UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D.C. 20549

                          FORM 10-KSB
                          -----------

(Mark One)
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

    For the Fiscal Year ended September 30, 2006
                              ------------------

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

    For the transition period from ________ to _________

                Commission file number 0-8463
                                       ------

                   PISMO COAST VILLAGE, INC.
        ---------------------------------------------
       (Name of small business issuer in its charter)

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

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

             Issuer's telephone number (805)773-5649
                                       -------------

Securities registered under Section 12(b) of the Exchange Act:

   Title of Each Class                 Name of Each Exchange
                                        on Which Registered
   -------------------                 ---------------------
          N/A                                   N/A

Securities registered under Section 12(g) of the Exchange Act:

                         Common Stock
                         ------------
                       (Title of Class)

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


<Page>


Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B in this form, and no disclosure
will be contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by
reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB.  NO DISCLOSURE [ ]

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

State issuer's revenues for its most recent fiscal year.
$4,986,107.

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the
price at which the common equity was sold, or the average bid and
asked price of such common equity, as of the last business day of
the registrant's most recently completed fiscal quarter.
$56,512,000

(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE
YEARS)

Check whether the issuer has filed all documents and reports
required to be filed by Section 12, 13, or 15 (d) of the Exchange
Act after the distribution of securities under a plan confirmed
by a court. YES [ ]  NO [ ]

          (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.
1,800

             DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's Notice of 2007 Definitive Proxy
Statement for the Annual Meeting of Shareholders to be held
January 20, 2007 are incorporated by reference into Part III.


Transitional Small Business Disclosure Format
(Check one): YES [ ]  NO [X]


<Page>


                           FORM 10-KSB
                             PART I

ITEM 1. DESCRIPTION OF BUSINESS

a. BUSINESS DEVELOPMENT
Pismo Coast Village, Inc., the "Registrant" or the "Company," was
incorporated under the laws of the State of California on April
2, 1975. The Company's sole business is owning and operating a
recreational vehicle resort (hereinafter the "Resort") in Pismo
Beach, California. The Resort has continued to enhance its
business by upgrading facilities and services to better serve
customers.

b. BUSINESS OF ISSUER
The Company is engaged in only one business, namely, the
ownership and operation of the Resort. The Company generates
revenue from rental of camping sites, recreational vehicle
storage, recreational vehicle repair and retail sales from a
general store and recreational vehicle parts store. Accordingly,
all of the revenues, operating profit (loss) and identifiable
assets of the Company are attributable to a single industry
segment.

Pismo Coast Village, Inc. is a full-service 400 space
recreational vehicle resort. Its resort operations include site
rentals, RV storage business, video arcade, Laundromat, and other
income sources related to the operation. The retail operations
include a general store, RV parts store, and RV repair shop. In
addition, the Company has a recreation department that provides a
youth program and recreational equipment rentals.

PUBLIC AND SHAREHOLDER USERS
The present policy of the Company is to offer each shareholder
the opportunity for 45 days of free use of sites at the Resort,
25 days may be used during prime time and 20 days during
non-prime time. The free use of sites by shareholders is managed
by designating the nights of the year as prime time and non-prime
time. A prime time night is one that is most in demand, for
example, Memorial Day Weekend and the period from mid-June until
Labor Day. Non-prime time is that time with the least demand.
Each shareholder is furnished annually a calendar that designates
the prime and non-prime time days; it also provides a schedule of
when reservations can be made and the procedure for making
reservations. Shareholder's free use of sites average
approximately 21% to 23% annually (refer to Item 6. Result of
Operations MD&A, page 9).

SEASONAL ASPECTS OF BUSINESS
The business of the Company is seasonal and is concentrated
during prime days of the year which are defined as follows:
President's Day Weekend, Easter week, Memorial Day Weekend,
summer vacation months, Labor Day, Thanksgiving Weekend and
Christmas vacation.

WORKING CAPITAL REQUIREMENTS
By accumulating reserves during the prime seasons, the Company is
able generally to meet its working capital needs during
off-season. Industry practice is to accumulate funds during the
prime season, and use such funds, as necessary, in the
off-season. The Company has arranged, but not used, a $500,000
line of credit to ensure funds are available, if necessary, in
the off-season.


<Page>


COMPETITION
The Company is in competition with nine other RV parks located
within a five- mile radius. Since its property is the only
property located adjacent to the beach, it has a competitive
edge. The Company is recognized as a recreational vehicle resort
rather than a park because of its upgraded facilities and
amenities which include 31 Channels of Satellite TV, a heated
pool, a miniature golf course and a recreational program. The
Resort is noted for its ability to provide full service which
includes RV storage and RV repair and service. The Resort is
consistently given high ratings by industry travel guides based
on resort appearance, facilities offered, and recreational
programs. In Fiscal Year 2004, Pismo Coast Village, Inc. was
awarded the designation of RV Park of the Year, Mega Park
Category 2004, by the California Travel Parks Association (CTPA).
In November 1999, Pismo Coast Village, Inc. was awarded the
designation of RV Park of the Year, Large Park Category 1999,
by the National Association of RV Parks and Campgrounds (ARVC)
which has a membership of more than 3,600 properties. These
factors allow the Resort to price its site rental fees above most
of its competition based on perceived value received.

Competition for the tourist market is keen between the cities on
the Central Coast of California. Resort management and staff are
involved with the City of Pismo Beach, Chamber of Commerce,
Conference and Visitors Bureau, and are major sponsors in
cooperative events and advertising. The Resort continues to
market off-season discounts and place advertisements in trade
publications and industry directories. In addition, the Company
places its brochure with companies selling or renting
recreational vehicles and has found the Resort's Internet web
page to be very effective. The marketing program also targets
groups and clubs by offering group discounts, meeting facilities,
and catering services. The Company's marketing plan was funded by
$49,203 for Fiscal Year 2006 which was developed out of operating
revenues. The major source of the Company's business is repeat
business, which has been developed by attention to good customer
service and providing quality recreational facilities.

ENVIRONMENTAL REGULATION
The Company is affected by federal, state and local antipollution
laws and regulations. Due to the nature of its business
operations (camping, RV storage and small retail store sales) the
discharge of materials into the environment is not considered to
be of a significant concern, and the EPA has not designated the
Company as a potentially responsible party for clean up of
hazardous waste.

The main property of the Resort is located within the boundaries
of those lands under the review and purview of the Coastal
Commission of the State of California and the City of Pismo
Beach. The water and sewer systems are serviced by the City of
Pismo Beach. The Company was subject to state and federal
regulations regarding the Fiscal Year 1996 reconstruction of an
outflow structure that empties into Pismo Creek at the north
boundary of the Resort. Because the Resort is within the wetlands
area, the California Coastal Commission required permits for
repair and construction to be reviewed by the following agencies:
City of Pismo Beach, State Lands Commission, Regional Water
Quality Board, State of California, California Department of Fish
and Game, State Department of Parks and Recreation and the Army
Corps of Engineers. The requirement for these permits involved
the diversion of capital from operations, but did not increase
cost of debt financing.


<Page>


EMPLOYEES
As of September 30, 2006, the Company employed approximately 53
people with 24 of these on a part-time basis and 29 on a
full-time basis. Due to the seasonal nature of the business,
additional staff is needed during peak periods and fewer during
the off-season. Staffing levels during the fiscal year ranged

from approximately 50 employees to 64 employees. Management
considers its labor relations to be good.

ADDITIONAL INFORMATION
The Company has remained conservative when considering rates and
rate increases. As a result of experiencing increasing
operational expenses and conducting a local comparative rate
study, the Board voted to increase RV storage rates effective
April 1, 2006. The new storage rate increased the monthly base
rate $6, or 15.7%, per unit. The Board also elected to increase
the summer prime time site rental rate from $47 to $49 per night
effective October 1, 2006. It is anticipated the proposed rates
will continue to market site usage at is highest value and not
negatively impact the Company's ability to capture an optimum
market share.

c. REPORTS TO SECURITY HOLDERS
Pismo Coast Village files quarterly reports, an annual report,
and periodic reports, providing the public with current
information about the Company and its operations with the
Securities and Exchange Commission. The public may read and copy
any materials filed with the SEC at the SEC's Public Reference
Room at 450 Fifth Street, N. W., Washington, D.C. 20549. The
public may also obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. The SEC
maintains an Internet site (http://www.sec.gov) that contains
reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC.

Additionally, the Company makes available on its website,
www.pismocoastvillage.com, access to its annual report on Form
10-KSB, quarterly reports on Form 10-QSB, current reports on Form
8-KSB, and all amendments to those reports as soon as reasonably
practicable after such material is electronically filed with or
furnished to the Securities and Exchange Commission.

ITEM 2. DESCRIPTION OF PROPERTY

The Company's principal asset consists of the Resort which is
located at 165 South Dolliver Street in Pismo Beach, California.
The Resort is built on a 26-acre site and includes 400 campsites
with full hookups and nearby restrooms with showers and common
facilities, such as a video arcade, recreation hall, general
store, swimming pool, Laundromat, and three playgrounds.

In 1980 the Company purchased a 2.1 acre parcel of real property
located at 2250 22nd Street, Oceano, California, at a price of
$66,564. The property is being used by the Company as a storage
facility for recreational vehicles. The storage capacity of this
lot is approximately 123 units.

In 1981 the Company exercised an option and purchased a 3.3 acre
parcel located at 300 South Dolliver Street, Pismo Beach,
California, at a price of $300,000. The property, which
previously had been leased by the Company, is used primarily as a
recreational vehicle storage yard. The storage capacity of this
lot is approximately 220 units.


<Page>


In 1988, the Company purchased approximately 0.6 acres of
property at 180 South Dolliver Street, Pismo Beach, California,
across the street from the main property, consisting of a large
building with a storefront and one large maintenance bay in the
rear. Also, on the property is a smaller garage-type building
with three parking stalls. The Company enlarged its recreational
vehicle repair operation, added RV storage for approximately
eleven units and developed the storefront into a RV parts store.
The property was purchased for $345,000, of which $300,000 was
financed and paid in full during Fiscal Year 1997.

On December 31, 1998, the Company closed escrow on a parcel of
property to be developed as an additional RV storage facility.
The 5.5 acre property is located in Oceano adjacent to existing
Company RV storage. On October 14, 1999, construction was
completed and the Company received County approval to occupy the
premises. The property was purchased for $495,000, of which
$395,000 was financed and paid in full in July 2000. Development
cost amounted to $195,723 and was allocated from operational cash
flow. Storage capacity for this property is approximately 341
units and is currently full. The property is in good condition
and being held as collateral for the note on the properties
purchased in 2006.

