended to be considered in isolation from, a substitute for, or superior to GAAP results. Definitions, disclosures, and reconciliations of non-GAAP financial information are included later in the release.

Management Commentary

“Canterbury’s 2024 third quarter results again demonstrated our ability to deliver consistent, solid financial performance . Net revenues and Adjusted EBITDA of $19.3 million and $3.3 million, respectively, were both up slightly compared to the prior year as we continue to execute on initiatives focused on delivering solid contributions from all segments of our operations,” said Randy Sampson, President and Chief Executive Officer of Canterbury Park. “This focus is reflected in the 28% year-over-year increase in Other revenues in the third quarter as we continue to position our venue as a leading regional destination for events of all sizes and focus on bringing new, exciting entertainment to the property, such as the debut of the Canterbury Park rodeo in July. The strong contributions from these activities offset modest year-over-year declines in Casino, Pari-mutuel and Food & Beverage revenue. Our focus on operating more efficiently and prioritizing cash flow generation is reflected in the adjusted EBITDA margin of 17.0% in the quarter which compares to 16.6% for the same period in 2023.

“We continue our work with top-tier partners to transform the excess land around the property into Canterbury Commons, a regional destination for living, playing and working experiences. There are now currently available or under development over 900 residential units, five restaurants and breweries, two music and entertainment venues, 57,000 square-feet of office space, and other distinct amenities that are the core of an entirely new community in the region. Canterbury Commons is already bringing new, 24-hour traffic and energy to the property, and we expect it will create new long-term revenue sources and economics for the Company.

“Canterbury is well-positioned to deliver solid financial results in the near and long-term. We believe the Company’s current valuation does not fully reflect our consistent annual cash flow generation, strong balance sheet with nearly $22 million in unrestricted cash and short-term investments and nearly $17 million related to our tax increment financing receivable, as well as our return of capital initiative through our quarterly cash dividend. This is heightened by the significant value in our real estate which we are unlocking through the development of Canterbury Commons. We remain on track to execute on strategies over the balance of this year and beyond that will further create long-term value for our shareholders.”

Canterbury Commons Development Update

Swervo continues to make progress on the construction of its state-of-the-art amphitheater which is expected to open in August 2025. The Company’s barn relocation and redevelopment plan is nearing completion with three new barns completed and in operation, with the balance of the planned backside improvements on schedule for completion prior to the 2025 live racing season. Canterbury is also nearing completion of the road adjacent to the amphitheater which will unlock the development potential of roughly 25 acres of land in that portion of the site.

Residential and commercial construction updates related to joint ventures include:

●

Phase II of The Doran Group’s upscale Triple Crown Residences at Canterbury Park has leased 80% of its available units.

Repairs continue on Phase I of the Triple Crown Residences and are expected to be fully complete in late 2024 with a certificate of occupancy expected in early 2025.

●

74% of the 147 units of senior market rate apartments at The Omry at Canterbury are leased.

●

The pizza restaurant and fitness center in the new, 10,000 square-foot commercial building within the Winners Circle development recently opened; the development’s BBQ restaurant is expected to open before year-end.

●

A land use application for an additional 28,000 square-foot commercial office building within the Winners Circle development was approved by the City Planning Commission and the City Council, and construction has recently begun on the project. The primary user has 57% of the space under lease and discussions are ongoing with other potential tenants.

●

In the third quarter of 2024, Canterbury transferred 3.5 acres of trackside land into a new joint venture. The Company’s joint venture partner, Trackside Hospitality, LLC, has begun construction of an approximately 16,000 square foot project that will house a new music venue, restaurant and bar in the spring of 2025.

Residential and commercial construction updates related to prior land sales include:

●

Pulte Homes of Minnesota continues development on the 45-unit second phase of its row home and townhome residences.

Developer and partner selection for the remaining 50 acres of Canterbury Commons, including 25 acres that will become available for development following the completion of the new road noted above, continues. Additional uses could include office, retail, hotel and restaurants.

Summary of 2024 Third Quarter Operating Results

Net revenues for the three months ended September 30, 2024 and September 30, 2023 were $19.3 million. Compared to the prior-year period, Casino revenue declined 3.4% primarily due to a decrease in table games drop along with a lower average collection rate. Pari-mutuel and Food & Beverage revenue declined 2.3% and 6.3%, respectively, primarily due to one fewer live race day year-over-year (37 in 2024 compared to 38 in 2023). These declines were offset by a 27.8% increase in Other revenue primarily driven by higher admissions revenue related to hosting large scale special events, including Canterbury’s first ever rodeo in July, as well as a successful comedy series in September.

Operating expenses for the three months ended September 30, 2024 declined slightly to $17.4 from $17.5 million for the same period in 2023. The year-over-year decline primarily reflects lower advertising and marketing expenses and professional and contracted services, due to proactive efforts to lower overall costs, slightly offset by an increase in other operating expenses, primarily due to higher promoter expenses related to special events.

The Company recorded a $1.7 million gain on the transfer of 3.5 acres of land to a new joint venture during the three months ended September 30, 2024. There were no transfers or sales of land in the three months ended September 30, 2023.

The Company recorded a loss from equity investment of $1.4 million for the three months ended September 30, 2024. For the three months ended September 30, 2023, the Company recorded a loss from equity investment of $674,000. The losses from equity investments in both periods were primarily related to the Company’s share of depreciation, amortization and interest expense from the Doran Canterbury joint ventures.

The Company recorded income tax expense of $772,000 for the three months ended September 30, 2024 compared to income tax expense of $533,000 for the three months ended September 30, 2023. The Company recorded net income of $2.0 million and diluted earnings per share of $0.40 for the three months ended September 30, 2024, compared to net income and diluted earnings per share for the three months ended September 30, 2023 of $1.1 million and $0.23 per share, respectively.

Adjusted EBITDA, a non-GAAP measure, for the three months ended September 30, 2024 and September 30, 2023 was $3.3 million and $3.2 million, respectively.

Summary of 2024 Year-to-Date Operating Results

Net revenues for the nine months ended September 30, 2024 increased 1.4% to $49.6 million, compared to $48.9 million for the same period in 2023. The improvement relative to the nine months ended September 30, 2023 reflects increases in Pari-mutuel, Food & Beverage and Other revenues of 1.3%, 1.8% and 21.1%, respectively, partially offset by a 1.8% decline in Casino revenue. The increased Pari-mutuel revenues were primarily the result of the Company having one more live race day compared to the same period last year as well as higher out-of-state handle due to increased field sizes on a per race basis. The increase in Food & Beverage revenue was also partially due to the one additional live race day while also benefiting from increased catering operations related to hosting large scale special events. Other revenues increased primarily due to admission revenues related to the rodeo, comedy series and live racing events.

Operating expenses for the nine months ended September 30, 2024 were $44.8 million, an increase of $300,000, or less than 1.0%, compared to operating expenses of $44.5 million for the same period in 2023. The year-over-year increase reflects higher depreciation, due to putting into service upgrades to the Company’s barns and backside, and higher salaries and benefits expenses, due primarily to annual wage increases, which more than offset lower advertising and marketing and professional and contracted services expenses as compared to the nine months ended September 30, 2023.

