Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 13, 2024 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-37610 | |
Entity Registrant Name | WILLAMETTE VALLEY VINEYARDS, INC. | |
Entity Central Index Key | 0000838875 | |
Entity Tax Identification Number | 93-0981021 | |
Entity Incorporation, State or Country Code | OR | |
Entity Address, Address Line One | 8800 Enchanted Way | |
Entity Address, Address Line Two | S.E. | |
Entity Address, City or Town | Turner | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97392 | |
City Area Code | (503) | |
Local Phone Number | 588-9463 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,964,529 | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | WVVI | |
Security Exchange Name | NASDAQ | |
Series Redeemable Preferred Stock [Member] | ||
Title of 12(b) Security | Series A Redeemable Preferred Stock | |
Trading Symbol | WVVIP | |
Security Exchange Name | NASDAQ |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 279,807 | $ 238,482 |
Accounts receivable, net | 3,406,955 | 2,994,829 |
Inventories | 29,492,568 | 28,314,779 |
Prepaid expenses and other current assets | 295,961 | 522,854 |
Income tax receivable | 258,583 | 121,959 |
Total current assets | 33,733,874 | 32,192,903 |
Other assets | 13,824 | 13,824 |
Vineyard development costs, net | 8,748,040 | 8,704,352 |
Property and equipment, net | 52,868,519 | 53,369,637 |
Operating lease right of use assets | 11,149,416 | 11,427,433 |
TOTAL ASSETS | 106,513,673 | 105,708,149 |
CURRENT LIABILITIES | ||
Accounts payable | 1,987,373 | 2,026,352 |
Accrued expenses | 2,010,175 | 1,482,254 |
Investor deposits for preferred stock | 718,857 | |
Bank overdraft | 744,332 | 393,416 |
Line of credit | 2,334,415 | 2,684,982 |
Note payable | 1,049,587 | 1,100,735 |
Current portion of long-term debt | 536,212 | 522,798 |
Current portion of lease liabilities | 467,839 | 450,452 |
Unearned revenue | 1,832,168 | 1,970,661 |
Grapes payable | 2,446,233 | |
Total current liabilities | 10,962,101 | 13,796,740 |
Long-term debt, net of current portion and debt issuance costs | 10,197,052 | 6,961,872 |
Lease liabilities, net of current portion | 11,164,165 | 11,402,714 |
Deferred income taxes | 2,911,618 | 2,911,618 |
Total liabilities | 35,234,936 | 35,072,944 |
SHAREHOLDERS EQUITY | ||
Redeemable preferred stock, no par value, 100,000,000 shares authorized, 10,239,573 shares issued and outstanding, liquidation preference $43,620,654, at June 30, 2024 and 10,046,833 shares issued and outstanding, liquidation preference $41,694,357, at December 31, 2023. | 44,483,821 | 42,388,036 |
Common stock, no par value, 10,000,000 shares authorized, 4,964,529 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively. | 8,512,489 | 8,512,489 |
Retained earnings | 18,282,427 | 19,734,680 |
Total shareholders equity | 71,278,737 | 70,635,205 |
LIABILITIES AND SHAREHOLDERS EQUITY | $ 106,513,673 | $ 105,708,149 |
CONDENSED BALANCE SHEETS (Una_2
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 10,239,573 | 10,046,833 |
Preferred Stock, Shares Outstanding | 10,239,573 | 10,046,833 |
Preferred Stock, Liquidation Preference, Value | $ 43,620,654 | $ 41,694,357 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 4,964,529 | 4,964,529 |
Common Stock, Shares, Outstanding | 4,964,529 | 4,964,529 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
SALES, NET | $ 10,332,358 | $ 10,726,243 | $ 19,135,438 | $ 19,035,183 |
COST OF SALES | 3,860,668 | 4,475,665 | 7,391,026 | 8,306,142 |
GROSS PROFIT | 6,471,690 | 6,250,578 | 11,744,412 | 10,729,041 |
OPERATING EXPENSES | ||||
Sales and marketing | 4,338,171 | 4,350,043 | 8,365,953 | 8,333,623 |
General and administrative | 1,596,613 | 1,591,696 | 3,444,130 | 3,061,529 |
Total operating expenses | 5,934,784 | 5,941,739 | 11,810,083 | 11,395,152 |
INCOME (LOSS) FROM OPERATIONS | 536,906 | 308,839 | (65,671) | (666,111) |
OTHER INCOME (EXPENSE) | ||||
Interest expense, net | (263,694) | (164,610) | (493,381) | (289,032) |
Other income, net | 2,541 | 5,135 | 100,593 | 78,721 |
INCOME (LOSS) BEFORE INCOME TAXES | 275,753 | 149,364 | (458,459) | (876,422) |
INCOME TAX (EXPENSE) BENEFIT | (79,775) | (40,911) | 132,632 | 240,052 |
NET INCOME (LOSS) | 195,978 | 108,453 | (325,827) | (636,370) |
Accrued preferred stock dividends | (563,249) | (511,720) | (1,126,426) | (1,023,439) |
LOSS APPLICABLE TO COMMON SHAREHOLDERS | $ (367,271) | $ (403,267) | $ (1,452,253) | $ (1,659,809) |
Loss per common share after preferred dividends, basic and diluted | $ (0.07) | $ (0.08) | $ (0.29) | $ (0.33) |
Weighted-average number of common shares outstanding, basic and diluted | 4,964,529 | 4,964,529 | 4,964,529 | 4,964,529 |
CONDENSED STATEMENTS OF SHAREHO
CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2022 | $ 38,869,075 | $ 8,512,489 | $ 22,980,370 | $ 70,361,934 |
Beginning Balance, Shares at Dec. 31, 2022 | 9,185,666 | 4,964,529 | ||
Issuance of preferred stock, net | $ 550,254 | 550,254 | ||