On February 28, 2003, the Company closed escrow on a parcel of
property to be developed as an additional RV storage facility.
The 4.7 acre property is located in Oceano and was purchased for
$650,000, of which $500,000 was financed. The note on this
property was paid off in September 2005. The construction permit
granted by the County of San Luis Obispo was contingent upon
permit approval by the California Coastal Commission. In January
2006, the Commission denied the permit based on wetland
conditions. The property is currently in the process of
liquidation.

Due to the continued demand for RV storage and the denial of the
aforementioned permit, the Board of Directors elected to purchase
additional property. On January 11, 2006, the Company closed
escrow on a six-acre property already developed as an RV storage
facility. The purchase price was $2.1 million and included
approximately 80 existing storage customers. This property had
been permitted and developed the previous year, and is considered
in good condition with a capacity of approximately 378 units.

On April 6, 2006, the Company purchased the 2.2 acre property in
Oceano it previously rented from Union Pacific Railroad for RV
storage. The purchase price was $925,000 and the condition is
considered good. The lot is operating at full capacity with 190
units.

Funding for these acquisitions was obtained through a local
lending institution with a balance owed as of September 30, 2006
of $2,163,973.

There is no deferred maintenance on any of the Resort's
facilities. The Company's facilities are in good condition and
adequate to meet the needs of the shareholder users as well as
the public users. The Company continues to develop sufficient
revenue from general public sites sales to support a continued
positive maintenance program and to meet the demands of
shareholders use of free sites.

Management considers the Company's insurance policies offer
adequate coverage for risk and liability exposure.


<Page>


The Resort, RV Repair Shop and Parts Store, five storage
facilities, and the undeveloped property being liquidated,
constitute substantially all the Company's property, and are
owned in fee. Three storage lots are leased by the Company
pursuant to the herein below described leases.

1. TRAILER STORAGE YARDS
In 1986 the Company leased a parcel of land 100 feet wide by 960
feet long from the Union Pacific Railroad Corporation. The
property is being used by the Company as a storage facility for
recreational vehicles. Capital improvements in the amount of
$40,000 were made to this property, which provides storage for
approximately 160 units. On July 29, 2005, Union Pacific Railroad
Corporation sold the property to the Weyrick Family Trust who,
after entering into a five-year lease, agreed to sell the
property to the Company for $925,000. This transaction was
completed on April 6, 2006.

Associated with the previously mentioned property, and included
within the fenced storage perimeter, is the lease of a ten foot
by 960 foot section belonging to Union Pacific Railroad. This
lease also allows for the Company's fence to encroach upon the
lessor's property. This annual lease is currently $1,545, with a
3% automatic annual increase.

In 1991 the Company developed a lease for a five-acre RV storage
lot at the Oceano Airport clear zone as storage for approximately
350 RVs. This lot was developed to replace a 100-unit storage lot
that was closed when the lease was not renewed. Construction was
completed in January 1992 and capital improvements in the amount
of $330,768 were made to this property of which $300,000 was
financed and paid in full during Fiscal 1997. The original lease
on the storage lot was for five years and the Company has
executed a third five-year option with the County of San Luis
Obispo which expires December 31, 2006. In response to the
Company's request for another five-year extension, the County has
answered that until the Oceano Airport Master Plan is updated,
after January 1, 2007, the lease will become a month-to month
holdover.

Lease payments for the first year of control and occupancy area
were $1,500 per month, $2,000 per month for the second year and
continuing years are tied to the "CPI" index. During Fiscal Year
2006, lease payments were made in the amount of $33,046, Fiscal
Year 2007 rent payments have not been established and may be
impacted by the recently approved flood district assessment.

In March of 2006 the Company entered into a seven-year lease with
Vawter Investments, LP, owners of four acres the Company will
utilize for RV storage. The Company developed the property and
received concessions through limited free and discounted rent.
The property was occupied for storage in June 2006 and is
expected to store approximately 240 units.

Lease payments are currently $4,500 per month and will escalate
March 1st of each year by the Consumer Price Index (CPI). During
Fiscal Year 2006, lease payments were made in the amount of
$18,900.

The Resort leases out areas to other companies to insure that the
best service and equipment are available for guest use. These
areas are leased from the Company pursuant to the herein below
described leases.


<Page>


1. RECREATIONAL ARCADE AGREEMENT WITH COIN AMUSEMENTS, INC. This
agreement is dated November 1, 2006, and pursuant to this
agreement, the Company granted Coin Amusements, Inc. the
concession to operate various coin-operated game units at the
Resort. The one year term expires on October 31, 2007, and
continued renewal is expected without significant impact.

2. WEB SERVICE COMPANY, GOLETA, CA
The five-year lease expired on July 22, 2002, and was reissued
for a seven-year period which will expire on October 31, 2009,
and grants to Web Service Company the right to place and service
coin-operated laundry machines at the Resort on a 50-50 basis for
all revenues derived from their use. On October 10, 2002, Web
replaced all 18 washers and 18 dryers with new equipment.
Continued renewal is expected without significant impact.

3. PISMO COAST INVESTMENTS
The Company has renewed a lease agreement with Ms. Jeanne Sousa,
a California Corporations Licensed Broker, for the lease of a
200-square foot building at the Resort from which she conducts
sales activities in the Company's stock. The term of the lease is
for four years commencing on January 1, 2004 and ending on
December 31, 2007. Termination or cancellation may be made by
either Lessor or Lessee by giving the other party sixty (60) days
written notice.

ITEM 3. LEGAL PROCEEDINGS
No pending legal proceedings against the Company other than
routine litigation incidental to the business.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Paragraph inapplicable.

                             PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

a. MARKET INFORMATION
There is no market for the Company's common stock, and there are
only limited or sporadic transactions in its stock. Ms. Jeanne E.
Sousa, a licensed broker/dealer, handled sales of the Company
shares as Pismo Coast Investments. The last transaction the
Company is aware of occurred on September 30, 2006 at a price of
$32,000 for one share conveyed. This price was used for
computation of aggregate market value of Company stock on page 2
of this Report.

The following table sets forth the high and low closing sales
prices, without commissions, as reported by Pismo Coast
Investments for the period October 1, 2004 to September 30, 2006.

<TABLE>
<CAPTION>
Fiscal Year Ended September 30, 2005
------------------------------------
<S>                                       <C>        <C>
                                            High       Low
                                          -------    -------
First Quarter                             $25,000    $22,000
Second Quarter                            $25,000    $25,000
Third Quarter                             $26,000    $25,000
Fourth Quarter                            $27,000    $26,000
</TABLE>


<Page>


<TABLE>
<CAPTION>
Fiscal Year Ended September 30, 2006
------------------------------------
<S>                                       <C>        <C>
                                            High       Low
                                          -------    -------
First Quarter                             $27,000    $27,000
Second Quarter                            $28,500    $28,000
Third Quarter                             $30,000    $28,500
Fourth Quarter                            $32,000    $30,000
</TABLE>

b. HOLDERS
The approximate number of holders of the Company's common stock
on September 30, 2006 was 1,539.

c. DIVIDENDS
The Company has paid no dividends since it was organized in 1975,
and although there is no legal restriction impairing the right of
the Company to pay dividends, the Company does not intend to pay
dividends in the foreseeable future. The Company selects to
invest its available working capital to enhance the facilities at
the Resort.

d. SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION
   PLANS
The Company does not currently have securities authorized for
issuance under equity compensation plans.

e. RECENT SALES OF UNREGISTERED SECURITIES: USE OF PROCEEDS FROM
   REGISTERED SECURITIES
The Company does not have sales of unregistered securities.

f. COMPANY PURCHASES OF EQUITY SECURITIES
No purchases have been made by or on behalf of the Company or any
"affiliated purchaser" of shares of any class of the Company's
equity securities.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Statements in this Annual Report on Form 10-KSB which express the
"Belief," "Anticipation," "Intention" or "Expectation," as well
as other statements which are not historical fact, and statements
as to business opportunities, market conditions, and operating
performance insofar as they may apply prospectively, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve risks and
uncertainties that could cause actual results to differ
materially from those projected.

Pismo Coast Village, Inc. operates as a 400 space recreational
vehicle resort. The Corporation includes additional business
operations to provide its users with a full range of services
expected of a recreational resort. These services include a
store, video arcade, Laundromat, recreational vehicle repair, RV
parts shop and an RV storage operation.


<Page>


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

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

Certain information included herein contains statements that may
be considered forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, such as
statements relating to anticipated expenses, capital spending and
financing sources. Such forward-looking information involves
important risks and uncertainties that could significantly affect
anticipated results in the future and, accordingly, such results
may differ from those expressed in any forward-looking statements
made herein. These risks and uncertainties include, but are not
limited to, those relating to competitive industry conditions,
California tourism and weather conditions, dependence on existing
management, leverage and debt service, the regulation of the
recreational vehicle industry, domestic or global economic
conditions and changes in federal or state tax laws or the
administration of such laws.

CURRENT OPERATING PLANS
The Board of Directors continues its previously established
policy by adopting a stringent conservative budget for Fiscal
Year 2007, which projects a positive cash flow of approximately
$994,769 from operations. While the Company projects a positive
cash flow, this cannot be assured for Fiscal Year 2007.

Capital expenditures planned for 2007 include the continued
enhancement of RV sites and services, expansion of the General
Store, pool restroom renovation, the installation of a pedestrian
gate on the north side of the resort, and a tow truck to move
stored RV units. These investments are projected to be
approximately $625,000, some of which can be deferred, if
necessary. These proposed capital improvements will be funded
from cash from operations, from existing working capital, and, if
necessary, from financing obtained by the Company. Thus, budgeted
cash flow for the year is expected to be within the Company's
capabilities based on its present working capital position. These
capital expenditures are expected to increase the Resort's value
to its shareholders and the general public.

FINANCIAL CONDITION
The business of the Company is seasonal and is concentrated on
prime days of the year which are defined as follows: President's
Day Weekend, Easter week, Memorial Day Weekend, summer vacation
months, Labor Day, Thanksgiving Weekend, and Christmas vacation.
There are no known trends which affect business or affect
revenue.


<Page>


The Company develops its income from two sources: (a) Resort
Operations, consisting of revenues generated from RV site
rentals, from RV storage space operations, and from lease
revenues from Laundromat and arcade operations by third party
lessees; and (b) Retail Operations, consisting of revenues from
general store operations and from RV parts and service
operations.

