Truett-Hurst (THST) 10-Q 20 Nov 17 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2017	Nov. 20, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Registrant Name	Truett-Hurst, Inc.
Entity Central Index Key	1,564,709
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	THST
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,460,417
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		6

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 26	$ 783
Accounts receivable	3,637	1,932
Inventories, net	21,202	20,609
Bulk wine deposits	94	0
Other current assets	1,177	505
Total current assets	26,136	23,829
Property and equipment, net	5,787	5,426
Intangible assets, net	507	506
Other assets, net	245	277
Total assets	32,675	30,038
Current liabilities:
Lines of credit	7,615	7,290
Accounts payable	4,170	1,994
Accrued expenses	710	546
Depletion allowance and accrual for sales returns	509	495
Current maturities of capital lease obligation	11	11
Current maturities of long term debt	475	491
Total current liabilities	13,490	10,827
Long term debt, net of current maturities	3,208	3,002
Capital lease obligation, net of current maturities	60	63
Total liabilities	16,758	13,892
Commitments and contingencies (Note 7)
Shareholders’ equity:
Preferred stock, par value of $0.001 per share, 5,000,000 shares authorized, none issued and outstanding at September 30, 2017 and June 30, 2017	0	0
Additional paid-in capital	16,214	16,082
Accumulated deficit	(5,825)	(5,651)
Total Truett-Hurst, Inc. shareholders' equity	10,393	10,435
Noncontrolling interest	5,524	5,711
Total equity	15,917	16,146
Total liabilities and equity	32,675	30,038
Common Class A [Member]
Shareholders’ equity:
Common stock, value	4	4
Common Class B [Member]
Shareholders’ equity:
Common stock, value	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Sep. 30, 2017	Jun. 30, 2017
Preferred stock, par value	$ 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 value	$ 0.001	$ 0.001
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	4,460,417	4,426,789
Common stock, shares outstanding	4,460,417	4,426,789
Common Class B [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000	1,000
Common stock, shares issued	6	7
Common stock, shares outstanding	6	7

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Sales	$ 6,417	$ 6,102
Less excise tax	(227)	(216)
Net sales	6,190	5,886
Cost of sales	4,145	4,056
Gross profit	2,045	1,830
Operating expenses:
Sales and marketing	1,454	1,224
General and administrative	790	812
(Gain) loss on disposal of assets	(22)	17
Total operating expenses	2,222	2,053
Net loss from operations	(177)	(223)
Other income (expense):
Interest expense, net	(110)	(80)
Gain on lease termination, net		844
Gain on fair value of interest rate swap	2	23
Other expense	(8)	(9)
Total other (expense) income	(116)	778
Net (loss) income before income taxes	(293)	555
Income tax expense	(1)	(1)
Net (loss) income from continuing operations	(293)	554
Net (loss) income attributable to Truett-Hurst, Inc. and H.D.D. LLC	(293)	554
Net (loss) income attributable to noncontrolling interest: H.D.D. LLC	(117)	237
Net (loss) income attributable to Truett-Hurst, Inc.	$ (176)	$ 317
Net (loss) income per share:
Basic per share	$ (0.04)	$ 0.07
Diluted per share	$ (0.04)	$ 0.04
Weighted average shares used in computing net (loss) income per share:
Basic weighted average shares	4,437,998	4,306,609
Diluted weighted average shares	4,437,998	7,675,917

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net (loss) income from continuing operations	$ (293)	$ 554
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	213	200
Reserve for assets to be abandoned		127
Stock-based compensation	62	95
Gain on fair value of interest rate swap	(2)	(23)
Gain on lease termination, net		(844)
Proceeds received on lease termination		955
Gain on disposal of assets	(22)	(94)
Changes in operating assets and liabilities, net
Accounts receivable	(1,705)	(1,212)
Inventories	(593)	(1,748)
Bulk wine deposits	(94)	271
Other current assets	(670)	(90)
Accounts payable	2,176	2,704
Accrued expenses	164	179
Depletion allowance and accrual for sales returns	14	(492)
Due to related parties		64
Net cash (used in) provided by operating activities	(750)	646
Cash flows from investing activities:
Acquisition of property and equipment	(535)	(288)
Acquisition of intangible and other assets	(6)	(15)
Proceeds from sale of assets	22	4
Net cash used in investing activities	(519)	(299)
Cash flows from financing activities:
Net proceeds from (payments on) lines of credit	325	(277)
Proceeds from long term debt	327	387
Payments on long term debt	(137)	(176)
Payments on capital lease obligation	(3)
Net cash provided by (used in) financing activities	512	(66)
Net change in cash and cash equivalents	(757)	281
Cash and cash equivalents at beginning of period	783	4,043
Cash and cash equivalents at end of period	26	4,324
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 110	80
Cash paid for income taxes		$ 1

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Sep. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed consolidated financial statements include the results of Truett-Hurst, Inc. (the “Company”) and its subsidiary H.D.D. LLC (the “LLC”). They have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with general instructions for quarterly reports filed on Form 10-Q and Article 8 of Regulation S-X. The Company consolidates the financial results of the LLC and records a noncontrolling interest representing the portion of equity ownership in the LLC that is not attributable to the Company. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. The accompanying unaudited condensed consolidated financial statements were prepared on the same basis as the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017, and, in the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim period presented are not necessarily indicative of the results expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2017 filed with the Securities and Exchange Commission (“SEC”) on October 13, 2017. Quantities or results referred to as “to date” or “as of this date” mean as of or to September 30, 2017, unless otherwise specifically noted. References to “FY” or “fiscal year” refer to the fiscal year ending on June 30 th Critical Accounting Policies and Estimates There have been no material changes to the critical accounting policies and estimates previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. Reclassifications Certain prior period amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported condensed consolidated results of continuing operations. Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date 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. In August 2016, the FASB issued ASU No. 2016-15: Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments In 2015, the FASB issued ASU 2015-11: Inventory (Topic 330) adopted this standard and it did not have a material impact on its condensed consolidated financial statements. In 2014, the FASB issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In 2016, the FASB issued ASU 2016-08: Revenue from Contracts with Customers (Topic 606) In 2016, the FASB issued ASU 2016-10: Revenue from Contracts with Customers (Topic 606)

Inventories

Inventories	3 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	NOTE 2 – INVENTORIES Inventories comprise: September 30, 2017 June 30, 2017 (in thousands) Grapes and bulk wine $ 5,405 $ 5,933 Bottled wine 15,400 14,495 Bottling materials and other 524 268 21,329 20,696 Less: inventory reserves (127 ) (87 ) Total inventories, net $ 21,202 $ 20,609 See Note 12, Subsequent Events.