The Company recorded a $1.7 million gain on the transfer of 3.5 acres of land to a new joint venture during the nine months ended September 30, 2024. The Company recorded a gain on sale of land of $6.5 million related to the sale of 37 acres to Swervo during the nine months ended September 30, 2023.

The Company recorded a loss from equity investment of $3.4 million for the nine months ended September 30, 2024 compared to a gain from equity investment of $0.6 million for the nine months ended September 30, 2023. The net loss for the nine month period ended September 30, 2024 is related to the Company’s share of depreciation, amortization and interest expense from the Doran Canterbury joint ventures, while the net gain for the same period a year ago is related to a gain recognized on insurance proceeds received by Doran Canterbury I related to an outstanding claim.

The Company recorded income tax expense of $1.4 million for the nine months ended September 30, 2024 compared to income tax expense of $3.7 million for the nine months ended September 30, 2023.

The Company recorded net income of $3.4 million and diluted earnings per share of $0.67 for the nine months ended September 30, 2024, compared to net income and diluted earnings per share for the nine months ended September 30, 2023 of $9.2 million and $1.86 per share, respectively.

Adjusted EBITDA was $8.9 million for the nine months ended September 30, 2024 compared with $8.4 million for the same period in 2023.

Additional Financial Information

Further financial information for the third quarter ended September 30, 2024, is presented in the accompanying tables at the end of this press release. Additional information will be provided in the Company’s Quarterly Report on Form 10-Q that will be filed with the Securities and Exchange Commission on or about November 8, 2024.

Use of Non-GAAP Financial Measures

To supplement our financial statements, we also provide investors with information about our EBITDA and Adjusted EBITDA, each of which is a non-GAAP measure, and which exclude certain items from net income, a GAAP measure. We define EBITDA as earnings before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as earnings before interest income (net of interest expense), income tax expense, depreciation and amortization, as well as excluding stock-based compensation (which includes our 401(k) match expense as this match occurs in Company stock), gain on insurance proceeds relating to equity investments, gain on disposal of assets, gain on the transfer or sale of land, depreciation and amortization related to equity investments, and interest expense related to equity investments. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net revenues. Neither EBITDA, Adjusted EBITDA, or Adjusted EBITDA margin are measures of performance calculated in accordance with generally accepted accounting principles ("GAAP"), and should not be considered an alternative to, or more meaningful than, net income as an indicator of our operating performance. See the table below, which presents reconciliations of these measures to the GAAP equivalent financial measure, which is net income. We have presented EBITDA as a supplemental disclosure because we believe that, when considered with measures calculated in accordance with GAAP, EBITDA gives investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes, and it is a widely used measure of performance and basis for valuation of companies in our industry. Other companies that provide EBITDA information may calculate EBITDA or Adjusted EBITDA differently than we do. We have presented Adjusted EBITDA as a supplemental disclosure because we believe it enables investors to understand and assess our core operating results excluding the effect of these items and is useful to investors in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA has economic substance because it is used by management as a performance measure to analyze the performance of our business and provides a perspective on the current effects of operating decisions.

About Canterbury Park

Canterbury Park Holding Corporation (Nasdaq: CPHC) owns and operates Canterbury Park Racetrack and Casino in Shakopee, Minnesota, the only thoroughbred and quarter horse racing facility in the State. The Company generally offers live racing from May to September. The Casino hosts card games 24 hours a day, seven days a week, dealing both poker and table games. The Company also conducts year-round wagering on simulcast horse racing and hosts a variety of other entertainment and special events at its Shakopee facility. The Company is also pursuing a strategy to enhance shareholder value by the ongoing development of approximately 140 acres of underutilized land surrounding the Racetrack that was originally designated for a project known as Canterbury Commons™. The Company is pursuing several mixed-use development opportunities for the remaining underutilized land, directly and through joint ventures. For more information about the Company, please visit www.canterburypark.com.

Cautionary Statement

From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, we may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans. These statements are typically preceded by the words “believes,” “expects,” “anticipates,” “intends” or similar expressions. For these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties which could affect our actual results and cause actual results to differ materially from those indicated in the forward-looking statements. We report these risks and uncertainties in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. They include, but are not limited to: we may not be successful in implementing our growth strategy; sensitivity to reductions in discretionary spending as a result of downturns in the economy and other factors; we have experienced a decrease in revenue and profitability from live racing; challenges in attracting a sufficient number of horses and trainers; a lack of confidence in core operations resulting in decreasing customer retention and engagement; personal injury litigation due to the inherently dangerous nature of horse racing; material fluctuations in attendance at the Racetrack; material changes in the level of wagering by patrons; any decline in interest in horse racing or the unbanked card games offered in the Casino; competition from other venues offering racing, unbanked card games or other forms of wagering; competition from other sports and entertainment options; increases in compensation and employee benefit costs; the impact of wagering products and technologies introduced by competitors; the general health of the gaming sector; legislative and regulatory decisions and changes; our ability to successfully develop our real estate, including the effect of competition on our real estate development operations and our reliance on our current and future development partners; temporary disruptions or changes in access to our facilities caused by ongoing infrastructure improvements; inclement weather and other conditions affecting the ability to conduct live racing; technology and/or key system failures; cybersecurity incidents; the general effects of inflation; our ability to attract and retain qualified personnel; dividends that may or may not be issued at the discretion of our Board of Directors; and other factors that are beyond our ability to control or predict.

The forward-looking statements in this press release speak only as of the date of this press release. Except as required by law, Canterbury assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Investor Contacts:

Randy Dehmer

Senior Vice President and Chief Financial Officer

Canterbury Park Holding Corporation

952-233-4828 or investorrelations@canterburypark.com

Richard Land, Jim Leahy

JCIR

212-835-8500 or cphc@jcir.com

- Financial tables follow –

CANTERBURY PARK HOLDING CORPORATION'S

SUMMARY OF OPERATING RESULTS

(UNAUDITED)

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Operating Revenues:
Casino	$	9,878,660		$	10,224,216		$	29,780,059		$	30,322,149
Pari-mutuel		3,327,332			3,405,010			7,100,316			7,009,710
Food and Beverage		3,102,706			3,310,759			6,930,086			6,808,242
Other		2,975,669			2,328,564			5,774,290			4,769,694
Total Net Revenues	$	19,284,367		$	19,268,549		$	49,584,751		$	48,909,795
Operating Expenses		(17,370,092	)		(17,461,813	)		(44,786,387	)		(44,486,784	)
Gain on Transfer/Sale of Land		1,732,353			-			1,732,353			6,489,976
Income from Operations		3,646,628			1,806,736			6,530,717			10,912,987
Other (Loss) Income, net		(852,822	)		(137,437	)		(1,808,471	)		1,995,344
Income Tax Expense		(772,000	)		(533,000	)		(1,364,000	)		(3,709,000	)
Net Income		2,021,806			1,136,299			3,358,246			9,199,331
Basic Net Income Per Common Share	$	0.40		$	0.23		$	0.67		$	1.87
Diluted Net Income Per Common Share	$	0.40		$	0.23		$	0.67		$	1.86

RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
NET INCOME	$	2,021,806		$	1,136,299		$	3,358,246		$	9,199,331
Interest income, net		(521,579	)		(536,904	)		(1,592,676	)		(1,433,353	)
Income tax expense		772,000			533,000			1,364,000			3,709,000
Depreciation and amortization		936,033			831,379			2,676,092			2,308,272
EBITDA		3,208,260			1,963,774			5,805,662			13,783,250
Stock-based compensation		358,922			341,809			1,074,077			1,042,556
Gain on insurance proceeds related to equity investments		-			-			-			(2,528,901	)
Gain on disposal of assets		-			(19,265	)					(19,265	)
Gain on transfer/sale of land		(1,732,353	)		-			(1,732,353	)		(6,489,976	)
Depreciation and amortization related to equity investments		605,138			438,011			1,667,927			1,313,986
Interest expense related to equity investments		840,504			467,571			2,085,327			1,292,627
ADJUSTED EBITDA	$	3,280,471		$	3,191,900		$	8,900,640		$	8,394,277

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2024	Nov. 07, 2024
Document Information [Line Items]
Entity Central Index Key	0001672909
Entity Registrant Name	Canterbury Park Holding Corp
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-37858
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	47-5349765
Entity Address, Address Line One	1100 Canterbury Road
Entity Address, City or Town	Shakopee
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55379
City Area Code	952
Local Phone Number	445-7223
Title of 12(b) Security	Common Stock Common stock, $.01 par value
Trading Symbol	CPHC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,019,609

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 16,713,056	$ 21,936,210
Restricted cash	5,714,338	3,905,544
Short-term investments	5,000,000	5,000,000
Accounts receivable, net of allowance of $7,670 for both periods	2,457,780	484,092
Inventory	292,986	249,370
Prepaid expenses	1,706,038	645,422
Income taxes receivable and prepaid income taxes	2,127,349	4,083,364
Total Current Assets	34,011,547	36,304,002
LONG-TERM ASSETS
Other prepaid expenses	38,182	10,978
TIF receivable	16,969,097	13,972,875
Operating lease right-of-use asset	27,674	53,026
Equity investment	8,046,985	6,612,712
Land held for development	1,229,475	1,229,475
Land, buildings, and equipment, net	49,288,093	42,969,529
Total Long-term Assets	80,215,573	68,374,666
TOTAL ASSETS	114,227,120	104,678,668
CURRENT LIABILITIES
Accounts payable	5,783,824	4,599,391
Casino accruals	2,240,551	2,667,499
Accrued wages and payroll taxes	2,806,975	1,662,927
Cash dividend payable	350,555	346,125
Accrued property taxes	726,331	741,215
Deferred revenue	325,883	274,898
Payable to horsepersons	2,906,622	763,383
Current portion of finance lease obligations	32,259	1,604
Current portion of operating lease obligations	27,674	25,352
Total Current Liabilities	15,200,674	11,082,394
LONG-TERM LIABILITIES
Deferred income taxes	9,708,000	10,300,015
Investee losses in excess of equity investment	4,003,146	1,464,218
Finance lease obligations, net of current portion	125,682	7,770
Operating lease obligations, net of current portion	0	27,674
Total Long-term Liabilities	13,836,828	11,799,677
TOTAL LIABILITIES	29,037,502	22,882,071
STOCKHOLDERS’ EQUITY
Common stock, $.01 par value, 10,000,000 shares authorized, 5,019,609 and 4,962,573 respectively, shares issued and outstanding	50,196	49,626
Additional paid-in capital	28,445,226	27,351,509
Retained earnings	56,694,196	54,395,462
Total Stockholders’ Equity	85,189,618	81,796,597
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	114,227,120	104,678,668
Related Party [Member]
CURRENT ASSETS
Accounts receivable, net of allowance of $7,670 for both periods	8,000	47,000
LONG-TERM ASSETS
Related party receivable	$ 4,616,067	$ 3,526,071

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Accounts receivable, allowance	$ 7,670	$ 7,670
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	5,019,609	4,962,573
Common stock, shares outstanding (in shares)	5,019,609	4,962,573

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
OPERATING REVENUES:
Net Revenues	$ 19,284,367	$ 19,268,549	$ 49,584,751	$ 48,909,795
OPERATING EXPENSES:
Purse expense	2,796,644	2,594,270	6,474,049	6,034,508
Minnesota Breeders’ Fund	292,740	308,038	810,141	822,797
Salaries and benefits	7,290,780	7,245,775	20,280,955	19,922,853
Depreciation and amortization	936,033	831,379	2,676,092	2,308,272
Advertising and marketing	668,572	887,197	1,214,788	1,817,180
Professional and contracted services	1,915,498	2,284,181	4,613,426	4,857,229
Gain on disposal of assets	0	(19,265)	0	(19,265)
Other operating expenses	1,637,026	1,390,339	4,137,582	4,117,388
Total Operating Expenses	17,370,092	17,461,813	44,786,387	44,486,784
Gain on transfer/sale of land	1,732,353	0	1,732,353	6,489,976
INCOME FROM OPERATIONS	3,646,628	1,806,736	6,530,717	10,912,987
OTHER INCOME (LOSS)
(Loss) gain from equity investment	(1,374,401)	(674,341)	(3,401,147)	561,991
Interest income, net	521,579	536,904	1,592,676	1,433,353
Net Other (Loss) Income	(852,822)	(137,437)	(1,808,471)	1,995,344
INCOME BEFORE INCOME TAXES	2,793,806	1,669,299	4,722,246	12,908,331
INCOME TAX EXPENSE	(772,000)	(533,000)	(1,364,000)	(3,709,000)
NET INCOME	$ 2,021,806	$ 1,136,299	$ 3,358,246	$ 9,199,331
Basic earnings per share (in dollars per share)	$ 0.4	$ 0.23	$ 0.67	$ 1.87
Diluted earnings per share (in dollars per share)	$ 0.4	$ 0.23	$ 0.67	$ 1.86
Weighted average basic shares outstanding (in shares)	5,008,048	4,933,961	4,986,609	4,913,560
Weighted average diluted shares (in shares)	5,029,850	4,950,524	5,021,622	4,941,100
Cash dividends declared per share (in dollars per share)	$ 0.07	$ 0.07	$ 0.21	$ 0.21
Casino [Member]
OPERATING REVENUES:
Net Revenues	$ 9,878,660	$ 10,224,216	$ 29,780,059	$ 30,322,149
Pari-mutuel [Member]
OPERATING REVENUES:
Net Revenues	3,327,332	3,405,010	7,100,316	7,009,710
Food and Beverage [Member]
OPERATING REVENUES:
Net Revenues	3,102,706	3,310,759	6,930,086	6,808,242
OPERATING EXPENSES:
Cost of goods and services sold	1,166,693	1,161,665	2,661,404	2,567,561
Product and Service, Other [Member]
OPERATING REVENUES:
Net Revenues	2,975,669	2,328,564	5,774,290	4,769,694
Other Pari-mutuel Expenses [Member]
OPERATING EXPENSES:
Cost of goods and services sold	186,745	210,212	708,911	691,519
Public Utilities [Member]
OPERATING EXPENSES:
Cost of goods and services sold	$ 479,361	$ 568,022	$ 1,209,039	$ 1,366,742

