WVVIP Willamette Valley Vineyards Inc

 

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

 

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

Commission File Number 001-37610

 

WILLAMETTE VALLEY VINEYARDS, INC.

(Exact name of registrant as specified in charter)

 

Oregon		93-0981021
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

8800 Enchanted Way, S.E., Turner, Oregon	97392
(Address of principal executive offices)	(Zip Code)

 

Registrant’s telephone number, including area code: (503) 588-9463

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:
x Yes o NO

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):
x Yes o NO

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

 

	o Large accelerated filer	o Accelerated filer
	x Non-accelerated Filer	x Smaller reporting company
		o Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

o YES x No

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		WVVI		NASDAQ Capital Market
Series A Redeemable Preferred Stock		WVVIP		NASDAQ Capital Market

 

Number of shares of common stock outstanding as of May 13, 2024: 4,964,529

WILLAMETTE VALLEY VINEYARDS, INC.

INDEX TO FORM 10-Q

 

Part I - Financial Information	3
Item 1 - Financial Statements (unaudited)	3
Condensed Balance Sheets	3
Condensed Statements of Operations	4
Condensed Statements of Shareholders’ Equity	5
Condensed Statements of Cash Flows	6
Notes to Unaudited Interim Financial Statements	7
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3 - Quantitative and Qualitative Disclosures about Market Risk	18
Item 4 - Controls and Procedures	18
Part II - Other Information	18
Item 1 - Legal Proceedings	18
Item 1A - Risk Factors	18
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3 - Defaults Upon Senior Securities	18
Item 4 - Mine Safety Disclosures	18
Item 5 - Other Information	18
Item 6 - Exhibits	19
Signatures	20

PART I: FINANCIAL INFORMATION

 

Item 1 – Financial Statements

 

WILLAMETTE VALLEY VINEYARDS, INC.

CONDENSED BALANCE SHEETS
(Unaudited)

 

		March 31,				December 31,
		2024				2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	256,472			$	238,482
Accounts receivable, net			3,211,644				2,994,829
Inventories			28,881,664				28,314,779
Prepaid expenses and other current assets			507,758				522,854
Income tax receivable			333,359				121,959
Total current assets			33,190,897				32,192,903
Other assets			13,824				13,824
Vineyard development costs, net			8,686,472				8,704,352
Property and equipment, net			53,009,801				53,369,637
Operating lease right of use assets			11,287,131				11,427,433
TOTAL ASSETS		$	106,188,125			$	105,708,149
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$	1,953,128			$	2,026,352
Accrued expenses			1,779,337				1,482,254
Investor deposits for preferred stock			-				718,857
Bank overdraft			522,521				393,416
Line of credit			3,320,928				2,684,982
Note payable			1,074,712				1,100,735
Current portion of long-term debt			529,463				522,798
Current portion of lease liabilities			459,290				450,452
Unearned revenue			1,939,956				1,970,661
Grapes payable			-				2,446,233
Total current liabilities			11,579,335				13,796,740
Long-term debt, net of current portion and debt issuance costs			9,330,046				6,961,872
Lease liabilities, net of current portion			11,284,367				11,402,714
Deferred income taxes			2,911,618				2,911,618
Total liabilities			35,105,366				35,072,944
COMMITMENTS AND CONTINGENCIES (NOTE 9)
SHAREHOLDERS’ EQUITY
Redeemable preferred stock, no par value, 100,000,000 shares authorized, 10,239,573 shares issued and outstanding, liquidation preference $43,057,405, at March 31, 2024 and 10,046,833 shares issued and outstanding, liquidation preference $41,694,357, at December 31, 2023.			43,920,572				42,388,036
Common stock, no par value, 10,000,000 shares authorized, 4,964,529 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively.			8,512,489				8,512,489
Retained earnings			18,649,698				19,734,680
Total shareholders’ equity			71,082,759				70,635,205
LIABILITIES AND SHAREHOLDERS’ EQUITY		$	106,188,125			$	105,708,149

 

The accompanying notes are an integral part of this condensed financial statement

WILLAMETTE VALLEY VINEYARDS, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

