Crimson Wine (CWGL) 10-Q 9 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	000-54866
Entity Registrant Name	CRIMSON WINE GROUP, LTD.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3607383
Entity Address, Address Line One	5901 Silverado Trail
Entity Address, City or Town	Napa
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94558
City Area Code	800
Local Phone Number	486-0503
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		21,308,900
Amendment Flag	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Central Index Key	0001562151
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 15,504	$ 25,705
Investments available for sale	19,162	11,673
Accounts receivable, net	4,970	6,849
Inventory	51,478	51,716
Other current assets	1,555	1,653
Total current assets	92,669	97,596
Property and equipment, net	114,570	113,421
Goodwill	1,262	1,262
Intangible and other non-current assets, net	5,975	6,481
Total non-current assets	121,807	121,164
Total assets	214,476	218,760
Current liabilities:
Accounts payable and accrued liabilities	7,877	11,460
Customer deposits	579	392
Current portion of long-term debt, net of unamortized loan fees	1,129	1,128
Total current liabilities	9,585	12,980
Long-term debt, net of current portion and unamortized loan fees	17,106	17,671
Deferred tax liability, net	1,103	1,100
Other non-current liabilities	9	9
Total non-current liabilities	18,218	18,780
Total liabilities	27,803	31,760
Contingencies (Note 12)
Stockholders’ Equity
Common shares, par value $0.01 per share, authorized 150,000,000 shares; 21,357,656 and 21,448,212 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	213	214
Additional paid-in capital	278,347	278,083
Accumulated other comprehensive income (loss)	24	(49)
Accumulated deficit	(91,911)	(91,248)
Total stockholders’ equity	186,673	187,000
Total liabilities and stockholders’ equity	$ 214,476	$ 218,760

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	150,000,000	150,000,000
Common shares, shares issued (in shares)	21,357,656	21,448,212
Common shares, shares outstanding (in shares)	21,357,656	21,448,212

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 17,718	$ 18,082	$ 32,939	$ 36,705
Cost of sales	9,121	9,729	17,408	21,257
Gross profit	8,597	8,353	15,531	15,448
Operating expenses:
Sales and marketing	4,520	4,543	8,830	8,282
General and administrative	3,560	3,263	7,028	6,561
Total operating expenses	8,080	7,806	15,858	14,843
Net (gain) loss on disposal of property and equipment	(15)	107	34	127
Income (loss) from operations	532	440	(361)	478
Other (expense) income:
Interest expense, net	(68)	(94)	(327)	(377)
Other income, net	297	99	597	126
Total other income (expense), net	229	5	270	(251)
Income (loss) before income taxes	761	445	(91)	227
Income tax expense (benefit)	215	127	(25)	66
Net income (loss)	$ 546	$ 318	$ (66)	$ 161
Basic weighted-average shares outstanding (in shares)	21,412	22,450	21,430	22,486
Fully diluted weighted-average shares outstanding (in shares)	21,412	22,450	21,430	22,487
Basic earnings per share (in dollars per share)	$ 0.03	$ 0.01	$ 0	$ 0.01
Fully diluted earnings per share (in dollars per share)	$ 0.03	$ 0.01	$ 0	$ 0.01

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 546	$ 318	$ (66)	$ 161
Other comprehensive loss:
Net unrealized holding gains (losses) on investments arising during the period, net of tax	65	(19)	73	(25)
Comprehensive income	$ 611	$ 299	$ 7	$ 136

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Net cash flows from operating activities:
Net (loss) income	$ 546	$ 318	$ (66)	$ 161
Adjustments to reconcile net (loss) income to net cash from operations:
Depreciation and amortization of property and equipment			3,028	2,976
Amortization of intangible assets	322	322	643	643
Loss on write-down of inventory	200	200	531	926
Provision for doubtful accounts			7	0
Net loss on disposal of property and equipment	(15)	107	34	127
(Benefit) provision for deferred income taxes			(25)	66
Stock-based compensation			264	158
Net change in operating assets and liabilities:
Accounts receivable			1,872	978
Inventory			(293)	4,886
Other current assets			98	(170)
Other non-current assets			(137)	19
Accounts payable and accrued liabilities			(4,374)	(4,825)
Customer deposits			193	265
Net cash provided by operating activities			1,775	6,210
Net cash flows from investing activities:
Purchase of investments available for sale			(14,637)	(5,750)
Redemptions of investments available for sale			7,250	9,250
Acquisition of property and equipment			(3,442)	(1,678)
Proceeds from disposals of property and equipment			21	18
Net cash (used in) provided by investing activities			(10,808)	1,840
Net cash flows from financing activities:
Principal payments on long-term debt			(570)	(570)
Repurchase of common stock			(598)	(1,016)	$ (7,000)
Net cash used in financing activities			(1,168)	(1,586)
Net (decrease) increase in cash and cash equivalents			(10,201)	6,464
Cash and cash equivalents - beginning of period			25,705	32,732	32,732
Cash and cash equivalents - end of period	$ 15,504	$ 39,196	15,504	39,196	$ 25,705
Cash paid during the period for:
Interest, net of capitalized interest			505	568
Non-cash investing and financing activity:
Unrealized holding gains (losses) on investments, net of tax			73	(25)
Acquisition of property and equipment accrued but not yet paid			$ 790	$ 401

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss)Income	Accumulated Deficit
Balance (in shares) at Dec. 31, 2021		22,524,185
Balance at Dec. 31, 2021	$ 192,603	$ 225	$ 277,719	$ 2	$ (85,343)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	161				161
Other comprehensive income (loss)	(25)			(25)
Stock-based compensation	158		158
Repurchase of common stock (in shares)		(134,722)
Repurchase of common stock	(1,016)	$ (1)			(1,015)
Balance (in shares) at Jun. 30, 2022		22,389,463
Balance at Jun. 30, 2022	191,881	$ 224	277,877	(23)	(86,197)
Balance (in shares) at Mar. 31, 2022		22,516,882
Balance at Mar. 31, 2022	192,438	$ 225	277,776	(4)	(85,559)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	318				318
Other comprehensive income (loss)	(19)			(19)
Stock-based compensation	101		101
Repurchase of common stock (in shares)		(127,419)
Repurchase of common stock	(957)	$ (1)			(956)
Balance (in shares) at Jun. 30, 2022		22,389,463
Balance at Jun. 30, 2022	191,881	$ 224	277,877	(23)	(86,197)
Balance (in shares) at Dec. 31, 2022		21,448,212
Balance at Dec. 31, 2022	187,000	$ 214	278,083	(49)	(91,248)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(66)				(66)
Other comprehensive income (loss)	73			73
Stock-based compensation	264		264
Repurchase of common stock (in shares)		(90,556)
Repurchase of common stock	(598)	$ (1)			(597)
Balance (in shares) at Jun. 30, 2023		21,357,656
Balance at Jun. 30, 2023	186,673	$ 213	278,347	24	(91,911)
Balance (in shares) at Mar. 31, 2023		21,447,712
Balance at Mar. 31, 2023	186,509	$ 214	278,199	(41)	(91,863)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	546				546
Other comprehensive income (loss)	65			65
Stock-based compensation	148		148
Repurchase of common stock (in shares)		(90,056)
Repurchase of common stock	(595)	$ (1)			(594)
Balance (in shares) at Jun. 30, 2023		21,357,656
Balance at Jun. 30, 2023	$ 186,673	$ 213	$ 278,347	$ 24	$ (91,911)