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2022	4,888,975
Balance at Dec. 31, 2022	$ 48,890	$ 25,914,644	$ 45,221,509	$ 71,185,043
Stock-based compensation	0	398,269	0	398,269
Dividend	$ 0	0	(1,043,171)	(1,043,171)
401(k) stock match (in shares)	28,597
401(k) stock match	$ 286	644,287	0	644,573
Net income	$ 0	0	9,199,331	9,199,331
Issuance of deferred stock awards (in shares)	22,197
Issuance of deferred stock awards	$ 221	(171,970)	0	(171,749)
Shares issued under Employee Stock Purchase Plan (in shares)	4,873
Shares issued under Employee Stock Purchase Plan	$ 49	94,584	0	94,633
Balance (in shares) at Sep. 30, 2023	4,944,642
Balance at Sep. 30, 2023	$ 49,446	26,879,814	53,377,669	80,306,929
Balance (in shares) at Jun. 30, 2023	4,933,844
Balance at Jun. 30, 2023	$ 49,338	26,538,005	52,586,742	79,174,085
Stock-based compensation	0	132,436	0	132,436
Dividend	$ 0	0	(345,372)	(345,372)
401(k) stock match (in shares)	10,798
401(k) stock match	$ 108	209,373	0	209,481
Net income	$ 0	0	1,136,299	1,136,299
Balance (in shares) at Sep. 30, 2023	4,944,642
Balance at Sep. 30, 2023	$ 49,446	26,879,814	53,377,669	80,306,929
Balance (in shares) at Dec. 31, 2023	4,962,573
Balance at Dec. 31, 2023	$ 49,626	27,351,509	54,395,462	81,796,597
Stock-based compensation	0	418,957	0	418,957
Dividend	$ 0	0	(1,059,512)	(1,059,512)
401(k) stock match (in shares)	32,024
401(k) stock match	$ 320	655,120	0	655,440
Net income	$ 0	0	3,358,246	3,358,246
Issuance of deferred stock awards (in shares)	17,475
Issuance of deferred stock awards	$ 175	(109,062)	0	(108,887)
Shares issued under Employee Stock Purchase Plan (in shares)	7,537
Shares issued under Employee Stock Purchase Plan	$ 75	128,702	0	128,777
Balance (in shares) at Sep. 30, 2024	5,019,609
Balance at Sep. 30, 2024	$ 50,196	28,445,226	56,694,196	85,189,618
Balance (in shares) at Jun. 30, 2024	5,007,921
Balance at Jun. 30, 2024	$ 50,079	28,086,304	55,022,946	83,159,329
Stock-based compensation	0	147,837	0	147,837
Dividend	$ 0	0	(350,556)	(350,556)
401(k) stock match (in shares)	11,688
401(k) stock match	$ 117	211,085	0	211,202
Net income	$ 0	0	2,021,806	2,021,806
Balance (in shares) at Sep. 30, 2024	5,019,609
Balance at Sep. 30, 2024	$ 50,196	$ 28,445,226	$ 56,694,196	$ 85,189,618

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating Activities:
Net income	$ 3,358,246	$ 9,199,331
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,676,092	2,308,272
Stock-based compensation expense	418,957	398,269
Stock-based employee match contribution	655,440	644,573
Gain on disposal of assets	0	(19,265)
Gain on sale of land	0	(6,489,976)
Gain on transfer of land	(1,732,353)	0
Deferred income taxes	(592,015)	776,000
Loss (gain) from equity investment	3,401,147	(561,991)
Changes in operating assets and liabilities:
Accounts receivable	(1,973,688)	(1,001,522)
Employee retention credit	0	6,103,236
Increase in TIF receivable	(510,064)	(502,644)
Inventory and prepaid expenses	(1,131,436)	96,360
Income taxes receivable and prepaid income taxes	1,956,015	(374,000)
Operating lease right-of-use asset	25,352	24,524
Operating lease liabilities	(25,352)	(24,524)
Accounts payable	(142,261)	116,379
Deferred revenue	50,985	(46,443)
Casino accruals	(426,948)	3,152
Accrued wages and payroll taxes	1,144,048	581,448
Accrued property taxes	(14,884)	(262,755)
Payable to horsepersons	2,143,239	(767,731)
Net cash provided by operating activities	9,280,520	10,200,693
Investing Activities:
Additions to land, buildings, and equipment	(8,080,229)	(5,577,116)
Proceeds from disposal of assets	0	22,500
Proceeds from sale of land	0	8,336,359
Additions for TIF eligible improvements	(2,486,158)	(4,160)
Increase in related party receivable	(1,089,996)	(382,987)
Proceeds from sale of short-term investments	5,000,000	500,000
Purchase of short-term investments	(5,000,000)	0
Cash dividends received from investments	19,158	0
Net cash (used in) provided by investing activities	(11,637,225)	2,894,596
Financing Activities:
Proceeds from issuance of common stock	128,777	94,633
Cash dividend paid to shareholders	(1,055,082)	(1,039,404)
Payments for taxes related to net share settlement of equity awards	(108,887)	(171,749)
Principal payments on finance leases	(22,463)	(9,219)
Net cash used in financing activities	(1,057,655)	(1,125,739)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(3,414,360)	11,969,550
Cash, cash equivalents, and restricted cash at beginning of period	25,841,754	16,106,003
Cash, cash equivalents, and restricted cash at end of period	22,427,394	28,075,553
Schedule of non-cash investing and financing activities
Additions to land, buildings, and equipment funded through accounts payable	1,327,000	28,000
Dividend declared but not yet paid	351,000	345,000
Change in investee losses in excess of equity investments	2,539,000	(636,000)
ROU assets obtained in exchange for lease obligations	171,000	77,550
Transfer of assets to Trackside Investments, LLC	583,000	0
Supplemental disclosure of cash flow information:
Income taxes paid, net of refunds	0	3,257,000
Interest paid	$ 10,000	$ 0

Note 1 - Overview and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reclassifications – Certain amounts in prior period financial statements have been reclassified to conform to current period presentations.

●

Identification of the contract, or contracts, with a customer

●

Identification of the performance obligations in the contract

●

Determination of the transaction price

●

Allocation of the transaction price to the performance obligation in the contract

●

Recognition of revenue when, or as, we satisfy a performance obligation

The Company offers certain promotional allowances at no charge to patrons who participate in its player rewards program.

