Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 14, 2016 | Dec. 31, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Truett-Hurst, Inc. | ||
Entity Central Index Key | 1,564,709 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 3,385,205 | ||
Trading Symbol | THST | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 4,306,609 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 7 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 4,043 | $ 1,578 |
Accounts receivable | 2,678 | 2,783 |
Inventories, net | 19,918 | 22,080 |
Bulk wine deposits | 271 | 345 |
Assets held for sale | 0 | 173 |
Other current assets | 125 | 311 |
Total current assets | 27,035 | 27,270 |
Property and equipment, net | 5,583 | 5,743 |
Intangible assets, net | 496 | 482 |
Other assets, net | 391 | 408 |
Total assets | 33,505 | 33,903 |
Current liabilities: | ||
Lines of credit | 10,311 | 9,034 |
Accounts payable | 1,351 | 2,889 |
Accrued expenses | 795 | 643 |
Depletion allowance | 610 | 524 |
Accrual for sales returns | 528 | 524 |
Due to related parties | 0 | 134 |
Liabilities held for sale | 0 | 140 |
Current maturities of long term debt | 475 | 368 |
Total current liabilities | 14,070 | 14,256 |
Deferred rent liability | 25 | 26 |
Long term debt, net of current maturities | 3,189 | 3,272 |
Total liabilities | 17,284 | 17,554 |
Commitments and contingencies (Note 8) | ||
Shareholders’ equity: | ||
Preferred stock, par value of $0.001 per share, 5,000,000 shares authorized, none issued and outstanding at June 30, 2016 and June 30, 2015 | 0 | 0 |
Additional paid-in capital | 15,794 | 14,618 |
Accumulated deficit | (5,600) | (5,356) |
Total Truett-Hurst, Inc. equity | 10,198 | 9,266 |
Noncontrolling interest | 6,023 | 7,083 |
Total equity | 16,221 | 16,349 |
Total liabilities and equity | 33,505 | 33,903 |
Common Class A [Member] | ||
Shareholders’ equity: | ||
Common Stock, Value | 4 | 4 |
Total equity | 4 | 4 |
Common Class B [Member] | ||
Shareholders’ equity: | ||
Common Stock, Value | 0 | 0 |
Total equity | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Preferred Stock, Par or Stated Value Per Share (In dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Class A [Member] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Common Stock, Shares Issued | 4,306,609 | 4,010,120 |
Common Stock, Shares Outstanding | 4,306,609 | 4,010,120 |
Common Class B [Member] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 1,000 | 1,000 |
Common Stock, Shares Issued | 7 | 8 |
Common Stock, Shares Outstanding | 7 | 8 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Sales | $ 26,517 | $ 22,396 |
Less excise tax | (734) | (754) |
Net sales | 25,783 | 21,642 |
Cost of sales | 17,496 | 15,192 |
Gross profit | 8,287 | 6,450 |
Operating expenses: | ||
Sales and marketing | 5,286 | 4,991 |
General and administrative | 3,062 | 3,222 |
Impairment of other assets | 0 | 112 |
Loss on disposal of assets | 17 | 12 |
Total operating expenses | 8,365 | 8,337 |
Net loss from operations | (78) | (1,887) |
Other expense: | ||
Interest expense, net | (317) | (286) |
Other expense | (151) | (111) |
Total other expense | (468) | (397) |
Net loss before income taxes | (546) | (2,284) |
Income tax expense | (2) | (2) |
Net loss from continuing operations | (548) | (2,286) |
Income (loss) from discontinued operations, net of tax | 45 | (162) |
Net loss attributable to Truett-Hurst, Inc. and H.D.D. LLC | $ (503) | $ (2,448) |
Net loss per share: | ||
Basic and diluted per share | $ (0.06) | $ (0.35) |
Weighted average shares used in computing net loss per share: | ||
Basic and diluted weighted average shares | 4,155,151 | 3,862,214 |
Truett-Hurst, Inc and H.D.D. LLC [Member] | ||
Other expense: | ||
Net loss attributable to Truett-Hurst, Inc. and H.D.D. LLC | $ (503) | $ (2,448) |
H.D.D. LLC [Member] | ||
Other expense: | ||
Net loss attributable to noncontrolling interest: H.D.D. LLC | (259) | (1,087) |
Truett-Hurst, Inc [Member] | ||
Other expense: | ||
Net loss attributable to Truett-Hurst, Inc. | $ (244) | $ (1,361) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Class A [Member] | Common Class B [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] |
Balance at Jun. 30, 2014 | $ 18,236 | $ 4 | $ 0 | $ 14,057 | $ (3,995) | $ 8,170 |
Balance (in shares) at Jun. 30, 2014 | 3,750,472 | 9 | ||||
Vesting of Class A restricted stock (in shares) | 86,802 | 0 | ||||
Conversion of LLC Units for Class A common stock | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Conversion of LLC Units for Class A common stock (in shares) | 172,846 | (1) | ||||
Stock-based compensation expense | 561 | $ 0 | $ 0 | 561 | 0 | 0 |
Net loss | (2,448) | 0 | 0 | 0 | (1,361) | (1,087) |
Balance at Jun. 30, 2015 | 16,349 | $ 4 | $ 0 | 14,618 | (5,356) | 7,083 |
Balance (in shares) at Jun. 30, 2015 | 4,010,120 | 8 | ||||
Vesting of Class A restricted stock (in shares) | 140,277 | |||||
Conversion of LLC Units for Class A common stock | 0 | $ 0 | $ 0 | 801 | 0 | (801) |
Conversion of LLC Units for Class A common stock (in shares) | 156,212 | (1) | ||||
Stock-based compensation expense | 375 | $ 0 | $ 0 | 375 | 0 | 0 |
Net loss | (503) | 0 | 0 | 0 | (244) | (259) |
Balance at Jun. 30, 2016 | $ 16,221 | $ 4 | $ 0 | $ 15,794 | $ (5,600) | $ 6,023 |
Balance (in shares) at Jun. 30, 2016 | 4,306,609 | 7 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss attributable to Truett-Hurst, Inc. and H.D.D. LLC | $ (503) | $ (2,448) |
(Income) loss from discontinued operations, net of tax | (45) | 162 |
Net loss from continuing operations | (548) | (2,286) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 707 | 583 |
Stock-based compensation | 375 | 561 |
Reserve for obsolescence of inventories | 0 | 623 |
Impairment of other assets | 0 | 112 |
Deferred rent | (1) | (22) |
Loss on fair value of interest rate swap | 143 | 46 |
Loss on disposal of assets | 17 | 12 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | 105 | 510 |
Inventories | 2,162 | (5,570) |
Bulk wine deposits | 74 | 1,079 |
Other current assets | 166 | (201) |
Increase (Decrease) in Accounts Payable | (1,538) | 377 |
Accrued expenses | 29 | 263 |
Depletion allowance | 86 | 496 |
Accrual for sales returns | 4 | 524 |
Due to related parties | (134) | 11 |
Net cash provided by net operating assets and liabilities of discontinued operations | 78 | 83 |
Net cash provided by (used in) operating activities | 1,725 | (2,799) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (428) | (681) |
Acquisition of intangible and other assets | (137) | (321) |
Proceeds from sale of assets | 4 | 3 |
Net cash used in investing activities | (561) | (999) |
Cash flows from financing activities: | ||
Net proceeds from line of credit | 1,277 | 349 |
Proceeds from long term debt | 500 | 0 |
Payments on long term debt | (476) | (333) |
Net cash provided by financing activities | 1,301 | 16 |
Net change in cash and cash equivalents | 2,465 | (3,782) |
Cash and cash equivalents at beginning of year | 1,578 | 5,360 |
Cash and cash equivalents at end of year | 4,043 | 1,578 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 324 | 258 |
Cash paid for income taxes | $ 1 | $ 2 |
Business
Business | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | Business Truett-Hurst, Inc. (“Truett-Hurst”, the “Company”, or “THI”) is a holding company formed in Delaware and its sole asset is a controlling interest in H.D.D. LLC (“LLC”). The audited consolidated financial statements as of and for the years ended June 30, 2016 and June 30, 2015 include the results of Truett-Hurst, Inc. and its subsidiary, the LLC. Truett-Hurst consolidates the financial results of the LLC and records a noncontrolling interest for the economic interest in the LLC that is not attributable to Truett-Hurst, Inc. The Company operates and controls all of the business and affairs and consolidates the financial results of the LLC. In addition, pursuant to the limited liability company agreement of the LLC, the Company has the right to determine when distributions will be made to the members of the LLC and the amount of distributions. If a distribution is authorized, such distribution will be made to the members of the LLC pro rata in accordance with the percentages of their respective limited liability company interests. Quantities or results referred to as “to date” or “as of this date” mean as of or to June 30, 2016, unless otherwise specifically noted. References to “FY” or “fiscal year” refer to the fiscal year ending on June 30 th Capital Structure The Company has two classes of stock with shares outstanding: Class A common stock and Class B common stock. As of June 30, 2016, there were 4,306,609 7 2.8 42 The Company maintains an exchange agreement with holders of LLC units, several of whom are directors and/or officers, under which each LLC member may exchange their LLC units for shares of Class A common stock on a one-to-one basis. Through ownership of Class A and Class B common stock, individuals who are officers and/or directors of the Company control 43 Tax Receivable Agreement Prior to the completion of the IPO, the Company entered into a tax receivable agreement with the LLC members. The agreement provides for the payment from time to time, as “corporate taxpayer,” to holders of LLC Units of 90% of the amount of the benefits, if any, that the corporate taxpayer is deemed to realize as a result of the exchange of LLC Units (current and future) and certain other tax benefits related to the Company entering into the agreement. |
