Willamette Valley Vineyards (WVVI) 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 13, 2015
Document And Entity Information
Entity Registrant Name	WILLAMETTE VALLEY VINEYARDS INC
Entity Central Index Key	838,875
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,981,759
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

BALANCE SHEETS (unaudited)

BALANCE SHEETS (unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 618,109	$ 519,761
Accounts receivable, net	1,266,975	1,612,124
Inventories (Note 2)	9,191,743	9,910,570
Prepaid expenses and other current assets	287,763	150,024
Income tax receivable	81,568	323,014
Total current assets	11,446,158	12,515,493
Investment in Kore Wine Company	60,000	0
Vineyard development costs, net	3,138,624	3,368,545
Property and equipment, net (Note 3)	16,432,533	15,038,659
Debt issuance costs, net	52,413	54,604
TOTAL ASSETS	31,129,728	30,977,301
CURRENT LIABILITIES
Accounts payable	231,022	742,024
Accrued expenses	580,988	551,587
Current portion of note payable	245,417	0
Current portion of long-term debt	338,561	329,255
Deferred income taxes	206,000	206,000
Current portion of deferred revenue-distribution agreement	142,857	142,857
Unearned revenue	57,431	34,435
Grapes payable	0	698,851
Total current liabilities	1,802,276	2,705,009
Note payable, net of current portion	245,417	0
Long-term debt, net of current portion	5,001,068	5,173,039
Deferred rent liability	152,226	163,696
Deferred revenue-distribution agreement, net of current portion	309,513	380,943
Deferred gain	137,314	153,362
Deferred income taxes	1,211,000	1,211,000
Total liabilities	8,858,814	9,787,049
SHAREHOLDERS' EQUITY
Common stock, no par value, 10,000,000 shares authorized, 5,041,177 and 4,983,206 shares issued at June 30, 2015 and December 31, 2014, respectively, 4,927,759 and 4,869,788 shares outstanding at June 30, 2015 and December 31, 2014, respectively.	9,282,932	9,026,739
Retained earnings	13,413,084	12,588,615
Less: Common stock held in treasury, at cost, 113,418 and 113,418 shares at June 30, 2015 and December 31, 2014, respectively	(425,102)	(425,102)
Total shareholder's equity	22,270,914	21,190,252
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 31,129,728	$ 30,977,301

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
SHAREHOLDERS' EQUITY
Common stock, par value	$ 0	$ 0
Common stock, authorized shares	10,000,000	10,000,000
Common stock, issued shares	5,041,177	4,983,206
Common stock, outstanding shares	4,927,759	4,869,788
Common stock held in treasury	113,418	113,418

STATEMENTS OF OPERATIONS (unaud

STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
SALES, NET	$ 4,721,154	$ 3,693,412	$ 8,633,655	$ 6,665,291
COST OF SALES	1,961,501	1,452,648	3,569,968	2,702,538
GROSS PROFIT	2,759,653	2,240,764	5,063,687	3,962,753
SELLING GENERAL & ADMINISTRATIVE EXPENSES	1,914,769	1,481,194	3,720,136	2,954,448
INCOME FROM OPERATIONS	844,884	759,570	1,343,551	1,008,305
OTHER INCOME (EXPENSE)
Interest income	4	257	4	597
Interest expense	(77,975)	(61,476)	(155,009)	(127,472)
Other income, net	35,715	191,443	117,925	289,911
INCOME BEFORE INCOME TAXES	802,628	889,794	1,306,471	1,171,341
INCOME TAX PROVISION	(292,397)	(343,259)	(482,002)	(449,891)
NET INCOME	$ 510,231	$ 546,535	$ 824,469	$ 721,450
BASIC NET INCOME PER COMMON SHARE	$ 0.1	$ 0.11	$ 0.17	$ 0.15
DILUTED NET INCOME PER COMMON SHARE	$ 0.1	$ 0.11	$ 0.17	$ 0.15
Weighted average number of basic common shares outstanding	4,908,605	4,847,188	4,896,289	4,843,300
Weighted average number of diluted common shares outstanding	4,983,207	4,933,550	4,965,954	4,934,903