Note 2 - Stock-based Compensation

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

2. STOCK-BASED COMPENSATION

Long Term Incentive Plan and Award of Deferred Stock

Board of Directors Stock Options, Deferred Stock Awards, and Restricted Stock Grants

Board of Directors deferred stock transactions during the nine months ended September 30, 2024 are summarized as follows:

				*Weighted*
				*Average*
	*Deferred*			*Fair Value*
	*Stock*			*Per Share*
Non-Vested Balance, December 31, 2023		7,818		$	23.01
Granted		10,734			22.35
Vested		(7,818	)		23.01
Forfeited		—			—
Non-Vested Balance, September 30, 2024		10,734		$	22.35

Employee Deferred Stock Awards

Employee deferred stock transactions during the nine months ended September 30, 2024 are summarized as follows:

				*Weighted*
				*Average*
	*Deferred*			*Fair Value*
	*Stock*			*Per Share*
Non-Vested Balance, December 31, 2023		36,920		$	22.00
Granted		22,100			21.08
Vested		(15,230	)		19.15
Forfeited		—			—
Non-Vested Balance, September 30, 2024		43,790		$	22.52

Note 3 - Net Income Per Share Computations

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

3. NET INCOME PER SHARE COMPUTATIONS

The following is a reconciliation of the numerator and denominator of the earnings per common share computations for the three and nine months ended September 30, 2024 and 2023:

	*Three Months Ended September 30, 2024*				*For the Nine Months Ended September 30,*
	*2024*		*2023*		*2024*		*2023*
Net income (numerator) amounts used for basic and diluted per share computations:	$	2,021,806	$	1,136,299	$	3,358,246	$	9,199,331

Weighted average shares (denominator) of common stock outstanding:
Basic		5,008,048		4,933,961		4,986,609		4,913,560
Plus dilutive effect of deferred stock awards		21,802		16,563		35,013		27,540
Diluted		5,029,850		4,950,524		5,021,622		4,941,100

Net income per common share:
Basic	$	0.40	$	0.23	$	0.67	$	1.87
Diluted		0.40		0.23		0.67		1.86

Note 4 - General Credit Agreement

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

4. GENERAL CREDIT AGREEMENT

Note 5 - Operating Segments

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

5. OPERATING SEGMENTS

The following tables represent a disaggregation of revenues from contracts with customers along with the Company’s operating segments (in 000’s):

	*For the Nine Months Ended September 30, 2024*
	*Horse Racing*			*Casino*		*Food and Beverage*		*Development*			*Total*
Net revenues from external customers	$	12,093		$	29,780	$	7,712	$	—		$	49,585
Intersegment revenues		238			—		1,044		—			1,282
Net interest income		809			—		—		784			1,593
Depreciation		2,328			225		123		—			2,676
Segment income (loss) before income taxes		(1,962	)		5,636		2,086		(1,038	)		4,722
Segment tax expense (benefit)		(567	)		1,628		603		(300	)		1,364

		*September 30, 2024*
Segment Assets		$	104,133			$	1,899			$	35,912			$	39,381			$	181,325

	*For the Nine Months Ended September 30, 2023*
	*Horse Racing*			*Casino*		*Food and Beverage*		*Development*		*Total*
Net revenues from external customers	$	11,186		$	30,322	$	7,402	$	—	$	48,910
Intersegment revenues		194			—		893		—		1,087
Net interest income		754			—		—		679		1,433
Depreciation		1,954			225		129		—		2,308
Segment income (loss) before income taxes		(3,745	)		6,940		2,137		7,576		12,908
Segment tax expense (benefit)		(1,076	)		1,994		614		2,177		3,709

		*December 31, 2023*
Segment Assets		$	92,970			$	2,125			$	33,175			$	34,892			$	163,162

The following are reconciliations of reportable segment revenues, income before income taxes, and assets, to the Company’s consolidated totals (in 000’s):

	*For the Nine Months Ended September 30,*
	*2024*			*2023*
Revenues
Total net revenue for reportable segments	$	50,867		$	49,997
Elimination of intersegment revenues		(1,282	)		(1,087	)
Total consolidated net revenues	$	49,585		$	48,910

Income before income taxes
Total segment income before income taxes	$	7,401		$	15,833
Elimination of intersegment income loss before income taxes		(2,679	)		(2,925	)
Total consolidated income before income taxes	$	4,722		$	12,908

	*September 30,*			*December 31,*
	*2024*			*2023*
Assets
Total assets for reportable segments	$	181,325		$	163,162
Elimination of intercompany balances		(67,098	)		(58,483	)
Total consolidated assets	$	114,227		$	104,679

Note 6 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

6. COMMITMENTS AND CONTINGENCIES

Note 7 - Real Estate Development

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Real Estate Disclosure [Text Block]

7. REAL ESTATE DEVELOPMENT

Equity Investments

Doran Canterbury I, LLC

Doran Canterbury II, LLC

Canterbury DBSV Development, LLC

Trackside Investments, LLC

	*Equity investment*			*Investee losses in excess of equity investment*			*Equity investment, net*
Net Equity Investment Balance at 12/31/23	$	6,612,712		$	(1,464,218	)	$	5,148,494

Q1 Equity investment loss		(87,841	)		(764,406	)		(852,247	)

Q2 Equity investment loss		(326,482	)		(848,017	)		(1,174,499	)

Q3 Equity investment loss		(447,896	)		(926,505	)		(1,374,401	)

Contribution to equity investment		2,315,650			—			2,315,650

Dividends received from investments		(19,158	)		—			(19,158	)

Net Equity Investment Balance at 9/30/24	$	8,046,985		$	(4,003,146	)	$	4,043,839

Tax Increment Financing

Note 8 - Leases

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Leases of Lessee and Commitments Disclosure [Text Block]

8. LEASES

The following table shows the classification of the right of use assets on our consolidated balance sheets:

		*September 30,*		*December 31,*
	*Balance Sheet Location*	*2024*		*2023*
Assets
Finance	Land, buildings and equipment, net (1)	$	157,941	$	9,374
Operating	Operating lease right-of-use assets		27,674		53,026
Total Leased Assets		$	185,615	$	62,400

1 – Finance lease assets are net of accumulated amortization of $22,968 and $118,424 as of September 30, 2024 and December 31, 2023, respectively.

The following table shows the lease terms and discount rates related to our leases:

	*September 30,*			*December 31,*
	*2024*			*2023*
Weighted average remaining lease term (in years):
Finance		4.5			4.9
Operating		0.4			0.8
Weighted average discount rate (%):
Finance		8.5	%		4.8	%
Operating		8.0	%		8.0	%

The maturity of operating leases and finance leases as of September 30, 2024 are as follows:

Nine Months Ended September 30,	*Operating leases*			*Finance leases*
2024 remaining	$	—		$	11,111
2025		28,228			44,447
2026		—			44,447
2027		—			44,447
2028 and beyond		—			44,251
Total minimum lease obligations		28,228			188,703
Less: amounts representing interest		(554	)		(30,762	)
Present value of minimum lease payments		27,674			157,941
Less: current portion		(27,674	)		(32,259	)
Lease obligations, net of current portion	$	—		$	125,682

Note 9 - Related Party Receivables

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

9. RELATED PARTY RECEIVABLES

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Insider Trading Arr Line Items
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications – Certain amounts in prior period financial statements have been reclassified to conform to current period presentations.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Accounts Receivable [Policy Text Block]

Revenue Recognition, Deferred Revenue [Policy Text Block]

Due To Organization [Policy Text Block]

Revenue from Contract with Customer [Policy Text Block]

●

Identification of the contract, or contracts, with a customer

●

Identification of the performance obligations in the contract

●

Determination of the transaction price

●

Allocation of the transaction price to the performance obligation in the contract

●

Recognition of revenue when, or as, we satisfy a performance obligation

The Company offers certain promotional allowances at no charge to patrons who participate in its player rewards program.