Property and Equipment

Property and Equipment	3 Months Ended
	Sep. 30, 2017
Property Plant And Equipment [Abstract]
Property and Equipment	NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment, net comprise: September 30, 2017 June 30, 2017 (in thousands) Land and land improvements $ 3,261 $ 3,260 Building and improvements 1,547 1,420 Machinery and equipment 2,756 2,189 Vineyard development 554 554 Vineyard equipment 53 88 Furniture and fixtures 163 293 Leasehold improvements 45 79 Vehicles 119 113 8,498 7,996 Less: accumulated depreciation and amortization (2,711 ) (2,570 ) Total property and equipment, net $ 5,787 $ 5,426 In the prior year, the Company recorded a reserve for assets that were abandoned when the Company vacated the Russian River Valley tasting room based on a litigation settlement. See Litigation section of Note 7. Total depreciation and amortization expense for the three months ended September 30, 2017 and September 30, 2016 was $0.2 million.

Accounts Payable

Accounts Payable	3 Months Ended
	Sep. 30, 2017
Payables And Accruals [Abstract]
Accounts Payable	NOTE 4 – ACCOUNTS PAYABLE Accounts payable comprises: September 30, 2017 June 30, 2017 (in thousands) Grapes $ 1,655 $ 583 Other production related 1,514 940 Barrels 184 — Administrative 817 471 Total accounts payable $ 4,170 $ 1,994 Accounts payable as of September 30, 2017 reflect the seasonality associated with the 2017 harvest, specifically, grape procurement, barrel purchases, acquisition of new winery equipment for the leased space within the custom crush facility, and increased production activities.

Borrowings

Borrowings	3 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Borrowings	NOTE 5 – BORROWINGS The Company’s indebtedness is comprised primarily of bank loans including lines of credit and long term debt. Lines of Credit On August 17, 2017, the Company completed the renewal process of the revolving line of credit with Bank of the West. The Company chose not to request a new equipment purchase line of credit note from the lender. In addition, the Company chose not to extend the maturity date of the foreign exchange note. In July 2017, the Company’s capital equipment line of credit matured and automatically converted into a $0.3 million term loan with a 36-month amortization schedule and a 4.25% interest rate. The credit facility, which matures on July 31, 2018, consists of a revolving line of credit with a maximum commitment of $10.0 million which accrues interest at 2.25% above the London Interbank Offered Rate (“LIBOR”). In the fiscal year 2016, the credit facility also included (a) a capital equipment line with a maximum commitment of $0.5 million which carried an interest rate of 2.25% above floating One-Month LIBOR, and (b) a foreign exchange facility with a maximum commitment of $0.1 million which allowed the Company’s bank to enter into any spot or forward transaction to purchase or sell a foreign currency. The Company did not use the foreign exchange facility during the three months ended September 30, 2017 and September 30, 2016. The credit facility is secured by a pledge of substantially all of the Company’s assets with guarantees from the LLC members. 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 credit facility 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). When the line of credit was renewed on August 17, 2017, the previous debt service coverage ratio (measured quarterly on a trailing twelve-month basis) was replaced with a minimum quarterly EBITDA covenant. The Company was out of compliance with the minimum EBITDA covenant on its revolving line of credit for the quarter ended September 30, 2017, but received a waiver in October 2017 for that period from the Company’s lender. If the Company was unable to obtain the necessary waivers and the debt was accelerated, it would have a material adverse effect on the financial condition and future operating performance, and the Company may be required to limit activities. The Company was in compliance with all other covenants at September 30, 2017. In July 2016, the previous minimum EBITDA covenant was replaced with a minimum debt service coverage ratio (measured quarterly on a trailing twelve-month basis). Long Term Debt Long term debt comprises: September 30, 2017 June 30, 2017 (in thousands except payment information) Long term debt: Note 1 (1 ) $ 2,683 $ 2,716 Note 2 (2 ) 26 45 Note 3 (3 ) 136 158 Note 4 (4 ) 239 270 Note 5 (5 ) 280 304 Note 6 (6 ) 319 — Total notes payable 3,683 3,493 Less: current maturities (475 ) (491 ) Total long term debt $ 3,208 $ 3,002 (1) (2) (3) (4) (5) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $8,729, matures July 1, 2020, at 3.95% interest. (6) Future principal and interest payments for the long term debt as of September 30, 2017 are as follows: Years ending June 30, (in thousands) 2018 (remaining nine months) $ 440 2019 543 2020 362 2021 163 2022 2,175 3,683 Add: estimated interest payments 493 Total $ 4,176 Capital Lease In June 2017, the Company entered into a $0.06 million, 72-month capital lease related to wine production equipment. The future lease commitments are approximately $0.015 million per year for fiscal years 2018 through 2023.