STATEMENTS OF CASH FLOWS (unaud

STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES OF CONTINUING OPERATIONS
Net income	$ 824,469	$ 721,450
Adjustments to reconcile net income to net cash: from operating activities
Depreciation and amortization	633,003	494,410
Stock based compensation expense	10,583	10,583
Deferred rent liability	(11,470)	(9,397)
Deferred revenue-distribution agreement	(71,430)	(71,430)
Deferred gain	(16,048)	(16,047)
Change in operating assets and liabilities:
Accounts receivable	345,149	290,841
Inventories	718,827	363,389
Prepaid expenses and other current assets	(137,739)	83,810
Income taxes receivable	241,446	143,363
Income taxes payable	0	52,978
Unearned revenue	22,996	40,092
Grapes payable	(698,851)	(689,028)
Accounts payable	(458,642)	(209,135)
Accrued expenses	29,401	(40,252)
Net cash from operating activities	1,431,694	1,165,627
CASH FLOWS FROM INVESTING ACTIVITIES OF CONTINUING OPERATIONS
Investment in Kore Wine Company	(60,000)	0
Additions to vineyard development costs	(297,799)	(345,841)
Additions to property and equipment	(1,549,326)	(1,704,210)
Net cash from investing activities	(1,907,125)	(2,050,051)
CASH FLOWS FROM FINANCING ACTIVITIES OF CONTINUING OPERATIONS
Proceeds from installment note for property purchase	490,834	0
Proceeds from long-term debt held as restricted cash	0	450,000
Payments on long-term debt	(162,665)	(156,361)
Proceeds from exercise of stock options	245,610	54,480
Net cash from financing activities	573,779	348,119
NET CHANGE IN CASH AND CASH EQUIVALENTS	98,348	(536,305)
CASH AND CASH EQUIVALENTS, beginning of period	519,761	945,683
CASH AND CASH EQUIVALENTS, end of quarter	618,109	409,378
NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchases of property and equipment and vineyard development costs included in accounts payable	$ 39,759	$ 0

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
NOTE 1. BASIS OF PRESENTATION	The accompanying unaudited interim financial statements as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014 have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements. The financial information as of December 31, 2014 is derived from the audited financial statements presented in the Willamette Valley Vineyards, Inc. (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2014. Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments necessary (which are of a normal recurring nature) for the fair statement of the results of the interim periods presented. The accompanying financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2014, as presented in the Company’s Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 2015, or any portion thereof. The Company’s revenues include direct-to-consumer sales and national sales to distributors. These sales channels utilize shared resources for production, selling and distribution. Basic earnings per share are computed based on the weighted-average number of common shares outstanding each period. Diluted earnings per share are computed using the weighted average number of shares of common stock and potentially dilutive common shares outstanding during the period. Potentially dilutive shares from stock options and other instruments are excluded from the computation when their effect is anti-dilutive. At June 30, 2015 and 2014, potentially dilutive shares of 0 and 0, respectively, were excluded from the computation as their effect would be anti-dilutive. 74,602 and 86,362 potentially dilutive shares are included in the computation of dilutive earnings per share for the three month periods ended June 30, 2015 and 2014, respectively. 69,665 and 91,603 potentially dilutive shares are included in the computation of dilutive earnings per share for the six month periods ended June 30, 2015 and 2014, respectively.

2. INVENTORIES

2. INVENTORIES	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
NOTE 2. INVENTORIES	The Company’s inventories, by major classification, are summarized as follows, as of the dates shown: June 30, 2015 December 31, 2014 Winemaking and packaging materials $ 883,625 $ 629,841 Work-in-process (costs relating to unprocessed and/or unbottled wine products) 3,940,410 4,796,223 Finished goods (bottled wine and related products) 4,367,708 4,484,506 Current inventories $ 9,191,743 $ 9,910,570

3. PROPERTY AND EQUIPMENT

3. PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
NOTE 3. PROPERTY AND EQUIPMENT	The Company’s property and equipment consists of the following, as of the dates shown: June 30, 2015 December 31, 2014 Construction in progress $ 38,175 $ 69,588 Land, improvements and other buildings 5,089,472 3,622,434 Winery building and hospitality center 13,704,927 13,566,863 Equipment 8,670,146 8,256,983 27,502,720 25,515,868 Accumulated depreciation (11,070,187 ) (10,477,209 ) $ 16,432,533 $ 15,038,659