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Background Crimson Wine Group, Ltd. and its subsidiaries (collectively, “Crimson” or the “Company”) is a Delaware corporation that has been conducting business since 1991. Crimson is in the business of producing and selling luxury wines (i.e., wines that retail for over $15 per 750ml bottle). Crimson is headquartered in Napa, California and through its subsidiaries owns seven primary wine estates and brands: Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards, Seghesio Family Vineyards, Double Canyon, Seven Hills Winery and Malene Wines. Financial Statement Preparation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and recent accounting pronouncements under such Note) included in the Company’s audited consolidated financial statements for the year ended December 31, 2022, as filed with the SEC on Form 10-K (the “2022 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2022 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements. Significant Accounting Policies There were no changes to the Company’s significant accounting policies during the six months ended June 30, 2023. See Note 2, “Significant Accounting Policies,” of the 2022 Report for a description of the Company’s significant accounting policies. Recent Accounting Pronouncements Subsequent to the filing of the 2022 Report, the Company evaluated Accounting Standards Update (“ASU”) 2023-01 through 2023-03 issued by the Financial Accounting Standards Board (“FASB”) and concluded none of the accounting pronouncements would have a material effect or are applicable to Crimson’s unaudited interim condensed consolidated financial statements.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Revenue Recognition Revenue is recognized once performance obligations under the terms of the Company’s contracts with its customers have been satisfied; this occurs at a point in time when control of the promised product or service is transferred to customers. Generally, the majority of the Company’s contracts with its customers have a single performance obligation and are short term in nature. Revenue is measured in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company accounts for shipping and handling activities as costs to fulfill its promise to transfer the associated products. Accordingly, the Company records amounts billed for shipping and handling costs as a component of net sales, and classifies such costs as a component of cost of sales. The Company’s products are generally not sold with a right of return unless the product is spoiled or damaged. Historically, returns have not been material to the Company. Wholesale Segment The Company sells its wine to wholesale distributors under purchase orders. The Company transfers control and recognizes revenue for these orders upon shipment of the wine from the Company’s third-party warehouse facilities. Payment terms to wholesale distributors typically range from 30 to 120 days. The Company pays depletion allowances to its wholesale distributors based on their sales to their customers. The Company estimates these depletion allowances and records such estimates in the same period the related revenue is recognized, resulting in a reduction of wholesale product revenue and the establishment of a current liability. Subsequently, wholesale distributors will bill the Company for actual depletion allowances, which may be different from the Company’s estimate. Any such differences are recognized in sales when the bill is received. The Company has historically been able to estimate depletion allowances without significant differences between actual and estimated expense. Direct to Consumer Segment The Company sells its wine and other merchandise directly to consumers through wine club memberships, at the wineries’ tasting rooms, and through its website, third-party websites, direct phone calls, and other online sales (“Ecommerce”). Wine club membership sales are made under contracts with customers, which specify the quantity and timing of future wine shipments. Customer credit cards are charged in advance of quarterly wine shipments in accordance with each contract. The Company transfers control and recognizes revenue for these contracts upon shipment of the wine to the customer. Tasting room and Ecommerce wine sales are paid for at the time of sale. The Company transfers control and recognizes revenue for wine sales when the product is either received by the customer (on-site tasting room sales) or upon shipment to the customer (“Ecommerce sales”). Other From time to time, the Company sells grapes or bulk wine because the grapes or wine do not meet the quality standards for the Company’s products, market conditions have changed resulting in reduced demand for certain products, or because the Company may have purchased or produced more of a particular varietal than it can use. Grape and bulk sales are made under contracts with customers, which include product specification requirements, pricing, and payment terms. Payment terms under grape contracts are generally structured around the timing of the harvest of the grapes and are generally due 30 days from the time the grapes are delivered. Payment terms under bulk wine contracts are generally 30 days from the date of shipment and may include an upfront payment upon signing of the sales agreement. The Company transfers control and recognizes revenue for grape sales when product specification has been met and title to the grapes has transferred, which is generally on the date the grapes are harvested, weighed and shipped. The Company transfers control and recognizes revenue for bulk wine contracts upon shipment. The Company provides custom winemaking services at Double Canyon, Chamisal Vineyards, and Pine Ridge Vineyard’s winemaking facilities. Custom winemaking services are made under contracts with customers, which include specific protocols, pricing, and payment terms and generally have a duration of less than one year. The customer retains title and control of the wine during the winemaking process. The Company recognizes revenue for winemaking services when contract specific performance obligations are met. Estates hold various public and private events for customers and their wine club members. Upfront consideration received from the sale of tickets or under private event contracts for future events is recorded as deferred revenue. The balance of payments are due on the date of the event. The Company recognizes event revenue on the date the event is held. Other revenue also includes tasting fees and retail merchandise sales, which are paid for and received or consumed at the time of sale. The Company transfers control and recognizes revenue for tasting fees and retail merchandise sales at the time of sale. Refer to Note 11, “Business Segment Information,” for revenue by sales channel amounts for the three and six months ended June 30, 2023 and 2022. Contract Balances When the Company receives payments from customers prior to transferring goods or services under the terms of a contract, the Company records deferred revenue, which it classifies as customer deposits on its unaudited condensed consolidated balance sheets and represents a contract liability. Customer deposits are liquidated when revenue is recognized. Revenue that was included in the contract liability balance at the beginning of each of the 2023 and 2022 years consisted primarily of wine club revenue, grape and bulk sales, and event fees. Changes in the contract liability balance during the six-month periods ended June 30, 2023 and 2022 were not materially impacted by any other factors. The outstanding contract liability balance was $0.6 million at June 30, 2023 and $0.4 million at December 31, 2022. Of the amounts included in the opening contract liability balances at the beginning of each period, approximately $0.3 million were recognized as revenue during each of the six-month periods ended June 30, 2023 and 2022. Accounts Receivable, Net Accounts receivable are reported net of an allowance for doubtful accounts. Credit is extended based on an evaluation of the customer’s financial condition. Accounts are charged against the allowance for bad debt as they are deemed uncollectible based on a periodic review of the accounts. In evaluating the collectability of individual receivable balances, the Company considers several factors, including the age of the balance, the customer’s historical payment history, its current credit worthiness, and current economic trends. The Company’s accounts receivable balance is net of an allowance for doubtful accounts of $0.2 million at both June 30, 2023 and December 31, 2022.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventory	Inventory A summary of inventory at June 30, 2023 and December 31, 2022 is as follows (in thousands): June 30, 2023 December 31, 2022 Finished goods $ 23,160 $ 17,896 In-process goods 27,056 32,849 Packaging and bottling supplies 1,262 971 Total inventory $ 51,478 $ 51,716 The Company reduces the carrying value of inventories that are obsolete or in excess of estimated usage to estimated net realizable value. The Company’s estimates of net realizable value are based on analyses and assumptions including, but not limited to, historical usage, projected future demand, and market requirements. Reductions to the carrying value of inventories are recorded in cost of sales. If future demand and/or profitability for the Company’s products are less than previously estimated, then the carrying value of the inventories may be required to be reduced, resulting in additional expense and reduced profitability. The Company’s inventory write-downs may consist of reductions to bottled or bulk wine inventory. Crop insurance proceeds from farming losses may be recorded as offsets against previously recognized write-downs. Inventory write-downs of $0.2 million were recorded during each of the three-month periods ended June 30, 2023 and 2022. Inventory write-downs of $0.5 million and $0.9 million were recorded during the six-month periods ended June 30, 2023 and 2022, respectively. The Company’s inventory balances are presented at the lower of cost or net realizable value.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment A summary of property and equipment at June 30, 2023 and December 31, 2022, and depreciation and amortization for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands): Depreciable Lives (in years) June 30, 2023 December 31, 2022 Land and improvements N/A $ 44,912 $ 44,912 Buildings and improvements 20-40 61,874 61,260 Winery and vineyard equipment 3-25 36,692 35,998 Vineyards and improvements 7-25 34,591 34,221 Caves 20-40 5,639 5,639 Vineyards under development N/A 3,072 2,489 Construction in progress N/A 5,095 3,479 Total 191,875 187,998 Accumulated depreciation and amortization (77,305) (74,577) Total property and equipment, net $ 114,570 $ 113,421 Three Months Ended June 30, Six Months Ended June 30, Depreciation and amortization: 2023 2022 2023 2022 Capitalized into inventory $ 1,134 $ 1,110 $ 2,270 $ 2,234 Expensed to general and administrative 387 377 758 742 Total depreciation and amortization $ 1,521 $ 1,487 $ 3,028 $ 2,976