Depletion Allowance and Accrual

Depletion Allowance and Accrual for Sales Returns	3 Months Ended
	Sep. 30, 2017
Depletion Allowance And Accrual For Sales Returns [Abstract]
Depletion Allowance and Accrual for Sales Returns	NOTE 6 – DEPLETION ALLOWANCE AND ACCRUAL FOR SALES RETURNS The depletion allowance was $0.5 million as of September 30, 2017 and June 30, 2017. In a prior year, the accrual for sales returns was established for the return of product that had oxidized. The initial accrual amount was $0.5 million. In June 2016, a final settlement was reached between the Company and the last distributor with remaining material financial exposure associated with the oxidized products. As of September 30, 2017, approximately $0.03 million of case goods remain to be shipped.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7 – COMMITMENTS AND CONTINGENCIES Leases The Company leases wine production space within a custom crush facility located in Santa Rosa, California. The lease commenced on April 15, 2017 and ends on June 15, 2018. The initial 14-month term may be renewed for additional periods as agreed to by both parties. See Litigation section below. The Company has two lease agreements for administrative office space. Both are three-year leases with an end date of October 31, 2019. One of these leases contains three one-year renewal options with adjustment to market rates. Lease payments for these facilities were $0.1 million and $0.08 million for the three months ended September 30, 2017 and September 30, 2016, respectively. Future lease commitments are: Years ending June 30, (in thousands) 2018 (remaining nine months) $ 214 2019 90 2020 31 Total future rent payments $ 335 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. The grape commitments for the fiscal year 2018 were received in the first and second quarters of fiscal year 2018. In fiscal year 2017, the Company did not extend a large contract for the purchase of bulk wine to future years. Future minimum grape and bulk wine inventory purchase commitments are as follows: Years Ending June 30, Third-Parties Related Total (in thousands) 2018 $ 4,671 $ 57 $ 4,728 2019 2,552 — 2,552 2020 1,927 — 1,927 2021 50 — 50 2022 51 — 51 Total $ 9,251 $ 57 $ 9,308 At September 30, 2017, total future purchase commitments for finished goods were approximately $4.9 million and are expected to be fulfilled during fiscal years 2018 through 2020. 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 2017 harvest. The current bottling contract requires a minimum of 120,000 cases at $2.85 per case to be bottled in a one year period. For the three months ended September 30, 2017, the monthly average percentage of the Company’s bulk wine stored at a related-party storage facility was 45%. 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 condensed consolidated financial position, results of operations, or cash flows. In January 2016, Mendocino Wine Group (“MWG”) filed a complaint against Phil Hurst and the LLC. The complaint alleges that, prior to January 2012, Phil Hurst and the LLC aided and abetted Paul Dolan in his alleged breach of fiduciary duties to MWG and that they interfered with Paul Dolan’s contract with Thornhill Management Company (the manager of MWG), and aided and abetted Paul Dolan’s interference with MWG’s economic advantage. Phil Hurst and the LLC denied the claims, denied all wrongdoing, and denied that they caused any harm to MWG. In November 2016, the Sonoma County Superior Court granted MWG’s Motion to Consolidate the Hurst/LLC case with a second complaint MWG filed against a law firm for legal malpractice and breach of fiduciary duty. The Court ruled the cases were sufficiently related and should be tried together. No amount had been recorded in the condensed consolidated financial statements related to this suit. In October 2017, the Sonoma County Superior Court granted the Company’s summary judgement motion and dismissed the case against Phil Hurst and the LLC. plaintiff, MWG, has 60 days to appeal the Court’s decision. If such an appeal is filed, the process may take 9 to 18 months to obtain a final resolution. In June 2016, the Company settled outstanding litigation with the Hambrecht Wine Group, L.P. related to the lease of one of its tasting rooms and a winery production facility located at 4035 Westside Road, Healdsburg, California, in exchange for payment of $1.0 million to the LLC, quitclaimed certain rights, and modified its lease such that the Company vacated the tasting room portion of the property prior to December 31, 2016, and vacated the winery production portion prior to May 31, 2017. The Company received a series of settlement payments totaling $1.0 million in fiscal year 2017 and recorded a net gain of $0.8 million related to the lease termination in the Company’s condensed consolidated statement of operations for the quarter ended September 30, 2016. 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 a 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% of the amount of the benefits, if any, that the corporate taxpayer is deemed to realize as a result of (i) increases in tax basis resulting from the exchange of LLC Units and (ii) certain other tax benefits related to the Company entering into the agreement, including tax benefits attributable to payments under the agreement. These payment obligations are obligations of the corporate taxpayer and not of the LLC. The term of the agreement will continue until all such tax benefits have been utilized or expired, unless the corporate taxpayer exercises its right to terminate the agreement for an amount based on the agreed payments remaining to be made under the agreement or the corporate taxpayer breaches any of its material obligations under the agreement in which case all obligations will generally be accelerated and due as if the corporate taxpayer had exercised its right to terminate the agreement. In addition, the tax receivable agreement provides that upon certain mergers, asset sales, or other forms of business combinations, substantial payment obligations to the founding LLC members and affiliates will accelerate. 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 September 30, 2017 and September 30, 2016 for these obligations on the condensed consolidated balance sheets.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	NOTE 8 – 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 September 30, 2017, the 2012 Plan has 1.0 million shares reserved for issuance and a total of 0.4 million shares available to be issued. A summary of the Company’s activity for restricted stock awards is presented below: Number of Shares Weighted Avg Grant Date Fair Value per Share Weighted Avg Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2017 2,631 $ 3.80 0.49 $ 5 Granted — — — — Exercised — — — — Released — — — — Vested — — — — Forfeited, cancelled or expired — — — — Outstanding at September 30, 2017 2,631 $ 3.80 0.24 $ 6 Expected to vest at September 30, 2017 2,631 $ — — $ — A summary of the Company’s activity for restricted stock units is presented below: Number of Shares Weighted Avg Grant Fair Value per Share Weighted Avg Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2017 33,334 $ 2.25 0.50 $ 69 Granted — — — — Exercised — — — — Released — — — — Vested — — — — Forfeited, cancelled or expired — — — — Outstanding at September 30, 2017 33,334 $ 2.25 0.25 $ 76 Expected to vest at September 30, 2017 33,334 $ — — $ — A summary of the Company’s activity for stock options is presented below: Number of Shares Weighted Avg Grant Date Fair Value per Share Weighted Avg Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2017 215,000 $ 1.67 9.04 $ — Granted 50,000 2.08 — — Forfeited, cancelled or expired (35,000 ) — — — Outstanding at September 30, 2017 230,000 $ 1.71 8.93 $ — Options Vested 57,500 $ 1.71 8.93 — Options Non-Vested 172,500 $ 1.71 8.93 $ — Options Exercisable 57,500 $ 1.71 8.93 — The following table summarizes the Company’s stock-based compensation included in the condensed consolidated statements of operations for the three months ended September 30, 2017 and September 30, 2016: Three Months Ended September 30, (in thousands) 2017 2016 Sales and marketing $ 5 $ 10 General and administrative 57 85 Total stock-based compensation $ 62 $ 95