Note 2 - Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Schedule of Nonvested Share Activity [Table Text Block]

				*Weighted*
				*Average*
	*Deferred*			*Fair Value*
	*Stock*			*Per Share*
Non-Vested Balance, December 31, 2023		7,818		$	23.01
Granted		10,734			22.35
Vested		(7,818	)		23.01
Forfeited		—			—
Non-Vested Balance, September 30, 2024		10,734		$	22.35

				*Weighted*
				*Average*
	*Deferred*			*Fair Value*
	*Stock*			*Per Share*
Non-Vested Balance, December 31, 2023		36,920		$	22.00
Granted		22,100			21.08
Vested		(15,230	)		19.15
Forfeited		—			—
Non-Vested Balance, September 30, 2024		43,790		$	22.52

Note 3 - Net Income Per Share Computations (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	*Three Months Ended September 30, 2024*				*For the Nine Months Ended September 30,*
	*2024*		*2023*		*2024*		*2023*
Net income (numerator) amounts used for basic and diluted per share computations:	$	2,021,806	$	1,136,299	$	3,358,246	$	9,199,331

Weighted average shares (denominator) of common stock outstanding:
Basic		5,008,048		4,933,961		4,986,609		4,913,560
Plus dilutive effect of deferred stock awards		21,802		16,563		35,013		27,540
Diluted		5,029,850		4,950,524		5,021,622		4,941,100

Net income per common share:
Basic	$	0.40	$	0.23	$	0.67	$	1.87
Diluted		0.40		0.23		0.67		1.86

Note 5 - Operating Segments (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	*For the Nine Months Ended September 30, 2024*
	*Horse Racing*			*Casino*		*Food and Beverage*		*Development*			*Total*
Net revenues from external customers	$	12,093		$	29,780	$	7,712	$	—		$	49,585
Intersegment revenues		238			—		1,044		—			1,282
Net interest income		809			—		—		784			1,593
Depreciation		2,328			225		123		—			2,676
Segment income (loss) before income taxes		(1,962	)		5,636		2,086		(1,038	)		4,722
Segment tax expense (benefit)		(567	)		1,628		603		(300	)		1,364

		*September 30, 2024*
Segment Assets		$	104,133			$	1,899			$	35,912			$	39,381			$	181,325

	*For the Nine Months Ended September 30, 2023*
	*Horse Racing*			*Casino*		*Food and Beverage*		*Development*		*Total*
Net revenues from external customers	$	11,186		$	30,322	$	7,402	$	—	$	48,910
Intersegment revenues		194			—		893		—		1,087
Net interest income		754			—		—		679		1,433
Depreciation		1,954			225		129		—		2,308
Segment income (loss) before income taxes		(3,745	)		6,940		2,137		7,576		12,908
Segment tax expense (benefit)		(1,076	)		1,994		614		2,177		3,709

		*December 31, 2023*
Segment Assets		$	92,970			$	2,125			$	33,175			$	34,892			$	163,162

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	*For the Nine Months Ended September 30,*
	*2024*			*2023*
Revenues
Total net revenue for reportable segments	$	50,867		$	49,997
Elimination of intersegment revenues		(1,282	)		(1,087	)
Total consolidated net revenues	$	49,585		$	48,910

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

Income before income taxes
Total segment income before income taxes	$	7,401		$	15,833
Elimination of intersegment income loss before income taxes		(2,679	)		(2,925	)
Total consolidated income before income taxes	$	4,722		$	12,908

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

	*September 30,*			*December 31,*
	*2024*			*2023*
Assets
Total assets for reportable segments	$	181,325		$	163,162
Elimination of intercompany balances		(67,098	)		(58,483	)
Total consolidated assets	$	114,227		$	104,679

Note 7 - Real Estate Development (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Equity Method Investments [Table Text Block]

	*Equity investment*			*Investee losses in excess of equity investment*			*Equity investment, net*
Net Equity Investment Balance at 12/31/23	$	6,612,712		$	(1,464,218	)	$	5,148,494

Q1 Equity investment loss		(87,841	)		(764,406	)		(852,247	)

Q2 Equity investment loss		(326,482	)		(848,017	)		(1,174,499	)

Q3 Equity investment loss		(447,896	)		(926,505	)		(1,374,401	)

Contribution to equity investment		2,315,650			—			2,315,650

Dividends received from investments		(19,158	)		—			(19,158	)

Net Equity Investment Balance at 9/30/24	$	8,046,985		$	(4,003,146	)	$	4,043,839

Note 8 - Leases (Tables)

9 Months Ended

Sep. 30, 2024

Notes Tables

Assets, Lessee [Table Text Block]

		*September 30,*		*December 31,*
	*Balance Sheet Location*	*2024*		*2023*
Assets
Finance	Land, buildings and equipment, net (1)	$	157,941	$	9,374
Operating	Operating lease right-of-use assets		27,674		53,026
Total Leased Assets		$	185,615	$	62,400

Lease, Cost [Table Text Block]

	*September 30,*			*December 31,*
	*2024*			*2023*
Weighted average remaining lease term (in years):
Finance		4.5			4.9
Operating		0.4			0.8
Weighted average discount rate (%):
Finance		8.5	%		4.8	%
Operating		8.0	%		8.0	%

Lessee, Operating and Financing, Lease Liability Maturity [Table Text Block]

Nine Months Ended September 30,	*Operating leases*			*Finance leases*
2024 remaining	$	—		$	11,111
2025		28,228			44,447
2026		—			44,447
2027		—			44,447
2028 and beyond		—			44,251
Total minimum lease obligations		28,228			188,703
Less: amounts representing interest		(554	)		(30,762	)
Present value of minimum lease payments		27,674			157,941
Less: current portion		(27,674	)		(32,259	)
Lease obligations, net of current portion	$	—		$	125,682

Note 1 - Overview and Summary of Significant Accounting Policies (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Funds Due To Organization	$ 7,694,000	$ 6,174,000

Note 2 - Stock-based Compensation (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)	0
CPHC Long Term Incentive Plan (LTI Plan) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)	0
Non-Employee Board Member Stock Option and Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	10,734
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 22.35
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	10,734		7,818
Non-Employee Board Member Stock Option and Restricted Stock [Member] \| Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	1 year
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	0
Employee Deferred Stock Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	4 years	4 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	22,100	19,020
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 21.08	$ 25.52
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	43,790		36,920
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 905,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	3 years 6 months
Employee Deferred Stock Award [Member] \| CPHC Long Term Incentive Plan (LTI Plan) [Member]
Share-Based Payment Arrangement, Expense	$ 419,000	$ 398,000
Employee Deferred Stock Award [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	1 year
Employee Deferred Stock Award [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	4 years