Adhering to the Company's philosophy to aggressively reduce debt,
the outstanding loan balance was eliminated in July 2005. With
the purchase of a new storage property in February 2006 in Arroyo
Grande, the Company secured permanent financing. The loan was
refinanced in April 2006 and consolidated with a note for the
purchase of another storage lot in Oceano. The Company continues
its policy to adopt conservative budgets with managed capital
outlays.

The Company has arranged a $500,000 line of credit that is
currently not drawn on. Besides the financing referenced in the
previous paragraph, the Company has no other liabilities to
creditors other than current accounts payable arising from its
normal day-to-day operations and advance Resort rental
reservation deposits, none of which are in arrears.

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

Net cash provided by operating activities totaled $1,021,757 in
2006, compared to $643,315 in 2005. This increase is primarily a
result of increased net income, decreased prepaid income taxes, a
decrease in inventory, and an increase in rental deposits.

During Fiscal Year 2006, cash investments of $3,413,375 included
complete renovation of thirty-nine RV sites, the purchase of two
properties to use for RV storage, and the improvement of a leased
property to accommodate RV storage. As of September 30, 2006, the
Company carried a debt of $2,163,973 as a result of acquiring the
two properties. During Fiscal Year 2005, cash investments of
$386,523 included complete renovation of fifty-nine RV sites,
road paving, and computer equipment.

The Company has continued to maintain sufficient cash from
operations to not require the addition of long-term debt.
However, with the purchase of the new RV storage properties in
2006, long-term financing was acquired from a lending
institution. With the possibility of requiring additional funds
for planned capital improvements and the winter season, the
Company maintains a $500,000 Line of Credit to insure funds will
be available if required. In anticipation of future large
projects, the Board of Directors has instructed management to
build operational cash balances.

Fiscal Year 2006's current ratio (current assets to current
liabilities) of 1.98 decreased from Fiscal Year 2005's current
ratio of 2.20. The decrease in current ratio is the result of
decreased cash and cash equivalents due to investments in
property, and an increase in rental deposits and accrued
vacation.


<Page>


Working Capital decreased to $886,607 at the end of Fiscal Year
2006 compared with $932,869 at year end Fiscal Year 2005. This
decrease is primarily a result of cash deposits made on storage
property purchased during the year.

CAPITAL RESOURCES AND PLANNED EXPENDITURES
The Company plans capital expenditures of $625,000 in Fiscal Year
2007 to further enhance the Resort facilities and services,
renovate thirty-four campsites, renovate the Cabana restrooms,
expand the General Store, install a pedestrian gate on the
resort's north side, and purchase a new tow vehicle. Funding for
these projects is expected to be from normal operating cash flows
and, if necessary, supplemented with outside financing. These
capital expenditures are expected to increase the Resort's value
to its shareholders and the general public.

RESULTS OF OPERATIONS

YEAR TO YEAR COMPARISON

INCOME: Increased over the prior fiscal year ended September 30,
2005, by $295,037, or 6.3%.

<TABLE>
                      INCOME BY SEGMENT
                      -----------------
<CAPTION>
                               2006               2005
                            ----------         ----------
<S>                         <C>                <C>
OCCUPANCY
---------
% of Shareholder Site Use        22.5%              22.6%
% of Paid Site Rental            50.0%              48.8%
% Total Site Occupancy           72.8%              71.6%
% of Storage Rental              83.0%              99.7%
  Average Paid Site             $39.84             $39.12

RESORT OPERATIONS
-----------------
Site Rental                 $2,929,200         $2,795,475
Storage Operations             829,682            718,178
Support Operations             160,753            170,312
                            ----------         ----------
  Total                      3,919,635          3,683,965

RETAIL OPERATIONS
-----------------
Store                          693,029            663,820
RV Repair/Parts store          358,646            330,104
                            ----------         ----------
  Total                      1,051,675            993,924

INTEREST INCOME                 14,797             13,181

OTHER INCOME

TOTAL INCOME                $4,986,107         $4,691,070
                            ==========         ==========
</TABLE>


<Page>


Occupancy rates on the previous table are calculated based on the
quantity occupied as compared to the total sites available for
occupancy (i.e., total occupied to number of total available).
Average paid site is based on site revenue and paid sites. Resort
support operations include revenues received from the arcade,
Laundromat, recreational activities, and other less significant
sources.

2006 COMPARED WITH 2005
Resort operations income increased $235,670, or 6.4%, primarily
due to a $133,725, or 4.8%, increase in site revenue. In
addition, the Resort realized an increase of $111,504, or 15.5%,
in RV storage and spotting activity. The increased income is a
reflection of a 1.7% increase in paid site occupancy, and
additional storage availability in conjunction with a rate
increase effective April 1, 2006. Occupancy projections continue
to look strong as the local region enjoys mild weather and an
ongoing positive trend of outdoor recreation and camping.

Retail operations income increased $57,751, or 5.8%, due to a
$29,208, or 4.4%, increase in General Store sales and $28,542, or
8.6%, increase in the RV Service operation. These increases are a
result of management's continuing program to increase retail,
from increased occupancy, efforts to stock more appropriate
items, more effectively merchandise, and pay greater attention to
customer service.

Interest Income increased 12.2% to $14,797 over the previous year
as a result of current financial institution trends of improved
interest rates, and increased cash and cash equivalents
throughout most of the year. Reserves are maintained in
preparation for capital expenditure projects to improve the
Resort's facilities and services.

Operating Expenses increased $164,351, or 5.4%, as a result of
payroll and associated expenses, landscaping, insurance, credit
card processing, utilities, vehicle operation and maintenance,
advertizing, and storage lot maintenance. Maintaining the
conservative approach, most expense items were managed well below
Plan and in many categories below the previous year. The Board of
Directors has directed management to continue maintenance
projects as needed to provide a first class resort for campers
using recreational vehicles.

Depreciation Expense decreased 13.6% due to certain assets
reaching the end of their depreciable life and the 2006 capital
expenditure items will receive depreciation benefit over a longer
period.

Interest Expense increased from $34,296 in Fiscal Year 2005 to
$114,648 in 2006. This increase was due to financing the new RV
storage properties through a local lending institution.

Income before provision for income taxes of $817,451, a 12.6%
increase above last year, is reflective of the Company's current
pricing policies and continuing efforts to maximize Resort
services and value. This figure also represents management's
effort to control expenses.


<Page>


Net income of $451,251 for Fiscal Year 2006, was an increase of
$61,567, or 15.8%, over a net income of $389,684 the previous
year. This increase in net income is a reflection of positive
business performance in 2006.

INFLATION has not had a significant impact on our profit
position. The Company has increased rates which have more than
compensated for the rate of inflation.


FUTURE OPERATING RESULTS could be unfavorably impacted to the
extent that changing prices result in lower discretionary income
for customers and/or increased transportation costs to the
Resort. In addition, increasing prices affects operations and
liquidity by raising the replacement cost of property and
equipment.

FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS:
A number of factors, many of which are common to the lodging
industry and beyond our control, could affect our business,
including the following:

* increased gas prices;

* increased competition from other resorts in our market;

* increases in operating costs due to inflation, labor costs,
workers' compensation and healthcare related costs, utility
costs, insurance and unanticipated costs such as acts of nature
and their consequences and other factors that may not be offset
by increased rates;

* changes in interest rates and in the availability, cost and
terms of debt financing;

* changes in governmental laws and regulations, fiscal policies
and zoning ordinances and the related costs of compliance with
laws and regulations, fiscal policies and ordinances;

* adverse effects of market conditions, which may diminish the
desire for leisure travel; and

* adverse effects of a downturn in the leisure industry.

The leisure and travel business is seasonal and seasonal
variations in revenue at our resort can be expected to cause
quarterly fluctuations in our revenue.

Our revenue is generally highest in the third and fourth
quarters. Quarterly revenue also may be harmed by events beyond
our control, such as extreme weather conditions, terrorist
attacks or alerts, contagious diseases, economic factors and
other considerations affecting travel. To the extent that cash
flow from operations is insufficient during any quarter due to
temporary or seasonal fluctuations in revenue, we have to rely on
our short-term line of credit for operations.

In the recent past, events beyond our control, including an
economic slowdown and terrorism, harmed the operating performance
of the leisure industry generally, and if these or similar events
occur again, our operating and financial results may be harmed by
declines in average daily rates or occupancy.


<Page>


The performance of the resort industry has traditionally been
closely linked with the performance of the general economy and,
specifically, growth in United States gross domestic product. In
periods of economic difficulties, leisure travelers may seek to
reduce travel costs by limiting travel or seeking to reduce costs
on their trips. In addition, the terrorist attacks of September
11, 2001, had a dramatic adverse effect on leisure travel. Future
terrorist activities could have a similarly harmful effect on
both the industry and the Company.

As of December 31, 2005, we had approximately $2.2 million of
outstanding debt, and carrying such debt may harm our financial
flexibility or harm our business and financial results by
imposing requirements on our business.

Carrying our outstanding debt may harm our business and financial
results by:

* requiring us to use a substantial portion of our funds from
operations to make required payments on principal and interest,
which will reduce the amount of cash available to us for our
operations and capital expenditures, future business
opportunities and other purposes;

* making us more vulnerable to economic and industry downturns
and reducing our flexibility in responding to changing business
and economic conditions;

* limiting our ability to borrow more money for operations,
capital expenditures or to finance acquisitions in the future;
and

* requiring us to sell one or more properties, possibly on
disadvantageous terms, in order to make required payments of
interest and principal.

Our resort has a need for ongoing renovations and potentially
significant capital expenditures in connection with improvements,
and the costs of such renovations or improvements may exceed our
expectations.

Occupancy and the rates we are able to charge are often affected
by the maintenance and capital improvements at a resort,
especially in the event that the maintenance of improvements are
not completed on schedule, or if the improvements result in the
closure of the General Store or a significant number of sites.
The costs of capital expenditures we need to make could harm
our financial condition and reduce amounts available for
operations. These capital improvements may also give rise to
additional risks including:

* construction cost overruns and delays;

* a possible shortage of available cash to fund capital
improvements and the related possibility that financing of these
expenditures may not be available to us on favorable terms;

* uncertainties as to market demand or a loss of market demand
after capital improvements have begun;

* disruption in service and site availability causing reduced
demand, occupancy, and rates; and

* possible environmental issues.


<Page>


We rely on our executive officers, the loss of whom could
significantly harm our business.