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	NOTE 9 – FAIR VALUE OF 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 condensed 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 condensed consolidated balance sheets. Changes in the fair value of this instrument have been recognized in the condensed consolidated statements of operations in other expense. The maturity date of the swap is May 31, 2022. At June 30, 2017 and September 30, 2017, the interest rate swap balance was $0.1 million for both the fair value and the Level 2 value. The balance for the interest rate swap is included in other current assets on the condensed consolidated balance sheets.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 10 – INCOME TAXES For the three months ended September 30, 2017, the Company recorded income tax expense of $0.001 million and had an effective tax rate of less than 1%. The Company has net operating loss (“NOL”) carryforwards available to offset fiscal year 2018 taxable income. The utilization of the NOL carryforwards may be subject to substantial annual limitations due to ownership change provisions under Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitations may result in the expiration of NOL’s before they can be utilized by the Company. The Company's effective tax rate is a function of: • A rate benefit attributable to the fact that the LLC operates as a limited liability company which is not subject to federal or state income tax. Accordingly, a portion of the earnings are not subject to corporate level taxes. • Operating losses for the periods or utilization of net operating loss carryforwards. • Recording a full valuation allowance against net deferred tax assets as the Company has determined that it is more likely than not that the future tax benefits would not be realized. The Company did not record a deferred tax asset during the three months ended September 30, 2017. There were no unrecognized tax benefits at September 30, 2017 and the Company did not incur any income tax related interest expense or penalties related to uncertain tax positions.

Significant Customer Informatio

Significant Customer Information, Segment Reporting and Geographic Information	3 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Significant Customer Information, Segment Reporting and Geographic Information	NOTE 11 – 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, wine clubs, and winery websites. Operating and other expenses are not allocated between operating segments; therefore, operating and net income (loss) 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. The following table reflects net sales, cost of sales and gross profit by segment for continuing operations for each of the three months ended September 30, 2017 and 2016, respectively: Three Months Ended September 30, (in thousands) Wholesale Direct to Consumer Total 2017 2016 2017 2016 2017 2016 Net Sales $ 4,779 $ 4,510 $ 1,411 $ 1,376 $ 6,190 $ 5,886 Cost of Sales 3,648 3,538 497 518 4,145 4,056 Gross Profit $ 1,131 $ 972 $ 914 $ 858 $ 2,045 $ 1,830 Gross Profit % 23.7 % 21.6 % 64.8 % 62.3 % 33.0 % 31.1 % Significant Customer Information: The following table sets forth concentrations of wholesale sales and accounts receivable as a percent of each total: Percentage of Wholesale Sales Percentage of Total Accounts Receivable Three Months Ended Three Months Ended September 30, September 30, 2017 2016 2017 2016 Customer A 27 % 10 % 33 % 11 % Customer B 23 % 42 % 18 % 49 % Customer C 11 % 7 % 3 % 8 % International sales were $0.2 million and $0.3 million for the three months ended September 30, 2017 and September 30, 2016, respectively.

Subsequent Events

Subsequent Events	3 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	NOTE 12 – SUBSEQUENT EVENTS The Company was out of compliance with the minimum EBITDA covenant on its revolving line of credit for the quarter ended September 30, 2017, but received a waiver in October 2017 for that period from the Company’s lender. If the Company was unable to obtain the necessary waivers and the debt was accelerated, it would have a material adverse effect on the financial condition and future operating performance, and the Company may be required to limit activities. The Company expects to meet its covenants for the remainder of fiscal year 2018. On October 8, 2017, and for several days thereafter, significant wildfires broke out in Napa, Sonoma, and surrounding counties in Northern California. Certain of the Company’s inventory, primarily juice pressed from grapes picked during the 2017 harvest and maintained at outside production and storage facilities, may have been subject to smoke taint and spoilage. The amount of spoilage, if any, cannot be reasonably estimated at this time. However, the Company believes that any loss of inventory related to the fires is substantially covered under the Company’s insurance policies. Additionally, there may be future negative impacts on the Company’s outside production and operating arrangements, including bottling and warehousing of case goods. In October 2017, the Sonoma County Superior Court granted the Company’s summary judgement motion and dismissed the MWG case against Phil Hurst and the LLC. The plaintiff, MWG, has 60 days to appeal the Court’s decision. 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 condensed consolidated financial statements.