		Three months ended
		March 31,
		2024				2023
SALES, NET		$	8,803,080			$	8,308,940
COST OF SALES			3,530,358				3,830,477
GROSS PROFIT			5,272,722				4,478,463
OPERATING EXPENSES:
Sales and marketing			4,027,782				3,983,580
General and administrative			1,847,517				1,469,833
Total operating expenses			5,875,299				5,453,413
LOSS FROM OPERATIONS			(602,577	)			(974,950	)
OTHER INCOME (EXPENSE)
Interest expense			(229,687	)			(124,422	)
Other income, net			98,052				73,586
LOSS BEFORE INCOME TAXES			(734,212	)			(1,025,786	)
INCOME TAX BENEFIT			212,407				280,963
NET LOSS			(521,805	)			(744,823	)
Accrued preferred stock dividends			(563,177	)			(511,719	)
LOSS APPLICABLE TO COMMON SHAREHOLDERS		$	(1,084,982	)		$	(1,256,542	)
Loss per common share after preferred dividends, basic and diluted		$	(0.22	)		$	(0.25	)
Weighted-average number of common shares outstanding, basic and diluted			4,964,529				4,964,529

 

The accompanying notes are an integral part of this condensed financial statement

WILLAMETTE VALLEY VINEYARDS, INC.

CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

 

		Three-Month Period Ended March 31, 2024
		Redeemable
		Preferred Stock								Common Stock								Retained
		Shares				Dollars				Shares				Dollars				Earnings				Total
Balance at December 31, 2023			10,046,833			$	42,388,036				4,964,529			$	8,512,489			$	19,734,680			$	70,635,205
Issuance of preferred stock, net			192,740				969,359				-				-				-				969,359
Preferred stock dividends accrued			-				563,177				-				-				(563,177	)			-
Net loss			-				-				-				-				(521,805	)			(521,805	)
Balance at March 31, 2024			10,239,573			$	43,920,572				4,964,529			$	8,512,489			$	18,649,698			$	71,082,759
		Three-Month Period Ended March 31, 2023
		Redeemable
		Preferred Stock								Common Stock								Retained
		Shares				Dollars				Shares				Dollars				Earnings				Total
Balance at December 31, 2022			9,185,666			$	38,869,075				4,964,529			$	8,512,489			$	22,980,370			$	70,361,934
Issuance of preferred stock, net			118,322				550,254				-				-				-				550,254
Preferred stock dividends accrued			-				511,719				-				-				(511,719	)			-
Net loss			-				-				-				-				(744,823	)			(744,823	)
Balance at March 31, 2023			9,303,988			$	39,931,048				4,964,529			$	8,512,489			$	21,723,828			$	70,167,365

 

The accompanying notes are an integral part of this condensed financial statement

WILLAMETTE VALLEY VINEYARDS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		Three months ended March 31,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(521,805	)		$	(744,823	)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization			833,510				767,393
Non-cash lease expense			140,302				205,775
Loan fee amortization			3,312				3,312
Change in operating assets and liabilities:
Accounts receivable			(216,815	)			1,096,856
Inventories			(566,885	)			(368,046	)
Prepaid expenses and other current assets			15,096				(141,355	)
Income tax receivable			(211,400	)			(261,508	)
Unearned revenue			(30,705	)			(60,415	)
Lease liabilities			(109,509	)			(179,888	)
Grapes payable			(2,446,233	)			(1,208,673	)
Accounts payable			(198,720	)			(287,113	)
Accrued expenses			297,083				(101,447	)
Net cash from operating activities			(3,012,769	)			(1,279,932	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to vineyard development costs			(23,644	)			(19,232	)
Additions to property and equipment			(306,654	)			(1,480,944	)
Net cash from investing activities			(330,298	)			(1,500,176	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment on installment note for property purchase			(26,023	)			(24,519	)
Proceeds from bank overdraft			129,105				316,339
Proceeds from line of credit			635,946				1,011,461
Payment on long-term debt			(128,473	)			(110,252	)
Proceeds from long-term debt			2,500,000				1,000,000
Proceeds from issuance of preferred stock			250,502				402,743
Net cash from financing activities			3,361,057				2,595,772
NET CHANGE IN CASH AND CASH EQUIVALENTS			17,990				(184,336	)
CASH AND CASH EQUIVALENTS, beginning of period			238,482				338,676
CASH AND CASH EQUIVALENTS, end of period		$	256,472			$	154,340
NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchases of property and equipment and vineyard development costs included in accounts payable		$	194,351			$	4,015
Reduction in investor deposits for preferred stock		$	718,857			$	147,511
Accrued preferred stock dividends		$	563,177			$	511,719
Right of use assets obtained in exchange for operating lease liabilities		$	-			$	695,565

 

The accompanying notes are an integral part of this condensed financial statement

NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS

 

1) BASIS OF PRESENTATION

 

The accompanying unaudited interim condensed financial statements as of March 31, 2024 and for the three months ended March 31, 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 (the “2023 Report”). 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 unaudited interim condensed financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2023, as presented in the Company’s Annual Report on Form 10-K.