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Financial Instruments	Financial Instruments The Company’s material financial instruments include cash and cash equivalents, investments classified as available for sale, and short-term and long-term debt. Investments classified as available for sale are the only assets or liabilities that are measured at fair value on a recurring basis. All of the Company’s investments mature within one year or less. The par value, amortized cost, gross unrealized gains and losses, and estimated fair value of investments classified as available for sale as of June 30, 2023 and December 31, 2022 are as follows (in thousands): June 30, 2023 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value U.S. Treasury Bill $ 5,000 $ 4,887 $ 61 $ — $ 4,948 $ — $ 4,948 Certificates of Deposit 14,250 14,250 — (36) — 14,214 14,214 Total $ 19,250 $ 19,137 $ 61 $ (36) $ 4,948 $ 14,214 $ 19,162 December 31, 2022 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value Certificates of Deposit $ 11,750 $ 11,750 $ — $ (77) $ — $ 11,673 $ 11,673 The Company believes the gross unrealized losses are temporary as it does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities before the recovery of their amortized cost basis. As of June 30, 2023 and December 31, 2022, the Company did not have any other assets or liabilities measured at fair value on a nonrecurring basis. For cash and cash equivalents and short-term debt, the carrying amounts of such financial instruments approximate their fair values. As of June 30, 2023, the Company has estimated the fair value of its outstanding debt to be approximately $13.9 million compared to its carrying value of $18.3 million, based upon discounted cash flows with Level 3 inputs, such as the terms that management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and other factors. Level 3 inputs include market rates obtained from American AgCredit, FLCA as of June 30, 2023 of 8.06% and 8.02% for the 2015 Term Loan (as defined below) and 2017 Term Loan (as defined below), respectively, as further discussed in Note 8, “Debt.” The Company does not invest in any derivatives or engage in any hedging activities.

Intangible and Other Non-Curren

Intangible and Other Non-Current Assets	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible and Other Non-Current Assets	Intangible and Other Non-Current Assets A summary of intangible and other non-current assets at June 30, 2023 and December 31, 2022, and amortization expense for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Amortizable lives Gross carrying amount Accumulated amortization Net book value Gross carrying amount Accumulated amortization Net book value Brand 15-17 $ 18,000 $ (12,686) $ 5,314 $ 18,000 $ (12,155) $ 5,845 Distributor relationships 10-14 2,700 (2,318) 382 2,700 (2,220) 480 Legacy permits 14 250 (216) 34 250 (207) 43 Trademark 20 200 (148) 52 200 (143) 57 Total $ 21,150 $ (15,368) $ 5,782 $ 21,150 $ (14,725) $ 6,425 Other non-current assets 193 56 Total intangible and other non-current assets, net $ 5,975 $ 6,481 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total amortization expense $ 322 $ 322 $ 643 $ 643 The estimated aggregate future amortization of intangible assets as of June 30, 2023 is identified below (in thousands): Amortization Remainder of 2023 $ 643 2024 1,286 2025 1,168 2026 1,073 2027 1,073 Thereafter 539 Total $ 5,782

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Accounts payable and accrued grape liabilities $ 2,862 $ 5,120 Accrued compensation related expenses 2,252 3,287 Sales and marketing 588 227 Acquisition of property and equipment 790 709 Accrued interest 243 250 Depletion allowance 490 1,176 Production and farming 374 202 Other accrued expenses 278 489 Total accounts payable and accrued liabilities $ 7,877 $ 11,460