Our continued success will depend to a significant extent on the
efforts and abilities of our General Manager and C.O.O., Jay
Jamison. Mr. Jamison is important to our business and strategy
and to the extent that were he to depart and is not replaced with
an experienced substitute, Mr. Jamison's departure could harm our
operations, financial condition and operating results.

Uninsured and underinsured losses could harm our financial
condition, and results of operations.

Various types of catastrophic issues, such as losses due to wars,
terrorist acts, earthquakes, floods, pollution or environmental
matters, generally are either uninsurable or not economically
insurable, or may be subject to insurance coverage limitations,
such as large deductibles or co-payments. Our resort is located
on the coast of California, which has been historically at
greater risk to certain acts of nature (such as severe storms,
fires and earthquakes).

In the event of a catastrophic loss, our insurance coverage may
not be sufficient to cover the full current market value or
replacement cost of our lost properties. Should an uninsured loss
or a loss in excess of insured limits occur, we could lose all or
a portion of the capital we have invested in the resort, as well
as the anticipated future revenue from the resort. In that event,
we might nevertheless remain obligated for any notes payable or
other financial obligations related to the property. Inflation,
changes in building codes and ordinances, environmental
considerations and other factors might also keep us from using
insurance proceeds to replace or renovate the resort after it has
been damaged or destroyed. Under these circumstances, the
insurance proceeds we receive might be inadequate to restore our
economic position on the damaged or destroyed property.


ITEM. 7 FINANCIAL STATEMENTS


<Page>


                 REPORT OF INDEPENDENT REGISTERED
                 --------------------------------
                     PUBLIC ACCOUNTING FIRM
                     ----------------------




To the Board of Directors and
Stockholders of Pismo Coast Village, Inc.
Pismo Beach, California

We have audited the accompanying balance sheets of Pismo Coast
Village, Inc. (a California corporation) as of September 30, 2006
and 2005, and the related statements of income and retained
earnings and cash flows for the years then ended. These financial
statements are the responsibility of the company's management.
Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Pismo Coast Village, Inc. as of September 30, 2006 and 2005,
and the results of its operations and its cash flows for the
years then ended in conformity with accounting principles
generally accepted in the United States of America.


                         BROWN ARMSTRONG PAULDEN
                         McCOWN STARBUCK THORNBURGH & KEETER
                         ACCOUNTANCY CORPORATION



Bakersfield, California
October 27, 2006


<Page>


<TABLE>
                       PISMO COAST VILLAGE, INC.
                           BALANCE SHEETS
                      SEPTEMBER 30, 2006 AND 2005
                      ---------------------------
<CAPTION>
                                             2006        2005
                                         -----------  ----------
              ASSETS
              ------
<S>                                      <C>          <C>
Current Assets
--------------
Cash and cash equivalents                $ 1,067,100  $1,296,196
Investment in certificate of deposit         102,484     101,033
Accounts receivable                            1,724      10,322
Inventory                                     97,205     117,555
Current deferred taxes                        58,500      52,400
Prepaid income taxes                                      81,700
Prepaid expenses                              70,805      49,341
                                         -----------  ----------
 Total current assets                      1,397,818   1,708,547

Pismo Coast Village Recreational
--------------------------------
 Vehicle Resort and Related Assets - Net   9,800,858   6,734,744
 ---------------------------------------

Other Assets                                  29,275      31,620
------------                             -----------  ----------
 Total Assets                            $11,227,951  $8,474,911
                                         ===========  ==========

  LIABILITIES AND STOCKHOLDERS' EQUITY
  ------------------------------------
Current Liabilities
-------------------
Accounts payable and accrued liabilities $   105,253  $  104,379
Accrued salaries and vacation                160,786     137,979
Rental deposits                              613,955     533,320
Income taxes payable                          37,500
Current portion of long-term debt             28,155
                                         -----------  ----------
 Total current liabilities                   945,649     775,678
                                         -----------  ----------

Long-Term Liabilities
---------------------
Long-term deferred taxes                     266,000     270,000
N/P Santa Lucia Bank                       2,135,818
                                         -----------  ----------
 Total Liabilities                         3,347,467   1,045,678
                                         -----------  ----------

Stockholders' Equity
--------------------
Common stock - no par value, issued
 and outstanding, 1,800 shares             5,647,708   5,647,708
Retained earnings                          2,232,776   1,781,525
                                         -----------  ----------
 Total stockholders' equity                7,880,484   7,429,233
                                         -----------  ----------
 Total Liabilities and
 Stockholders' Equity                    $11,227,951  $8,474,911
                                         ===========  ==========
</TABLE>

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


<Page>


<TABLE>
                   PISMO COAST VILLAGE, INC.
        STATEMENTS OF INCOME AND RETAINED EARNINGS
           YEARS ENDED SEPTEMBER 30, 2006 AND 2005
        ----------------------------------------------

<CAPTION>
                                            2006        2005
                                         ----------  ----------
<S>                                      <C>         <C>
Income
------
Resort operations                        $3,919,635  $3,683,965
Retail operations                         1,051,675     993,924
                                         ----------  ----------
 Total income                             4,971,310   4,677,889
                                         ----------  ----------

Costs and Expenses
------------------
Operating expenses                        3,200,343   3,035,992
Cost of goods sold                          506,404     492,980
Depreciation                                347,261     401,918
                                         ----------  ----------
 Total costs and expenses                 4,054,008   3,930,890
                                         ----------  ----------

Income from operations                      917,302     746,999

Other Income (Expense)
----------------------
Interest/dividend income                     14,797      13,181
Interest expense                           (114,648)    (34,296)
                                         ----------  ----------
 Total other income (expense)               (99,851)    (21,115)
                                         ----------  ----------

Income Before Provision
-----------------------
 for Income Taxes                           817,451     725,884
 ----------------

Income Tax Expense                          366,200     336,200
------------------                       ----------  ----------

Net Income                                  451,251     389,684
----------

Retained Earnings -
-------------------
 Beginning of Year                        1,781,525   1,391,841
 -----------------                       ----------  ----------

Retained Earnings -
-------------------
 End of Year                             $2,232,776  $1,781,525
 -----------                             ==========  ==========

Net Income Per Share                        $250.70     $216.49
--------------------                        =======     =======
</TABLE>

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


<Page>


<TABLE>
                       PISMO COAST VILLAGE, INC.
                       STATEMENTS OF CASH FLOWS
               YEARS ENDED SEPTEMBER 30, 2006 AND 2005
               ---------------------------------------
<CAPTION>
                                             2006        2005
                                          ----------  ----------
<S>                                       <C>         <C>
Cash Flows From Operating Activities
------------------------------------
Net income                                $  451,251  $  389,684
Adjustments to reconcile net income to
 net cash provided by operating activities:
Depreciation                                 347,261     401,918
Deferred income tax                          (10,100)    (16,000)
(Increase) decrease in accounts receivable     8,598         156
(Increase) decrease in inventory              20,350     (20,475)
(Increase) decrease in prepaid expenses      (21,464)      4,691
(Increase) decrease in prepaid income taxes   81,700     (81,700)
(Increase) in other assets                     2,345     (12,659)
Increase (decrease) in accounts payable
 and accrued liabilities                         874      30,689
Increase in accrued salaries and vacation     22,807      27,188
Increase (decrease) in rental deposits        80,635     (42,777)
Increase (decrease) in income taxes payable   37,500     (37,400)
                                          ----------  ----------
 Total adjustments                           570,506     253,631
                                          ----------  ----------
Net cash provided by operating
 activities                                1,021,757     643,315
                                          ----------  ----------
Cash Flows From Investing Activities
------------------------------------
Investment in certificate of deposit          (1,451)     (2,112)
Capital expenditures                      (3,413,375)   (386,523)
                                          ----------  ----------
 Net cash used in investing activities    (3,414,826)   (388,635)
                                          ----------  ----------
Cash Flows From Financing Activities
------------------------------------
Principal repayments of note payable       2,163,973    (489,908)
                                          ----------  ----------
 Net cash provided by/(used)
  in financing activities                  2,163,973    (489,908)
                                          ----------  ----------
Net increase (decrease) in cash
 and cash equivalents                       (229,096)   (235,228)

Cash and Cash Equivalents -
---------------------------
 Beginning of Year                         1,296,196   1,531,424
 -----------------                        ----------  ----------

Cash and Cash Equivalents -
---------------------------
 End of Year                              $1,067,100  $1,296,196
 -----------                              ==========  ==========

Schedule of Payments of Interest and Taxes
------------------------------------------
Cash paid for income tax                  $  237,157  $  437,530
Cash paid for interest                    $  114,648  $   34,296
</TABLE>

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


<Page>


                  PISMO COAST VILLAGE, INC.
                NOTES TO FINANCIAL STATEMENTS
                 SEPTEMBER 30, 2006 AND 2005
                -----------------------------

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------

A.  Nature of Business
    ------------------
Pismo Coast Village, Inc. (Company) is a recreational vehicle
camping resort. Its business is seasonal in nature and
historically the fourth quarter, the summer, is its busiest and
most profitable.

B.  Inventory
    ---------
Inventory has been valued at the lower of cost or market on a
first-in, first-out basis. Inventory is comprised primarily of
goods in the general store and parts in the RV shop.

C.  Depreciation and Amortization
    -----------------------------
Depreciation of property and equipment is computed using straight
line method based on the cost of the assets, less allowance for
salvage value, where appropriate. Depreciation rates are based
upon the following estimated useful lives:

     Building and park improvements          5 to 40 years
     Furniture, fixtures, equipment and
      leasehold improvements                 3 to 31.5 years
     Transportation equipment                5 to 10 years

D.  Earnings Per Share
    ------------------
The earnings (losses) per share are based on the 1,800 shares
issued and outstanding.

E.  Cash and Cash Equivalents
    -------------------------
For purposes of the statements of cash flows, the Company
considers all highly liquid investments including certificates of
deposit with maturities of three months or less when purchased,
to be cash equivalents.

F.  Concentration of Credit Risk
    ----------------------------
At September 30, 2006, the Company had cash deposits in excess of
the $100,000 federally insured limit with Santa Lucia Bank of
$842,518. Santa Lucia Bank however has entered into a "contract
for deposit of moneys" for $1,500,000 with the Company. This
contract states that Santa Lucia Bank will keep as security for
the Company's deposits up to $1,500,000 in U.S. Treasury
securities with City National Bank of Beverly Hills. The Company
receives statements monthly from City National Bank indicating
the funds held in trust. At September 30, 2006, the Company had
cash deposits in excess of the $100,000 federally insured limit
with Los Padres Bank of $4,596.