Critical Accounting Policies an
Critical Accounting Policies and Estimates | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 - Critical Accounting Policies and Estimates These consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP” or “GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company prospectively applies appropriate adjustments, if any, to estimates based upon periodic evaluation. The Company’s critical accounting policies include: Cash equivalents consist of highly liquid investments with an original maturity date when purchased of three months or less, and are stated at cost, which approximates fair value. Accounts receivable consists primarily of trade receivables from customers who tend to be large distributors. Accounts receivable are reviewed regularly and estimates are made for allowance for doubtful accounts when there is doubt as to the collectability of individual balances. An allowance for doubtful accounts was not recorded for FY16 and FY15, as bad debts have historically been negligible. Inventories consist primarily of bulk and bottled wine and purchased grapes valued at the lower of cost or market using the first-in, first-out or specific identification method. In accordance with general wine industry practice, bulk and bottled wine inventories are included in current assets, although a portion of such inventories may be aged for a period longer than one year. Costs associated with winemaking and the production of wine are reflected in inventories as bulk wine until the wine has been bottled and is available for sale. The Company assesses the valuation of its inventories and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value. Net realizable value of such inventories is estimated based on analyses and assumptions including, but not limited to, historical usage, future demand and market requirements. Reductions to the carrying value of inventories are recorded in cost of sales. Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted cash flows, an impairment loss is recognized to the extent of such difference. Indefinite lived intangible assets are reviewed for impairment during the fourth fiscal quarter of each year, or sooner, if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite lived intangible assets consist primarily of trademarks. Intangible assets determined to have a finite life are amortized over their estimated useful lives, principally four years for the customer lists and non-compete agreement, five years for proprietary technology and ten years for the trademarks. Patents are amortized over their estimated legal lives. Other assets are amortized over their estimated useful lives, principally five years for label design costs, the lesser of the loan term or ten years for loan fees, ten years for lease costs related party, and five years for website design costs. Label designs are evaluated for impairment in accordance with the policy on impairment of long-lived assets. Wine sales are recognized when the product is shipped and title passes to the customer. Standard terms are ‘FOB’ shipping point, with no customer acceptance provisions. The cost of price promotions and discounts are treated as reductions of sales. No products are sold on consignment. Credit sales are recorded as trade accounts receivable and no collateral is required. Net sales from items sold direct to consumer are recognized at the time of sale. Sales discounts and depletion allowances are recorded as a reduction of sales at the time of the sale. For FY16 and FY15, sales discounts and depletion allowances totaled $ 4.7 4.1 Cost of sales includes costs associated with grape growing, grapes purchased from vineyards not owned by the Company, bulk wine and finished goods purchases, packaging materials, winemaking and production costs, vineyard and production administrative support and overhead costs, purchasing and receiving costs and certain warehousing costs. No further costs are allocated to inventory once the product is bottled and available for sale. Inventory reserves and provisions are included in cost of sales. The LLC Operating Agreement provides that substantially all expenses incurred by or attributable to the Company indebtedness are borne by the LLC, except income and franchise tax payments. Sales and marketing expenses consist primarily of personnel costs, advertising and other costs for marketing and promoting the Company’s products. Advertising costs are expensed as incurred. For FY16 and FY15, advertising expense totaled approximately $ 0.4 0.2 General and administrative expenses include the costs associated with personnel, professional fees, insurance and other expenses related to administrative and compliance functions. Amounts billed to customers for shipping and handling are recorded as sales, and the costs incurred for shipping and handling are recorded as a sales and marketing expense. Gross margins may not be comparable to other companies in the same industry as other companies may include shipping and handling costs as a cost of sales. For FY16 and FY15, shipping costs were $ 0.9 1.0 Truett-Hurst, Inc. is subject to U.S. federal, state, and local taxes with respect to its allocable share of any taxable income of H.D.D. LLC and will be taxed at the prevailing corporate rates. The LLC is treated as a partnership under the Internal Revenue Code of 1986, as amended (the “Code”). The members separately account for their pro-rata share of income, deductions, losses, and credits. Therefore, no provision is made for the LLC’s share of net income (loss) in the consolidated financial statements for liabilities for federal, state, or local income taxes which liabilities are the responsibility of the individual members. The LLC is subject to entity level taxation in the state of California. As a result, the accompanying consolidated statements of operations include tax expense related to this state. The provision for income taxes is calculated using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized based on the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing net deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The net deferred tax asset is evaluated at the end of each year considering all available positive and negative evidence, including reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. When the Company does not believe the realization of a deferred tax asset is likely, a valuation allowance is recorded. Stock-based compensation is recognized based on the estimated fair values at the grant date for equity classified awards and the recognition of the related compensation expense over the appropriate vesting period. Compensation expense is based on, among other things, (i) the classification of an award, (ii) assumptions relating to fair value measurement such as the value of the stock of Truett-Hurst and its volatility, the expected term of the award and forfeiture rates, and (iii) whether performance criteria, if any, have been met. Both internal and external data is used to assess compensation expense. Changes in these estimates could significantly impact stock based compensation expense in the future. The expected term of the option is based upon the contractual term, expected employee exercise and expected post-vesting employment termination behavior. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic market adjustments as the underlying equity instruments vest. Basic earnings per share is computed by dividing the earnings attributable to the Company by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all potential dilutive common shares, including convertible LLC units and restricted stock unless this calculation would have an anti-dilutive effect in which case basic and diluted earnings per share are calculated similarly. Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported consolidated results of continuing operations. In November 2015, the FASB issued ASU No. 2015-17: Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842). In March 2016, the FASB issued ASU No. 2016-09: Improvements to Employee Share-Based Payment Accounting Compensation Stock Compensation. |
INVENTORIES, net
INVENTORIES, net | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 3 INVENTORIES, net June 30, 2016 June 30, 2015 (in thousands) Grapes and bulk wine $ 8,413 $ 7,375 Bottled wine 11,262 13,956 Bottling materials and other 322 544 Canned wine - 750 19,997 22,625 Less: inventory reserves (79) (545) Total inventories, net $ 19,918 $ 22,080 |
PROPERTY AND EQUIPMENT, net
PROPERTY AND EQUIPMENT, net | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 PROPERTY AND EQUIPMENT, net June 30, 2016 June 30, 2015 (in thousands) Land and land improvements $ 3,231 $ 3,231 Building and improvements 1,380 1,359 Machinery and equipment 1,935 1,735 Vineyard development 554 554 Vineyard equipment 88 102 Furniture and fixtures 262 305 Leasehold improvements 190 191 Vehicles 85 85 7,725 7,562 Less: accumulated depreciation and amortization (2,142) (1,819) Total property and equipment, net $ 5,583 $ 5,743 Total depreciation and amortization expense for the fiscal years ended June 30, 2016 and June 30, 2015 was $ 0.7 0.6 |
INTANGIBLE ASSETS, net