4. DISTRIBUTION AGREEMENT RECEI

4. DISTRIBUTION AGREEMENT RECEIVABLE AND DEFERRED REVENUE	6 Months Ended
	Jun. 30, 2015
Deferred Revenue Disclosure [Abstract]
4. DISTRIBUTION AGREEMENT RECEIVABLE AND DEFERRED REVENUE	Effective September 1, 2011, the Company entered into an agreement with Young’s Market Company for distribution of Company-produced wines in Oregon and Washington. The terms of this contract include exclusive rights to distribute Willamette Valley Vineyard’s wines in Oregon and Washington for seven years. In an effort to facilitate the transition with as little disruption as possible, Young’s Market Company agreed to compensate Willamette Valley Vineyards for ongoing Oregon sales and branding efforts. As a result, the Company was due to receive $250,000 per year starting on September 2011 for each of the next four years for a total of $1,000,000. In October of 2014, the Company received payment of the final $250,000 under this agreement. The total amount of $1,000,000 received by the Company related to this agreement is being recognized as revenue on a straight line basis over the seven year life of the agreement. For the three months ended June 30, 2015 and 2014, the Company has recognized revenue related to this agreement in the amount of $35,715 and $35,715, respectively, recorded to other income. For the six months ended June 30, 2015 and 2014, the Company has recognized revenue related to this agreement in the amount of $71,430 and $71,430, respectively, recorded to other income.

5. DEBT

5. DEBT	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
NOTE 5. LONG TERM DEBT	Line of Credit Facility – The line of credit agreement includes various covenants, which among other things, require the Company to maintain minimum amounts of tangible net worth, debt/worth ratio, and debt service coverage as defined. As of June 30, 2015, the Company was in compliance with these financial covenants. Note payable Long Term Debt

6. STOCK BASED COMPENSATION

6. STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
NOTE 6. STOCK BASED COMPENSATION	The Company has a stock incentive plan, originally created in 1992, and most recently amended in 2001. No additional grants may be made under the plan. All stock options have an exercise price that is equal to the fair market value of the Company’s stock on the date the options were granted. Administration of the plan, including determination of the number, term, and type of options to be granted, lies with the Board of Directors or a duly authorized committee of the Board of Directors. Options were generally granted based on employee performance with vesting periods ranging from date of grant to seven years. At the date of the grant, the maximum term before expiration is ten years. The following table presents information related to the value of outstanding stock options for the period shown: Three months ended Six months ended June 30, 2015 June 30, 2015 Weighted Average Exercise Weighted Average Exercise Shares Price Shares Price Outstanding at beginning of period 192,971 $ 3.72 222,971 $ 3.79 Granted - - - - Exercised (27,971 ) 4.24 (57,971 ) 4.24 Forfeited - - - - Outstanding at end of period 165,000 $ 3.64 165,000 $ 3.64 At June 30, 2015, the Company had 34,000 unvested stock options with associated unrecognized compensation cost of $5,222 that will be recognized over a weighted-average period of 1.24 years. The intrinsic value of the 131,000 stock options exercisable at June 30, 2015 was $414,660. Stock options exercised during the three months ended June 30, 2015 and 2014 were 27,971 and 8,000, respectively. Stock options exercised during the six months ended June 30, 2015 and 2014 were 57,971 and 15,200, respectively.

7. INTEREST AND TAXES PAID

7. INTEREST AND TAXES PAID	6 Months Ended
	Jun. 30, 2015
Other Income and Expenses [Abstract]
NOTE 7. INTEREST AND TAXES PAID	Income taxes Interest

8. OTHER INCOME

8. OTHER INCOME	6 Months Ended
	Jun. 30, 2015
Other Income and Expenses [Abstract]
8. OTHER INCOME	On March 10, 2014 the Company experienced an inadvertent spillage of approximately 29,000 gallons of bulk wine during a filtration process. Subsequent to this loss, the Company filed an insurance claim with its carrier and received a partial settlement of $75,000 during the three months ended March 31, 2014 which, net of wine cost of $49,687, resulted in $25,313 being recorded to other income for the three months ended March 31, 2014. During the three months ended June 30, 2014, the Company received a second settlement payment of $65,930 which was recorded in other income. In July of 2014, the Company received a final payment of $88,792, net of a $2,500 deductible, which was recorded as a receivable at June 30, 2014. For the three months ended June 30, 2014, Other Income includes $154,722 related to this insurance settlement. For the six months ended June 30, 2014, Other Income includes $180,035 related to this insurance settlement.