Basis of Presentation and Sig18

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited interim condensed consolidated financial statements include the results of Truett-Hurst, Inc. (the “Company”) and its subsidiary H.D.D. LLC (the “LLC”). They have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with general instructions for quarterly reports filed on Form 10-Q and Article 8 of Regulation S-X. The Company consolidates the financial results of the LLC and records a noncontrolling interest representing the portion of equity ownership in the LLC that is not attributable to the Company. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. The accompanying unaudited condensed consolidated financial statements were prepared on the same basis as the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017, and, in the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim period presented are not necessarily indicative of the results expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2017 filed with the Securities and Exchange Commission (“SEC”) on October 13, 2017. Quantities or results referred to as “to date” or “as of this date” mean as of or to September 30, 2017, unless otherwise specifically noted. References to “FY” or “fiscal year” refer to the fiscal year ending on June 30 th
Critical Accounting Policies and Estimates	Critical Accounting Policies and Estimates There have been no material changes to the critical accounting policies and estimates previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017.
Reclassifications	Reclassifications Certain prior period amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported condensed consolidated results of continuing operations.
Accounting Pronouncements	Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date 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. In August 2016, the FASB issued ASU No. 2016-15: Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments In 2015, the FASB issued ASU 2015-11: Inventory (Topic 330) adopted this standard and it did not have a material impact on its condensed consolidated financial statements. In 2014, the FASB issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In 2016, the FASB issued ASU 2016-08: Revenue from Contracts with Customers (Topic 606) In 2016, the FASB issued ASU 2016-10: Revenue from Contracts with Customers (Topic 606)

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories comprise: September 30, 2017 June 30, 2017 (in thousands) Grapes and bulk wine $ 5,405 $ 5,933 Bottled wine 15,400 14,495 Bottling materials and other 524 268 21,329 20,696 Less: inventory reserves (127 ) (87 ) Total inventories, net $ 21,202 $ 20,609

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Sep. 30, 2017
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net comprise: September 30, 2017 June 30, 2017 (in thousands) Land and land improvements $ 3,261 $ 3,260 Building and improvements 1,547 1,420 Machinery and equipment 2,756 2,189 Vineyard development 554 554 Vineyard equipment 53 88 Furniture and fixtures 163 293 Leasehold improvements 45 79 Vehicles 119 113 8,498 7,996 Less: accumulated depreciation and amortization (2,711 ) (2,570 ) Total property and equipment, net $ 5,787 $ 5,426

Accounts Payable (Tables)

Accounts Payable (Tables)	3 Months Ended
	Sep. 30, 2017
Payables And Accruals [Abstract]
Schedule of Accounts Payable	Accounts payable comprises: September 30, 2017 June 30, 2017 (in thousands) Grapes $ 1,655 $ 583 Other production related 1,514 940 Barrels 184 — Administrative 817 471 Total accounts payable $ 4,170 $ 1,994

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long Term Debt	Long term debt comprises: September 30, 2017 June 30, 2017 (in thousands except payment information) Long term debt: Note 1 (1 ) $ 2,683 $ 2,716 Note 2 (2 ) 26 45 Note 3 (3 ) 136 158 Note 4 (4 ) 239 270 Note 5 (5 ) 280 304 Note 6 (6 ) 319 — Total notes payable 3,683 3,493 Less: current maturities (475 ) (491 ) Total long term debt $ 3,208 $ 3,002 (1) (2) (3) (4) (5) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $8,729, matures July 1, 2020, at 3.95% interest. (6)
Schedule of Future Principal and Interest Payments	Future principal and interest payments for the long term debt as of September 30, 2017 are as follows: Years ending June 30, (in thousands) 2018 (remaining nine months) $ 440 2019 543 2020 362 2021 163 2022 2,175 3,683 Add: estimated interest payments 493 Total $ 4,176

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Lease Commitments	Future lease commitments are: Years ending June 30, (in thousands) 2018 (remaining nine months) $ 214 2019 90 2020 31 Total future rent payments $ 335
Schedule of Future Minimum Grape and Bulk Wine Inventory Purchase Commitments	Future minimum grape and bulk wine inventory purchase commitments are as follows: Years Ending June 30, Third-Parties Related Total (in thousands) 2018 $ 4,671 $ 57 $ 4,728 2019 2,552 — 2,552 2020 1,927 — 1,927 2021 50 — 50 2022 51 — 51 Total $ 9,251 $ 57 $ 9,308

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2017
Summary of Activity of Restricted Stock Awards, Restricted Stock Units and Stock Options	A summary of the Company’s activity for stock options is presented below: Number of Shares Weighted Avg Grant Date Fair Value per Share Weighted Avg Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2017 215,000 $ 1.67 9.04 $ — Granted 50,000 2.08 — — Forfeited, cancelled or expired (35,000 ) — — — Outstanding at September 30, 2017 230,000 $ 1.71 8.93 $ — Options Vested 57,500 $ 1.71 8.93 — Options Non-Vested 172,500 $ 1.71 8.93 $ — Options Exercisable 57,500 $ 1.71 8.93 —
Summary of Stock-based Compensation	The following table summarizes the Company’s stock-based compensation included in the condensed consolidated statements of operations for the three months ended September 30, 2017 and September 30, 2016: Three Months Ended September 30, (in thousands) 2017 2016 Sales and marketing $ 5 $ 10 General and administrative 57 85 Total stock-based compensation $ 62 $ 95
Restricted Stock [Member]
Summary of Activity of Restricted Stock Awards, Restricted Stock Units and Stock Options	A summary of the Company’s activity for restricted stock units is presented below: Number of Shares Weighted Avg Grant Fair Value per Share Weighted Avg Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2017 33,334 $ 2.25 0.50 $ 69 Granted — — — — Exercised — — — — Released — — — — Vested — — — — Forfeited, cancelled or expired — — — — Outstanding at September 30, 2017 33,334 $ 2.25 0.25 $ 76 Expected to vest at September 30, 2017 33,334 $ — — $ —
Discontinued Operations [Member] | Restricted Stock [Member]
Summary of Activity of Restricted Stock Awards, Restricted Stock Units and Stock Options	A summary of the Company’s activity for restricted stock awards is presented below: Number of Shares Weighted Avg Grant Date Fair Value per Share Weighted Avg Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2017 2,631 $ 3.80 0.49 $ 5 Granted — — — — Exercised — — — — Released — — — — Vested — — — — Forfeited, cancelled or expired — — — — Outstanding at September 30, 2017 2,631 $ 3.80 0.24 $ 6 Expected to vest at September 30, 2017 2,631 $ — — $ —