Debt

Debt	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt A summary of debt at June 30, 2023 and December 31, 2022 is as follows (in thousands): June 30, 2023 December 31, 2022 Revolving Credit Facility (1) $ — $ — Senior Secured Term Loan Agreement due 2040, with an interest rate of 5.24% (2) 11,200 11,520 Senior Secured Term Loan Agreement due 2037, with an interest rate of 5.39% (3) 7,125 7,375 Unamortized loan fees (90) (96) Total debt 18,235 18,799 Less current portion of long-term debt 1,129 1,128 Long-term debt due after one year, net $ 17,106 $ 17,671 ______________________________________ (1) The Revolving Credit Facility, a $60.0 million revolving credit facility between the Company and American AgCredit, FLCA, as agent for the lenders thereunder, is comprised of a revolving loan facility (the “Revolving Loan”) and a term revolving loan facility (the “Term Revolving Loan”), which together are secured by substantially all of Crimson’s assets. The Revolving Loan provides up to $10.0 million of availability in the aggregate for a five year term, and the Term Revolving Loan provides up to $50.0 million in the aggregate for a fifteen year (2) Pine Ridge Winery, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on October 1, 2040 (the “2015 Term Loan”). Principal and interest are payable in quarterly installments. (3) Double Canyon Vineyards, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on July 1, 2037 (the “2017 Term Loan”). Principal and interest are payable in quarterly installments. Debt covenants include the maintenance of specified debt and equity ratios, a specified debt service coverage ratio, and certain customary affirmative and negative covenants, including limitations on the incurrence of additional indebtedness, limitations on dividends and other distributions to shareholders and restrictions on certain investments, certain mergers, consolidations and sales of assets. The Company was in compliance with all existing debt covenants as of June 30, 2023. A summary of debt maturities as of June 30, 2023 is as follows (in thousands): Principal due the remainder of 2023 $ 570 Principal due in 2024 1,140 Principal due in 2025 1,140 Principal due in 2026 1,140 Principal due in 2027 1,140 Principal due thereafter 13,195 Total $ 18,325

Stockholders' Equity and Stock-

Stockholders' Equity and Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity and Stock-Based Compensation	Stockholders ’ Equity and Stock-Based Compensation Share Repurchase In 2022, the Company repurchased a total of 1,075,973 shares of its common stock at an average purchase price of $6.48 per share for an aggregate purchase price of $7.0 million. The Company’s repurchase was funded through cash on hand, and the shares were retired. In March 2023, the Company commenced a share repurchase program (the “2023 Repurchase Program”) that provided for the repurchase of up to 2,000,000 shares of outstanding common stock. Under the 2023 Repurchase Program, any repurchased shares are constructively retired. During the six months ended June 30, 2023, the Company repurchased 90,556 shares of its common stock at an average purchase price of $6.58 per share for an aggregate purchase price of $0.6 million. The Company’s repurchase was funded through cash on hand, and the shares were retired. Stock-Based Compensation In February 2013, the Company adopted the 2013 Omnibus Incentive Plan (the “2013 Plan”), which provides for the granting of up to 1,000,000 stock options or other common stock-based awards. In July 2022, upon the approval of the Board of Directors and the Company’s stockholders, the Company adopted the 2022 Omnibus Incentive Plan (the “2022 Plan”) to supersede and replace the 2013 Plan. The 2022 Plan provides for the granting of up to 678,000 stock options or other common stock-based awards. The terms of awards that may be granted, including vesting and performance criteria, if any, will be determined by the Board of Directors. In December 2019, under the Company’s 2013 Omnibus Incentive Plan, option grants for 89,000 shares were issued. The options vest annually over five years and expire seven years from the date of grant. In July 2021, stock option awards for an additional 233,000 shares were issued to certain members of management. Subject to the terms of the respective option award agreements, the options vest in four equal increments in January 2022, January 2023, January 2024 and January 2025, and the options will expire seven years from the date of grant. In March 2022, stock option awards for an additional 500,000 shares were granted to the Company’s Chief Executive Officer. Such options are divided into four tranches, are subject to both performance-based vesting requirements and time-based vesting requirements, and expire ten years from the date of grant. In March 2023, stock option awards for an additional 500,000 shares were granted to certain officers and employees of the Company. Such options are divided into five tranches, are subject to both performance-based vesting requirements and time-based vesting requirements, and expire ten years from the date of grant. The performance-based vesting requirements for the grants made in March 2022 and March 2023 are tied to annual or cumulative Adjusted EBITDA targets, as defined within the respective underlying option award agreements. The Company believes it will achieve the listed targets for each agreement and has recorded the related stock-based compensation expense for the three and six months ended June 30, 2023. The exercise price for all respective options was either the closing price or average trading price on the date of grant. Estimates of stock-based compensation expense require a number of complex and subjective assumptions, including the selection of an option pricing model. The Company determined the grant date fair value of the awards using the Black-Scholes-Merton option-pricing valuation model. During the six months ended June 30, 2023, the Company granted stock options in respect of 500,000 shares. The fair value of these grants was computed based on the following assumptions: March 2023 Grants Shares issued 500,000 Expected term 7.42 - 9.42 years Expected dividend yield — % Risk-free interest rate 4.08 % Expected stock price volatility 27 - 29% Stock price $ 5.95 Weighted-average grant date fair value $ 2.64 Grant date fair value (in thousands) $ 1,319 As of June 30, 2023, stock options in respect of 1,322,000 shares remained outstanding with no stock option exercises or expirations during the quarter. The stock-based compensation expense for these grants is based on the grant date fair value, which will be recorded over the respective vesting periods. $148 thousand and $264 thousand were recorded as stock-based compensation expense for the three and six months ended June 30, 2023, respectively. $102 thousand and $159 thousand were recorded as stock-based compensation expense for the three and six months ended June 30, 2022, respectively. Stock-based compensation expense was recorded to general and administrative expense in the unaudited interim condensed consolidated statements of operations.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The consolidated income tax expense or benefit for the three and six months ended June 30, 2023 and 2022, was determined based upon the Company’s estimated consolidated effective income tax rates calculated without discrete items for the years ending December 31, 2023 and 2022, respectively, and then adjusting for any discrete items. The Company’s effective tax rates for the three months ended June 30, 2023 and 2022 were 28.2% and 28.9%, respectively. The Company’s effective tax rates for the six months ended June 30, 2023 and 2022 were 27.4% and 29.1%, respectively. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate for the three and six months ended June 30, 2023 was primarily attributable to state income taxes and other permanent items.