INTANGIBLE ASSETS, net | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 5 INTANGIBLE ASSETS, net June 30, 2016 June 30, 2015 (in thousands) Finite lives: Patents $ 44 $ 44 Less: accumulated amortization (1) (1) 43 43 Indefinite lives: Trademarks 453 439 Total intangible assets, net $ 496 $ 482 Amortization expense of intangible assets was negligible during FY16 and FY15. The expected future amortization of patents is $ 0.04 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 6 BORROWINGS The Company’s indebtedness is comprised primarily of bank loans including lines of credit and long term debt. Lines of Credit On July 29, 2016, the Company completed the refinancing process of the lines of credit. Below is a description of the lines of credit as of June 30, 2016 as well as those put in place as of July 29, 2016. ⋅ Line of Credit Note - As of June 30, 2016, the Company had a $ 10 9.924 July 31, 2016 interest at an annual interest rate of 2.25 July 31, 2017 ⋅ Equipment Purchase Line of Credit Note - As of June 30, 2016, the Company had a $ 0.5 0.386 interest at a rate of 2.25% above the floating One-Month LIBOR Rate. July 1, 2016 0.5 July 31, 2017 ⋅ Foreign Exchange Note - As of June 30, 2016, the Company had a foreign exchange note in the principal amount of $ 0.1 July 31, 2016 15 July 31, 2017 Long Term Debt June 30, 2016 June 30, 2015 (in thousands except payment information) Long term debt: Note 1 (1) $ 2,851 $ 2,987 Note 2 (2) - 21 Note 3 (3) 120 193 Note 4 (4) 244 326 Note 5 (5) 57 113 Note 6 (6) 392 - Total notes payable 3,664 3,640 Less: current maturities (475) (368) Total long term debt $ 3,189 $ 3,272 (1) Note payable to a bank, secured by a deed of trust on property, payable monthly with principal payments of $ 11,270 May 31, 2022 (2) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 4,226 November 1, 2015 3.75 (3) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 6,535 January 15, 2018 3.75 (4) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 7,783 March 1, 2019 3.75 (5) On November 30, 2014, the Company acquired the unrestricted use of the Stonegate trademark in exchange for a trademark release payment which is to be made over time and is accounted for as a note payable. The note payable has three equal installments: a) within five days of November 30, 2014, b) on October 31, 2015, and c) on July 31, 2016. The note does not accrue interest outstanding on the principal. An imputed interest rate of 5.5 (6) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 11,267 July 1, 2019 3.90 Years ending June 30, (in thousands) 2017 $ 475 2018 396 2019 336 2020 146 2021 135 Thereafter 2,176 3,664 Add: estimated interest payments 623 Total $ 4,287 Covenants The bank borrowings contain usual and customary covenants, including, among others, limitations on incurrence of senior indebtedness, the making of loans and advances, investments, acquisitions, and capital expenditures, the incurrence of liens, and the consummation of mergers and asset sales. The loan maintains the minimum current assets to current liabilities ratio covenant (measured quarterly) and the maximum debt to effective tangible net worth ratio covenant (measured quarterly). As of July 29, 2016, the previous minimum EBITDA covenant was replaced with a minimum debt service coverage ratio (measured quarterly on a trailing twelve-month basis). Security Agreements and Limited Guaranties The bank borrowings are collateralized by substantially all of the Company’s assets. Additionally, certain LLC members who are also executive officers and/or directors of the Company, as well as certain trusts and other entities under their control (together the “Guarantors”), have entered into limited guarantee agreements which guarantee the payment to the bank of all sums presently due and owning and all sums which shall in the future become due and owning. The liability of the individual Guarantors ranges from 23 61 |
ACCRUAL FOR SALES RETURNS
ACCRUAL FOR SALES RETURNS | 12 Months Ended |
Jun. 30, 2016 | |
Accrual for Sales Returns [Abstract] | |
Accrual for Sales Returns [Text Block] | NOTE 7 ACCRUAL FOR SALES RETURNS During the third quarter FY15, an accrual was established for the return of product that had oxidized. The accrual amount was $ 0.5 0.5 0.4 0.1 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Leases In February 2011, the Company entered into a lease agreement for a tasting room and winery. The lease was for five years, commencing on March 1, 2011 and ending on February 29, 2016, and contained one option to extend for an additional period of five years. On July 27, 2015, the Company exercised the option to extend the lease through February 29, 2021. Subsequent to June 30, 2016, the Company modified the lease agreement as described in the litigation portion of Note 8 below. The future lease commitments as presented below give effect to the modified lease terms. In October 2013, the Company entered into a lease agreement for administrative office space. The lease commenced on October 15, 2013 and ends on October 31, 2016, and contains three one-year renewal options with adjustment to market rents. On June 30, 2016, the Company extended this lease for an additional three years. The future lease commitments as presented below include amounts for the lease extension. Rent payments for these facilities were $ 0.3 Years ending June 30, (in thousands) 2017 $ 249 2018 52 2019 58 2020 20 2021 - Thereafter - Total future rent payments $ 379 Supply Contracts The Company enters into short and long term contracts with third-parties and related party growers to supply a portion of its future grape and bulk wine inventory requirements. Years ending June 30, Third-Parties Related Parties Total (in thousands) 2017 $ 2,680 $ 56 $ 2,736 2018 520 57 577 2019 310 - 310 Total $ 3,510 $ 113 $ 3,623 At June 30, 2016, total future purchase commitments for finished goods were approximately $ 3.3 Production & Storage The Company enters into various contracts with third-party service providers for grape crushing, wine storage, and bottling. The costs are recorded in the period for which the service is provided. The actual costs related to custom crush services are based on volume. The Company’s current contracts for custom crush services cover the 2016 harvest. The current bottling contract requires a minimum of 200,000 cases at $2.40 per case to be bottled in a one year period. During FY16, the Company transferred approximately 54 Litigation From time to time, the Company may be subject to various litigation matters arising in the ordinary course of business. Other than discussed below, the Company is not aware of any current pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on the Company’s consolidated financial position, results of operations, or cash flows. On January 29, 2016, Mendocino Wine Group (MWG) filed a complaint against Phil Hurst (Hurst) and H.D.D., LLC (“LLC”). The complaint alleges that, prior to January 2012, Hurst and LLC aided and abetted Paul Dolan in his alleged breach of fiduciary duties to MWG and that they interfered with Dolan's contract with Thornhill Management Company (the manager of MWG), and aided and abetted Dolan's interference with MWG's economic advantage. LLC denies the claims, denies all wrongdoing, and denies that they caused any harm to MWG. A trial date has been set for January 27, 2017. No amount has been recorded in the consolidated financial statements related to this suit. On October 21, 2015, LLC, received a letter from Hambrecht Wine Group, L.P. (the “Lessor”), the Lessor of LLC’s winery and tasting room facility at 4035 Westside Road, Healdsburg, California (the “Property”), under a lease dated February 8, 2011 (“the “Lease”), purporting to terminate the Lease effective as of that date, and rejecting LLC’s prior exercise of its election to extend for five years the original term of the Lease (which expired February 29, 2016). On November 9, 2015, the Company filed a motion for declaratory and injunctive relief in the Superior Court of California, Sonoma County. On July 28, 2016, the Property was sold to a third-party buyer. In connection with the sale, the Company, through the LLC, entered into a settlement agreement (the “Agreement”) with the Hambrecht Wine Group and Mr. Kevin Singer, in his capacity as the court-appointed receiver of the Property. Under the Agreement, LLC, in exchange for payment 955 Exchange and Tax Receivable Agreement The Company has an exchange agreement with the existing owners of the LLC, several of whom are directors and/or officers. Under the exchange agreement, each LLC member (and certain permitted transferees thereof) may (subject to the terms of the exchange agreement), exchange their LLC Units for shares of Class A common stock of the Company on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications, or for cash, at the Company’s election. In connection with the exchange agreement, the Company has tax receivable agreement (“TRA”) with the LLC members. The agreement provides for the payment from time to time, as “corporate taxpayer,” to holders of LLC Units of 90 Indemnification From time to time the Company enters into certain types of contracts that contingently require it to indemnify various parties against claims from third-parties. Historically, the Company has not been required to make payments under these obligations, and no liabilities have been recorded at June 30, 2016 and June 30, 2015 for these obligations on the balance sheets. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 9 DISCONTINUED OPERATIONS On January 25, 2016, the LLC sold its fifty percent interest in The Wine Spies, LLC (“Wine Spies”) with an effective date of December 31, 2015. The results from Wine Spies, which were previously consolidated, have been deconsolidated in the consolidated financial statements. The gain on the sale along with the current year results have been recorded in the statement of operations as part of discontinued operations. Prior periods have been accounted for on a consistent basis. Fiscal Year Ended Fiscal Year Ended June 30, 2016 June 30, 2015 (in thousands, except share data) Net income from operations of discontinued operations $ 30 $ (162) Gain on sale 15 - Net income (loss) from discontinued operations, net of tax $ 45 $ (162) Earnings (Loss) Per Share Basic and diluted weighted average shares 4,155,151 3,862,214 Basic and diluted net income (loss) per share $ 0.01 $ (0.04) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 10 STOCK-BASED COMPENSATION Equity Incentive Plan The Company has granted restricted stock awards, stock options and restricted stock units to employees, directors and non-employees under its 2012 Stock Incentive Plan. As of June 30, 2016, the 2012 Plan has 1.0 0.1 Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2015 97,329 $ 3.24 - $ 148 Granted - - - - Released (92,066) - - 140 Vested - - - - Forfeited, cancelled or expired - - - - Outstanding at June 30, 2016 5,263 $ 3.80 1.46 $ 8 Expected to vest at June 30, 2016 5,263 $ 3.80 1.46 $ 8 Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2015 87,500 $ 5.00 - $ 134 Granted 45,180 1.66 - 69 Released (43,750) - - - Vested - - - - Forfeited, cancelled or expired - - - Outstanding at June 30, 2016 88,930 $ 3.30 2.22 $ 135 Expected to vest at June 30, 2016 88,930 $ 3.30 2.22 $ 135 Number of Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2015 220,000 $ 4.35 - $ - Granted 340,000 1.87 - - Vested 87,500 - - - Forfeited, cancelled or expired (95,000) - - - Outstanding at June 30, 2016 465,000 $ 2.95 9.04 $ - Options Vested 125,000 $ 4.01 Options Non-Vested 340,000 $ 2.56 - $ - Options Exercisable 125,000 $ 4.01 - - Fiscal Year Ended June 30, (in thousands) 2016 2015 Sales and marketing $ 49 $ 251 General and administrative 326 310 Total stock-based compensation $ 375 $ 561 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 11 FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount reflected in the consolidated balance sheets of financial assets and liabilities are all categorized as Level 1. They include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, which approximated their fair values due to the short term nature of these financial assets and liabilities. The carrying amount of the Company’s debt approximates its fair value based on prevailing interest rates and time to maturity. In October 2012, the Company executed an interest rate swap obligation that was measured using observable inputs such as the LIBOR and Ten-year Treasury interest rates, and therefore has been categorized as Level 2. This derivative is not designated as a hedging instrument and has been recorded at fair value on the consolidated balance sheets. Changes in the fair value of this instrument have been recognized in the consolidated statements of operations in other expense. Fair value measurements at reporting date (in thousands) Fair value as of Significant other (Level 2) Liabilities Interest rate swap (1) $ (123) $ (123) Total $ (123) $ (123) (1) Included in “Accrued expenses” in the Balance Sheet Fair value measurements at reporting date (in thousands) Fair value as of Significant other (Level 2) Assets Interest rate swap (2) $ 20 $ 20 Total $ 20 $ 20 (2) Included in “Other current assets” in the Balance Sheet |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 12 INCOME TAXES THI is subject to entity level taxation in certain states and is subject to U.S. Federal and state income taxes with respect to its allocable share of any taxable income of the LCC. THI will be taxed at the prevailing corporate tax rates. All income before taxes is recognized domestically. Fiscal Year Ended June 30, 2016 (in thousands) Current Deferred Total U.S. Federal $ - $ - $ - State and Local 2 - 2 $ 2 $ - $ 2 Fiscal Year Ended June 30, 2015 (in thousands) Current Deferred Total U.S. Federal $ - $ - $ - State and Local 2 - 2 $ 2 $ - $ 2 34 June 30, 2016 June 30, 2015 (in thousands) Computed tax at statutory rate $ (170) $ (899) State taxes, net of federal benefit (29) (74) Rate benefit as a LLC 88 430 Meals and entertainment 7 10 Stock based compensation 88 - Other permanent differences 1 30 Valuation allowance 17 505 Income tax expense $ 2 $ 2 June 30, 2016 June 30, 2015 (in thousands) Deferred tax assets: Accrued compensation $ 24 30 Share-based compensation 49 53 Intangible assets 3,146 5,693 Sales returns 121 117 Net operating losses 1,193 1,040 Unrealized loss 28 - Other 96 108 Gross deferred tax assets 4,657 7,041 Valuation allowance (4,128) (6,678) Total deferred tax assets, net of valuation allowance 529 363 Deferred tax liabilities: Inventories (254) (142) Unrealized gain - (3) Property and equipment (275) (218) Other - - Total deferred tax liability (529) (363) Net deferred taxes $ - $ - In FY15, a valuation allowance of $ 6.7 4.1 THI and the LLC are subject to annual California franchise tax. Truett-Hurst, Inc. files U.S. Federal and California income tax returns. The Company has gross federal and state net operating losses of $ 3.0 3.1 For Truett-Hurst, Inc., U.S. federal and state tax returns associated with fiscal years 2013 through 2015 are currently open to examination. U.S. federal and state tax returns for LLC associated with calendar years ended 2012-2014 and fiscal year ended 2015 are currently open to examination. There were no material uncertain tax positions and the Company does not expect major changes in the next twelve months. |
SIGNIFICANT CUSTOMER INFORMATIO
SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 13 SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION The Company’s primary reporting segments are identified as wholesale and direct to consumer. Wholesale sales include the retail exclusive brand label model and other brands sold through the three-tier distribution system. Direct to consumer sales occur through the Company’s tasting rooms and wine clubs. Operating and other expenses are not allocated between operating segments; therefore, operating and net income information for the respective segments is not available. In addition, discrete financial information related to segment specific assets is not available. Sales and cost of sales are reported by segment. Historically, the Company reported a third segment identified as the internet segment which were sales that occurred through Wine Spies and were principally comprised of brands not owned by us. Effective December 31, 2015, the Company sold its interest in Wine Spies and no longer has an Internet segment as part of its continuing operations. See Note 9 “Discontinued Operations.” Fiscal Years Ended June 30, (in thousands) Wholesale Direct to Consumer Total 2016 2015 2016 2015 2016 2015 Net Sales $ 20,011 $ 16,803 $ 5,772 $ 4,839 $ 25,783 $ 21,642 Cost of Sales 15,450 13,424 2,046 1,768 17,496 15,192 Gross Profit $ 4,561 $ 3,379 $ 3,726 $ 3,071 $ 8,287 $ 6,450 Gross Profit % 22.8 % 20.1 % 64.6 % 63.5 % 32.1 % 29.8 % Significant Customer Information: Percentage of Total Percentage of Wholesale Sales Accounts Receivable Fiscal Year Ended Fiscal Year Ended June 30, June 30, 2016 2015 2016 2015 Customer A 37 % 35 % 26 % 20 % Customer B 18 % 19 % 10 % 9 % Customer C 3 % 3 % 27 % 24 % International sales were $ 0.9 1.3 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 14 SUBSEQUENT EVENTS On July 28, 2016, Hambrecht Wine Company L.P. the owner of the property which the Company leases at 4035 Westside Road, Healdsburg, California sold the property to a third-party buyer. In connection with the sale, the Company amended its lease such that it will vacate the tasting room portion of the property no later than December 31, 2016, and the balance of the space no later than May 31, 2017. On July 29, 2016, the Company entered into a Modification Agreement to its Loan and Security agreement with Bank of the West that it had entered into July 15, 2015. The Company has evaluated all subsequent event activity through the issue date of these consolidated financial statements and concluded that, other than the items discussed above, no additional subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements. |
Critical Accounting Policies 21