Significant Customer Informat25

Significant Customer Information, Segment Reporting and Geographic Information (Tables)	3 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of Net Sales, Cost of Sales and Gross Profit by Segment	The following table reflects net sales, cost of sales and gross profit by segment for continuing operations for each of the three months ended September 30, 2017 and 2016, respectively: Three Months Ended September 30, (in thousands) Wholesale Direct to Consumer Total 2017 2016 2017 2016 2017 2016 Net Sales $ 4,779 $ 4,510 $ 1,411 $ 1,376 $ 6,190 $ 5,886 Cost of Sales 3,648 3,538 497 518 4,145 4,056 Gross Profit $ 1,131 $ 972 $ 914 $ 858 $ 2,045 $ 1,830 Gross Profit % 23.7 % 21.6 % 64.8 % 62.3 % 33.0 % 31.1 %
Schedule of Concentrations of Wholesale Sales and Accounts Receivable Percentage	The following table sets forth concentrations of wholesale sales and accounts receivable as a percent of each total: Percentage of Wholesale Sales Percentage of Total Accounts Receivable Three Months Ended Three Months Ended September 30, September 30, 2017 2016 2017 2016 Customer A 27 % 10 % 33 % 11 % Customer B 23 % 42 % 18 % 49 % Customer C 11 % 7 % 3 % 8 %

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Inventory Disclosure [Abstract]
Grapes and bulk wine	$ 5,405	$ 5,933
Bottled wine	15,400	14,495
Bottling materials and other	524	268
Inventory, Gross	21,329	20,696
Less: inventory reserves	(127)	(87)
Total inventories, net	$ 21,202	$ 20,609

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,498	$ 7,996
Less: accumulated depreciation and amortization	(2,711)	(2,570)
Total property and equipment, net	5,787	5,426
Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,261	3,260
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,547	1,420
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,756	2,189
Vineyard Development [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	554	554
Vineyard Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	53	88
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	163	293
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	45	79
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 119	$ 113

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Property Plant And Equipment [Abstract]
Depreciation and amortization expense	$ 0.2	$ 0.2

Accounts Payable - Schedule of

Accounts Payable - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Accounts Payable Current [Abstract]
Grapes	$ 1,655	$ 583
Other production related	1,514	940
Barrels	184	0
Administrative	817	471
Total accounts payable	$ 4,170	$ 1,994

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($)	1 Months Ended			3 Months Ended
	Jul. 31, 2017	Jun. 30, 2017	Jul. 31, 2016	Sep. 30, 2017	Jun. 30, 2016
Debt Instrument [Line Items]
Line of credit, maturity date				Jul. 31, 2018
Capital lease agreement term		72 months
Capital leases, future minimum payments due		$ 60,000		$ 335,000
Future lease commitments for fiscal year 2018		15,000
Future lease commitments for fiscal year 2019		15,000		90,000
Future lease commitments for fiscal year 2020		15,000		31,000
Future lease commitments for fiscal year 2021		15,000
Future lease commitments for fiscal year 2022		15,000
Future lease commitments for fiscal year 2023		$ 15,000
Term Loan [Member]
Debt Instrument [Line Items]
Long term line of credit term loan	$ 300,000		$ 300,000
Debt instrument,interest rate	4.25%		3.95%
Debt instrument amortization term	36 months		48 months
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 10,000,000
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument,interest rate				2.25%
Equipment Line Of Credit [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 500,000
Line of credit facility interest rate description				Interest rate of 2.25% above floating One-Month LIBOR
Foreign Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 100,000

Borrowings - Schedule of Long T

Borrowings - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Jun. 30, 2017
Debt Instrument [Line Items]
Total notes payable		$ 3,683	$ 3,493
Less: current maturities		(475)	(491)
Total long term debt		3,208	3,002
Notes Payable One [Member]
Debt Instrument [Line Items]
Total notes payable	[1]	2,683	2,716
Notes Payable Two [Member]
Debt Instrument [Line Items]
Total notes payable	[2]	26	45
Notes Payable Three [Member]
Debt Instrument [Line Items]
Total notes payable	[3]	136	158
Notes Payable Four [Member]
Debt Instrument [Line Items]
Total notes payable	[4]	239	270
Notes Payable Five [Member]
Debt Instrument [Line Items]
Total notes payable	[5]	280	$ 304
Notes Payable Six [Member]
Debt Instrument [Line Items]
Total notes payable	[6]	$ 319
[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 $6,535, matures November 1, 2018, at 3.75% interest.
[3]	Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $7,783, matures March 15, 2019, at 3.75% interest.
[4]	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.
[5]	Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $8,729, matures July 1, 2020, at 3.95% interest.
[6]	Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $9,701, matures August 15, 2020, at 4.25% interest.

Borrowings - Schedule of Long32

Borrowings - Schedule of Long Term Debt (Parenthetical) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2017USD ($)
Notes Payable One [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	May 31, 2022
Debt Instrument, principal payments	$ 11,270
Debt instrument, variable interest rate	2.25%
Notes Payable Two [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Nov. 1, 2018
Debt Instrument, principal payments	$ 6,535
Debt instrument, variable interest rate	3.75%
Notes Payable Three [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Mar. 15, 2019
Debt Instrument, principal payments	$ 7,783
Debt instrument, variable interest rate	3.75%
Notes Payable Four [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Jul. 1, 2019
Debt Instrument, principal payments	$ 11,267
Debt instrument, variable interest rate	3.90%
Notes Payable Five [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Jul. 1, 2020
Debt Instrument, principal payments	$ 8,729
Debt instrument, variable interest rate	3.95%
Notes Payable Six [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Aug. 15, 2020
Debt Instrument, principal payments	$ 9,701
Debt instrument, variable interest rate	4.25%

Borrowings - Schedule of Future

Borrowings - Schedule of Future Principal and Interest Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Debt Disclosure [Abstract]
2018 (remaining nine months)	$ 440
2,019	543
2,020	362
2,021	163
2,022	2,175
Total notes payable	3,683	$ 3,493
Add: estimated interest payments	493
Total	$ 4,176