<Page>


PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006 AND 2005
PAGE 2
-----------------------------

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
---------------------------------------------------

G.  Use of Estimates
    ----------------
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires the Company to make estimates and assumptions
that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.

H.  Revenue and Cost Recognition
    ----------------------------
The Company's revenue is recognized on the accrual basis as
earned based on the date of stay. Expenditures are recorded on
the accrual basis whereby expenses are recorded when incurred,
rather than when paid.

I.  Advertising
    -----------
The Company follows the policy of charging the costs of
non-direct response advertising to expense as incurred.
Advertising expense was $49,203 and $38,792 for the years ended
September 30, 2006 and 2005, respectively.

NOTE 2 - PISMO COAST VILLAGE RECREATIONAL VEHICLE RESORT AND
         RELATED ASSETS
-------------------------------------------------------------
At September 30, 2006 and 2005, property and equipment included
the following:

<TABLE>
<CAPTION>
                                     2006          2005
                                 -----------   -----------
<S>                              <C>           <C>
Land                             $ 6,911,484   $ 3,860,629
Building and park
 improvements                      8,076,222     7,740,770
Furniture, fixtures, equipment
 and leasehold improvements          565,001       563,140
Transportation equipment             420,453       391,111
Construction in progress              75,445        79,380
                                 -----------   -----------
                                  16,048,465    12,635,030
Less: accumulated depreciation    (6,247,547)   (5,900,286)
                                 -----------   -----------
                                 $ 9,800,858   $ 6,734,744
                                 ===========   ===========
</TABLE>


<Page>


PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006 AND 2005
PAGE 3
-----------------------------

NOTE 3 - LINE OF CREDIT
-----------------------
The Company has a revolving line of credit for $500,000 with
Santa Lucia Bank, expiring March 2007. The interest rate is
variable at one percent over West Coast Prime with an initial
rate of 6.5 percent and an interest rate of 7.75 percent at
September 30, 2006. The purpose of the line of credit is to
augment operating cash needs in off-season months. There were no
outstanding amounts as of September 30, 2006 or 2005.

NOTE 4 - NOTE PAYABLE
---------------------
The Company secured permanent financing on the purchase of
storage lot land in Arroyo Grande with Santa Lucia Bank. The loan
was refinanced on April 6, 2006 and consolidated it with a note
for the purchase of another storage lot in Oceano. The total loan
currently outstanding is $2,163,973 and was financed over a
period of ten years at a variable interest rate currently at
8.75%. The lot in Oceano was formerly leased for $4,800 per month
and was purchased for $925,000. The payments are currently
$20,016 per month interest and principle.

Principal payments of the note payable are as follows:

<TABLE>
<CAPTION>
         Year Ending June 30,
         --------------------
              <S>                          <C>
                 2007                      $   28,155
                 2008                          30,720
                 2009                          33,519
                 2010                          36,572
                 2011                          39,904
              Thereafter                    1,995,103
                                           ----------
                                           $2,163,973
                                           ==========
</TABLE>

NOTE 5 - COMMON STOCK
---------------------
Each share of stock is intended to provide the shareholder with a
maximum free use of the park for 45 days per year. If the Company
is unable to generate sufficient funds from the public, the
Company may be required to charge shareholders for services.

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


<Page>


PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006 AND 2005
PAGE 4
-----------------------------

NOTE 6 - INCOME TAXES
---------------------
The provision for income taxes consists of the following
components:

<TABLE>
<CAPTION>
                                 2006           2005
                               --------       --------
       <S>                     <C>            <C>
       Current:
        Federal                $294,300       $283,700
        State                    82,000         72,100
                               --------       --------
                                376,300        355,800
                               --------       --------
       Deferred:
        Federal                 (11,400)       (22,900)
        State                     1,300          3,300
                               --------       --------
                               $366,200       $336,200
                               ========       ========
</TABLE>

The deferred tax assets (liabilities) are comprised of the
following:

<TABLE>
<CAPTION>
                        2006                   2005
                --------------------   --------------------
                 Current   Long-term    Current   Long-term
                ---------  ---------   ---------  ---------
<S>             <C>        <C>         <C>        <C>
Deferred tax assets:
 Federal        $  54,700  $           $  49,100  $
 State              3,800                  3,300
Deferred tax
 liabilities:
  Federal                   (225,700)              (231,500)
  State                      (40,300)               (38,500)
                ---------  ---------   ---------  ---------
                $  58,500  $(266,000)  $  52,400  $(270,000)
                =========  =========   =========  =========
</TABLE>

The deferred tax assets (liabilities) consist of the following
temporary differences:

<TABLE>
<CAPTION>
                                         2006        2005
                                      ---------   ---------
<S>                                   <C>         <C>
Depreciation                          $(266,100)  $(269,900)
                                      ---------   ---------
 Total gross deferred
 tax liabilities                       (266,100)   (269,900)
                                      ----------  ---------
Vacation accrual                         18,300      15,900
Federal benefit of state taxes           40,300      36,400
                                      ---------   ---------
 Total gross deferred tax assets         58,600      52,300
                                      ---------   ---------
                                      $(207,500)  $(217,600)
                                      =========   =========
</TABLE>


<Page>


PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006 AND 2005
PAGE 5
-----------------------------

NOTE 6 - INCOME TAXES (Continued)
---------------------
The effective income tax rate varies from the statutory federal
income tax rate as follows:

<TABLE>
<CAPTION>
                                              2006    2005
                                              -----   -----
<S>                                           <C>     <C>
Statutory federal income tax rate             34.0%   34.0%
 Increase (decrease):
  State income taxes, net of
 federal benefit                               6.7     6.8
  Nondeductible variable costs
   of shareholder usage                        5.2     5.9
  Incremental tax due to
   resolution of tax audit
  Benefit from additional depreciation
   on prior year tax return                   (1.1)
                                              -----   -----
   Effective Income Tax Rate                  44.8%   46.7%
                                              =====   =====
</TABLE>


<Page>


PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006 AND 2005
PAGE 6
-----------------------------

NOTE 7 - OPERATING EXPENSES
---------------------------
Operating expenses for the years ended September 30, 2006 and
2005 consisted of the following:

<TABLE>
<CAPTION>
                                    2006            2005
                                 ----------      ----------
<S>                              <C>             <C>
Administrative salaries          $  331,462      $  297,875
Advertising and promotion            49,203          38,792
Auto and truck expense               76,748          66,797
Bad debts                                90             321
Contract services                   117,746         108,826
Corporation expense                  48,042          42,355
Custodial supplies                   13,115          13,991
Direct labor                      1,090,330       1,043,396
Employee travel and training         23,461          27,435
Equipment lease                       4,814           2,881
Insurance                           339,248         336,586
Miscellaneous                        32,667          32,007
Office supplies and expense          49,574          52,894
Payroll tax expense                 133,378         122,968
Payroll service                       3,114
Pension plan match                   35,757          13,976
Professional services                67,775          68,238
Property taxes                       62,109          60,880
Recreational supplies                 7,756           6,786
Rent - storage lots                  80,890          73,446
Repairs and maintenance             108,629         143,743
Retail operating supplies            10,618           7,733
Security                              3,355           2,935
Service charges                      96,394          86,187
Taxes and licenses                   11,024           7,507
Telephone                            32,717          31,818
Uniforms                             18,805          17,543
Utilities                           351,522         328,076
                                 ----------      ----------
 Total Operating Expenses        $3,200,343      $3,035,992
                                 ==========      ==========
</TABLE>


<Page>


PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006 AND 2005
PAGE 7
-----------------------------

NOTE 8 - OPERATING LEASES
-------------------------
The Company leases two pieces of property to use as storage lots.
One is leased under a seven year agreement made effective on
March 1, 2006 providing for two months of free rent, the next
four months at $3,600, with the remaining payments to be made at
$4,500 per month to be increased annually beginning March 1, 2007
based on the Consumer Price Index.

The second lot is located in Oceano and is leased at $2,840 per
month, with the lease expiring December 31, 2006. The lease is
expected to be renewed at that time.

Future minimum lease payments under the second property lease and
the obligation to lease equipment are as follows:

<TABLE>
<CAPTION>
            Year Ended September 30,
            ------------------------
                     <S>                     <C>
                     2007                    $ 62,520
                     2008                      54,000
                     2009                      54,000
                     2010                      54,000
                     2011                      54,000
                  Thereafter                   81,000
                                             --------
                                             $359,520
                                             ========
</TABLE>

Rent expense under these agreements was $80,890 and $75,270 for
the years ended September 30, 2006 and 2005, respectively.

NOTE 9 - EMPLOYEE RETIREMENT PLANS
----------------------------------
The Company converted its 401(k) profit-sharing pension plan to a
401(k) safe harbor plan effective October 1, 2005. Under this
plan employees working more than 1,000 hours annually are
eligible for participation in the plan after one year of service.
The Company matches employee contributions up to 4% of
compensation. The profit sharing element of the plan is funded at
the annual discretion of the Board of Directors. Employees are
fully vested when their participation in the plan begins. The
contribution to the pension plan, for the years ended September
30, 2006 and 2005, is $35,336 and $13,976, respectively.

NOTE 10 - SUBSEQUENT EVENTS
---------------------------
On November 12, 2006 there was a fire in Pismo Coast Village's
maintenance building. Damage was extensive on one side of the
building, including structural and contents, and the estimated
loss is approximately $100,000. The Company has fire insurance
and expects this coverage to be adequate to cover the building
and contents.


<Page>


                 INDEPENDENT AUDITOR'S REPORT
                 ----------------------------
                  ON ADDITIONAL INFORMATION
                  -------------------------






To the Board of Directors and
Stockholders of Pismo Coast Village, Inc.
Pismo Beach, California


Our report on our audits of the basic financial statements of
Pismo Coast Village, Inc. as of September 30, 2006 and 2005
appears on page 3. Those audits were made for the purpose of
forming an opinion on the basic financial statements taken as a
whole. The statements of income (unaudited) for the three months
ended September 30, 2006 and 2005 are presented for purposes of
additional analysis and are not a required part of the basic
financial statements. Such information has not been subjected to
the auditing procedures applied in the audits of the basic
financial statements, and accordingly, we express no opinion on
it.