Note 2 - Stock-based Compensation - Unvested Restricted Stock and Deferred Stock (Details) - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Non-Employee Board Member Stock Option and Restricted Stock [Member]
Non-Vested Balance (in shares)	7,818
Non-Vested Balance, weighted average fair value per share (in dollars per share)	$ 23.01
Granted (in shares)	10,734
Granted, weighted average fair value per share (in dollars per share)	$ 22.35
Vested (in shares)	(7,818)
Vested, weighted average fair value per share (in dollars per share)	$ 23.01
Forfeited (in shares)	0
Forfeited, weighted average fair value per share (in dollars per share)	$ 0
Non-Vested Balance (in shares)	10,734
Non-Vested Balance, weighted average fair value per share (in dollars per share)	$ 22.35
Employee Deferred Stock Award [Member]
Non-Vested Balance (in shares)	36,920
Non-Vested Balance, weighted average fair value per share (in dollars per share)	$ 22
Granted (in shares)	22,100	19,020
Granted, weighted average fair value per share (in dollars per share)	$ 21.08	$ 25.52
Vested (in shares)	(15,230)
Vested, weighted average fair value per share (in dollars per share)	$ 19.15
Forfeited (in shares)	0
Forfeited, weighted average fair value per share (in dollars per share)	$ 0
Non-Vested Balance (in shares)	43,790
Non-Vested Balance, weighted average fair value per share (in dollars per share)	$ 22.52

Note 3 - Net Income Per Share Computations - Reconciliation of Net Common Share Computation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net income	$ 2,021,806	$ 1,136,299	$ 3,358,246	$ 9,199,331
Basic (in shares)	5,008,048	4,933,961	4,986,609	4,913,560
Plus dilutive effect of deferred stock awards (in shares)	21,802	16,563	35,013	27,540
Diluted (in shares)	5,029,850	4,950,524	5,021,622	4,941,100
Basic earnings per share (in dollars per share)	$ 0.4	$ 0.23	$ 0.67	$ 1.87
Diluted earnings per share (in dollars per share)	$ 0.4	$ 0.23	$ 0.67	$ 1.86

Note 4 - General Credit Agreement (Details Textual) - USD ($)	Sep. 30, 2024	Jan. 31, 2024	Dec. 31, 2023	Feb. 28, 2021
Long-Term Line of Credit	$ 0		$ 0
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 5,000,000		$ 10,000,000

Note 5 - Operating Segments (Details Textual)	9 Months Ended
Note 5 - Operating Segments (Details Textual)	Sep. 30, 2024
Number of Reportable Segments	4
Source of Revenues of Horse Racing Segment	25.00%

Note 5 - Operating Segments - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Net revenues from external customers	$ 19,284,367	$ 19,268,549	$ 49,584,751	$ 48,909,795
Net interest income	521,579	536,904	1,592,676	1,433,353
Depreciation			2,676,092	2,308,272
Income before income taxes	2,793,806	1,669,299	4,722,246	12,908,331
Segment tax expense (benefit)	772,000	$ 533,000	1,364,000	3,709,000
Segment Assets	114,227,120		114,227,120		$ 104,678,668
Operating Segments [Member]
Net revenues from external customers			49,585,000	48,910,000
Net interest income			1,593,000	1,433,000
Depreciation			2,676,000	2,308,000
Income before income taxes			4,722,000	12,908,000
Segment tax expense (benefit)			1,364,000	3,709,000
Segment Assets	181,325,000		181,325,000		163,162,000
Intersegment Eliminations [Member]
Net revenues from external customers			1,282,000	1,087,000
Income before income taxes			(2,679,000)	(2,925,000)
Segment Assets	(67,098,000)		(67,098,000)		(58,483,000)
Horse Racing [Member] \| Operating Segments [Member]
Net revenues from external customers			12,093,000	11,186,000
Net interest income			809,000	754,000
Depreciation			2,328,000	1,954,000
Income before income taxes			(1,962,000)	(3,745,000)
Segment tax expense (benefit)			(567,000)	(1,076,000)
Segment Assets	104,133,000		104,133,000		92,970,000
Horse Racing [Member] \| Intersegment Eliminations [Member]
Net revenues from external customers			238,000	194,000
Card Casino [Member] \| Operating Segments [Member]
Net revenues from external customers			29,780,000	30,322,000
Net interest income			0	0
Depreciation			225,000	225,000
Income before income taxes			5,636,000	6,940,000
Segment tax expense (benefit)			1,628,000	1,994,000
Segment Assets	1,899,000		1,899,000		2,125,000
Card Casino [Member] \| Intersegment Eliminations [Member]
Net revenues from external customers			0	0
Food and Beverage Segment [Member] \| Operating Segments [Member]
Net revenues from external customers			7,712,000	7,402,000
Net interest income			0	0
Depreciation			123,000	129,000
Income before income taxes			2,086,000	2,137,000
Segment tax expense (benefit)			603,000	614,000
Segment Assets	35,912,000		35,912,000		33,175,000
Food and Beverage Segment [Member] \| Intersegment Eliminations [Member]
Net revenues from external customers			1,044,000	893,000
Development [Member] \| Operating Segments [Member]
Net revenues from external customers			0	0
Net interest income			784,000	679,000
Depreciation			0	0
Income before income taxes			(1,038,000)	7,576,000
Segment tax expense (benefit)			(300,000)	2,177,000
Segment Assets	$ 39,381,000		39,381,000		$ 34,892,000
Development [Member] \| Intersegment Eliminations [Member]
Net revenues from external customers			$ 0	$ 0

Note 5 - Operating Segments - Reconciliation of Segment Revenues, Income Before Income Taxes, and Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues	$ 19,284,367	$ 19,268,549	$ 49,584,751	$ 48,909,795
Reportable Legal Entities [Member]
Revenues			50,867,000	49,997,000
Intersegment Eliminations [Member]
Revenues			$ 1,282,000	$ 1,087,000

Note 5 - Operating Segments- Income Before Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income before income taxes	$ 2,793,806	$ 1,669,299	$ 4,722,246	$ 12,908,331
Reportable Legal Entities [Member]
Income before income taxes			7,401,000	15,833,000
Intersegment Eliminations [Member]
Income before income taxes			$ (2,679,000)	$ (2,925,000)

Note 5 - Operating Segments- Assets (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Segment Assets	$ 114,227,120	$ 104,678,668
Reportable Legal Entities [Member]
Segment Assets	181,325,000	163,162,000
Intersegment Eliminations [Member]
Segment Assets	$ (67,098,000)	$ (58,483,000)

Note 6 - Commitments and Contingencies (Details Textual) - USD ($)		3 Months Ended	9 Months Ended
	Dec. 21, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 12, 2023	Oct. 27, 2022	Dec. 21, 2021
Overnight Racing Expense, Price Per Race	$ 23,000
Overnight Racing Expense, Price Per Race	23,000
Recruiting and Participation Incentives [Member]
Other Expenses	$ 400,000	$ 257,000	$ 418,000
Indemnity Agreement [Member]
Debt Instrument, Maximum Reimbursement and Indemnification Amount		$ 7,000,000		$ 7,000,000		$ 5,000,000
Debt Instrument, Additional Reimbursement and Indemnification Amount				$ 1,300,000	$ 700,000

