Letter from the Chairman and President

To our stockholders, employees and customers:

Our net income for 2021, the fourth operating year of Penguin Coast, was
lower than expected. Net income was $50 in 2021, $50 lower than the previous
year in which net income was $100.
While we understand this is not ideal, we know this decrease can be
attributed to several things. One of these things is several unprecedented
miscellaneous expenses, higher than previous years. The (chance and community
chest) cards were not in our favor this year as much as we had hoped, driving up
our expenses to exceed the amount of our miscellaneous revenues by more than
50%. Also, our local opponents seemed to be successful, in part due to our
expenses. We take full responsibility for this roll of the dice and are confident we
will see more profitability in our future. To ensure we do not have a repeat of
2021, we have already started making a few changes. Some of these changes
include relocating our franchises to busier areas and changing our days and hours
of operation; we will be open Monday-Saturday instead of Tuesday-Friday, and we
plan to stay open an additional two hours each night as we started seeing business
increase in the later hours. We also plan to shake the dice around a little longer
before rolling and know the odds of rolling them the same as 2021 are slim to
none.
We understand we should have made these adjustments earlier, perhaps
during the year, and we take full responsibility for this. Since we were so profitable
in our first year of business, we overestimated our profit margin for year two, and
our net income has been on the decline ever since. We are expecting to see this
trend reverse this year as a result of the changes we are implementing.
Here at Penguin Coast, we are not solely profit-minded. Profits do drive us
forward and allow us to meet our goals, but are brand is defined by our culture
within the company and our customer service that extends beyond our corporation.
Our dedication to these areas is what will make us successful in the long run, and
we believe our profitability will start to reflect the quality of our culture after this
year. Our customers come first, and we are determined to show that by serving
those who have allowed us to get to this point. The future is promising, and we are
excited for this year.

Sincerely,

Anna E. Giles
Chairman, President, and Chief Executive Officer, Penguin Coast
 Management Discussion and Analysis

Penguin Coast hoped for higher profits in year four than what we got. Net income
was down 50% from year three, from $100 to $50. Assets were also down $25, and
cash is still significantly lower than our goal but nonetheless higher than year
three.

Because we do not have a monopoly in any color group, our rent revenue was
significantly lower than that of our local opponents. We were more profitable in
our first year of business, when our opponents were start-ups as well and our
expenses were much lower. From year one to year four, our expenses have
increased tremendously causing our net income to be lower in years like this one.

Our expenses come from landing on our opponents’ property, landing on an

unowned space that charges us a miscellaneous expense or drawing a card that
does the same, and paying income taxes from the previous year. Our revenues are
similar: our opponents pay us for landing on our property, we are entitled to
receive money as a result of drawing a card or landing on a certain space, (Free
Parking) and passing go.

We can increase our profitability by buying more property, causing our revenue to
increase by the chances of our opponents landing on our property increasing.
However, at some point, all the property in the area was purchased, and we did not
maximize our land ownership potential.

We plan to strategize in the future by spending more time volunteering at the local
jail so that we can still collect rent revenue but are not susceptible to paying it. We
also plan to pass go more frequently. If these two events occur simultaneously, we
will certainly see a greater increase in profits from year four to year five than we
did from year three to year four.
 Financial Statements
Penguin Coast
Balance Sheet at end of Year 4

Current Assets
Cash 15
Receivables 50
Total Current Assets 65
Noncurrent Assets
Total Noncurrent Assets 0
Total Assets $65
Liabilities
Income Tax Payable 15
Total Liabilities 15
Owner's Equity
Retained Earnings 50
Total Owner's Equity 50
Total Liabilities and Owner's Equity $65

Penguin Coast
Balance Sheet at end of Year 3

Current Assets
Cash ($10)
Receivables 100
Total Current Assets 90
Noncurrent Assets
Total Noncurrent Assets 0
Total Assets 90
Liabilities
Income Tax Payable -10
Total Liabilities -10
Owner's Equity
Contributed Capital 0
Retained Earnings 100
Total Owner's Equity 100
Total Liabilities and Owner's Equity 90
 Penguin Coast
Income Statement for Year 4