Issuance of preferred stock, net, Shares | 118,322 | |||
Preferred stock dividends accrued | $ 511,719 | (511,719) | ||
Net income | (744,823) | (744,823) | ||
Ending balance, value at Mar. 31, 2023 | $ 39,931,048 | $ 8,512,489 | 21,723,828 | 70,167,365 |
Ending Balance, Shares at Mar. 31, 2023 | 9,303,988 | 4,964,529 | ||
Beginning balance, value at Dec. 31, 2022 | $ 38,869,075 | $ 8,512,489 | 22,980,370 | 70,361,934 |
Beginning Balance, Shares at Dec. 31, 2022 | 9,185,666 | 4,964,529 | ||
Net income | (636,370) | |||
Ending balance, value at Jun. 30, 2023 | $ 40,442,768 | $ 8,512,489 | 21,320,561 | 70,275,818 |
Ending Balance, Shares at Jun. 30, 2023 | 9,303,988 | 4,964,529 | ||
Beginning balance, value at Mar. 31, 2023 | $ 39,931,048 | $ 8,512,489 | 21,723,828 | 70,167,365 |
Beginning Balance, Shares at Mar. 31, 2023 | 9,303,988 | 4,964,529 | ||
Preferred stock dividends accrued | $ 511,720 | (511,720) | ||
Net income | 108,453 | 108,453 | ||
Ending balance, value at Jun. 30, 2023 | $ 40,442,768 | $ 8,512,489 | 21,320,561 | 70,275,818 |
Ending Balance, Shares at Jun. 30, 2023 | 9,303,988 | 4,964,529 | ||
Beginning balance, value at Dec. 31, 2023 | $ 42,388,036 | $ 8,512,489 | 19,734,680 | 70,635,205 |
Beginning Balance, Shares at Dec. 31, 2023 | 10,046,833 | 4,964,529 | ||
Issuance of preferred stock, net | $ 969,359 | 969,359 | ||
Issuance of preferred stock, net, Shares | 192,740 | |||
Preferred stock dividends accrued | $ 563,177 | (563,177) | ||
Net income | (521,805) | (521,805) | ||
Ending balance, value at Mar. 31, 2024 | $ 43,920,572 | $ 8,512,489 | 18,649,698 | 71,082,759 |
Ending Balance, Shares at Mar. 31, 2024 | 10,239,573 | 4,964,529 | ||
Beginning balance, value at Dec. 31, 2023 | $ 42,388,036 | $ 8,512,489 | 19,734,680 | 70,635,205 |
Beginning Balance, Shares at Dec. 31, 2023 | 10,046,833 | 4,964,529 | ||
Net income | (325,827) | |||
Ending balance, value at Jun. 30, 2024 | $ 44,483,821 | $ 8,512,489 | 18,282,427 | 71,278,737 |
Ending Balance, Shares at Jun. 30, 2024 | 10,239,573 | 4,964,529 | ||
Beginning balance, value at Mar. 31, 2024 | $ 43,920,572 | $ 8,512,489 | 18,649,698 | 71,082,759 |
Beginning Balance, Shares at Mar. 31, 2024 | 10,239,573 | 4,964,529 | ||
Preferred stock dividends accrued | $ 563,249 | (563,249) | ||
Net income | 195,978 | 195,978 | ||
Ending balance, value at Jun. 30, 2024 | $ 44,483,821 | $ 8,512,489 | $ 18,282,427 | $ 71,278,737 |
Ending Balance, Shares at Jun. 30, 2024 | 10,239,573 | 4,964,529 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (325,827) | $ (636,370) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation and amortization | 1,666,003 | 1,541,272 |
Non-cash lease expense | 278,017 | 405,669 |
Loan fee amortization | 6,624 | 6,624 |
Change in operating assets and liabilities: | ||
Accounts receivable | (412,126) | 1,009,503 |
Inventories | (1,177,789) | (550,349) |
Prepaid expenses and other current assets | 226,893 | 647 |
Income taxes receivable | (136,624) | (220,604) |
Unearned revenue | (138,493) | (179,516) |
Lease liabilities | (221,162) | (376,469) |
Grapes payable | (2,446,233) | (1,208,673) |
Accounts payable | (59,276) | 7,590 |
Accrued expenses | 527,921 | 53,254 |
Net cash from operating activities | (2,212,072) | (147,422) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to vineyard development costs | (126,735) | (203,909) |
Additions to property and equipment | (1,061,541) | (1,905,988) |
Net cash from investing activities | (1,188,276) | (2,109,897) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment on installment note for property purchase | (51,148) | (49,405) |
Proceeds from bank overdraft | 350,916 | |
Proceeds from line of credit | (350,567) | 1,339,176 |
Payments on long-term debt | (258,030) | (245,691) |
Proceeds from long-term debt | 3,500,000 | 1,025,000 |
Proceeds from issuance of preferred stock | 250,502 | 402,743 |
Net cash from financing activities | 3,441,673 | 2,471,823 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 41,325 | 214,504 |
CASH AND CASH EQUIVALENTS, beginning of period | 238,482 | 338,676 |
CASH AND CASH EQUIVALENTS, end of period | 279,807 | 553,180 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Purchases of property and equipment and vineyard development costs included in accounts payable | 89,152 | 377,991 |
Reduction in investor deposits for preferred stock | 718,857 | 147,511 |
Accrued preferred stock dividends | 1,126,426 | 1,023,439 |