Critical Accounting Policies and Estimates (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity date when purchased of three months or less, and are stated at cost, which approximates fair value. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable consists primarily of trade receivables from customers who tend to be large distributors. Accounts receivable are reviewed regularly and estimates are made for allowance for doubtful accounts when there is doubt as to the collectability of individual balances. An allowance for doubtful accounts was not recorded for FY16 and FY15, as bad debts have historically been negligible. |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of bulk and bottled wine and purchased grapes valued at the lower of cost or market using the first-in, first-out or specific identification method. In accordance with general wine industry practice, bulk and bottled wine inventories are included in current assets, although a portion of such inventories may be aged for a period longer than one year. Costs associated with winemaking and the production of wine are reflected in inventories as bulk wine until the wine has been bottled and is available for sale. The Company assesses the valuation of its inventories and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value. Net realizable value of such inventories is estimated based on analyses and assumptions including, but not limited to, historical usage, future demand and market requirements. Reductions to the carrying value of inventories are recorded in cost of sales. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted cash flows, an impairment loss is recognized to the extent of such difference. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets Indefinite lived intangible assets are reviewed for impairment during the fourth fiscal quarter of each year, or sooner, if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite lived intangible assets consist primarily of trademarks. Intangible assets determined to have a finite life are amortized over their estimated useful lives, principally four years for the customer lists and non-compete agreement, five years for proprietary technology and ten years for the trademarks. Patents are amortized over their estimated legal lives. |
Other Assets [Policy Text Block] | Other Assets Other assets are amortized over their estimated useful lives, principally five years for label design costs, the lesser of the loan term or ten years for loan fees, ten years for lease costs related party, and five years for website design costs. Label designs are evaluated for impairment in accordance with the policy on impairment of long-lived assets. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Wine sales are recognized when the product is shipped and title passes to the customer. Standard terms are ‘FOB’ shipping point, with no customer acceptance provisions. The cost of price promotions and discounts are treated as reductions of sales. No products are sold on consignment. Credit sales are recorded as trade accounts receivable and no collateral is required. Net sales from items sold direct to consumer are recognized at the time of sale. |
Cost of Sales, Vendor Allowances, Policy [Policy Text Block] | Sales Discounts and Depletion Allowances Sales discounts and depletion allowances are recorded as a reduction of sales at the time of the sale. For FY16 and FY15, sales discounts and depletion allowances totaled $ 4.7 4.1 |
Cost of Sales, Policy [Policy Text Block] | Cost of Sales Cost of sales includes costs associated with grape growing, grapes purchased from vineyards not owned by the Company, bulk wine and finished goods purchases, packaging materials, winemaking and production costs, vineyard and production administrative support and overhead costs, purchasing and receiving costs and certain warehousing costs. No further costs are allocated to inventory once the product is bottled and available for sale. Inventory reserves and provisions are included in cost of sales. |
Expense Allocation [Policy Text Block] | Expense Allocation The LLC Operating Agreement provides that substantially all expenses incurred by or attributable to the Company indebtedness are borne by the LLC, except income and franchise tax payments. |
Advertising Costs, Policy [Policy Text Block] | Sales and Marketing Expense Sales and marketing expenses consist primarily of personnel costs, advertising and other costs for marketing and promoting the Company’s products. Advertising costs are expensed as incurred. For FY16 and FY15, advertising expense totaled approximately $ 0.4 0.2 |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | General and Administrative Expenses General and administrative expenses include the costs associated with personnel, professional fees, insurance and other expenses related to administrative and compliance functions. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees and Costs Amounts billed to customers for shipping and handling are recorded as sales, and the costs incurred for shipping and handling are recorded as a sales and marketing expense. Gross margins may not be comparable to other companies in the same industry as other companies may include shipping and handling costs as a cost of sales. For FY16 and FY15, shipping costs were $ 0.9 1.0 |
Income Tax, Policy [Policy Text Block] | Income Taxes and Deferred Tax Asset Valuation Truett-Hurst, Inc. is subject to U.S. federal, state, and local taxes with respect to its allocable share of any taxable income of H.D.D. LLC and will be taxed at the prevailing corporate rates. The LLC is treated as a partnership under the Internal Revenue Code of 1986, as amended (the “Code”). The members separately account for their pro-rata share of income, deductions, losses, and credits. Therefore, no provision is made for the LLC’s share of net income (loss) in the consolidated financial statements for liabilities for federal, state, or local income taxes which liabilities are the responsibility of the individual members. The LLC is subject to entity level taxation in the state of California. As a result, the accompanying consolidated statements of operations include tax expense related to this state. The provision for income taxes is calculated using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized based on the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing net deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The net deferred tax asset is evaluated at the end of each year considering all available positive and negative evidence, including reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. When the Company does not believe the realization of a deferred tax asset is likely, a valuation allowance is recorded. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Stock-based compensation is recognized based on the estimated fair values at the grant date for equity classified awards and the recognition of the related compensation expense over the appropriate vesting period. Compensation expense is based on, among other things, (i) the classification of an award, (ii) assumptions relating to fair value measurement such as the value of the stock of Truett-Hurst and its volatility, the expected term of the award and forfeiture rates, and (iii) whether performance criteria, if any, have been met. Both internal and external data is used to assess compensation expense. Changes in these estimates could significantly impact stock based compensation expense in the future. The expected term of the option is based upon the contractual term, expected employee exercise and expected post-vesting employment termination behavior. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic market adjustments as the underlying equity instruments vest. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Basic earnings per share is computed by dividing the earnings attributable to the Company by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all potential dilutive common shares, including convertible LLC units and restricted stock unless this calculation would have an anti-dilutive effect in which case basic and diluted earnings per share are calculated similarly. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported consolidated results of continuing operations. |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17: Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842). In March 2016, the FASB issued ASU No. 2016-09: Improvements to Employee Share-Based Payment Accounting Compensation Stock Compensation. |
INVENTORIES, net (Tables)
INVENTORIES, net (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, net comprise: June 30, 2016 June 30, 2015 (in thousands) Grapes and bulk wine $ 8,413 $ 7,375 Bottled wine 11,262 13,956 Bottling materials and other 322 544 Canned wine - 750 19,997 22,625 Less: inventory reserves (79) (545) Total inventories, net $ 19,918 $ 22,080 |
PROPERTY AND EQUIPMENT, net (Ta
PROPERTY AND EQUIPMENT, net (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net comprise: June 30, 2016 June 30, 2015 (in thousands) Land and land improvements $ 3,231 $ 3,231 Building and improvements 1,380 1,359 Machinery and equipment 1,935 1,735 Vineyard development 554 554 Vineyard equipment 88 102 Furniture and fixtures 262 305 Leasehold improvements 190 191 Vehicles 85 85 7,725 7,562 Less: accumulated depreciation and amortization (2,142) (1,819) Total property and equipment, net $ 5,583 $ 5,743 |
INTANGIBLE ASSETS, net (Tables)
INTANGIBLE ASSETS, net (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Intangible assets, net comprise: June 30, 2016 June 30, 2015 (in thousands) Finite lives: Patents $ 44 $ 44 Less: accumulated amortization (1) (1) 43 43 Indefinite lives: Trademarks 453 439 Total intangible assets, net $ 496 $ 482 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Long Term Debt Borrowings [Table Text Block] | Long term debt comprise: June 30, 2016 June 30, 2015 (in thousands except payment information) Long term debt: Note 1 (1) $ 2,851 $ 2,987 Note 2 (2) - 21 Note 3 (3) 120 193 Note 4 (4) 244 326 Note 5 (5) 57 113 Note 6 (6) 392 - Total notes payable 3,664 3,640 Less: current maturities (475) (368) Total long term debt $ 3,189 $ 3,272 (1) Note payable to a bank, secured by a deed of trust on property, payable monthly with principal payments of $ 11,270 May 31, 2022 (2) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 4,226 November 1, 2015 3.75 (3) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 6,535 January 15, 2018 3.75 (4) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 7,783 March 1, 2019 3.75 (5) On November 30, 2014, the Company acquired the unrestricted use of the Stonegate trademark in exchange for a trademark release payment which is to be made over time and is accounted for as a note payable. The note payable has three equal installments: a) within five days of November 30, 2014, b) on October 31, 2015, and c) on July 31, 2016. The note does not accrue interest outstanding on the principal. An imputed interest rate of 5.5 (6) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 11,267 July 1, 2019 3.90 |