                         BROWN ARMSTRONG PAULDEN
                         McCOWN STARBUCK THORNBURGH & KEETER
                         ACCOUNTANCY CORPORATION



Bakersfield, California
October 27, 2006


<Page>

<TABLE>
                      PISMO COAST VILLAGE, INC.
                STATEMENTS OF INCOME (UNAUDITED)
           THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
           ----------------------------------------------
<CAPTION>
                                         2006        2005
                                      ----------  ----------
<S>                                   <C>         <C>
Income
------
Resort operations                     $1,325,466  $1,275,035
Retail operations                        349,461     348,669
                                      ----------  ----------
 Total income                          1,674,927   1,623,704

Costs and Expenses
------------------
Operating expenses                       922,754     911,763
Cost of goods sold                       167,281     172,747
Depreciation                              87,077     101,376
                                      ----------  ----------
 Total costs and expenses              1,177,112   1,185,886
                                      ----------  ----------

Income from operations                   497,815     437,818

Interest income                            4,027       4,247
Interest expense                         (51,200)     (6,958)
Loss on sale of fixed assets
                                      ----------  ----------
 Total other income (expense)            (47,173)     (2,711)
                                      ----------  ----------

Income Before Provision
 For Income Taxes                        450,642     435,107
-----------------------

Provision for Tax Expense                202,200     202,900
-------------------------             ----------  ----------

Net Income                            $  248,442  $  232,207
----------                            ==========  ==========

Earnings Per Share                    $   138.02  $   129.00
------------------                    ==========  ==========
</TABLE>


<Page>


ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.

ITEM 8A. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Within the 90 days prior to the date of this report, the Company
carried out an evaluation, under the supervision and with the
participation of the Company's management, including the
Company's Chief Operating Officer/General Manager and Chief
Financial Officer, of the effectiveness of the design and
operation of the Company's disclosure controls and procedures
pursuant to Exchange Act rule 13a-14c. Based upon the evaluation,
the Chief Operating Officer/General Manager and Chief Financial
Officer concluded that the Company's disclosure controls and
procedures are effective.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no significant changes in the Company's internal
controls or in other factors that could significantly affect
internal controls subsequent to the date of their evaluation.

ITEM 8B. OTHER INFORMATION
Inapplicable.

                          PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
        PERSONS; COMPLIANCE WITH SECTION 16(a)
        OF THE EXCHANGE ACT

a. The Company's Directors were chosen at the Shareholder's
Annual Meeting on January 21, 2006. Director Howard Allard passed
away during the fiscal year (April 2006). At the Board of
Directors' Meeting held September 16, 2006, shareholder Dennis
Hearne was duly nominated and elected to fill the board vacancy
until the next election at the Annual Shareholders' Meeting set
for January 20, 2007. The Directors serve for one year, or until
their successors are elected. The names, ages, background and
other information concerning the Directors, including other
offices held by the Directors with the Company, are set forth
below.

The following is a list of the Company's Directors and Executive
Officers setting forth their functions and experience. There is
no understanding or agreement under which the Directors hold
office.

LOUIS BENEDICT, Director                                   Age 79
Louis Benedict served in the U. S. Navy from 1944 to 1946, and
again during the Korean War, from 1952 to 1953. He attended the
University of Southern California, majoring in electrical
engineering, and following that earned a B. S. degree in
electrical engineering at the University of Colorado. Mr.
Benedict was employed from 1957 to 1962 as a project engineering
manager with Lockheed Missiles and Space, from 1962 to 1964 as a
vice president with William A. Revelle Corporation, and from 1964
to 1966 as an engineering section manager with Lockheed Missiles
and Space. From 1966 to 1975 he was employed as the director of
subcontract administration with Litton Industries, from 1975 to
1994 as vice president of contract administration for Datametrics
Corporation, and from 1994 until his retirement in 1998 as a
consultant in the field of U. S. defense contracts
administration. Mr. Benedict has served on the Board of Directors
since November 2002.


<Page>


NANCY BRADY, Director                                      Age 64
Nancy Brady was employed most recently as the operations manager
for Walter Mortensen Insurance from 1991 to 2002. Prior to that
time, she and her husband owned their own insurance agency. She
holds the CPCU (Chartered Property and Casualty Underwriter)
designation along with the ARM (Associate in Risk Management)
degree. She is currently serving on the Board of Directors for
both the Stockdale Women's Organization and the Child Guidance
Guild of Bakersfield. Mrs. Brady has served on the Board of
Directors since November 2003.

KURT BRITTAIN, Director and Vice President - Secretary     Age 76
After his Marine Corps service, Mr. Brittain was employed for
more than thirty-three years by Orange County, California, prior
to his retirement in 1986. His background includes public works,
flood control and manager of the county's harbors, beaches and
parks system. He was in charge of three harbors, seven beaches
and more than twenty-six parks, three of which were camping
parks. He has completed extension courses in business
administration, management, recreation and real estate. Mr.
Brittain has been a member of the Board from March 1990 to July
1999 and from January 2002 to present, serving one year as Vice
President - Administration and five years as Executive Vice
President. He is currently serving a fifth year as Vice President
- Secretary.

HARRY BUCHAKLIAN, Director                                 Age 74
Harry Buchaklian has a B.A. degree from C.S.U.F. in industrial
arts, and a secondary level teaching credential in laboratory
electronics and small engine repair. His career included
employment as an assistant manager with Western Auto Stores,
electronics instructor at Fresno Technical College and technical
supervisor for Sears Roebuck. He retired from Sears Roebuck in
1994. He has been a member of the Board from March 1981 to
January 1992 and from September 1995 to present, serving one year
as Executive Vice President, and as a chairman of the Policy and
Audit Committees.

DOUGLAS EUDALY, Director                                   Age 75
Douglas Eudaly has an associate of arts degree from Fresno City
College in elementary education, and a bachelor's degree in
elementary education from Fresno State College. He has done
doctoral studies at Nova University in Ft. Lauderdale, Florida,
and received a Ph.D. from Clayton Theological Institute in
Clayton, California. Dr. Eudaly holds life teaching credentials
for elementary and junior high schools, and administrative
credentials for preschool through adult school. He retired from
the Fresno Unified School District in 1991 with thirty-one years
of service credit--the last five years as program director for
the Disability Awareness Program. Dr. Eudaly was president of the
Fresno Teachers' Association in 1970-1971, as well as chairman of
the district's negotiating council and served one term as chief
negotiator. He has served three years as president of the board
of directors for Friendship Center for the Blind, and as chairman
of several advisory committees for food banks and other nonprofit
organizations. He served more than three years as the deacon
chair at the Evangelical Free Church of Fresno. Dr. Eudaly has
served on the Board since January 2002.


<Page>


ED FIGUEROA, Director                                      Age 63
Mr. Figueroa majored in aeronautics at Reedley College and
obtained his airframe & power plant license in 1964. In 1970 he
started working in the heating and air-conditioning field as a
service manager and service technician with Jack's Refrigeration,
Inc. Mr. Figueroa purchased the company in 1993, and managed the
business until his retirement in December 2004. Mr. Figueroa
continues to have a C-20 contractor's license, specializing in
custom residential and design-built commercial heating and
air-conditioning systems. His company also specialized in sheet
metal fabricating and installation and service repairs on
commercial and residential systems. Mr. Figueroa has served on
the Board since November 2003.

WILLIAM FISCHER, Director                                  Age 72
William (Bill) Fischer has been married fifty years and served in
the U. S. Air Force during the Korean War. He is a graduate of
California State University, Northridge, with a B. S. degree in
accounting. He worked in the aerospace, entertainment and public
utility industries until 1969 when he was hired by Getty Oil
Company's corporate office as an accounting supervisor. Texaco,
Inc. acquired Getty Oil in 1985, and he was promoted to Manager
of Benefits Plan's Accounting. Mr. Fischer was responsible for
the Savings/Thrift, 401-K, and ESOP Plans administration until
1989 when he elected early retirement. He then went into
residential real estate and was a financial consultant to various
companies until 2003, and has an active real estate broker
license. He is a member of the Veterans of Foreign Wars, Elks,
Moose, and Knights of Columbus organizations. He looks forward to
contributing his financial and real estate backgrounds to the
Board. Mr. Fischer has been on the Board since January 2002.

NORMAN GOULD, Director                                     Age 87
Norman Gould has a B.A. in education and an M.A. in
administration. His occupation prior to retirement in 1987 was as
the superintendent of schools for Madera County. He was a member
of the board of directors of Kingsview, Inc. from 1968 to 1980
and held the positions of vice chairman and chairman of the
board, and serves on the board of directors of Valley Teen Ranch,
Inc. Mr. Gould is currently president of the California Retired
Teachers Foundation, a nonprofit corporation. He has been a
member of the Board from March 1976 to March 1991 and from March
1993 to present, serving nine years as President, one year as
Treasurer and two years as Secretary.

R. ELAINE HARRIS, Director                                 Age 68
R. Elaine Harris retired in 1990 from Pacific Telephone with
thirty-one years service, starting in the business office, then
advancing to facility administrator the last ten years of that
time. She was active with the Jaycettes Club and has worked on
several political campaigns. She is now enjoying retirement and
feels very blessed serving on the Board since January 2000. She
is looking forward to continuing serving the shareholders.


<Page>


DENNIS HEARNE, Director                                    Age 68
Dennis Hearne holds an A.A. degree in business administration
from Hartnell Junior College. He served two years in the Navy.
Prior to retirement, he was employed in a family agriculture
business, L. A. Hearne Company, located in the Salinas Valley for
thirty-seven years, and presently serves as the company's
chairman of the board. Mr. Hearne has also served on the board of
directors of the California Crop Improvement Association in
Sacramento and the California Crop Improvement Association in
Davis. He is a member of Knights of Columbus, serving as
treasurer and financial secretary for fifteen years. Mr. Hearne
is a volunteer fireman with thirty years service in King City,
and is the fire department's treasurer. He has been a member of
the Board of Directors since September 2006.

GLENN HICKMAN, Director and Executive Vice President       Age 73
Glenn Hickman has a B.A. in business and a secondary teaching
credential from Fresno State University. His occupation prior to
retirement in 1995 was as a financial analyst and office
supervisor for Cal Resources, a subsidiary of Shell Oil Company.
Mr. Hickman has been a member of the Board since July 1999 and is
currently serving a fifth year as Executive Vice President.

TERRIS HUGHES,                                             Age 57
Terris (Terry) Hughes holds an A.A. degree from Bakersfield
Junior College in police science. He was employed by Cal
Resources LLC for twenty-three years, from 1973 to 1997, holding
the position of senior training technician for the last ten years
of that time. He is currently employed as an internal
consultant for Aera Energy LLC, an oil industry company formed in
1997 between the Shell Oil and Mobil Oil Corporations. His duties
are to serve as a behavior base safety advisor and provide safety
training to Aera Energy LLC employees. Mr. Hughes has been a
member of the Board since January 1996 and served one year as
Vice President - Policy.