Right of use assets obtained in exchange for operating lease liabilities | $ 0 | $ 1,090,735 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | 1) BASIS OF PRESENTATION The accompanying unaudited interim financial statements as of June 30, 2024 and for the three and six months ended June 30, 2024 and 2023 have been prepared in conformity with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial statements. The financial information as of December 31, 2023 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, 2023. 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 Companys audited financial statements for the year ended December 31, 2023, as presented in the Companys Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 2024, or any portion thereof. The Companys revenues include direct to consumer sales and national sales to distributors. These sales channels utilize shared resources for production, selling, and distribution. Basic loss per share after preferred stock dividends are computed based on the weighted-average number of common shares outstanding each period. The following table presents the earnings per share after preferred stock dividends calculation for the periods shown: Schedule of Earnings Per Share Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Numerator Net income (loss) $ 195,978 $ 108,453 $ (325,827 ) $ (636,370 ) Accrued preferred stock dividends (563,249 ) (511,720 ) (1,126,426 ) (1,023,439 ) Net loss applicable to common shares $ (367,271 ) $ (403,267 ) $ (1,452,253 ) $ (1,659,809 ) Denominator Weighted-average number of common shares outstanding basic and diluted 4,964,529 4,964,529 4,964,529 4,964,529 Loss per common share after preferred dividends, basic and diluted $ (0.07 ) $ (0.08 ) $ (0.29 ) $ (0.33 ) Subsequent to the filing of the 2023 Report there were no accounting pronouncements issued by the Financial Accounting Standards Board (FASB) that would have a material effect on the Companys unaudited interim condensed financial statements. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 2) INVENTORIES The Companys inventories, by major classification, are summarized as follows, as of the dates shown: Schedule of Inventories June 30, 2024 December 31, 2023 Winemaking and packaging materials $ 1,832,683 $ 1,113,170 Work-in-process (costs relating to unprocessed and/or unbottled wine products) 14,081,808 15,952,118 Finished goods (bottled wine and related products) 13,578,077 11,249,491 Total inventories $ 29,492,568 $ 28,314,779 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 3) PROPERTY AND EQUIPMENT, NET The Companys property and equipment consists of the following, as of the dates shown: Schedule of Property and Equipment, Net June 30, 2024 December 31, 2023 Construction in progress $ 779,587 $ 639,840 Land, improvements, and other buildings 14,992,965 14,491,827 Winery, tasting room buildings, and hospitality center 44,112,526 43,991,586 Equipment 20,423,548 20,103,535 Property and equipment, gross 80,308,626 79,226,788 Accumulated depreciation (27,440,107 ) (25,857,151 ) Property and equipment, net $ 52,868,519 $ 53,369,637 Depreciation expense for the three months ended June 30, 2024 and 2023 was $ 790,970 744,048 1,582,956 1,459,612 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | 4) DEBT Line of Credit Facility – 2,000,000 5,000,000 2,334,415 2,684,982 The line of credit agreement includes various covenants, which among other things, requires the Company to maintain minimum amounts of tangible net worth, debt-to-equity, and debt service coverage, as defined, and limits the level of acquisitions of property and equipment. As of December 31, 2023, the Company was out of compliance with a debt covenant. The Company has received a waiver from Umpqua Bank waiving this violation until the next measurement date of December 31, 2024. Notes Payable – 1,100,735 Long-Term Debt 10,832,629 7,590,659 As of June 30, 2024, future minimum principal payments of long-term debt are as follows for the years ending December 31: Schedule of Future Minimum Principal Payment for Long-Term Debt Maturities 2024 264,718 2025 7,074,971 2026 578,559 2027 608,636 2028 640,299 Thereafter 1,665,446 Total $ 10,832,629 As of June 30, 2024, the Company had unamortized debt issuance costs of $ 99,365 105,989 |
INTEREST AND TAXES PAID
INTEREST AND TAXES PAID | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
INTEREST AND TAXES PAID | 5) INTEREST AND TAXES PAID Income taxes zero zero 19,456 Interest 129,539 92,379 264,518 186,184 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 6) SEGMENT REPORTING The Company has identified two The two segments reflect how the Companys 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 (loss) 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 profit, directly attributable selling expenses, and contribution margin of the segments for the three and six month periods ended June 30, 2024 and 2023. Sales figures are net of related excise taxes. Schedule of Segment reporting Three Months Ended June 30, Direct Sales Distributor Sales Unallocated Total 2024 2023 2024 2023 2024 2023 2024 2023 Sales, net $ 5,721,172 $ 5,517,998 $ 4,611,186 $ 5,208,245 $ - $ - $ 10,332,358 $ 10,726,243 Cost of sales 1,608,422 1,587,834 2,252,246 2,887,831 - - 3,860,668 4,475,665 Gross profit 4,112,750 3,930,164 2,358,940 2,320,414 - - 6,471,690 6,250,578 Selling expenses 3,596,924 3,563,771 505,367 538,762 235,880 247,510 4,338,171 4,350,043 