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Business Segment Information	Business Segment Information The Company has identified two operating segments, Wholesale net sales and Direct to Consumer net sales, which are reportable segments for financial statement reporting purposes, based upon their different distribution channels, margins, and selling strategies. Wholesale net sales include all sales through a third party where prices are given at a wholesale rate, whereas Direct to Consumer net sales include retail sales in tasting rooms, remote sites and on-site events, wine club sales, direct phone sales, Ecommerce sales, and other sales made directly to the consumer without the use of an intermediary. The two segments reflect how the Company’s operations are evaluated by senior management and the structure of its internal financial reporting. The Company evaluates performance based on the gross profit of the respective business segments. Selling expenses that can be directly attributable to the segment are allocated accordingly. However, centralized selling expenses and general and administrative expenses are not allocated between operating segments. Therefore, net income information for the respective segments is not available. Based on the nature of the Company’s business, revenue generating assets are utilized across segments. Therefore, discrete financial information related to segment assets and other balance sheet data is not available and that information continues to be aggregated. The following tables outline the net sales, cost of sales, gross profit, directly attributable selling expenses and operating income (loss) for the Company’s reportable segments for the three and six months ended June 30, 2023 and 2022, and also includes a reconciliation of consolidated income (loss) from operations. Other/Non-Allocable net sales and gross profit include bulk wine and grape sales, event fees, tasting fees, and non-wine retail sales. Other/Non-Allocable expenses include centralized corporate expenses not specific to an identified reporting segment. Sales figures are net of related excise taxes. Three Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Net sales $ 9,882 $ 9,423 $ 6,937 $ 7,494 $ 899 $ 1,165 $ 17,718 $ 18,082 Cost of sales 6,165 6,194 2,248 2,630 708 905 9,121 9,729 Gross profit 3,717 3,229 4,689 4,864 191 260 8,597 8,353 Operating expenses: Sales and marketing 1,609 1,465 1,796 1,965 1,115 1,113 4,520 4,543 General and administrative — — — — 3,560 3,263 3,560 3,263 Total operating expenses 1,609 1,465 1,796 1,965 4,675 4,376 8,080 7,806 Net (gain) loss on disposal of property and equipment — — — — (15) 107 (15) 107 Income (loss) from operations $ 2,108 $ 1,764 $ 2,893 $ 2,899 $ (4,469) $ (4,223) $ 532 $ 440 Six Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Net sales $ 18,202 $ 20,973 $ 12,884 $ 13,721 $ 1,853 $ 2,011 $ 32,939 $ 36,705 Cost of sales 11,440 14,107 4,267 4,735 1,701 2,415 17,408 21,257 Gross profit (loss) 6,762 6,866 8,617 8,986 152 (404) 15,531 15,448 Operating expenses: Sales and marketing 3,203 2,806 3,521 3,648 2,106 1,828 8,830 8,282 General and administrative — — — — 7,028 6,561 7,028 6,561 Total operating expenses 3,203 2,806 3,521 3,648 9,134 8,389 15,858 14,843 Net loss on disposal of property and equipment — — — — 34 127 34 127 Income (loss) from operations $ 3,559 $ 4,060 $ 5,096 $ 5,338 $ (9,016) $ (8,920) $ (361) $ 478

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Litigation The Company and its subsidiaries may become parties to legal proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to the Company’s consolidated financial position or liquidity. The Company does not believe that there is any pending litigation that could have a significant adverse impact on its consolidated financial position, liquidity or results of operations. 2017 Wildfires In October 2017, significant wildfires impacted the Company’s operations and damaged its inventory. The Company has settled on several insurance claims since the time of the wildfires but anticipates additional settlements for insurance proceeds for amounts that cannot be reasonably estimated at this time.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share The following table reconciles the weighted-average common shares outstanding used in the calculations of the Company’s basic and diluted earnings (loss) per share: Three Months Ended June 30, Six Months Ended June 30, ($ and shares in thousands, except per share amounts) 2023 2022 2023 2022 Net income (loss) $ 546 $ 318 $ (66) $ 161 Common shares: Weighted-average number of common shares outstanding - basic 21,412 22,450 21,430 22,486 Dilutive effect of stock options outstanding — — — 1 Weighted-average number of common shares outstanding - diluted 21,412 22,450 21,430 22,487 Earnings per share: Basic $ 0.03 $ 0.01 $ 0.00 $ 0.01 Diluted $ 0.03 $ 0.01 $ 0.00 $ 0.01 Antidilutive stock options (1) 1,322 822 1,322 733 __________________________________________ (1) Amounts represent stock options that are excluded from the diluted earnings per share calculations because the options are antidilutive.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsNone.

Background and Basis of Prese_2

Background and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Preparation	Financial Statement PreparationThe accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and recent accounting pronouncements under such Note) included in the Company’s audited consolidated financial statements for the year ended December 31, 2022, as filed with the SEC on Form 10-K (the “2022 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2022 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Subsequent to the filing of the 2022 Report, the Company evaluated Accounting Standards Update (“ASU”) 2023-01 through 2023-03 issued by the Financial Accounting Standards Board (“FASB”) and concluded none of the accounting pronouncements would have a material effect or are applicable to Crimson’s unaudited interim condensed consolidated financial statements.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	A summary of inventory at June 30, 2023 and December 31, 2022 is as follows (in thousands): June 30, 2023 December 31, 2022 Finished goods $ 23,160 $ 17,896 In-process goods 27,056 32,849 Packaging and bottling supplies 1,262 971 Total inventory $ 51,478 $ 51,716

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	A summary of property and equipment at June 30, 2023 and December 31, 2022, and depreciation and amortization for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands): Depreciable Lives (in years) June 30, 2023 December 31, 2022 Land and improvements N/A $ 44,912 $ 44,912 Buildings and improvements 20-40 61,874 61,260 Winery and vineyard equipment 3-25 36,692 35,998 Vineyards and improvements 7-25 34,591 34,221 Caves 20-40 5,639 5,639 Vineyards under development N/A 3,072 2,489 Construction in progress N/A 5,095 3,479 Total 191,875 187,998 Accumulated depreciation and amortization (77,305) (74,577) Total property and equipment, net $ 114,570 $ 113,421 Three Months Ended June 30, Six Months Ended June 30, Depreciation and amortization: 2023 2022 2023 2022 Capitalized into inventory $ 1,134 $ 1,110 $ 2,270 $ 2,234 Expensed to general and administrative 387 377 758 742 Total depreciation and amortization $ 1,521 $ 1,487 $ 3,028 $ 2,976

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Available for Sale Securities	The par value, amortized cost, gross unrealized gains and losses, and estimated fair value of investments classified as available for sale as of June 30, 2023 and December 31, 2022 are as follows (in thousands): June 30, 2023 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value U.S. Treasury Bill $ 5,000 $ 4,887 $ 61 $ — $ 4,948 $ — $ 4,948 Certificates of Deposit 14,250 14,250 — (36) — 14,214 14,214 Total $ 19,250 $ 19,137 $ 61 $ (36) $ 4,948 $ 14,214 $ 19,162 December 31, 2022 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value Certificates of Deposit $ 11,750 $ 11,750 $ — $ (77) $ — $ 11,673 $ 11,673