RONALD NUNLIST, Director and Vice President - Policy       Age 68
Ronald Nunlist was employed in the oil business for many years.
From 1995 to 1997 he was employed as an operations foreman by Cal
Resources LLC, an oil industry company owned by Shell Oil
Corporation. From 1997 until his retirement in 1999, Mr. Nunlist
was employed as a logistics specialist by Aera Energy LLC, an oil
industry company formed between the Shell Oil and Mobil Oil
Corporations. He has been a member of the Board since January
1986, serving five years as President, and is currently serving a
fifth year as Vice President - Policy.

GEORGE PAPPI, JR.,                                         Age 44
Mr. Pappi's current occupation is as a fire claims representative
for State Farm Insurance. Other positions held during his
eighteen years of employment with State Farm Insurance include
office manager, property and bodily injury adjustor, fire and
casualty (with extensive construction background), risk
management and commercial insurance. He graduated from Cal Poly
Pomona with a B.S. in management and human resources. He resides
in La Verne, California and is actively involved in local
community and church activities and the United Way organization.
Mr. Pappi has been a member of the Board of Directors since
January 2004.


<Page>


JERALD PETTIBONE, Director and President                   Age 80
Jerry Pettibone sold and retired from his company, Pettibone
Signs, in Santa Cruz in 1988. He started the company which
operated statewide in 1960. Active in trade associations, he
served on the board of directors of the National Electric Sign
Association, and on the board of directors of the World Sign
Association, serving as national president in 1985 and 1986. He
served on the board of directors of the California Electric Sign
Association for twenty-two years and was elected a director
emeritus. He has been a member of the Board since January 1993,
including three years as Chief Financial Officer, and is
currently serving a tenth year as President.

GARY WILLEMS, Director                                     Age 52
Gary Willems holds a B.A. degree in music education and a
California life teaching credential from Fresno Pacific
University. Mr. Willems has been teaching music since 1977, and
since 1985 has been the director of bands at Reedley High School.
He is an active member of the California Band Directors'
Association and is the past president of Fresno and Madera
Counties' Music Educators' Association. Mr. Willems has served on
the Board of Directors since January 2001.

JACK WILLIAMS, Director, Chief Financial Officer and
Vice President - Finance                                   Age 56
Mr. Williams graduated from San Diego State University in 1974
with a B.S. in accounting. Following that, he has been employed
in the field of accounting in a variety of industries, including
agriculture, construction, heavy equipment sales, and
manufacturing. He was employed as a financial analyst by Texaco
Oil Corporation in the Bakersfield area from 1997 until 1999, and
as Chief Financial Officer for Goodwill Industries of
South-Central California from March 2000 to November 2004. Mr.
Williams was an interim-controller for Diversified Utilities
Services, a position he held from April 2005 to December 2005. He
established his own C.P.A. practice in 1983, which he continues
to own and operate. Mr. Williams has been a member of the Board
since January 1995, and is currently serving a tenth year as
Chief Financial Officer and Vice President - Finance.

CHARLES ZAHKA, Director                                    Age 80
Charles Zahka retired as vice president of the Broadway
Department Stores in 1990 after twenty years. Following that, he
served as a private management consultant until he opted for full
retirement in 2005. Mr. Zahka is president of the Stroke
Association of Southern California and vice chairman of the
Better Business Bureau of the Southland. He has been a member of
the Board since March 1988, and has served one year as Secretary
and one year as President.


<Page>


HOWARD ALLARD, Director
Howard Allard had a master's degree in education administration
from California State University, Sacramento. He was an
elementary school principal in the Rio Linda Union School
District for twenty-nine years prior to his retirement in 1985.
Since 1978, Mr. Allard was a partner in Allard Enterprises, which
maintains rental properties, and since 1982, was a partner in
Allard Limousine. He was elected to the Board in March 1980, and
served three years as President, two years as Secretary, and one
year as Vice President - Administration. Mr. Allard passed away
April 29, 2006.

b. OTHER OFFICERS AND SIGNIFICANT EMPLOYEES
JAY JAMISON, Chief Operating Officer/General Manager and
Assistant Corporate Secretary                              Age 53
Jay Jamison has been employed by the Company since June 1997 as
General Manager and serves as Assistant Corporate Secretary. In
May 2005, the Board changed his title to Chief Operating
Officer/General Manager. He has a B.S. degree in Agricultural
Management from Cal Poly San Luis Obispo, graduating in 1976. Mr.
Jamison was raised on his family's guest ranch, Rancho Oso, in
Santa Barbara County, which included a recreational vehicle park,
resident summer camp, equestrian facilities and numerous resort
amenities. He worked on the ranch throughout his childhood and
after college. The family business was sold in 1983, at which
time Mr. Jamison was hired by Thousand Trails, Inc., a private
membership resort, as a Resort Operations Manager. His last ten
years at Thousand Trails were spent managing a 200-acre,
518-site, full-service resort near Hollister, California. He also
managed Thousand Trails resorts in Acton and Idyllwild in
Southern California. Prior to his employment with the Company,
Mr. Jamison was a General Manager with Skycrest Enterprises in
Redding and managed Sugarloaf Marina and Resort on Lake Shasta in
Northern California between January 1995 and June 1997. He is a
member of the Resort and Commercial Recreation Association and is
also a member of the American Quarter Horse Association. Mr.
Jamison was appointed to and has served as a commissioner on the
Pismo Beach Conference and Visitors Bureau since February 1998,
and since August 1999 has served as Chair. At the National
Association of RV Parks and Campgrounds' Annual Convention in
November 1999, Mr. Jamison was appointed to the ARVC Board of
Directors representing the ten western states. At the 2001 Annual
Convention, he was elected Treasurer of the National Association,
a position he held until he termed out December 2005. In June of
2002, Mr. Jamison was installed as a Director on the Board for
the San Luis Obispo County Chapter of the American Red Cross, and
in June 2006 was elected Board Chairman. In February 2006, Mr.
Jamison was elected to serve as a commissioner on the California
Travel and Tourism Commission, which markets California to
potential domestic and international visitors.

c. FAMILY RELATIONSHIPS
There are no familial relationships between the Directors nor
between the Directors and the Officers.


<Page>


d. INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS
To the knowledge of the Company, none of the officers or
directors have been personally involved in any bankruptcy or
insolvency proceedings. To the knowledge of the Company, none of
the directors or officers have been convicted in any criminal
proceedings (excluding traffic violations and other minor
offenses) or are the subject of a criminal proceeding which is
presently pending, nor have such persons been the subject of any
order, judgment, or decree of any court of competent
jurisdiction, permanently or temporarily enjoining them from
acting as an investment advisor, underwriter, broker or dealer in
securities, or as an affiliated person, director or insurance
company, or from engaging in or continuing in any conduct or
practice in connection with any such activity or in connection
with the purchase or sale of any security, nor were any of such
persons the subject of a federal or state authority barring or
suspending, for more than 60 days, the right of such person to be
engaged in any such activity, which order has not been reversed
or suspended.

e. AUDIT COMMITTEE FINANCIAL EXPERT
The Company's Board of Directors has not yet designated an Audit
Committee expert.

f. CODE OF ETHICS
On November 8, 2003, our board of directors adopted our code of
ethical conduct that applies to all the Company's employees and
directors, including our principal executive officer, principal
financial officer, principal accounting officer or controller,
and persons performing similar functions.

We believe the adoption of our Code of Ethical Conduct is
consistent with the requirements of the Sarbanes-Oxley Act of
2002.

The Company's Code of Ethical Conduct is designed to deter
wrongdoing and to promote:

* Honest and ethical conduct, including the ethical handling of
actual or apparent conflicts of interest between personal and
professional relationships;

* Full, fair, accurate, timely and understandable disclosure in
reports and documents that we file or submit to the Securities
and Exchange Commission and in other public communications made
by us;

* Compliance with applicable governmental laws, rules and
regulations;

* The prompt internal reporting to an appropriate person or
persons identified in the code of violations of our Code of
Ethical Conduct; and

* Accountability for adherence to the Code.


<Page>


g. SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934, as amended,
requires our officers, directors and persons who own more than
ten percent of a registered class of our equity securities within
specified time periods to file certain reports of ownership and
changes in ownership with the SEC. The Company is not aware of
any failure to file reports or report transactions in a timely
manner during the fiscal year ended September 30, 2006, by any
director or officer.

ITEM 10. EXECUTIVE COMPENSATION
The following table shows the salary and bonus paid by the
Company to Jay Jamison, Chief Operating Officer/General Manager
and Assistant Corporate Secretary for the fiscal years ending
September 30, 2006 and September 30, 2005. The salary and bonus
paid to Mr. Jamison for the fiscal year ending September 30, 2004
did not exceed $100,000. No other employee received compensation
exceeding $100,000 during the last three fiscal years.

<TABLE>
                   SUMMARY COMPENSATION TABLE
                   --------------------------
<CAPTION>
Name and Principal Position        Year      Salary    Bonus
---------------------------        ----     --------  -------
<S>                                <C>      <C>       <C>
Jay Jamison, Chief Operating       2006     $110,000  $24,200
Officer/General Manager and        2005     $ 90,000  $22,500
Assistant Corporate Secretary      2004        N/A      N/A
</Table>

The Company has no outstanding options, warrants or rights to
purchase any of its securities, whether held by Directors,
officers or any other persons. Nor does the Company have any
outstanding loans or other indebtedness to any Director or
officer. Since the beginning of the fiscal year, the Company has
not entered into nor does it propose to enter into any
transactions of a material nature with any officer or director or
any corporation or other business entity in which any officer or
director may have an economic interest.

REMUNERATION OF DIRECTORS AND OFFICERS
The directors and officers received no cash remuneration for
their service. However, the directors and officers are entitled
to mileage reimbursement for travel to and from meetings upon
request. In addition, they are entitled to use of the Resort for
attending meetings and are provided with food and refreshments in
connection with Board Meetings. The aggregate value of the
foregoing during the fiscal year ended September 30, 2006, was
estimated at $24,004.

OPTIONS, WARRANTS OR RIGHTS
The Company has no outstanding options, warrants or rights to
purchase any of its securities.

INDEBTEDNESS OF MANAGEMENT
No member of management was indebted to the Company during it's
last fiscal year.