Contribution margin $ 515,826 $ 366,393 $ 1,853,573 $ 1,781,652 Percent of total sales 55.4 % 51.4 % 44.6 % 48.6 % General and administration expenses 1,596,613 1,591,696 1,596,613 1,591,696 Income from operations $ 536,906 $ 308,839 Six Months Ended June 30, Direct Sales Distributor Sales Unallocated Total 2024 2023 2024 2023 2024 2023 2024 2023 Sales, net $ 10,007,328 $ 9,589,646 $ 9,128,110 $ 9,445,537 $ - $ - $ 19,135,438 $ 19,035,183 Cost of sales 2,903,567 2,877,767 4,487,459 5,428,375 - - 7,391,026 8,306,142 Gross profit 7,103,761 6,711,879 4,640,651 4,017,162 - - 11,744,412 10,729,041 Selling expenses 6,860,305 6,778,273 1,009,792 1,070,503 495,856 484,847 8,365,953 8,333,623 Contribution margin (deficit) $ 243,456 $ (66,394 ) $ 3,630,859 $ 2,946,659 Percent of total sales 52.3 % 50.4 % 47.7 % 49.6 % General and administration expenses 3,444,130 3,061,529 3,444,130 3,061,529 Loss from operations $ (65,671 ) $ (666,111 ) There were no no 10,000 |
SALE OF PREFERRED STOCK
SALE OF PREFERRED STOCK | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
SALE OF PREFERRED STOCK | 7) SALE OF PREFERRED STOCK On July 1, 2022, the Company filed a shelf Registration Statement on Form S-3 (the July 2022 Form S-3) with the United States Securities and Exchange Commission (the SEC) pertaining to the potential future issuance of one or more classes or series of debt, equity, or derivative securities. The maximum aggregate offering amount of securities sold pursuant to the June 2022 Form S-3 is not to exceed $20,000,000. From August 1, 2022 to November 1, 2022 the Company filed with the SEC four Prospectus Supplements to the July 2022 Form S-3, pursuant to which the Company proposed to offer and sell, on a delayed or continuous basis, up to an aggregate of 1,076,578 shares of Series A Redeemable Preferred Stock having proceeds not to exceed and aggregate of $5,636,714. Each of these Prospectus Supplements established that our shares of preferred stock were to be sold in one to three offering periods offering prices including $5.15 per share, $5.25 per share and $5.35 per share. Net proceeds of $3,558,807 have been received under these offerings as of June 30, 2024 for the issuance of Preferred Stock. On June 30, 2023, the Company filed with the SEC a Prospectus Supplement to the July 2022 Form S-3, pursuant to which the Company proposed to offer and sell, on a delayed or continuous basis, up to 727,835 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $3,530,000. This Prospectus Supplement established that our shares of preferred stock were to be sold in two offering periods with two separate offering prices beginning with an offering price of $4.85 per share and concluding with an offering of $5.35 per share. On October 27, 2023, the Company filed with the SEC a Prospectus Supplement to the July 2022 Form S-3, pursuant to which the Company proposed to offer and sell, on a delayed or continuous basis, up to 288,659 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,400,000. This Prospectus Supplement established that our shares of preferred stock were to be sold in one offering period with an offering price of $4.85 per share. Net proceeds of $3,938,066 have been received under these offering as of June 30, 2024 for the issuance of Preferred Stock. Shareholders have the option to receive dividends as cash or as a gift card for purchasing Company products. The amount of unused dividend gift cards at June 30, 2024 and December 31, 2023 was $ 953,072 1,480,138 Dividends accrued but not paid will be added to the liquidation preference of the stock until the dividend is declared and paid. At any time after June 1, 2021, the Company has the option, but not the obligation, to redeem all of the outstanding preferred stock in an amount equal to the original issue price plus accrued but unpaid dividends and a redemption premium equal to 3% of the original issue price. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | 8) LEASES We determine if an arrangement is a lease at inception. On our condensed balance sheets, our operating leases are included in Operating lease right-of-use assets (ROU), Current portion of lease liabilities, and Lease liabilities, net of current portion. The Company does not currently have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For leases that do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Significant judgment may be required when determining whether a contract contains a lease, the length of the lease term, the allocation of the consideration in a contract between lease and non-lease components, and the determination of the discount rate included in our leases. We review the underlying objective of each contract, the terms of the contract, and consider our current and future business conditions when making these judgments. Operating leases – Vineyard In December 1999 1,500,000 20-year In December 2004 727,000 15-year In February 2007 11 year In July 