Note 7 - Real Estate Development (Details Textual)		3 Months Ended				9 Months Ended
Note 7 - Real Estate Development (Details Textual)	Jan. 25, 2022 USD ($)	Sep. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 20, 2024 a ft²	Dec. 31, 2023 USD ($)	Dec. 12, 2023 USD ($)	Dec. 31, 2021 USD ($)	Dec. 21, 2021 USD ($)	Sep. 30, 2020 a	Jul. 01, 2020	Jun. 16, 2020 a	Sep. 27, 2018 a
Income (Loss) from Equity Method Investments		$ (1,374,401)	$ (1,174,499)	$ (852,247)	$ (674,341)	$ (3,401,147)	$ 561,991
Investee Losses in Excess of Equity Investment		4,003,146				4,003,146			$ 1,464,218
Proceeds from Equity Method Investment, Distribution, Return of Capital						19,158	0
Gain (Loss) on Transfer/Sale of Land		1,732,353			0	1,732,353	6,489,976
TIF Improvement Costs											$ 23,336,500
Estimated Cost of Tax Increment Financing Eligible Improvements, Expected Reduction	$ 5,744,000
Estimated Cost of Tax Increment Financing Eligible Improvements, Maximum Principle	$ 17,592,881
Income Taxes Receivable, Noncurrent		16,969,097				16,969,097			13,972,875
State and Local Jurisdiction [Member]
Income Taxes Receivable, Noncurrent		16,969,000				16,969,000			13,973,000
Income Tax Receivable Principal		13,793,000				13,793,000			11,307,000
Income Tax Receivable Interest		3,176,000				3,176,000			2,666,000
Indemnity Agreement [Member]
Debt Instrument, Maximum Reimbursement and Indemnification Amount		7,000,000				7,000,000				$ 7,000,000		$ 5,000,000
Doran Canterbury I Joint Venture [Member]
Area of Land (Acre) \| a																13
Equity Method Investment, Ownership Percentage																27.40%
Income (Loss) from Equity Method Investments		(927,000)			(650,000)	(2,539,000)	636,000
Investee Losses in Excess of Equity Investment		4,003,000				4,003,000			$ 1,464,000
Doran Canterbury II [Member]
Area of Land (Acre) \| a													10
Equity Method Investment, Ownership Percentage													27.40%
Income (Loss) from Equity Method Investments		(364,000)				(781,000)
Canterbury DBSV [Member]
Area of Land (Acre) \| a															13
Equity Method Investment, Ownership Percentage														61.87%
Income (Loss) from Equity Method Investments		(84,000)			$ (24,000)	(81,000)	$ (76,000)
Proceeds from Equity Method Investment, Distribution, Return of Capital		$ 6,000				$ 19,000
Trackside Investments, LLC [Member]
Area of Land (Acre) \| a								3.5
Equity Method Investment, Ownership Percentage								50.00%
Area of Real Estate Property (Square Foot) \| ft²								16,000
Equity Method Investment, Annual Preferred Return Percentage		6.00%				6.00%
Gain (Loss) on Transfer/Sale of Land						$ 1,732,000

Note 7 - Real Estate Development - Changes to Equity Method Investments (Details) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Equity Investment Balance	$ 8,046,985				$ 8,046,985		$ 6,612,712
Investee losses in excess of equity investment	(4,003,146)				(4,003,146)		(1,464,218)
Net Equity Investment Balance	4,043,839				4,043,839		$ 5,148,494
Equity investment income (loss), equity investment	(447,896)	$ (326,482)	$ (87,841)
Equity investment income (loss), investee losses in excess of equity investment	(926,505)	(848,017)	(764,406)
Equity investment income (loss), net equity investment	$ (1,374,401)	$ (1,174,499)	$ (852,247)	$ (674,341)	(3,401,147)	$ 561,991
Contribution to equity investment, gross					2,315,650
Contribution to equity investment, net					2,315,650
Dividends received from investments, gross					(19,158)
Dividends received from investments, net					$ (19,158)	$ 0

Note 8 - Leases (Details Textual) - USD ($)	9 Months Ended
Note 8 - Leases (Details Textual) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Operating Lease, Cost	$ 25,353	$ 25,353
Operating Lease, Expense	386,044	378,134
Finance Lease, Right-of-Use Asset, Amortization	24,999	$ 18,701
Finance Lease, Right-of-Use Asset, Accumulated Amortization	$ 22,968		$ 118,424

Note 8 - Leases - Classification of Right of Use Assets (Details) - USD ($)

Sep. 30, 2024

Dec. 31, 2023

Finance

^[1],[2]

$ 157,941

$ 9,374

Operating

27,674

53,026

Total Leased Assets

$ 185,615

$ 62,400

[1]	Finance lease assets are net of accumulated amortization of $15,322 and $118,424 as of June 30, 2024 and December 31, 2023, respectively.
[2]	Finance lease assets are net of accumulated amortization of $22,968 and $118,424 as of September 30, 2024 and December 31, 2023, respectively.

Note 8 - Leases - Lease Terms and Discount (Details)	Sep. 30, 2024	Dec. 31, 2023
Finance (Year)	4 years 6 months	4 years 10 months 24 days
Operating (Year)	4 months 24 days	9 months 18 days
Finance	8.50%	4.80%
Operating	8.00%	8.00%

Note 8 - Leases - Operating and Finance Lease (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
2024 remaining, operating lease	$ 0
2024 remaining, finance lease	11,111
2025, operating lease	28,228
2025, finance lease	44,447
2026, operating lease	0
2026, finance lease	44,447
2027, operating lease	0
2027, finance lease	44,447
2027 and beyond, operating lease	0
2027 and beyond, finance lease	44,251
Total minimum lease obligations, operating lease	28,228
Total minimum, finance lease	188,703
Less: amounts representing interest, operating lease	(554)
Less: amounts representing interest, finance lease	(30,762)
Present value of minimum lease payments, operating lease	27,674
Present value of minimum lease payments, finance lease	157,941
Less: current portion, operating lease	(27,674)	$ (25,352)
Less: current portion, finance lease	(32,259)	(1,604)
Lease obligations, net of current portion, operating lease	0	27,674
Lease obligations, net of current portion, finance lease	$ 125,682	$ 7,770

Note 9 - Related Party Receivables (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Accounts Receivable, after Allowance for Credit Loss, Current	$ 2,457,780	$ 484,092
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	Prime Rate [Member]
Doran Canterbury I and II Joint Ventures [Member]
Financing Receivable, after Allowance for Credit Loss	$ 3,812,000	2,957,000
Financing Receivable, Interest Rate	2.00%
Interest Receivable	$ 796,000	522,000
Related Party [Member]
Accounts Receivable, after Allowance for Credit Loss, Current	$ 8,000	$ 47,000

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