Schedule Of Future Principal And Interest Payments [Table Text Block] | Future principal and interest payments for the long term debt as of June 30, 2016 are as follows: Years ending June 30, (in thousands) 2017 $ 475 2018 396 2019 336 2020 146 2021 135 Thereafter 2,176 3,664 Add: estimated interest payments 623 Total $ 4,287 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future lease commitments are: Years ending June 30, (in thousands) 2017 $ 249 2018 52 2019 58 2020 20 2021 - Thereafter - Total future rent payments $ 379 |
Purchase Commitment, Excluding Long-term Commitment [Table Text Block] | Future minimum grape and bulk wine inventory purchase commitments are as follows: Years ending June 30, Third-Parties Related Parties Total (in thousands) 2017 $ 2,680 $ 56 $ 2,736 2018 520 57 577 2019 310 - 310 Total $ 3,510 $ 113 $ 3,623 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations [Member] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Discontinued operations comprise: Fiscal Year Ended Fiscal Year Ended June 30, 2016 June 30, 2015 (in thousands, except share data) Net income from operations of discontinued operations $ 30 $ (162) Gain on sale 15 - Net income (loss) from discontinued operations, net of tax $ 45 $ (162) Earnings (Loss) Per Share Basic and diluted weighted average shares 4,155,151 3,862,214 Basic and diluted net income (loss) per share $ 0.01 $ (0.04) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2015 220,000 $ 4.35 - $ - Granted 340,000 1.87 - - Vested 87,500 - - - Forfeited, cancelled or expired (95,000) - - - Outstanding at June 30, 2016 465,000 $ 2.95 9.04 $ - Options Vested 125,000 $ 4.01 Options Non-Vested 340,000 $ 2.56 - $ - Options Exercisable 125,000 $ 4.01 - - |
Schedule Of Stock Based Compensation Expense [Table Text Block] | The following table summarizes stock-based compensation included in the consolidated statements of operations for the fiscal years ended June 30, 2016 and 2015, respectively: Fiscal Year Ended June 30, (in thousands) 2016 2015 Sales and marketing $ 49 $ 251 General and administrative 326 310 Total stock-based compensation $ 375 $ 561 |
Restricted Stock Units (RSUs) [Member] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of the activity for restricted stock units is presented below: Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2015 87,500 $ 5.00 - $ 134 Granted 45,180 1.66 - 69 Released (43,750) - - - Vested - - - - Forfeited, cancelled or expired - - - Outstanding at June 30, 2016 88,930 $ 3.30 2.22 $ 135 Expected to vest at June 30, 2016 88,930 $ 3.30 2.22 $ 135 |
Restricted Stock [Member] | Discontinued Operations [Member] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of the activity for restricted stock awards is presented below: Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2015 97,329 $ 3.24 - $ 148 Granted - - - - Released (92,066) - - 140 Vested - - - - Forfeited, cancelled or expired - - - - Outstanding at June 30, 2016 5,263 $ 3.80 1.46 $ 8 Expected to vest at June 30, 2016 5,263 $ 3.80 1.46 $ 8 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The maturity date of the swap is May 31, 2022. The following tables set forth the interest rate swap fair values at June 30, 2016 and at June 30, 2015: Fair value measurements at reporting date (in thousands) Fair value as of Significant other (Level 2) Liabilities Interest rate swap (1) $ (123) $ (123) Total $ (123) $ (123) (1) Included in “Accrued expenses” in the Balance Sheet Fair value measurements at reporting date (in thousands) Fair value as of Significant other (Level 2) Assets Interest rate swap (2) $ 20 $ 20 Total $ 20 $ 20 (2) Included in “Other current assets” in the Balance Sheet |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Year Ended June 30, 2016 (in thousands) Current Deferred Total U.S. Federal $ - $ - $ - State and Local 2 - 2 $ 2 $ - $ 2 Fiscal Year Ended June 30, 2015 (in thousands) Current Deferred Total U.S. Federal $ - $ - $ - State and Local 2 - 2 $ 2 $ - $ 2 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 34 June 30, 2016 June 30, 2015 (in thousands) Computed tax at statutory rate $ (170) $ (899) State taxes, net of federal benefit (29) (74) Rate benefit as a LLC 88 430 Meals and entertainment 7 10 Stock based compensation 88 - Other permanent differences 1 30 Valuation allowance 17 505 Income tax expense $ 2 $ 2 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Components of deferred tax assets (liabilities) consist of the following: June 30, 2016 June 30, 2015 (in thousands) Deferred tax assets: Accrued compensation $ 24 30 Share-based compensation 49 53 Intangible assets 3,146 5,693 Sales returns 121 117 Net operating losses 1,193 1,040 Unrealized loss 28 - Other 96 108 Gross deferred tax assets 4,657 7,041 Valuation allowance (4,128) (6,678) Total deferred tax assets, net of valuation allowance 529 363 Deferred tax liabilities: Inventories (254) (142) Unrealized gain - (3) Property and equipment (275) (218) Other - - Total deferred tax liability (529) (363) Net deferred taxes $ - $ - |
SIGNIFICANT CUSTOMER INFORMAT31
SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables reflect net sales, cost of sales and gross profit by segment for continuing operations for each of the fiscal years ended June 30, 2016 and 2015, respectively: Fiscal Years Ended June 30, (in thousands) Wholesale Direct to Consumer Total 2016 2015 2016 2015 2016 2015 Net Sales $ 20,011 $ 16,803 $ 5,772 $ 4,839 $ 25,783 $ 21,642 Cost of Sales 15,450 13,424 2,046 1,768 17,496 15,192 Gross Profit $ 4,561 $ 3,379 $ 3,726 $ 3,071 $ 8,287 $ 6,450 Gross Profit % 22.8 % 20.1 % 64.6 % 63.5 % 32.1 % 29.8 % |
Schedule Of Concentrations Of Wholesale Sales And Accounts Receivable As A Percent Of Each [Table Text Block] | Percentage of Total Percentage of Wholesale Sales Accounts Receivable Fiscal Year Ended Fiscal Year Ended June 30, June 30, 2016 2015 2016 2015 Customer A 37 % 35 % 26 % 20 % Customer B 18 % 19 % 10 % 9 % Customer C 3 % 3 % 27 % 24 % |
Business (Details Textual)
Business (Details Textual) - shares | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Nature of Operations [Line Items] | ||
Tax Receivable Agreement Description | The agreement provides for the payment from time to time, as corporate taxpayer, to holders of LLC Units of 90% of the amount of the benefits, if any, that the corporate taxpayer is deemed to realize as a result of the exchange of LLC Units (current and future) and certain other tax benefits related to the Company entering into the agreement. | |
Director [Member] | ||
Nature of Operations [Line Items] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 43.00% | |
Noncontrolling Interest [Member] | ||
Nature of Operations [Line Items] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 42.00% | |
Common Class A [Member] | ||
Nature of Operations [Line Items] | ||
Common Stock, Shares, Outstanding | 4,306,609 | 4,010,120 |
Common Class B [Member] | ||
Nature of Operations [Line Items] | ||
Common Stock, Shares, Outstanding | 7 | 8 |
Common Unit, Outstanding | 2,800,000 |
Critical Accounting Policies 33
Critical Accounting Policies and Estimates (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Line Items] | ||
Sales Discounts, Returns and Allowances, Goods, Total | $ 4.7 | $ 4.1 |
Advertising Expense | 0.4 | 0.2 |
Shipping, Handling and Transportation Costs | $ 0.9 | $ 1 |
Property, Plant and Equipment, Depreciation Methods | straight-line basis | |
Lease Costs Related Party [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Machinery and Equipment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold Improvements [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Vehicles [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Website design [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Loan Fees [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Label Design [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum [Member] | Building Improvements [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Maximum [Member] | Vineyard Development [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Maximum [Member] | Vineyard Equipment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Minimum [Member] | Building Improvements [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Minimum [Member] | Vineyard Development [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Minimum [Member] | Vineyard Equipment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years |
INVENTORIES, net (Details)
INVENTORIES, net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Inventory [Line Items] | ||
Grapes and bulk wine | $ 8,413 | $ 7,375 |
Bottled wine | 11,262 | 13,956 |
Bottling materials and other | 322 | 544 |
Canned wine | 0 | 750 |
Inventory, Gross | 19,997 | 22,625 |
Less: inventory reserves | (79) | (545) |
Total inventories, net | $ 19,918 | $ 22,080 |