 

Operating results for the three months ended March 31, 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 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 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 March 31,
		2024				2023
Numerator
Net loss		$	(521,805	)		$	(744,823	)
Accrued preferred stock dividends			(563,177	)			(511,719	)
Net loss applicable to common shareholders		$	(1,084,982	)		$	(1,256,542	)
Denominator
Weighted-average number of common shares outstanding basic and diluted			4,964,529				4,964,529
Loss per common share after preferred dividends, basic and diluted		$	(0.22	)		$	(0.25	)

 

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 Company’s unaudited interim condensed financial statements.

2) INVENTORIES

 

The Company’s inventories, by major classification, are summarized as follows, as of the dates shown:

  

Schedule of Inventories

		March 31, 2024				December 31, 2023
Winemaking and packaging materials		$	1,757,981			$	1,113,170
Work-in-process (costs relating to unprocessed and/or unbottled wine products)			15,417,269				15,952,118
Finished goods (bottled wine and related products)			11,706,414				11,249,491
Total inventories		$	28,881,664			$	28,314,779

 

3) PROPERTY AND EQUIPMENT, NET

 

The Company’s property and equipment consists of the following, as of the dates shown:

 

Schedule of Property and Equipment, Net

		March 31, 2024				December 31, 2023
Construction in progress		$	912,895			$	639,840
Land, improvements, and other buildings			14,491,827				14,491,827
Winery buildings and tasting rooms			44,112,526				43,991,586
Equipment			20,141,690				20,103,535
Property and equipment, gross			79,658,938				79,226,788
Accumulated depreciation			(26,649,137	)			(25,857,151	)
Property and equipment, net		$	53,009,801			$	53,369,637

 

Depreciation expense for the three months ended March 31, 2024 and 2023 was $791,986 and $726,564, respectively.

 

4) DEBT

 

Line of Credit Facility – In December of 2005, the Company entered into a revolving line of credit agreement with Umpqua Bank (the “Credit Agreement”) that allows borrowing up to $2,000,000 against eligible accounts receivable and inventories, as defined in the agreement. The revolving line bears interest at prime less 0.5%, with a floor of 3.25%, is payable monthly, and is subject to renewal. In July 2021, the Company renewed the Credit Agreement until July 31, 2023. In November 2022, the Company increased the borrowing line up to $5,000,000. In July 2023 the line of credit was renewed for an additional two years. The Company had an outstanding line of credit balance of $3,320,928 at March 31, 2024, at an interest rate of 8.0%, and an outstanding line of credit balance of $2,684,982 at December 31, 2023, at an interest rate of 8.0%.

 

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 – In February 2017, the Company purchased property, including vineyard land, bare land, and structures in the Dundee Hills American Viticultural Area (AVA) under terms that included a 15 year note payable with quarterly payments of $42,534, bearing interest at 6%. The note may be called by the owner, up to the outstanding balance, with 180 days written notice. As of March 31, 2024, the Company had a balance of $1,074,712 due on this note. As of December 31, 2023, the Company had a balance of $1,100,735 due on this note.

8

 

Long-Term Debt – The Company has three long term debt agreements with AgWest with an aggregate outstanding balance of $9,962,186 and $7,590,659 as of March 31, 2024 and December 31, 2023, respectively. The first two outstanding loans require monthly principal and interest payments of $62,067 for the life of the loans, at annual fixed interest rates of 4.75% and 5.21%, and with maturity dates of 2028 and 2032, respectively. The general purposes of these loans were to make capital improvements to the winery and vineyard facilities. The third loan bears interest at Northwest Variable base, which was 7.80% at March 31, 2024, and December 31, 2023, respectively, with interest due annually and principal at maturity on November 1, 2025.

 

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			394,325
2025			6,074,920
2026			578,559
2027			608,636
2028			640,299
Thereafter			1,665,447
Total		$	9,962,186

 

As of March 31, 2024, the Company had unamortized debt issuance costs of $102,677. As of December 31, 2023, the Company had unamortized debt issuance costs of $105,989.

 

5) INTEREST AND TAXES PAID

 

Income taxes – The Company paid zero in income taxes for the three months ended March 31, 2024, and received $19,456 in income tax refunds for the three months ended March 31, 2023.

 

Interest – The Company paid $134,979 and $93,805 for the three months ended March 31, 2024 and 2023, respectively, in interest on long-term debt, line of credit and the bank overdraft.