2008 34-year In March 2017 25-year Operating Leases – Non-Vineyard In September 2018 three years In January 2018 In February 2020 5 years In March 2021 10 years In February 2022 10 years In May 2022 10 years In January 2023 10 years The following tables provide lease cost and other lease information: Schedule of Lease Cost and Information Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 Lease Cost Operating lease cost - Vineyards $ 229,564 $ 229,564 Operating lease cost - Other 496,980 439,965 Short-term lease cost 18,527 18,800 Total lease cost $ 745,071 $ 688,329 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases - Vineyard $ 230,964 $ 228,264 Operating cash flows from operating leases - Other $ 388,941 $ 404,201 Weighted-average remaining lease term - Operating leases in years 15.39 10.52 Weighted-average discount rate - Operating leases 7.89 % 5.48 % Right-of-use assets obtained in exchange for new operating lease obligations were zero 1,090,735 As of June 30, 2024, maturities of lease liabilities were as follows: Schedule of Maturities of Lease Liabilities Operating Years Ended December 31, Leases 2024 $ 670,488 2025 1,326,705 2026 1,299,824 2027 1,354,008 2028 1,339,747 Thereafter 14,912,963 Total minimal lease payments 20,903,735 Less present value adjustment (9,271,731 ) Operating lease liabilities 11,632,004 Less current lease liabilities (467,839 ) Lease liabilities, net of current portion $ 11,164,165 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9) COMMITMENTS AND CONTINGENCIES Litigation Grape Purchases |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share | The following table presents the earnings per share after preferred stock dividends calculation for the periods shown: Schedule of Earnings Per Share Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Numerator Net income (loss) $ 195,978 $ 108,453 $ (325,827 ) $ (636,370 ) Accrued preferred stock dividends (563,249 ) (511,720 ) (1,126,426 ) (1,023,439 ) Net loss applicable to common shares $ (367,271 ) $ (403,267 ) $ (1,452,253 ) $ (1,659,809 ) Denominator Weighted-average number of common shares outstanding basic and diluted 4,964,529 4,964,529 4,964,529 4,964,529 Loss per common share after preferred dividends, basic and diluted $ (0.07 ) $ (0.08 ) $ (0.29 ) $ (0.33 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The Companys inventories, by major classification, are summarized as follows, as of the dates shown: Schedule of Inventories June 30, 2024 December 31, 2023 Winemaking and packaging materials $ 1,832,683 $ 1,113,170 Work-in-process (costs relating to unprocessed and/or unbottled wine products) 14,081,808 15,952,118 Finished goods (bottled wine and related products) 13,578,077 11,249,491 Total inventories $ 29,492,568 $ 28,314,779 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The Companys property and equipment consists of the following, as of the dates shown: Schedule of Property and Equipment, Net June 30, 2024 December 31, 2023 Construction in progress $ 779,587 $ 639,840 Land, improvements, and other buildings 14,992,965 14,491,827 Winery, tasting room buildings, and hospitality center 44,112,526 43,991,586 Equipment 20,423,548 20,103,535 Property and equipment, gross 80,308,626 79,226,788 Accumulated depreciation (27,440,107 ) (25,857,151 ) Property and equipment, net $ 52,868,519 $ 53,369,637 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Principal Payment for Long-Term Debt Maturities | As of June 30, 2024, future minimum principal payments of long-term debt are as follows for the years ending December 31: Schedule of Future Minimum Principal Payment for Long-Term Debt Maturities 2024 264,718 2025 7,074,971 2026 578,559 2027 608,636 2028 640,299 Thereafter 1,665,446 Total $ 10,832,629 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment reporting | The following table outlines the sales, cost of sales, gross profit, directly attributable selling expenses, and contribution margin of the segments for the three and six month periods ended June 30, 2024 and 2023. Sales figures are net of related excise taxes. Schedule of Segment reporting Three Months Ended June 30, Direct Sales Distributor Sales Unallocated Total 2024 2023 2024 2023 2024 2023 2024 2023 Sales, net $ 5,721,172 $ 5,517,998 $ 4,611,186 $ 5,208,245 $ - $ - $ 10,332,358 $ 10,726,243 Cost of sales 1,608,422 1,587,834 2,252,246 2,887,831 - - 3,860,668 4,475,665 Gross profit 4,112,750 3,930,164 2,358,940 2,320,414 - - 6,471,690 6,250,578 Selling expenses 3,596,924 3,563,771 505,367 538,762 235,880 247,510 4,338,171 4,350,043 Contribution margin $ 515,826 $ 366,393 $ 1,853,573 $ 1,781,652 Percent of total sales 55.4 % 51.4 % 44.6 % 48.6 % General and administration expenses 1,596,613 1,591,696 1,596,613 1,591,696 Income from operations $ 536,906 $ 308,839 Six Months Ended June 30, Direct Sales Distributor Sales Unallocated Total 2024 2023 2024 2023 2024 2023 2024 2023 Sales, net $ 10,007,328 $ 9,589,646 $ 9,128,110 $ 9,445,537 $ - $ - $ 19,135,438 $ 19,035,183 Cost of sales 2,903,567 2,877,767 4,487,459 5,428,375 - - 7,391,026 8,306,142 Gross profit 7,103,761 6,711,879 4,640,651 4,017,162 - - 11,744,412 10,729,041 Selling expenses 6,860,305 6,778,273 1,009,792 1,070,503 495,856 484,847 8,365,953 8,333,623 Contribution margin (deficit) $ 243,456 $ (66,394 ) $ 3,630,859 $ 2,946,659 Percent of total sales 52.3 % 50.4 % 47.7 % 49.6 % General and administration expenses 3,444,130 3,061,529 3,444,130 3,061,529 Loss from operations $ (65,671 ) $ (666,111 ) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Cost and Information | The following tables provide lease cost and other lease information: Schedule of Lease Cost and Information Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 Lease Cost Operating lease cost - Vineyards $ 229,564 $ 229,564 Operating lease cost - Other 496,980 439,965 Short-term lease cost 18,527 18,800 Total lease cost $ 745,071 $ 688,329 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases - Vineyard $ 230,964 $ 228,264 Operating cash flows from operating leases - Other $ 388,941 $ 404,201 Weighted-average remaining lease term - Operating leases in years 15.39 10.52 Weighted-average discount rate - Operating leases 7.89 % 5.48 % |
Schedule of Maturities of Lease Liabilities | As of June 30, 2024, maturities of lease liabilities were as follows: Schedule of Maturities of Lease Liabilities Operating Years Ended December 31, Leases 2024 $ 670,488 2025 1,326,705 2026 1,299,824 2027 1,354,008 2028 1,339,747 Thereafter 14,912,963 Total minimal lease payments 20,903,735 Less present value adjustment (9,271,731 ) Operating lease liabilities 11,632,004 Less current lease liabilities (467,839 ) Lease liabilities, net of current portion $ 11,164,165 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||||
Net income (loss) | $ 195,978 | $ (521,805) | $ 108,453 | $ (744,823) | $ (325,827) | $ (636,370) |
Accrued preferred stock dividends | (563,249) | (511,720) | (1,126,426) | (1,023,439) | ||
Net loss applicable to common shares | $ (367,271) | $ (403,267) | $ (1,452,253) | $ (1,659,809) | ||
Weighted-average number of common shares outstanding basic and diluted | 4,964,529 | 4,964,529 | 4,964,529 | 4,964,529 | ||
Loss per common share after preferred dividends, basic and diluted | $ (0.07) | $ (0.08) | $ (0.29) | $ (0.33) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Winemaking and packaging materials | $ 1,832,683 | $ 1,113,170 |
Work-in-process (costs relating to unprocessed and/or unbottled wine products) | 14,081,808 | 15,952,118 |
Finished goods (bottled wine and related products) | 13,578,077 | 11,249,491 |
Total inventories | $ 29,492,568 | $ 28,314,779 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Construction in progress | $ 779,587 | $ 639,840 |
Land, improvements, and other buildings | 14,992,965 | 14,491,827 |
Winery, tasting room buildings, and hospitality center | 44,112,526 | 43,991,586 |
Equipment | 20,423,548 | 20,103,535 |
Property and equipment, gross | 80,308,626 | 79,226,788 |
Accumulated depreciation | (27,440,107) | (25,857,151) |
Property and equipment, net | $ 52,868,519 | $ 53,369,637 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 790,970 | $ 744,048 | $ 1,582,956 | $ 1,459,612 |
DEBT (Details)
DEBT (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 | $ 264,718 | |
2025 | 7,074,971 | |
2026 | 578,559 | |
2027 | 608,636 | |
2028 | 640,299 | |
Thereafter | 1,665,446 | |
Total | $ 10,832,629 | $ 7,590,659 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Nov. 30, 2022 | Dec. 31, 2005 |
Debt Disclosure [Abstract] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | $ 2,000,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 2,334,415 | $ 2,684,982 | ||
Notes Payable, Current | 1,049,587 | 1,100,735 | ||
Long-Term Debt, Gross | 10,832,629 | 7,590,659 | ||
Unamortized Debt Issuance Expense | $ 99,365 | $ 105,989 |
INTEREST AND TAXES PAID (Detail
INTEREST AND TAXES PAID (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Income Taxes Paid | $ 0 | $ 0 | $ 0 | $ (19,456) |
Income Taxes Paid | 0 | 0 | 0 | 19,456 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 129,539 | $ 92,379 | $ 264,518 | $ 186,184 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Sales, net | $ 10,332,358 | $ 10,726,243 | $ 19,135,438 | $ 19,035,183 |
Cost of sales | 3,860,668 | 4,475,665 | 7,391,026 | 8,306,142 |
Gross profit | 6,471,690 | 6,250,578 | 11,744,412 | 10,729,041 |
Selling expenses | 4,338,171 | 4,350,043 | 8,365,953 | 8,333,623 |
General and administration expenses | 1,596,613 | 1,591,696 | 3,444,130 | 3,061,529 |
Loss from operations | 536,906 | 308,839 | (65,671) | (666,111) |
Direct Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 5,721,172 | 5,517,998 | 10,007,328 | 9,589,646 |
Cost of sales | 1,608,422 | 1,587,834 | 2,903,567 | 2,877,767 |
Gross profit | 4,112,750 | 3,930,164 | 7,103,761 | 6,711,879 |