PROPERTY AND EQUIPMENT, net (De
PROPERTY AND EQUIPMENT, net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 7,725 | $ 7,562 |
Less: accumulated depreciation and amortization | (2,142) | (1,819) |
Total property and equipment, net | 5,583 | 5,743 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,231 | 3,231 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,380 | 1,359 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,935 | 1,735 |
Vineyard development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 554 | 554 |
Vineyard equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 88 | 102 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 262 | 305 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 190 | 191 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 85 | $ 85 |
PROPERTY AND EQUIPMENT, net (36
PROPERTY AND EQUIPMENT, net (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation, Depletion and Amortization, Nonproduction, Total | $ 0.7 | $ 0.6 |
INTANGIBLE ASSETS, net (Details
INTANGIBLE ASSETS, net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Finite lives: | ||
Patents | $ 44 | $ 44 |
Less: accumulated amortization | (1) | (1) |
Total patents, net | 43 | 43 |
Indefinite lives: | ||
Trademarks | 453 | 439 |
Total intangible assets, net | $ 496 | $ 482 |
INTANGIBLE ASSETS, net (Detai38
INTANGIBLE ASSETS, net (Details Textual) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of Intangible Assets | $ 40 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | |
Long-term debt: | |||
Total notes payable | $ 3,664 | $ 3,640 | |
Less: current maturities | (475) | (368) | |
Total long term debt | 3,189 | 3,272 | |
Notes Payable One [Member] | |||
Long-term debt: | |||
Total notes payable | [1] | 2,851 | 2,987 |
Notes Payable Two [Member] | |||
Long-term debt: | |||
Total notes payable | [2] | 0 | 21 |
Notes Payable Three [Member] | |||
Long-term debt: | |||
Total notes payable | [3] | 120 | 193 |
Notes Payable Four [Member] | |||
Long-term debt: | |||
Total notes payable | [4] | 244 | 326 |
Notes Payable Five [Member] | |||
Long-term debt: | |||
Total notes payable | [5] | 57 | 113 |
Notes Payable Six [Member] | |||
Long-term debt: | |||
Total notes payable | [6] | $ 392 | $ 0 |
[1] | Note payable to a bank, secured by a deed of trust on property, payable monthly with principal payments of $11,270 plus interest, matures May 31, 2022, variable interest of 2.25% above LIBOR. | ||
[2] | Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $4,226, matured November 1, 2015 at 3.75% interest. | ||
[3] | Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $6,535, matures January 15, 2018 at 3.75% interest. | ||
[4] | Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $7,783, matures March 1, 2019; at 3.75% interest. | ||
[5] | On November 30, 2014, the Company acquired the unrestricted use of the Stonegate trademark in exchange for a trademark release payment which is to be made over time and is accounted for as a note payable. The note payable has three equal installments: a) within five days of November 30, 2014, b) on October 31, 2015, and c) on July 31, 2016. The note does not accrue interest outstanding on the principal. An imputed interest rate of 5.5% was assessed under GAAP and the impact was considered immaterial. | ||
[6] | Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $11,267, matures July 1, 2019; at 3.90% interest. |
BORROWINGS (Details 1)
BORROWINGS (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Long Term Debt, Fiscal Year Maturity [Line Items] | ||
2,017 | $ 475 | |
2,018 | 396 | |
2,019 | 336 | |
2,020 | 146 | |
2,021 | 135 | |
Thereafter | 2,176 | |
Long-term Debt, Total | 3,664 | $ 3,640 |
Add: Estimated interest payments | 623 | |
Total | $ 4,287 |
BORROWINGS (Details Textual)
BORROWINGS (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jul. 29, 2016 | Jun. 30, 2016 | |
Maximum [Member] | ||
Limited Guaranty Percentage | 61.00% | |
Minimum [Member] | ||
Limited Guaranty Percentage | 23.00% | |
Equipment Line Of Credit [Member] | ||
Debt Instrument, Maturity Date | Jul. 1, 2016 | |
Line of Credit Facility, Interest Rate Description | interest at a rate of 2.25% above the floating One-Month LIBOR Rate. | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | |
Long-term Line of Credit | $ 386 | |
Line of Credit Facility, Interest Rate During Period | 2.25% | |
Equipment Line Of Credit [Member] | Subsequent Event [Member] | ||
Debt Instrument, Maturity Date | Jul. 31, 2017 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | |
Foreign Line of Credit [Member] | ||
Debt Instrument, Maturity Date | Jul. 31, 2016 | |
Long-term Line of Credit | $ 100 | |
Line of Credit Facility, Interest Rate During Period | 15.00% | |
Foreign Line of Credit [Member] | Subsequent Event [Member] | ||
Debt Instrument, Maturity Date | Jul. 31, 2017 | |
Line of Credit [Member] | ||
Debt Instrument, Maturity Date | Jul. 31, 2016 | |
Line of Credit Facility, Interest Rate Description | interest at an annual interest rate of 2.25% above LIBOR. | |
Debt Instrument, Interest Rate During Period | 2.25% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000 | |
Long-term Line of Credit | $ 9,924 | |
Line of Credit [Member] | Subsequent Event [Member] | ||
Debt Instrument, Maturity Date | Jul. 31, 2017 | |
Notes Payable To Bank One [Member] | ||
Debt Instrument, Maturity Date | May 31, 2022 | |
Debt Instrument, Periodic Payment, Interest | $ 11,270 | |
Debt Instrument, Interest Rate During Period | 2.25% | |
Notes Payable To Bank Two [Member] | ||
Debt Instrument, Maturity Date | Nov. 1, 2015 | |
Debt Instrument, Periodic Payment, Interest | $ 4,226 | |
Debt Instrument, Interest Rate During Period | 3.75% | |
Notes Payable To Bank Three [Member] | ||
Debt Instrument, Maturity Date | Jan. 15, 2018 | |
Debt Instrument, Periodic Payment, Interest | $ 6,535 | |
Debt Instrument, Interest Rate During Period | 3.75% | |
Notes Payable To Bank Four [Member] | ||
Debt Instrument, Maturity Date | Mar. 1, 2019 | |
Debt Instrument, Periodic Payment, Interest | $ 7,783 | |
Debt Instrument, Interest Rate During Period | 3.75% | |
Notes Payable To Bank Five [Member] | ||
Debt Instrument, Interest Rate During Period | 5.50% | |
Notes Payable To Bank Six [Member] | ||
Debt Instrument, Maturity Date | Jul. 1, 2019 | |
Debt Instrument, Periodic Payment, Interest | $ 11,267 | |
Debt Instrument, Interest Rate During Period | 3.90% |
ACCRUAL FOR SALES RETURNS (Deta
ACCRUAL FOR SALES RETURNS (Details Textual) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Accrual For Sales Return | $ 0.5 | |
Scenario, Forecast [Member] | ||
Settlement of cost, Cash Payment | $ 0.4 | |
Settlement of cost Goods | $ 0.1 |
COMMITMENTS AND CONTINGENCIES43
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | |
2,017 | $ 249 |
2,018 | 52 |
2,019 | 58 |
2,020 | 20 |
2,021 | 0 |
Thereafter | 0 |
Total future rent payments | $ 379 |
COMMITMENTS AND CONTINGENCIES44
COMMITMENTS AND CONTINGENCIES (Details 1) $ in Thousands | Jun. 30, 2016USD ($) |
Purchase Obligation, Fiscal Year Maturity [Line Items] | |
2,017 | $ 2,736 |
2,018 | 577 |
2,019 | 310 |
Total | 3,623 |
Third Parties [Member] | |
Purchase Obligation, Fiscal Year Maturity [Line Items] | |
2,017 | 2,680 |
2,018 | 520 |
2,019 | 310 |
Total | 3,510 |
Related Parties [Member] | |
Purchase Obligation, Fiscal Year Maturity [Line Items] | |
2,017 | 56 |
2,018 | 57 |
2,019 | 0 |
Total | $ 113 |
COMMITMENTS AND CONTINGENCIES45
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 300 | $ 300 | |
Tax Benefit Tax Receivable Percent | 90.00% | ||
Inventory, Finished Goods, Gross | $ 3,300 | ||
Service Agreement Description | The Company enters into various contracts with third party service providers for grape crushing, wine storage, and bottling. The costs are recorded in the period for which the service is provided. The actual costs related to custom crush services are based on volume. The Company’s current contracts for custom crush services cover the 2016 harvest. The current bottling contract requires a minimum of 200,000 cases at $2.40 per case to be bottled in a one year period. | ||
Percentage Of Inventory Storage | 54.00% | ||
Scenario, Forecast [Member] | |||
Commitments And Contingencies [Line Items] | |||
Annual Rent For Tasting | $ 955 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net income (loss) from discontinued operations, net of tax | $ 45 | $ (162) |
Earnings (Loss) Per Share | ||
Basic and diluted net income (loss) per share (in dollars per share) | $ (0.06) | $ (0.35) |
Discontinued Operations [Member] | ||
Net income from operations of discontinued operations | $ 30 | $ (162) |
Gain on sale | 15 | 0 |
Net income (loss) from discontinued operations, net of tax | $ 45 | $ (162) |
Earnings (Loss) Per Share | ||
Basic and diluted weighted average shares (in shares) | 4,155,151 | 3,862,214 |
Basic and diluted net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.04) |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Stock Option [Member] | ||
Number of Shares, Outstanding at June 30, 2015 | 220,000 | |
Number of Shares, Granted | 340,000 | |
Number of Shares, Vested | 87,500 | |
Number of Shares, Forfeited, cancelled or expired | (95,000) | |
Number of Shares, Outstanding at June 30, 2016 | 465,000 | 220,000 |
Number of Shares, Expected to vest at June 30, 2016 | 125,000 | |
Number of Shares, Options Vested | 125,000 | |
Number of Shares, Options Non-Vested | 340,000 | |