Depletion Allowance and Accru34

Depletion Allowance and Accrual for Sales Returns - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Depletion Allowance And Accrual For Sales Returns [Abstract]
Depletion allowance	$ 500	$ 500
Settlement of case goods	$ 30

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Oct. 13, 2017	Oct. 31, 2017	Jun. 30, 2016USD ($)	Sep. 30, 2017USD ($)AgreementBottleCase$ / Case	Sep. 30, 2016USD ($)	Jun. 30, 2017USD ($)
Commitments And Contingencies [Line Items]
Lease expiration date				Oct. 31, 2019
Lease agreement term				3 years
Number of lease agreements | Agreement				2
Lease renewal option term				1 year
Operating Leases, Rent Expense, Net				$ 100,000	$ 80,000
Future purchase commitments for finished goods				$ 4,900,000
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 2017 harvest. The current bottling contract requires a minimum of 120,000 cases at $2.85 per case to be bottled in a one year period.
Number of minimum cases for bottling contract | BottleCase				120,000
Cost of per case bottled | $ / Case				2.85
Current bottling contract period				1 year
Monthly average percentage of inventory storage				45.00%
Tax benefit tax receivable percent				90.00%
Indemnification [Member]
Commitments And Contingencies [Line Items]
Contractual obligations				$ 0	0
Common Class A [Member]
Commitments And Contingencies [Line Items]
Exchange basis				one-for-one basis
Exchange of units for shares ratio				1
Mendocino Wine Group [Member]
Commitments And Contingencies [Line Items]
Litigation amount recorded				$ 0
Mendocino Wine Group [Member] | Subsequent Event [Member]
Commitments And Contingencies [Line Items]
Litigation, date of dismissal	2017-10	2017-10
Litigation period for appeal after judgment	60 days	60 days
Mendocino Wine Group [Member] | Subsequent Event [Member] | Minimum [Member]
Commitments And Contingencies [Line Items]
Litigation period for final resolution after appeal	9 months
Mendocino Wine Group [Member] | Subsequent Event [Member] | Maximum [Member]
Commitments And Contingencies [Line Items]
Litigation period for final resolution after appeal	18 months
Hambrecht Wine Group L.P [Member]
Commitments And Contingencies [Line Items]
Litigation settlement amount			$ 1,000,000
Proceeds from legal settlements						$ 1,000,000
Hambrecht Wine Group L.P [Member] | Other Income [Member]
Commitments And Contingencies [Line Items]
Net gain related to lease termination					$ 800,000
Wine Production Space within a Custom Crush Facility [Member] | Santa Rosa, California [Member]
Commitments And Contingencies [Line Items]
Lease commencement date				Apr. 15, 2017
Lease expiration date				Jun. 15, 2018
Lease agreement term				14 months
Description of lease option to extend				The initial 14-month term may be renewed for additional periods as agreed to by both parties.

Commitments and Contingencies36

Commitments and Contingencies - Schedule of Future Lease Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
2018 (remaining nine months)	$ 214
2,019	90	$ 15
2,020	31	15
Total future rent payments	$ 335	$ 60

Commitments and Contingencies37

Commitments and Contingencies - Schedule of Future Minimum Grape and Bulk Wine Inventory Purchase Commitments (Details) $ in Thousands	Jun. 30, 2017USD ($)
Purchase Obligation Fiscal Year Maturity [Line Items]
2,018	$ 4,728
2,019	2,552
2,020	1,927
2,021	50
2,022	51
Total	9,308
Third-Parties [Member]
Purchase Obligation Fiscal Year Maturity [Line Items]
2,018	4,671
2,019	2,552
2,020	1,927
2,021	50
2,022	51
Total	9,251
Related Parties [Member]
Purchase Obligation Fiscal Year Maturity [Line Items]
2,018	57
2,019	0
2,020	0
2,021	0
2,022	0
Total	$ 57

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - 2012 Stock Incentive Plan [Member] shares in Millions	Sep. 30, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance	1
Increase in common stock, capital shares reserved for future issuance	0.4