Selling expenses | 3,596,924 | 3,563,771 | 6,860,305 | 6,778,273 |
Contribution margin (deficit) | $ 515,826 | $ 366,393 | $ 243,456 | $ (66,394) |
Percent of total sales | 55.40% | 51.40% | 52.30% | 50.40% |
Distributor Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | $ 4,611,186 | $ 5,208,245 | $ 9,128,110 | $ 9,445,537 |
Cost of sales | 2,252,246 | 2,887,831 | 4,487,459 | 5,428,375 |
Gross profit | 2,358,940 | 2,320,414 | 4,640,651 | 4,017,162 |
Selling expenses | 505,367 | 538,762 | 1,009,792 | 1,070,503 |
Contribution margin (deficit) | $ 1,853,573 | $ 1,781,652 | $ 3,630,859 | $ 2,946,659 |
Percent of total sales | 44.60% | 48.60% | 47.70% | 49.60% |
Unallocated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | ||||
Cost of sales | ||||
Gross profit | ||||
Selling expenses | 235,880 | 247,510 | 495,856 | 484,847 |
General and administration expenses | $ 1,596,613 | $ 1,591,696 | $ 3,444,130 | $ 3,061,529 |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Number | Jun. 30, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | Number | 2 | |||
Revenues | $ 10,332,358 | $ 10,726,243 | $ 19,135,438 | $ 19,035,183 |
Direct Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,721,172 | 5,517,998 | 10,007,328 | 9,589,646 |
Direct Sales [Member] | Bulk Wine And Grape [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 10,000 |
SALE OF PREFERRED STOCK (Detail
SALE OF PREFERRED STOCK (Details Narrative) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Equity [Abstract] | ||
Gift Card Liability | $ 953,072 | $ 1,480,138 |
LEASES (Details)
LEASES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating lease cost - Vineyards | $ 229,564 | $ 229,564 |
Operating lease cost - Other | 496,980 | 439,965 |
Short-term lease cost | 18,527 | 18,800 |
Total lease cost | 745,071 | 688,329 |
Operating cash flows from operating leases - Vineyard | 230,964 | 228,264 |
Operating cash flows from operating leases - Other | $ 388,941 | $ 404,201 |
Operating Lease, Weighted Average Remaining Lease Term | 15 years 4 months 20 days | 10 years 6 months 7 days |
Operating Lease, Weighted Average Discount Rate, Percent | 7.89% | 5.48% |
LEASES (Details 2)
LEASES (Details 2) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 | $ 670,488 | |
2025 | 1,326,705 | |
2026 | 1,299,824 | |
2027 | 1,354,008 | |
2028 | 1,339,747 | |
Thereafter | 14,912,963 | |
Total minimal lease payments | 20,903,735 | |
Less present value adjustment | (9,271,731) | |
Operating lease liabilities | 11,632,004 | |
Less current lease liabilities | (467,839) | $ (450,452) |
Lease liabilities, net of current portion | $ 11,164,165 | $ 11,402,714 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||||||||
Jan. 31, 2023 | May 31, 2022 | Feb. 28, 2022 | Sep. 30, 2021 | Feb. 29, 2020 | Dec. 31, 2018 | Jan. 31, 2018 | Sep. 30, 2017 | Jul. 31, 2008 | Feb. 28, 2007 | Dec. 31, 2004 | Dec. 31, 1999 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 1,090,735 | ||||||||||||
Tualatin Vineyards [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In December 2004, under a sale-leaseback agreement, the Company sold approximately 75 acres of the Tualatin Vineyards property with a net book value of approximately $551,000 for approximately $727,000 cash and entered into a 15-year operating lease agreement, with three five-year extension options, for the vineyard portion of the property. The first two five year extensions have been exercised. The lease contains a formula-based escalation provision with a maximum increase of 4% every three years. This property is referred to as the Meadowview Vineyard and includes approximately 49 acres of producing vineyards. | In December 1999, under a sale-leaseback agreement, the Company sold approximately 79 acres of the Tualatin Vineyards property with a net book value of approximately $1,000,000 for approximately $1,500,000 cash and entered into a 20-year operating lease agreement, with three five-year extension options, and contains an escalation provision of 2.5% per year. The Company extended the lease in January 2019 until January 2025. This property is referred to as the Peter Michael Vineyard and includes approximately 69 acres of producing vineyards. | ||||||||||||
Sale Leaseback Transaction, Date | December 2004 | December 1999 | ||||||||||||
Sale Leaseback Transaction, Historical Cost | $ 727,000 | $ 1,500,000 | ||||||||||||
Sale Leaseback Transaction, Lease Period | 15 years | 20 years | ||||||||||||
Elton Vineyards [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In February 2007, the Company entered into a lease agreement for 59 acres of vineyard land at Elton Vineyard. In June 2021 the company entered into a new 11 year lease for this property. The lease contains an escalation provision tied to the CPI not to exceed 2% per annum. This property includes 54 acres of producing vineyards and 2 additional plantable acres. | |||||||||||||
Sale Leaseback Transaction, Date | February 2007 | |||||||||||||