Rent Revenue 138

Total Rental Income 138
Rent Expense 345
Net Rental Income (Loss) -207
Salary Revenue 450
Misc. Revenue 100
Total Revenues & Income 343
Misc. Expense 250
Operating Income 93
Pre-Tax Income 93
Income Tax Expense 43
Net Income 50

Penguin Coast
Income Statement for Year 3

Rent Revenue 146

Total Rental Income 146
Rent Expense 158
Net Rental Income (Loss) -12
Salary Revenue 300
Total Revenues & Income 288
Misc. Expense 160
Operating Income 128
Pre-Tax Income 128
Income Tax Expense 28
Net Income 100
 Penguin Coast
Statement of Cash Flows for Year 4

Cash Flows From Operating Activities

Received From Passing Go $400
Received From Rentals and
Investments 138
Received from Miscellaneous -150
Aid for Rentals -345
Paid for Income Tax -28
Total Cash Flows From Operating Activities 15
Cash Flows From Investing Activities
Total Cash Flows From Investing Activities 0
Cash Flows From Financing Activities
Total Cash Flows From Financing Activities 0
Net Change in Cash 15
Beginning Cash 0
Ending Cash $15

Penguin Coast
Statement of Cash Flows for Year 3

Cash Flows From Operating Activities

Received From Passing Go $200
Received From Rentals and Investments 146
Received From Miscellaneous -160
Aid for Rentals -158
Paid for Income Tax -38
Total Cash Flows From Operating Activities -10
Cash Flows From Investing Activities
Total Cash Flows From Investing Activities 0
Cash Flows From Financing Activities
Total Cash Flows From Financing Activities 0
Net Change in Cash -10
Beginning Cash 0
Ending Cash ($10)
 Penguin Coast
Statement of Changes in Stockholders' Equity

Beginning Contributed Capital $0

+ New Capital Received 0
Ending Contributed Capital 0

Beginning Retained Earnings $670

+ Net Income 50
Ending Retained Earnings $720

Penguin Coast
Statement of Changes in Stockholders' Equity

Beginning Contributed Capital $0

+ New Capital Received 0
Ending Contributed Capital 0

Beginning Retained Earnings $570

+ Net Income 100
Ending Retained Earnings $670
 Notes to Financial Statements

Historical Cost Historical Cost

Year 3 Year 4
Properties 1320 1320
Houses & Hotels 0 0
Total Costs 1320 1320
Accumulated Depreciation 0 0

Properties and Building 1320 1320

Year 4 Year 3
Mortgages 0 0
Notes Payable 0 0
Total Long-Term Debt 0 0

Penguin Coast has no outstanding loans, debts, or mortgages. Additionally, the value of our
property did not depreciate because we did not build any houses or hotels. All of our property
was acquired in our first two years of business, so their value did not change from year three to
year four.
I, Anna Beth Giles, certify that:

1. I have reviewed this annual report on Form 10-K of Penguin Coast,

2. Based on my knowledge, this annual 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 annual report;

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

4. I am responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for Penguin Coast and have:

a) Designed such disclosure controls and procedures to ensure that material information relating
to Penguin Coast, including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this annual report is being prepared;

b) Evaluated the effectiveness of Penguin Coast's disclosure controls and procedures as of a date
within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and

c) Presented in this annual report our conclusions about the effectiveness of the disclosure
controls and procedures based on our evaluation as of the Evaluation Date;

5. I have disclosed, based on my most recent evaluation, to Penguin Coast's auditors and audit
committee of Penguin Coast's Board of Directors (or persons performing equivalent functions):

a) All significant deficiencies in the design or operation of internal controls which could
adversely affect Penguin Coast's ability to record, process, summarize and report financial data
and have identified for Penguin Coast’s auditors any material weaknesses in internal controls;
and

b) Any fraud, whether or not material, that involves management or other employees who have a
significant role in Penguin Coast's internal controls; and

6. I have indicated in this annual report whether there were significant changes in internal
controls or in other factors that could significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: December 8, 2021

Anna Beth Giles

Chairman and Chief Executive Officer

Penguin Coast