Number of Shares, Options Exercisable | 125,000 | |
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2015 | $ 4.35 | |
Weighted Avg Grant Date Fair Value per Share, Granted | 1.87 | |
Weighted Avg Grant Date Fair Value per Share, Vested | 0 | |
Weighted Avg Grant Date Fair Value per Share, Forfeited, cancelled or expired | 0 | |
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2016 | 2.95 | $ 4.35 |
Weighted Avg Grant Date Fair Value per Share, Expected to vest at June 30, 2016 | 4.01 | |
Weighted Avg Grant Date Fair Value Per Share, Options Vested | 4.01 | |
Weighted Avg Grant Date Fair Value per Share, Options Non-Vested | 2.56 | |
Weighted Avg Grant Date Fair Value per Share, Options Exercisable | $ 4.01 | |
Weighted Avg Contractual Term in Years, Outstanding | 9 years 14 days | 0 years |
Weighted Avg Contractual Term in Years, Granted | 0 years | |
Weighted Avg Contractual Term in Years, Vested | 0 years | |
Weighted Avg Contractual Term in Years, Forfeited, cancelled or expired | 0 years | |
Weighted Avg Contractual Term in Years, Options Non-Vested | 0 years | |
Weighted Avg Contractual Term in Years, Options Exercisable | 0 years | |
Aggregate Intrinsic Value, Outstanding at June 30, 2015 | $ 0 | |
Aggregate Intrinsic Value, Granted | 0 | |
Aggregate Intrinsic Value, Vested | 0 | |
Aggregate Intrinsic Value, Forfeited, cancelled or expired | 0 | |
Aggregate Intrinsic Value, Outstanding at June 30, 2016 | 0 | $ 0 |
Aggregate Intrinsic Value, Options Non-Vested | 0 | |
Aggregate Intrinsic Value, Options Exercisable | $ 0 | |
Restricted Stock Units (RSUs) [Member] | ||
Number of Shares, Outstanding at June 30, 2015 | 87,500 | |
Number of Shares, Granted | 45,180 | |
Number of Shares, Released | (43,750) | |
Number of Shares, Vested | 0 | |
Number of Shares, Forfeited, cancelled or expired | 0 | |
Number of Shares, Outstanding at June 30, 2016 | 88,930 | 87,500 |
Number of Shares, Expected to vest at June 30, 2016 | 88,930 | |
Number of Shares, Options Vested | 88,930 | |
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2015 | $ 5 | |
Weighted Avg Grant Date Fair Value per Share, Granted | 1.66 | |
Weighted Avg Grant Date Fair Value per Share, Released | 0 | |
Weighted Avg Grant Date Fair Value per Share, Vested | 0 | |
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2016 | 3.3 | $ 5 |
Weighted Avg Grant Date Fair Value per Share, Expected to vest at June 30, 2016 | 3.3 | |
Weighted Avg Grant Date Fair Value Per Share, Options Vested | $ 3.3 | |
Weighted Avg Contractual Term in Years, Outstanding | 2 years 2 months 19 days | 0 years |
Weighted Avg Contractual Term in Years, Granted | 0 years | |
Weighted Avg Contractual Term in Years, Released | 0 years | |
Weighted Avg Contractual Term in Years, Vested | 0 years | |
Weighted Avg Contractual Term in Years, Forfeited, cancelled or expired | 0 years | |
Weighted Avg Contractual Term in Years, Expected to vest at June 30, 2016 | 2 years 2 months 19 days | |
Aggregate Intrinsic Value, Outstanding at June 30, 2015 | $ 134 | |
Aggregate Intrinsic Value, Granted | 69 | |
Aggregate Intrinsic Value, Released | 0 | |
Aggregate Intrinsic Value, Vested | 0 | |
Aggregate Intrinsic Value, Forfeited, cancelled or expired | 0 | |
Aggregate Intrinsic Value, Outstanding at June 30, 2016 | 135 | $ 134 |
Aggregate Intrinsic Value, Expected to vest at June 30, 2016 | $ 135 | |
Restricted Stock [Member] | ||
Number of Shares, Outstanding at June 30, 2015 | 97,329 | |
Number of Shares, Granted | 0 | |
Number of Shares, Released | (92,066) | |
Number of Shares, Vested | 0 | |
Number of Shares, Forfeited, cancelled or expired | 0 | |
Number of Shares, Outstanding at June 30, 2016 | 5,263 | 97,329 |
Number of Shares, Expected to vest at June 30, 2016 | 5,263 | |
Number of Shares, Options Vested | 5,263 | |
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2015 | $ 3.24 | |
Weighted Avg Grant Date Fair Value per Share, Granted | 0 | |
Weighted Avg Grant Date Fair Value per Share, Released | 0 | |
Weighted Avg Grant Date Fair Value per Share, Vested | 0 | |
Weighted Avg Grant Date Fair Value per Share, Forfeited, cancelled or expired | 0 | |
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2016 | 3.8 | $ 3.24 |
Weighted Avg Grant Date Fair Value per Share, Expected to vest at June 30, 2016 | 3.8 | |
Weighted Avg Grant Date Fair Value Per Share, Options Vested | $ 3.8 | |
Weighted Avg Contractual Term in Years, Outstanding | 1 year 5 months 16 days | 0 years |
Weighted Avg Contractual Term in Years, Granted | 0 years | |
Weighted Avg Contractual Term in Years, Released | 0 years | |
Weighted Avg Contractual Term in Years, Vested | 0 years | |
Weighted Avg Contractual Term in Years, Forfeited, cancelled or expired | 0 years | |
Weighted Avg Contractual Term in Years, Expected to vest at June 30, 2016 | 1 year 5 months 16 days | |
Aggregate Intrinsic Value, Outstanding at June 30, 2015 | $ 148 | |
Aggregate Intrinsic Value, Granted | 0 | |
Aggregate Intrinsic Value, Released | 140 | |
Aggregate Intrinsic Value, Vested | 0 | |
Aggregate Intrinsic Value, Forfeited, cancelled or expired | 0 | |
Aggregate Intrinsic Value, Outstanding at June 30, 2016 | 8 | $ 148 |
Aggregate Intrinsic Value, Expected to vest at June 30, 2016 | $ 8 |
STOCK-BASED COMPENSATION (Det48
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 375 | $ 561 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 49 | 251 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 326 | $ 310 |
STOCK-BASED COMPENSATION (Det49
STOCK-BASED COMPENSATION (Details Textual) - 2012 Stock Incentive Plan [Member] shares in Millions | Jun. 30, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 1 |
Increase In Common Stock Capital Shares Reserved For Future Issuance | 0.1 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | |
Assets | |||
Total | $ 20 | ||
Liabilities | |||
Total | $ (123) | ||
Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Total | 20 | ||
Liabilities | |||
Total | (123) | ||
Interest Rate Swap [Member] | |||
Assets | |||
Total | [1] | 20 | |
Liabilities | |||
Total | [2] | (123) | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Total | [1] | $ 20 | |
Liabilities | |||
Total | [2] | $ (123) | |
[1] | Included in “Other current assets” in the Balance Sheet | ||
[2] | Included in “Accrued expenses” in the Balance Sheet |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Current | ||
U.S. federal | $ 0 | $ 0 |
State and local | 2 | 2 |
Total | 2 | 2 |
Deferred | ||
U.S. federal | 0 | 0 |
State and local | 0 | 0 |
Total | 0 | 0 |
Total | ||
U.S. federal | 0 | 0 |
State and local | 2 | 2 |
Total | $ 2 | $ 2 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Computed tax at statutory rate | $ (170) | $ (899) |
State taxes, net of federal benefit | (29) | (74) |
Rate benefit as a LLC | 88 | 430 |
Meals and entertainment | 7 | 10 |
Stock based compensation | 88 | 0 |
Other permanent differences | 1 | 30 |
Valuation allowance | 17 | 505 |
Total | $ 2 | $ 2 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred tax assets: | ||
Accrued compensation | $ 24 | $ 30 |
Share-based compensation | 49 | 53 |
Intangible assets | 3,146 | 5,693 |
Sales returns | 121 | 117 |
Net operating losses | 1,193 | 1,040 |
Unrealized loss | 28 | 0 |
Other | 96 | 108 |
Gross deferred tax assets | 4,657 | 7,041 |
Valuation allowance | (4,128) | (6,678) |
Total deferred tax assets, net of valuation allowance | 529 | 363 |
Deferred tax liabilities: | ||
Inventories | (254) | (142) |
Unrealized gain | 0 | (3) |
Property and equipment | (275) | (218) |
Other | 0 | 0 |
Total deferred tax liability | (529) | (363) |
Net deferred taxes | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 34.00% | |
Deferred Tax Assets, Valuation Allowance, Current | $ 4.1 | $ 6.7 |
Operating Loss Carryforwards | $ 3 | $ 3.1 |
Operating Loss Carry forwards Expiration Period | beginning in 2034 |
SIGNIFICANT CUSTOMER INFORMAT55
SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 25,783 | $ 21,642 |
Cost of Sales | 17,496 | 15,192 |
Gross Profit | $ 8,287 | $ 6,450 |
Gross Profit % | 32.10% | 29.80% |
Wholesale [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 20,011 | $ 16,803 |
Cost of Sales | 15,450 | 13,424 |
Gross Profit | $ 4,561 | $ 3,379 |
Gross Profit % | 22.80% | 20.10% |
Direct To Consumer [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 5,772 | $ 4,839 |
Cost of Sales | 2,046 | 1,768 |
Gross Profit | $ 3,726 | $ 3,071 |
Gross Profit % | 64.60% | 63.50% |
SIGNIFICANT CUSTOMER INFORMAT56
SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details 1) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Wholesale [Member] | Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk Percentage | 37.00% | 35.00% |
Wholesale [Member] | Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk Percentage | 18.00% | 19.00% |
Wholesale [Member] | Customer C [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk Percentage | 3.00% | 3.00% |
Accounts Receivable [Member] | Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk Percentage | 26.00% | 20.00% |
Accounts Receivable [Member] | Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk Percentage | 10.00% | 9.00% |
Accounts Receivable [Member] | Customer C [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk Percentage | 27.00% | 24.00% |
SIGNIFICANT CUSTOMER INFORMAT57
SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue, Net, Total | $ 25,783 | $ 21,642 |
International Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net, Total | $ 900 | $ 1,300 |