Sale Leaseback Transaction, Lease Period | 11 years | |||||||||||||
Eola Hills [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In July 2008, the Company entered into a 34-year lease agreement with a property owner in the Eola Hills for approximately 110 acres adjacent to the existing Elton Vineyards site. These 110 acres are being developed into vineyards. Terms of this agreement contain rent increases, that rises as the vineyard is developed, and contains an escalation provision of CPI plus 0.5% per year capped at 4%. This property is referred to as part of Ingram Vineyard and includes 93 acres of producing vineyards and 17 additional plantable acres. | |||||||||||||
Sale Leaseback Transaction, Date | July 2008 | |||||||||||||
Sale Leaseback Transaction, Lease Period | 34 years | |||||||||||||
Dundee [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In March 2017, the Company entered into a 25-year lease for approximately 17 acres of agricultural land in Dundee, Oregon. This lease contains an annual payment that remains constant throughout the term of the lease. This property is referred to as part of Bernau Estate Vineyard and includes 9 acres of producing vineyards. | |||||||||||||
Sale Leaseback Transaction, Date | March 2017 | |||||||||||||
Sale Leaseback Transaction, Lease Terms | P25Y | |||||||||||||
McMinnville [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In September 2018, the Company renewed an existing lease for three years, with two one-year renewal options, for its McMinnville tasting room. In May 2022 the Company amended the lease to extend the lease to August 2025 with one three year renewal option and defined payments over the term of the lease. For right of use asset and liability calculations the Company has not included the renewal option. | |||||||||||||
Sale Leaseback Transaction, Date | September 2018 | |||||||||||||
Sale Leaseback Transaction, Lease Period | 3 years | |||||||||||||
Maison Bleue [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In January 2018, the Company assumed a lease, through December 2022, for its Maison Bleue tasting room in Walla Walla, Washington. In January 2023, the Company entered into a new lease to December 2027 with one five year renewal option, and defined payments over the term of the lease. For right of use asset and liability calculations the Company has not included the renewal option. | |||||||||||||
Sale Leaseback Transaction, Date | January 2018 | |||||||||||||
Willamette Wineworks [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In February 2020, the Company entered into a lease for 5 years, with three five-year renewal options for a retail wine facility in Folsom, California, referred to as Willamette Wineworks. The lease contains an escalation provision tied to the CPI not to exceed 3% per annum with increases not allowed in any year being carried forward to the following years. For right of use asset and liability calculations the Company has concluded it is reasonably certain to extend available options through February 2040. | |||||||||||||
Sale Leaseback Transaction, Date | February 2020 | |||||||||||||
Sale Leaseback Transaction, Lease Period | 5 years | |||||||||||||
Retail Wine Facility [Member] | ||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Description of Asset(s) | In January 2023, the Company entered into a lease for 10 years, with three five-year renewal options for a retail wine facility in Bend, Oregon. The lease defines the payments over the term of the lease. For right of use asset and liability calculations the Company has not included the renewal option. | In May 2022, the Company entered into a lease for 10 years, with two five-year renewal options for a retail wine facility in Happy Valley, Oregon. The lease defines the payments over the term of the lease and option periods. For right of use asset and liability calculations the Company has concluded it is reasonably certain to extend available options through May 2042. | In February 2022, the Company entered into a lease for 10 years, with three five-year renewal options for a retail wine facility in Lake Oswego, Oregon. The lease defines the payments over the term of the lease and option periods. For right of use asset and liability calculations the Company has concluded it is reasonably certain to extend available options through January 2042. | In March 2021, the Company entered into a lease for 10 years, with two five-year renewal options for a retail wine facility in Vancouver, Washington. The lease defines the payments over the term of the lease and option periods. For right of use asset and liability calculations the Company has concluded it is reasonably certain to extend available options through August 2041. | ||||||||||
Sale Leaseback Transaction, Date | January 2023 | May 2022 | February 2022 | March 2021 | ||||||||||
Sale Leaseback Transaction, Lease Period | 10 years | 10 years | 10 years | 10 years |