Intangible and Other Non-Curr_2

Intangible and Other Non-Current Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	A summary of intangible and other non-current assets at June 30, 2023 and December 31, 2022, and amortization expense for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Amortizable lives Gross carrying amount Accumulated amortization Net book value Gross carrying amount Accumulated amortization Net book value Brand 15-17 $ 18,000 $ (12,686) $ 5,314 $ 18,000 $ (12,155) $ 5,845 Distributor relationships 10-14 2,700 (2,318) 382 2,700 (2,220) 480 Legacy permits 14 250 (216) 34 250 (207) 43 Trademark 20 200 (148) 52 200 (143) 57 Total $ 21,150 $ (15,368) $ 5,782 $ 21,150 $ (14,725) $ 6,425 Other non-current assets 193 56 Total intangible and other non-current assets, net $ 5,975 $ 6,481 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total amortization expense $ 322 $ 322 $ 643 $ 643
Schedule of Amortization Expense for Intangible Assets	The estimated aggregate future amortization of intangible assets as of June 30, 2023 is identified below (in thousands): Amortization Remainder of 2023 $ 643 2024 1,286 2025 1,168 2026 1,073 2027 1,073 Thereafter 539 Total $ 5,782

Accounts Payable and Accrued _2

Accounts Payable and Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule of Other Accrued Expenses	Accounts payable and accrued liabilities consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Accounts payable and accrued grape liabilities $ 2,862 $ 5,120 Accrued compensation related expenses 2,252 3,287 Sales and marketing 588 227 Acquisition of property and equipment 790 709 Accrued interest 243 250 Depletion allowance 490 1,176 Production and farming 374 202 Other accrued expenses 278 489 Total accounts payable and accrued liabilities $ 7,877 $ 11,460

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Debt	A summary of debt at June 30, 2023 and December 31, 2022 is as follows (in thousands): June 30, 2023 December 31, 2022 Revolving Credit Facility (1) $ — $ — Senior Secured Term Loan Agreement due 2040, with an interest rate of 5.24% (2) 11,200 11,520 Senior Secured Term Loan Agreement due 2037, with an interest rate of 5.39% (3) 7,125 7,375 Unamortized loan fees (90) (96) Total debt 18,235 18,799 Less current portion of long-term debt 1,129 1,128 Long-term debt due after one year, net $ 17,106 $ 17,671 ______________________________________ (1) The Revolving Credit Facility, a $60.0 million revolving credit facility between the Company and American AgCredit, FLCA, as agent for the lenders thereunder, is comprised of a revolving loan facility (the “Revolving Loan”) and a term revolving loan facility (the “Term Revolving Loan”), which together are secured by substantially all of Crimson’s assets. The Revolving Loan provides up to $10.0 million of availability in the aggregate for a five year term, and the Term Revolving Loan provides up to $50.0 million in the aggregate for a fifteen year (2) Pine Ridge Winery, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on October 1, 2040 (the “2015 Term Loan”). Principal and interest are payable in quarterly installments. (3) Double Canyon Vineyards, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on July 1, 2037 (the “2017 Term Loan”). Principal and interest are payable in quarterly installments.
Schedule of Maturities of Long-term Debt	A summary of debt maturities as of June 30, 2023 is as follows (in thousands): Principal due the remainder of 2023 $ 570 Principal due in 2024 1,140 Principal due in 2025 1,140 Principal due in 2026 1,140 Principal due in 2027 1,140 Principal due thereafter 13,195 Total $ 18,325

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Schedule of Fair Value Assumptions of Share-based Compensation	The fair value of these grants was computed based on the following assumptions: March 2023 Grants Shares issued 500,000 Expected term 7.42 - 9.42 years Expected dividend yield — % Risk-free interest rate 4.08 % Expected stock price volatility 27 - 29% Stock price $ 5.95 Weighted-average grant date fair value $ 2.64 Grant date fair value (in thousands) $ 1,319

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule Of Segment Reporting	The following tables outline the net sales, cost of sales, gross profit, directly attributable selling expenses and operating income (loss) for the Company’s reportable segments for the three and six months ended June 30, 2023 and 2022, and also includes a reconciliation of consolidated income (loss) from operations. Other/Non-Allocable net sales and gross profit include bulk wine and grape sales, event fees, tasting fees, and non-wine retail sales. Other/Non-Allocable expenses include centralized corporate expenses not specific to an identified reporting segment. Sales figures are net of related excise taxes. Three Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Net sales $ 9,882 $ 9,423 $ 6,937 $ 7,494 $ 899 $ 1,165 $ 17,718 $ 18,082 Cost of sales 6,165 6,194 2,248 2,630 708 905 9,121 9,729 Gross profit 3,717 3,229 4,689 4,864 191 260 8,597 8,353 Operating expenses: Sales and marketing 1,609 1,465 1,796 1,965 1,115 1,113 4,520 4,543 General and administrative — — — — 3,560 3,263 3,560 3,263 Total operating expenses 1,609 1,465 1,796 1,965 4,675 4,376 8,080 7,806 Net (gain) loss on disposal of property and equipment — — — — (15) 107 (15) 107 Income (loss) from operations $ 2,108 $ 1,764 $ 2,893 $ 2,899 $ (4,469) $ (4,223) $ 532 $ 440 Six Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Net sales $ 18,202 $ 20,973 $ 12,884 $ 13,721 $ 1,853 $ 2,011 $ 32,939 $ 36,705 Cost of sales 11,440 14,107 4,267 4,735 1,701 2,415 17,408 21,257 Gross profit (loss) 6,762 6,866 8,617 8,986 152 (404) 15,531 15,448 Operating expenses: Sales and marketing 3,203 2,806 3,521 3,648 2,106 1,828 8,830 8,282 General and administrative — — — — 7,028 6,561 7,028 6,561 Total operating expenses 3,203 2,806 3,521 3,648 9,134 8,389 15,858 14,843 Net loss on disposal of property and equipment — — — — 34 127 34 127 Income (loss) from operations $ 3,559 $ 4,060 $ 5,096 $ 5,338 $ (9,016) $ (8,920) $ (361) $ 478

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Loss Per Common Share	The following table reconciles the weighted-average common shares outstanding used in the calculations of the Company’s basic and diluted earnings (loss) per share: Three Months Ended June 30, Six Months Ended June 30, ($ and shares in thousands, except per share amounts) 2023 2022 2023 2022 Net income (loss) $ 546 $ 318 $ (66) $ 161 Common shares: Weighted-average number of common shares outstanding - basic 21,412 22,450 21,430 22,486 Dilutive effect of stock options outstanding — — — 1 Weighted-average number of common shares outstanding - diluted 21,412 22,450 21,430 22,487 Earnings per share: Basic $ 0.03 $ 0.01 $ 0.00 $ 0.01 Diluted $ 0.03 $ 0.01 $ 0.00 $ 0.01 Antidilutive stock options (1) 1,322 822 1,322 733 __________________________________________ (1) Amounts represent stock options that are excluded from the diluted earnings per share calculations because the options are antidilutive.