<Page>


ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION
PLANS
Not applicable.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

a. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
No person owns beneficially of record more than 5% of the
Company's securities.

b. SECURITY OWNERSHIP OF MANAGEMENT.
The following sets forth the securities beneficially owned,
directly, by all directors and officers as a group as of
September 30, 2006:

<TABLE>
<CAPTION>
                                            *Amount of  Percent
Board Member                 Title of Class  Ownership  of Class
------------                 --------------  ---------  --------
<S>                          <C>             <C>        <C>
Louis Benedict                Common Stock     1 Share   0.056%
20955 De Mina Street
Woodland Hills CA 91364

Nancy Brady                   Common Stock     1 Share   0.056%
8808 O'Meara Court
Bakersfield CA 93311

Kurt Brittain                 Common Stock     2 Shares  0.111%
12105 Center Avenue
San Martin CA 95046

Harry Buchaklian              Common Stock     1 Share   0.056%
1361 East Ticonderoga Drive
Fresno CA 93720

Douglas Eudaly                Common Stock     6 Shares  0.333%
3918 North Carruth Avenue
Fresno CA 93705

Ed Figueroa                   Common Stock     2 Shares  0.111%
23157 East South Avenue
Reedley CA 93654

William Fischer               Common Stock     1 Share   0.056%
1947 Sienna Lane
Simi Valley CA 93065

Norman Gould                  Common Stock     1 Share   0.056%
10597 Road 30
Madera CA 93637


<Page>


                                            *Amount of  Percent
Board Member                 Title of Class  Ownership  of Class
------------                 --------------  ---------  --------
R. Elaine Harris              Common Stock     4 Shares  0.222%
3418 El Potrero Lane
Bakersfield CA 93304

Dennis Hearne                 Common Stock     2 Shares  0.111%
45075 Merritt Street
King City CA 93930

Glenn Hickman                 Common Stock     1 Share   0.056%
3584 West Wathen Avenue
Fresno CA 93711

Terris Hughes                 Common Stock     1 Share   0.056%
2426 Sunset Street
Wasco CA 93280

Ronald Nunlist                Common Stock     4 Shares  0.222%
1105 Minter Avenue
Shafter CA 93263

George Pappi, Jr              Common Stock     1 Share   0.056%
5728 Via De Mansion
La Verne CA 91750

Jerald Pettibone              Common Stock     2 Shares  0.056%
4179 Court Drive
Santa Cruz CA 95062

Gary Willems                  Common Stock     2 Shares  0.111%
479 South Oak Drive
Reedley CA 93654

Jack Williams                 Common Stock     1 Share   0.056%
7801 Revelstoke Way
Bakersfield CA 93309

Charles Zahka                 Common Stock     1 Shares  0.056%
6300 Alonzo Way
Encino CA 91316

All Officers and
Directors as a Group          Common Stock    34 Shares  1.889%
</TABLE>

*Amount of Ownership: All such shares are owned beneficially and
of record, and there are no additional shares known to the
Company for which the listed beneficial owner has the right to
acquire beneficial ownership as specified in Rule 13D-3(d)(1) of
the Exchange Act.

c. CHANGES IN CONTROL
Not applicable.


<Page>


ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
There have been no transactions during the past two years, or
proposed transactions, to which the Company was or is to be a
party, in which any of the officers, directors, nominees, named
shareholders, or family members of any such persons, had or is to
have a direct or indirect material interest, other than
transactions where competitive bids determine the rates or
charges involved, or where the amount involved does not exceed
$60,000, or where the interest of the party arises solely from
the ownership of securities of the Company and the party received
no extra or special benefit that was not shared by all
shareholders.

ITEM 13. EXHIBITS

EXHIBITS AND INDEX OF EXHIBITS

1. Financial Statements included in this Form 10KSB Report:

                      Description                          Page
-------------------------------------------------------    ----
Accountant's Report for 2006.................................17

Balance Sheets as of September 30, 2006 and 2005.............18

Statements of Operations and Retained Earnings
 for the years ended September 30, 2006 and 2005.............19

Statements of Cash Flows
 for the years ended September 30, 2006 and 2005.............20

Notes to Financial Statements
 For the years ended September 30, 2006 and 2005.............21

Accountant's Report on Additional Information................28

Statements of Operations (Unaudited)
 for the three months ended September 30, 2006 and 2005......29

2. Exhibits included in this Form 10KSB Report:

 Description                                                Page
---------------                                             ----

Code of Ethics...............................................36

3. Exhibits filed with this Form 10KSB Report:

Exhibit No.               Description of Exhibit
-----------  --------------------------------------------------
    31       Certification of the Chief Executive Officer and
             Chief Financial Officer of the Company pursuant to
             Section 302 of the Sarbanes-Oxley Act of 2002

    32       Certification of the Chief Executive Officer and
             Chief Financial Officer of the Company pursuant to
             Section 906 of the Sarbanes-Oxley Act of 2002


<Page>


REPORTS ON FORM 8-K
As reported by the Company on Form 8-K dated July 5, 2005, the
Audit Committee of the Board of Directors selected the firm of
Brown Armstrong Paulden McCown Starbuck Thornburgh & Keeter
Accountancy Corporation to replace the firm of Glenn, Burdette,
Phillips, and Bryson, who resigned as the Company's principal
accountants midterm due to their firm's decision to cease
performing audits for SEC engagements effective May 31, 2005.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
As reported by the Company on Form 8-K dated July 5, 2005, the
Audit Committee of the Board of Directors selected the firm of
Brown Armstrong Paulden McCown Starbuck Thornburgh & Keeter
Accountancy ("Brown Armstrong") Corporation to replace the firm
of Glenn, Burdette, Phillips, and Bryson ("GBPB"). The firm of
Brown Armstrong served as independent certified public
accountants for the Company for its fiscal year ended September
30, 2005, and this firm has been selected to serve as the
Company's accountants for Fiscal Year 2006.

Audit services performed by Brown Armstrong for the year ended
September 30, 2006, consisted of examination of the financial
statements of the Company, certain services related to filings
with the Securities and Exchange Commission, and consultation on
matters related to accounting and financial reporting. All such
services were approved by the Board of Directors, which has
determined the firm of Brown Armstrong to be fully independent of
the operations of the Company.

(1) AUDIT FEES
The Company's auditor (Brown Armstrong), for the fiscal year
ended September 30, 2006, billed the Company an aggregate of
$27,735 for professional services rendered in connection with
their audit of the Company's financial statements. The Company
also paid Brown Armstrong $9,000 for their review of the
quarterly report for the periods ending 12/31/05, 3/31/06, and
6/30/06. In addition, GBPB billed the Company an aggregate of
$14,260 for their compilation of the Company's quarterly
financial statements ending 12/31/05, 3/31/06, and 6/30/06,
during Fiscal Year 2006.

The Company's auditor (Brown Armstrong), for the fiscal year
ended September 30, 2005, billed the Company an aggregate of
$25,000 for professional services rendered in connection with
their audit of the Company's financial statements. The Company
also paid Brown Armstrong $3,000 for their review of the
quarterly report for the period ending 6/30/05. In addition, GBPB
billed the Company an aggregate of $14,000 for their review of
the Company's quarterly reports on Form 10-QSB ending 12/31/04
and 3/31/05 during Fiscal Year 2005.

(2) AUDIT-RELATED FEES
The Company paid no audit-related fees for services reasonably
related to performance of the audit or review of the Company's
financial statements for the fiscal years ending September 30,
2006 and September 30, 2005.

(3) TAX FEES
For the fiscal year ended September 30, 2006, the Company paid
GBPB $4,991 for tax fees consisting of tax planning, consulting,
and tax return review.


<Page>


(4) ALL OTHER FEES
GBPB billed the Company an additional $2,936 for professional
services rendered during Fiscal Year 2006 for services not
otherwise described above. Brown Armstrong billed the Company an
additional $2,240 for professional services rendered during
Fiscal 2006 for services not otherwise described above. All other
fees related to services traditionally provided by auditors,
including work performed in connection with income tax services,
were compatible with GBPB's and Brown Armstrong's independence.

(5) AUDIT COMMITTEE'S PREAPPROVAL POLICIES AND PROCEDURES
For the fiscal years ending September 30, 2006 and September 30,
2005, all audit related services, tax services and other services
were pre-approved by the Audit Committee, which concluded that
the provision of such services by Brown Armstrong and GBPB were
compatible with the maintenance of that firm's independence in
the conduct of its auditing function.


<Page>


                         SIGNATURES
                         ----------

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

PISMO COAST VILLAGE, INC.

By: JERALD PETTIBONE                    Date: November 11, 2006
    Jerald Pettibone, President
    and Chairman of the Board

In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.

By: JAY JAMISON                         Date: November 11, 2006
    Jay Jamison, Chief Operating Officer,
    General Manager and Assistant Corporate Secretary

By: JERALD PETTIBONE                    Date: November 11, 2006
    Jerald Pettibone, President
    and Chairman of the Board and Director

By: GLENN HICKMAN                       Date: November 11, 2006
    Glenn Hickman, Executive Vice President
    and Director

By: KURT BRITTAIN                       Date: November 11, 2006
    Kurt Brittain, Vice President - Secretary
    and Director

By: JACK WILLIAMS                       Date: November 11, 2006
    Jack Williams, Chief Financial Officer,
    Vice President - Finance and Director

By: RONALD NUNLIST                      Date: November 11, 2006
    Ronald Nunlist, Vice President - Policy
    and Director

By: LOUIS BENEDICT                      Date: November 11, 2006
    Louis Benedict, Director

By: NANCY BRADY                         Date: November 11, 2006
    Nancy Brady, Director


<Page>


By: HARRY BUCHAKLIAN                    Date: November 11, 2006
    Harry Buchaklian, Director

By: DOUGLAS EUDALY                      Date: November 11, 2006
    Douglas Eudaly, Director

By: ED FIGUEROA                         Date: November 11, 2006
    Ed Figueroa, Director

By: WILLIAM FISCHER                     Date: November 11, 2006
    William Fischer, Director

By: NORMAN GOULD                        Date: November 11, 2006
    Norman Gould, Director

By: R. ELAINE HARRIS                    Date: November 11, 2006
    R. Elaine Harris, Director

By: DENNIS HEARNE                       Date: November 11, 2006
    Dennis Hearne, Director

By: TERRIS HUGHES                       Date: November 11, 2006
    Terris Hughes, Director

By: ___________________________________ Date: _________________
    George Pappi, Jr., Director

By: GARY WILLEMS                        Date: November 11, 2006
    Gary Willems, Director

By: CHARLES ZAHKA                       Date: November 11, 2006
    Charles Zahka, Director

<Page>