9. SEGMENT REPORTING

9. SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
NOTE 9. SEGMENT REPORTING	The Company has identified two operating segments, Direct Sales and Distributor Sales, based upon their different distribution channels, margins and selling strategies. Direct Sales includes retail sales in the tasting room and remote sites, Wine Club sales, on-site events, kitchen and catering sales and other sales made directly to the consumer without the use of an intermediary, including sales of bulk wine or grapes. Distributor Sales include all sales through a third party where prices are given at a wholesale rate. The two segments reflect how the Company’s operations are evaluated by senior management and the structure of its internal financial reporting. The Company evaluates performance based on the gross profit of the respective business segments. Selling expenses that can be directly attributable to the segment, including depreciation of segment specific assets, are included, however, centralized selling expenses and general and administrative expenses are not allocated between operating segments. Therefore, net income information for the respective segments is not available. Discrete financial information related to segment assets, other than segment specific depreciation associated with selling, is not available and that information continues to be aggregated. The following table outlines the sales, cost of sales, gross margin, directly attributable selling expenses, and contribution margin of the segments for the three and six month periods ending June 30, 2015 and 2014. Sales figures are net of related excise taxes. Three Months Ended June 30, Direct Sales Distributor Sales Total 2015 2014 2015 2014 2015 2014 Sales, net $ 1,926,021 $ 1,375,119 $ 2,795,133 $ 2,318,293 $ 4,721,154 $ 3,693,412 Cost of Sales 608,276 382,562 1,353,225 1,070,086 1,961,501 1,452,648 Gross Margin 1,317,745 992,557 1,441,908 1,248,207 2,759,653 2,240,764 Selling Expenses 758,364 578,846 404,825 324,416 1,163,189 903,262 Contribution Margin $ 559,381 $ 413,711 $ 1,037,083 $ 923,791 $ 1,596,464 $ 1,337,502 Percent of Sales 40.8% 37.2% 59.2% 62.8% 100.0% 100.0% Six Months Ended June 30, Direct Sales Distributor Sales Total 2015 2014 2015 2014 2015 2014 Sales, net $ 3,382,585 $ 2,318,770 $ 5,251,070 $ 4,346,521 $ 8,633,655 $ 6,665,291 Cost of Sales 1,014,417 628,409 2,555,551 2,074,129 3,569,968 2,702,538 Gross Margin 2,368,168 1,690,361 2,695,519 2,272,392 5,063,687 3,962,753 Selling Expenses 1,428,605 1,095,139 801,243 623,555 2,229,848 1,718,694 Contribution Margin $ 939,563 $ 595,222 $ 1,894,276 $ 1,648,837 $ 2,833,839 $ 2,244,059 Percent of Sales 39.2% 34.8% 60.8% 65.2% 100.0% 100.0% Direct sales include $391,563 and $197,760 of bulk wine sales in the three months ended June 30, 2015 and 2014, respectively. Direct sales include $639,701 and $197,760 of bulk wine sales in the six months ended June 30, 2015 and 2014, respectively.

10. Subsequent Events

10. Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
NOTE 10. SUBSEQUENT EVENTS	Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing the financial statements. The Company’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before financial statements are issued. In July of 2015 the Board of Directors approved a program to repurchase common stock of the Company. Under previous board action the Company had maintained a stock repurchase program which resulted in 113,418 shares of common stock repurchased for $425,102. Due to market pricing exceeding repurchase limitations under the plan, that program has been inactive since August 2013. Under the July 2015 board action, the previous plan is terminated and unused funds from the previous plan will be combined with cash from the Company to fund a plan to repurchase up to $250,000 of common stock through the open market. This plan is intended to remain in place until all funding for the plan is depleted or the plan is expanded or terminated by the Board of Directors. In August 2015, the Company commenced a public offering of our Series A Redeemable Preferred Stock pursuant to a registration statement filed with the Securities and Exchange Commission. The Company is also registering this transaction with the securities authorities of the States of Oregon and Washington. Information concerning this offering can be obtained by reading the Company’s S-3 filings regarding this offering, including all amendments, attachments and exhibits.