Background and Basis of Prese_3

Background and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2023 USD ($) winery
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Price per bottle, low range | $	$ 15
Number of wineries owned (in wineries) | winery	7

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Outstanding contract liability	$ 579		$ 392
Revenue recognized	300	$ 300
Allowance for doubtful accounts	$ 200		$ 200
Wholesale distributor sales | Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Wholesale distributor sales | Maximum
Disaggregation of Revenue [Line Items]
Payment terms	120 days
Bulk wine sales
Disaggregation of Revenue [Line Items]
Payment terms	30 days

Inventory (Summary of Inventory

Inventory (Summary of Inventory) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 23,160	$ 17,896
In-process goods	27,056	32,849
Packaging and bottling supplies	1,262	971
Total inventory	$ 51,478	$ 51,716

Inventory (Narrative) (Details)

Inventory (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Inventory Disclosure [Abstract]
Loss on write-down of inventory	$ 200	$ 200	$ 531	$ 926

Property and Equipment (Summary

Property and Equipment (Summary of Property and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 191,875		$ 191,875		$ 187,998
Accumulated depreciation and amortization	(77,305)		(77,305)		(74,577)
Total property and equipment, net	114,570		114,570		113,421
Capitalized into inventory	1,134	$ 1,110	2,270	$ 2,234
Expensed to general and administrative	387	377	758	742
Total depreciation and amortization	1,521	$ 1,487	3,028	$ 2,976
Land and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	44,912		44,912		44,912
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 61,874		$ 61,874		61,260
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives	20 years		20 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives	40 years		40 years
Winery and vineyard equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 36,692		$ 36,692		35,998
Winery and vineyard equipment | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives	3 years		3 years
Winery and vineyard equipment | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives	25 years		25 years
Vineyards and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 34,591		$ 34,591		34,221
Vineyards and improvements | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives	7 years		7 years
Vineyards and improvements | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives	25 years		25 years
Caves
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,639		$ 5,639		5,639
Caves | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives	20 years		20 years
Caves | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives	40 years		40 years
Vineyards under development
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,072		$ 3,072		2,489
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,095		$ 5,095		$ 3,479

Financial Instruments (Narrativ

Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Investment maturity period	1 year
Fair value of outstanding debt	$ 13,900
Carrying value of outstanding debt	18,325
Term Loan Due 2040
Debt Instrument [Line Items]
Carrying value of outstanding debt	$ 11,200	$ 11,520
Interest rate (as a percent)	8.06%
Term Loan Due 2037
Debt Instrument [Line Items]
Carrying value of outstanding debt	$ 7,125	$ 7,375
Interest rate (as a percent)	8.02%

Financial Instruments (Schedule

Financial Instruments (Schedule of Available for Sale Securities) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Par Value	$ 19,250
Amortized Cost	19,137
Gross Unrealized Gains	61
Gross Unrealized Losses	(36)
Total Fair Value Measurements	19,162
Level 1
Debt Securities, Available-for-sale [Line Items]
Total Fair Value Measurements	4,948
Level 2
Debt Securities, Available-for-sale [Line Items]
Total Fair Value Measurements	14,214
U.S. Treasury Bill
Debt Securities, Available-for-sale [Line Items]
Par Value	5,000
Amortized Cost	4,887
Gross Unrealized Gains	61
Gross Unrealized Losses	0
Total Fair Value Measurements	4,948
U.S. Treasury Bill | Level 1
Debt Securities, Available-for-sale [Line Items]
Total Fair Value Measurements	4,948
U.S. Treasury Bill | Level 2
Debt Securities, Available-for-sale [Line Items]
Total Fair Value Measurements	0
Certificates of Deposit
Debt Securities, Available-for-sale [Line Items]
Par Value	14,250	$ 11,750
Amortized Cost	14,250	11,750
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(36)	(77)
Total Fair Value Measurements	14,214	11,673
Certificates of Deposit | Level 1
Debt Securities, Available-for-sale [Line Items]
Total Fair Value Measurements	0	0
Certificates of Deposit | Level 2
Debt Securities, Available-for-sale [Line Items]
Total Fair Value Measurements	$ 14,214	$ 11,673

Intangible and Other Non-Curr_3

Intangible and Other Non-Current Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 21,150		$ 21,150		$ 21,150
Accumulated amortization	(15,368)		(15,368)		(14,725)
Net book value	5,782		5,782		6,425
Other non-current assets	193		193		56
Total intangible and other non-current assets, net	5,975		5,975		6,481
Total amortization expense	322	$ 322	643	$ 643
Brand
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	18,000		18,000		18,000
Accumulated amortization	(12,686)		(12,686)		(12,155)
Net book value	$ 5,314		$ 5,314		5,845
Brand | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)	15 years		15 years
Brand | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)	17 years		17 years
Distributor relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 2,700		$ 2,700		2,700
Accumulated amortization	(2,318)		(2,318)		(2,220)
Net book value	$ 382		$ 382		480
Distributor relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)	10 years		10 years
Distributor relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)	14 years		14 years
Legacy permits
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)	14 years		14 years
Gross carrying amount	$ 250		$ 250		250
Accumulated amortization	(216)		(216)		(207)
Net book value	$ 34		$ 34		43
Trademark
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)	20 years		20 years
Gross carrying amount	$ 200		$ 200		200
Accumulated amortization	(148)		(148)		(143)
Net book value	$ 52		$ 52		$ 57

Intangible and Other Non-Curr_4

Intangible and Other Non-Current Assets (Amortization Expense for Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 643
2024	1,286
2025	1,168
2026	1,073
2027	1,073
Thereafter	539
Net book value	$ 5,782	$ 6,425

Accounts Payable and Accrued _3

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts payable and accrued grape liabilities	$ 2,862	$ 5,120
Accrued compensation related expenses	2,252	3,287
Sales and marketing	588	227
Acquisition of property and equipment	790	709
Accrued interest	243	250
Depletion allowance	490	1,176
Production and farming	374	202
Other accrued expenses	278	489
Total accounts payable and accrued liabilities	$ 7,877	$ 11,460

Debt (Schedule of Debt) (Detail

Debt (Schedule of Debt) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Carrying value of outstanding debt	$ 18,325,000
Unamortized loan fees	(90,000)	$ (96,000)
Total debt	18,235,000	18,799,000
Less current portion of long-term debt	1,129,000	1,128,000
Long-term debt due after one year, net	$ 17,106,000	17,671,000
Minimum
Debt Instrument [Line Items]
Unused line fee (as a percent)	0.125%
Maximum
Debt Instrument [Line Items]
Unused line fee (as a percent)	0.225%
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	$ 0	0
Credit facility borrowing capacity	60,000,000
Term Revolving Loan
Debt Instrument [Line Items]
Credit facility borrowing capacity	$ 10,000,000
Term of debt	5 years
Term Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility borrowing capacity	$ 50,000,000
Term of debt	15 years
Term Loan Due 2040
Debt Instrument [Line Items]
Interest rate (percent)	5.24%
Carrying value of outstanding debt	$ 11,200,000	11,520,000
Term Loan Due 2037
Debt Instrument [Line Items]
Interest rate (percent)	5.39%
Carrying value of outstanding debt	$ 7,125,000	$ 7,375,000