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Activity of Restricted Stock Awards, Restricted Stock Units and Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Stock Options [Member]
Number of Shares, Outstanding, Beginning Balance	215,000
Number of Shares, Granted	50,000
Number of Shares, Forfeited, cancelled or expired	(35,000)
Number of Shares, Outstanding, Ending Balance	230,000	215,000
Number of Shares, Expected to vest at September 30, 2017	57,500
Number of Shares, Options Non-Vested	172,500
Number of Shares, Options Exercisable	57,500
Weighted Avg Grant Date Fair Value per Share, Outstanding, Beginning Balance	$ 1.67
Weighted Avg Grant Date Fair Value per Share, Granted	2.08
Weighted Avg Grant Date Fair Value per Share, Forfeited, cancelled or expired	0
Weighted Avg Grant Date Fair Value per Share, Outstanding, Ending Balance	1.71	$ 1.67
Weighted Avg Grant Date Fair Value per Share, Expected to vest at September 30, 2017	1.71
Weighted Avg Grant Date Fair Value per Share, Options Non-Vested	1.71
Weighted Avg Grant Date Fair Value per Share, Options Exercisable	$ 1.71
Weighted Avg Contractual Term in Years, Outstanding	8 years 11 months 5 days	9 years 15 days
Weighted Avg Contractual Term in Years, Granted	0 years
Weighted Avg Contractual Term in Years, Forfeited, cancelled or expired	0 years
Weighted Avg Contractual Term in Years, Expected to vest at September 30, 2017	8 years 11 months 5 days
Weighted Avg Contractual Term in Years, Options Non-Vested	8 years 11 months 5 days
Weighted Avg Contractual Term in Years, Options Exercisable	8 years 11 months 5 days
Aggregate Intrinsic Value, Outstanding, Beginning Balance	$ 0
Aggregate Intrinsic Value, Granted	0
Aggregate Intrinsic Value, Forfeited, cancelled or expired	0
Aggregate Intrinsic Value, Outstanding, Ending Balance	0	$ 0
Aggregate Intrinsic Value, Options Vested	0
Aggregate Intrinsic Value, Options Non-Vested	0
Aggregate Intrinsic Value, Options Exercisable	$ 0
Restricted Stock Awards [Member]
Number of Shares, Outstanding, Beginning Balance	2,631
Number of Shares, Granted	0
Number of Shares, Exercised	0
Number of Shares, Released	0
Number of Shares, Vested	0
Number of Shares, Forfeited, cancelled or expired	0
Number of Shares, Outstanding, Ending Balance	2,631	2,631
Number of Shares, Expected to vest at September 30, 2017	2,631
Weighted Avg Grant Date Fair Value per Share, Outstanding, Beginning Balance	$ 3.80
Weighted Avg Grant Date Fair Value per Share, Granted	0
Weighted Avg Grant Date Fair Value per Share, Exercised	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, Ending Balance	3.80	$ 3.80
Weighted Avg Grant Date Fair Value per Share, Expected to vest at September 30, 2017	$ 0
Weighted Avg Contractual Term in Years, Outstanding	2 months 27 days	5 months 27 days
Weighted Avg Contractual Term in Years, Granted	0 years
Weighted Avg Contractual Term in Years, Exercised	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 September 30, 2017	0 years
Aggregate Intrinsic Value, Outstanding, Beginning Balance	$ 5
Aggregate Intrinsic Value, Granted	0
Aggregate Intrinsic Value, Exercised	0
Aggregate Intrinsic Value, Released	0
Aggregate Intrinsic Value, Vested	0
Aggregate Intrinsic Value, Forfeited, cancelled or expired	0
Aggregate Intrinsic Value, Outstanding, Ending Balance	6	$ 5
Aggregate Intrinsic Value, Expected to vest at September 30, 2017	$ 0
Restricted Stock Units [Member]
Number of Shares, Outstanding, Beginning Balance	33,334
Number of Shares, Granted	0
Number of Shares, Exercised	0
Number of Shares, Released	0
Number of Shares, Vested	0
Number of Shares, Forfeited, cancelled or expired	0
Number of Shares, Outstanding, Ending Balance	33,334	33,334
Number of Shares, Expected to vest at September 30, 2017	33,334
Weighted Avg Grant Date Fair Value per Share, Outstanding, Beginning Balance	$ 2.25
Weighted Avg Grant Date Fair Value per Share, Granted	0
Weighted Avg Grant Date Fair Value per Share, Exercised	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, Ending Balance	2.25	$ 2.25
Weighted Avg Grant Date Fair Value per Share, Expected to vest at September 30, 2017	$ 0
Weighted Avg Contractual Term in Years, Outstanding	3 months	6 months
Weighted Avg Contractual Term in Years, Granted	0 years
Weighted Avg Contractual Term in Years, Exercised	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 September 30, 2017	0 years
Aggregate Intrinsic Value, Outstanding, Beginning Balance	$ 69
Aggregate Intrinsic Value, Granted	0
Aggregate Intrinsic Value, Exercised	0
Aggregate Intrinsic Value, Released	0
Aggregate Intrinsic Value, Vested	0
Aggregate Intrinsic Value, Forfeited, cancelled or expired	0
Aggregate Intrinsic Value, Outstanding, Ending Balance	76	$ 69
Aggregate Intrinsic Value, Expected to vest at September 30, 2017	$ 0

Stock-Based Compensation - Su40

Stock-Based Compensation - Summary of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 62	$ 95
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	5	10
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 57	$ 85

Fair Value of Financial Instr41

Fair Value of Financial Instruments - Additional Information (Details) - Fair Value, Inputs, Level 2 [Member] - Interest Rate Swap [Member] - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Derivative [Line Items]
Accrued Liabilities	$ 0.1	$ 0.1
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, maturity date	May 31, 2022

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 1,000	$ 1,000
Effective Income Tax Rate Reconciliation, Percent	1.00%
Deferred tax asset	$ 0
Unrecognized tax benefits	0
Income tax related interest expense or penalties related to uncertain tax positions	$ 0

Significant Customer Informat43

Significant Customer Information, Segment Reporting and Geographic Information - Schedule of Net Sales, Cost of Sales and Gross Profit by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net Sales	$ 6,190	$ 5,886
Cost of Sales	4,145	4,056
Gross Profit	$ 2,045	$ 1,830
Gross Profit %	33.00%	31.10%
Wholesale [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 4,779	$ 4,510
Cost of Sales	3,648	3,538
Gross Profit	$ 1,131	$ 972
Gross Profit %	23.70%	21.60%
Direct to Consumer [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 1,411	$ 1,376
Cost of Sales	497	518
Gross Profit	$ 914	$ 858
Gross Profit %	64.80%	62.30%

Significant Customer Informat44

Significant Customer Information, Segment Reporting and Geographic Information - Schedule of Concentrations of Wholesale Sales and Accounts Receivable Percentage (Details) - Customer Concentration Risk	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Customer A [Member] | Wholesale [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	27.00%	10.00%
Customer A [Member] | Accounts Receivable [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	33.00%	11.00%
Customer B [Member] | Wholesale [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	23.00%	42.00%
Customer B [Member] | Accounts Receivable [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	18.00%	49.00%
Customer C [Member] | Wholesale [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	11.00%	7.00%
Customer C [Member] | Accounts Receivable [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	3.00%	8.00%

Significant Customer Informat45

Significant Customer Information, Segment Reporting and Geographic Information - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue, net, total	$ 6,190	$ 5,886
International Sales [Member]
Segment Reporting Information [Line Items]
Revenue, net, total	$ 200	$ 300

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Mendocino Wine Group [Member] - Subsequent Event [Member]	Oct. 13, 2017	Oct. 31, 2017
Subsequent Event [Line Items]
Litigation, date of dismissal	2017-10	2017-10
Litigation period for appeal after judgment	60 days	60 days