2. INVENTORIES (Tables)

2. INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2015
Inventories Tables
Inventories	June 30, 2015 December 31, 2014 Winemaking and packaging materials $ 883,625 $ 629,841 Work-in-process (costs relating to unprocessed and/or unbottled wine products) 3,940,410 4,796,223 Finished goods (bottled wine and related products) 4,367,708 4,484,506 Current inventories $ 9,191,743 $ 9,910,570

3. PROPERTY AND EQUIPMENT (Tabl

3. PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2015
Property And Equipment Tables
Property and Equipment	June 30, 2015 December 31, 2014 Construction in progress $ 38,175 $ 69,588 Land, improvements and other buildings 5,089,472 3,622,434 Winery building and hospitality center 13,704,927 13,566,863 Equipment 8,670,146 8,256,983 27,502,720 25,515,868 Accumulated depreciation (11,070,187 ) (10,477,209 ) $ 16,432,533 $ 15,038,659

6. STOCK BASED COMPENSATION (Ta

6. STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
Stock Based Compensation Tables
Value of outstanding stock options	Three months ended Six months ended June 30, 2015 June 30, 2015 Weighted Average Exercise Weighted Average Exercise Shares Price Shares Price Outstanding at beginning of period 192,971 $ 3.72 222,971 $ 3.79 Granted - - - - Exercised (27,971 ) 4.24 (57,971 ) 4.24 Forfeited - - - - Outstanding at end of period 165,000 $ 3.64 165,000 $ 3.64

9. SEGMENT REPORTING (Tables)

9. SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting Tables
SEGMENT REPORTING	Three Months Ended June 30, Direct Sales Distributor Sales Total 2015 2014 2015 2014 2015 2014 Sales, net $ 1,926,021 $ 1,375,119 $ 2,795,133 $ 2,318,293 $ 4,721,154 $ 3,693,412 Cost of Sales 608,276 382,562 1,353,225 1,070,086 1,961,501 1,452,648 Gross Margin 1,317,745 992,557 1,441,908 1,248,207 2,759,653 2,240,764 Selling Expenses 758,364 578,846 404,825 324,416 1,163,189 903,262 Contribution Margin $ 559,381 $ 413,711 $ 1,037,083 $ 923,791 $ 1,596,464 $ 1,337,502 Percent of Sales 40.8% 37.2% 59.2% 62.8% 100.0% 100.0% Six Months Ended June 30, Direct Sales Distributor Sales Total 2015 2014 2015 2014 2015 2014 Sales, net $ 3,382,585 $ 2,318,770 $ 5,251,070 $ 4,346,521 $ 8,633,655 $ 6,665,291 Cost of Sales 1,014,417 628,409 2,555,551 2,074,129 3,569,968 2,702,538 Gross Margin 2,368,168 1,690,361 2,695,519 2,272,392 5,063,687 3,962,753 Selling Expenses 1,428,605 1,095,139 801,243 623,555 2,229,848 1,718,694 Contribution Margin $ 939,563 $ 595,222 $ 1,894,276 $ 1,648,837 $ 2,833,839 $ 2,244,059 Percent of Sales 39.2% 34.8% 60.8% 65.2% 100.0% 100.0%

1. BASIS OF PRESENTATION (Detai

1. BASIS OF PRESENTATION (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basis Of Presentation Details Narrative
Dilutive Securities included in computation of earnings per share	74,602	86,362	69,665	91,603

2. INVENTORIES (Details)

2. INVENTORIES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Winemaking and packaging materials	$ 883,625	$ 629,841
Work-in-progress (costs relating to unprocessed and/or unbottled wine products)	3,940,410	4,796,223
Finished goods (bottled wine and related products)	4,367,708	4,484,506
Current inventories	$ 9,191,743	$ 9,910,570