Debt (Long-term Debt Maturities

Debt (Long-term Debt Maturities) (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Maturities of Long-term Debt [Abstract]
Principal due the remainder of 2023	$ 570
Principal due in 2024	1,140
Principal due in 2025	1,140
Principal due in 2026	1,140
Principal due in 2027	1,140
Principal due thereafter	13,195
Total	$ 18,325

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands	1 Months Ended				3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) tranche shares	Mar. 31, 2022 tranche shares	Jul. 31, 2021 increment shares	Dec. 31, 2019 shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) $ / shares shares	Jul. 31, 2022 shares	Feb. 28, 2013 shares
Equity, Class of Treasury Stock [Line Items]
Repurchased common stock (in shares)									1,075,973
Purchase price (in dollars per share) | $ / shares							$ 6.58		$ 6.48
Repurchase of common stock | $							$ 598	$ 1,016	$ 7,000
Options outstanding under share-based compensation arrangement (in shares)					1,322,000		1,322,000
Share-based compensation arrangement by share-based payment award, options, exercises in period (in shares)					0
Stock-based compensation | $					$ 148	$ 102	$ 264	$ 159
December 2019
Equity, Class of Treasury Stock [Line Items]
Units issued under share-based compensation arrangement (in shares)				89,000
Vesting period (in years)				5 years
Expiration period (in years)				7 years
July 2021
Equity, Class of Treasury Stock [Line Items]
Units issued under share-based compensation arrangement (in shares)			233,000
Expiration period (in years)			7 years
Number of vesting tranches | increment			4
March 2022
Equity, Class of Treasury Stock [Line Items]
Units issued under share-based compensation arrangement (in shares)		500,000
Expiration period (in years)		10 years
Number of vesting tranches | tranche		4
March 2023 Grants
Equity, Class of Treasury Stock [Line Items]
Units issued under share-based compensation arrangement (in shares)	500,000						500,000
Expiration period (in years)	10 years
Number of vesting tranches | tranche	5
Options outstanding under share-based compensation arrangement (in shares)					500,000		500,000
2013 Plan | Stock Option
Equity, Class of Treasury Stock [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares)											1,000,000
2022 Plan | Stock Option
Equity, Class of Treasury Stock [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares)										678,000
2022 Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Repurchased common stock (in shares)							90,556
Repurchase of common stock | $							$ 600
Share repurchase program amount authorized (up to) | $	$ 2,000

Stockholders' Equity and Stoc_4

Stockholders' Equity and Stock-Based Compensation (Grant Date Fair Value of the Awards) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Equity, Class of Treasury Stock [Line Items]
Shares issued (shares) | shares	1,322
March 2023 Grants
Equity, Class of Treasury Stock [Line Items]
Shares issued (shares) | shares	500
Expected dividend yield (as a percent)	0%
Risk-free interest rate (as a percent)	4.08%
Expected Stock price volatility, minimum (as a percent)	27%
Expected Stock price volatility, maximum (as a percent)	29%
Stock price (in dollars per share) | $ / shares	$ 5.95
Weighted-average grant date fair value (in dollars per share) | $ / shares	$ 2.64
Grant date fair value | $	$ 1,319
Minimum | March 2023 Grants
Equity, Class of Treasury Stock [Line Items]
Expected term (in years)	7 years 5 months 1 day
Maximum | March 2023 Grants
Equity, Class of Treasury Stock [Line Items]
Expected term (in years)	9 years 5 months 1 day

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	28.20%	28.90%	27.40%	29.10%

Business Segment Information (N

Business Segment Information (Narrative) (Details)	6 Months Ended
	Jun. 30, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	2

Business Segment Information (S

Business Segment Information (Schedule Of Segment Reporting) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Net sales	$ 17,718	$ 18,082	$ 32,939	$ 36,705
Cost of sales	9,121	9,729	17,408	21,257
Gross profit	8,597	8,353	15,531	15,448
Operating expenses:
Sales and marketing	4,520	4,543	8,830	8,282
General and administrative	3,560	3,263	7,028	6,561
Total operating expenses	8,080	7,806	15,858	14,843
Net (gain) loss on disposal of property and equipment	(15)	107	34	127
Income (loss) from operations	532	440	(361)	478
Operating Segments | Wholesale
Segment Reporting Information [Line Items]
Net sales	9,882	9,423	18,202	20,973
Cost of sales	6,165	6,194	11,440	14,107
Gross profit	3,717	3,229	6,762	6,866
Operating expenses:
Sales and marketing	1,609	1,465	3,203	2,806
General and administrative	0	0	0	0
Total operating expenses	1,609	1,465	3,203	2,806
Net (gain) loss on disposal of property and equipment	0	0	0	0
Income (loss) from operations	2,108	1,764	3,559	4,060
Operating Segments | Direct to Consumer
Segment Reporting Information [Line Items]
Net sales	6,937	7,494	12,884	13,721
Cost of sales	2,248	2,630	4,267	4,735
Gross profit	4,689	4,864	8,617	8,986
Operating expenses:
Sales and marketing	1,796	1,965	3,521	3,648
General and administrative	0	0	0	0
Total operating expenses	1,796	1,965	3,521	3,648
Net (gain) loss on disposal of property and equipment	0	0	0	0
Income (loss) from operations	2,893	2,899	5,096	5,338
Other/Non-Allocable
Segment Reporting Information [Line Items]
Net sales	899	1,165	1,853	2,011
Cost of sales	708	905	1,701	2,415
Gross profit	191	260	152	(404)
Operating expenses:
Sales and marketing	1,115	1,113	2,106	1,828
General and administrative	3,560	3,263	7,028	6,561
Total operating expenses	4,675	4,376	9,134	8,389
Net (gain) loss on disposal of property and equipment	(15)	107	34	127
Income (loss) from operations	$ (4,469)	$ (4,223)	$ (9,016)	$ (8,920)

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss)	$ 546	$ 318	$ (66)	$ 161
Common shares:
Weighted-average number of common shares outstanding - basic (in shares)	21,412	22,450	21,430	22,486
Dilutive effect of stock options outstanding (in shares)	0	0	0	1
Weighted-average number of common shares outstanding - diluted (in shares)	21,412	22,450	21,430	22,487
Earnings per share:
Basic (in dollars per share)	$ 0.03	$ 0.01	$ 0	$ 0.01
Diluted (in dollars per share)	$ 0.03	$ 0.01	$ 0	$ 0.01
Stock Option
Earnings per share:
Antidilutive stock options (in shares)	1,322	822	1,322	733