3. PROPERTY AND EQUIPMENT (Deta

3. PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Construction in progress	$ 38,175	$ 69,588
Land, improvements and other buildings	5,089,472	3,622,434
Winery building and hospitality center	13,704,927	13,566,863
Equipment	8,670,146	8,256,983
Total Property and Equipment	27,502,720	25,515,868
Accumulated depreciation	(11,070,187)	(10,477,209)
Net Property and Equipment	$ 16,432,533	$ 15,038,659

4. DISTRIBUTION AGREEMENT REC23

4. DISTRIBUTION AGREEMENT RECEIVABLE AND DEFERRED REVENUE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Distribution Agreement Receivable And Deferred Revenue Details Narrative
Distribution agreement receivable, revenue recognized during period	$ 35,715	$ 35,715	$ 71,430	$ 71,430

5. DEBT (Details Narrative)

5. DEBT (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Umpqua
Debt Instrument [Line Items]
Aggregate Outstanding Balance	$ 0	$ 0
Interest rate minimum	3.25%	3.25%
Walla Walla
Debt Instrument [Line Items]
Aggregate Outstanding Balance	$ 490,834
FarmCreditServicesMember
Debt Instrument [Line Items]
Aggregate Outstanding Balance	5,339,629	$ 5,502,294
Monthly Minimum Payments	$ 53,058	$ 53,058
Interest rate minimum	4.75%	4.75%
Interest rate maximum	6.70%	6.70%

6. STOCK BASED COMPENSATION (De

6. STOCK BASED COMPENSATION (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Number of options
Outstanding at beginning of period	192,971		222,971
Granted	0		0
Exercised	(27,971)	(8,000)	(57,971)	(15,200)
Forfeited	0		0
Outstanding at end of period	165,000		165,000
Weighted average Price
Outstanding at beginning of period	$ 3.72		$ 3.79
Granted	0		0
Exercised	4.24		4.24
Forfeited	0		0
Outstanding at end of period	$ 3.64		$ 3.64

6. STOCK BASED COMPENSATION (26

6. STOCK BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Based Compensation Details Narrative
Unrecognized compensation cost	$ 5,222		$ 5,222
Compensation expense related to stock options	$ 5,291	$ 5,291	$ 10,583	$ 10,583
Stock options exercised	27,971	8,000	57,971	15,200

7. INTEREST AND TAXES PAID (Det

7. INTEREST AND TAXES PAID (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest And Taxes Paid Details Narrative
Income taxes	$ 139,000	$ 139,000	$ 240,550	$ 253,550
Interest Paid	$ 79,217	$ 62,810	$ 156,810	$ 122,258

9. SEGMENT REPORTING (Details)

9. SEGMENT REPORTING (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Sales, net	$ 4,721,154	$ 3,693,412	$ 8,633,655	$ 6,665,291
Cost of Sales	1,961,501	1,452,648	3,569,968	2,702,538
Gross Margin	2,759,653	2,240,764	5,063,687	3,962,753
Selling Expenses	1,163,189	903,262	2,229,848	1,718,694
Contribution Margin	$ 1,596,464	$ 1,337,502	$ 2,833,839	$ 2,244,059
Percent of Sales	100.00%	100.00%	100.00%	100.00%
Direct Sales
Sales, net	$ 1,926,021	$ 1,375,119	$ 3,382,585	$ 2,318,770
Cost of Sales	608,276	382,562	1,014,417	628,409
Gross Margin	1,317,745	992,557	2,368,168	1,690,361
Selling Expenses	758,364	578,846	1,428,605	1,095,139
Contribution Margin	$ 559,381	$ 413,711	$ 939,563	$ 595,222
Percent of Sales	40.80%	37.20%	39.20%	34.80%
Distributor Sales
Sales, net	$ 2,795,133	$ 2,318,293	$ 5,251,070	$ 4,346,521
Cost of Sales	1,353,225	1,070,086	2,555,551	2,074,129
Gross Margin	1,441,908	1,248,207	2,695,519	2,272,392
Selling Expenses	404,825	324,416	801,243	623,555
Contribution Margin	$ 1,037,083	$ 923,791	$ 1,894,276	$ 1,648,837
Percent of Sales	59.20%	62.80%	60.80%	65.20%