 

6) 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 include retail sales in the tasting rooms, wine club sales, internet 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 (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.

9

 

The following table outlines the sales, cost of sales, gross margin, directly attributable selling expenses, and contribution margin of the segments for the three months ended March 31, 2024 and 2023. Sales figures are net of related excise taxes.

 

Schedule of Segment reporting

		Three Months Ended March 31,
		Direct Sales								Distributor Sales								Unallocated								Total
		2024				2023				2024				2023				2024				2023				2024				2023
Sales, net		$	4,286,156			$	4,071,649			$	4,516,924			$	4,237,291			$	-			$	-			$	8,803,080			$	8,308,940
Cost of Sales			1,295,145				1,289,933				2,235,213				2,540,544				-				-				3,530,358				3,830,477
Gross Profit			2,991,011				2,781,716				2,281,711				1,696,747				-				-				5,272,722				4,478,463
Selling and Marketing Expenses			3,263,381				3,214,501				504,424				531,741				259,977				237,338				4,027,782				3,983,580
Contribution Margin		$	(272,370	)		$	(432,785	)		$	1,777,287			$	1,165,006
Percent of Sales			48.7	%			49.0	%			51.3	%			51.0	%
General and Administration Expenses																			1,847,517				1,469,833				1,847,517				1,469,833
Loss from Operations																										$	(602,577	)		$	(974,950	)

 

Direct sales include zero bulk wine sales in the three months ended March 31, 2024 compared to $10,000 bulk wine sales in the three months ended March 31, 2023.

 

7) SALE OF PREFERRED STOCK

 

On June 11, 2021, the Company filed with the SEC an additional Prospectus Supplement to the 2020 Form S-3, pursuant to which the Company sold an aggregate of 1,918,939 shares of its Series A Redeemable Preferred Stock for aggregate proceeds of $9,008,334 net of acquisition costs.

 

On July 1, 2022, the Company filed a new shelf Registration Statement on Form S-3 (the “July 2022 Form S-3”) with 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. On August 1, 2022 and September 1 2022, the Company filed with the SEC 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 213,158 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,097,765 and up to 284,995 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,467,729, respectively. Each of these Prospectus Supplements established that our shares of preferred stock were to be sold in three offering periods with three separate offering prices beginning with an offering price of $5.15 per share and concluding with an offering of $5.35 per share. On October 3, 2022, 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 233,564 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,226,211. 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 $5.25 per share and concluding with an offering of $5.35 per share. On November 1, 2022, 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 344,861 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,845,009. This Prospectus Supplement established that our shares of preferred stock were to be sold in one offering period with an offering price of $5.35 per share. Net proceeds of $3,558,807 have been received under these offerings as of March 31, 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 $5.35 per share. Net proceeds of $3,938,066 have been received under these offering as of March 31, 2024 for the issuance of Preferred Stock.

10

 

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 March 31, 2024 and December 31, 2023 was $1,099,872 and $1,480,138, respectively, and is recorded as unearned revenue on the balance sheets. Revenue from gift cards is recognized when the gift card is redeemed by a customer. When the likelihood of a gift card being redeemed by a customer is determined to be remote and the Company expects to be entitled to the breakage, then the value of the unredeemed gift card is recognized as revenue. We determine the gift card breakage rate based upon Company-specific historical redemption patterns. To date we have determined that no breakage should be recognized related to our gift cards.

 

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.

 

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, 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.

 

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 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.

11

 

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.

 

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.

 

Operating Leases – Non-Vineyard – 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.

 

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.

 

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.

 

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.

 

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 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 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 assumed it will operate in this location for 10 years.

 

The following tables provide lease cost and other lease information:

 

Schedule of Lease Cost and Information

		Three Months Ended				Three Months Ended
		March 31, 2024				March 31, 2023
Lease Cost
Operating lease cost - Vineyards		$	114,782			$	114,782
Operating lease cost - Other			250,640				219,982
Short-term lease cost			8,427				3,575
Total lease cost		$	373,849			$	338,339
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases - Vineyard		$	115,266			$	113,921
Operating cash flows from operating leases - Other		$	219,363			$	194,955
Weighted-average remaining lease term - Operating leases in years			15.59				10.81
Weighted-average discount rate - Operating leases			7.88	%			5.36	%

12

 

Right-of-use assets obtained in exchange for new operating lease obligations were zero and $695,565 for the three months ended March 31, 2024 and 2023, respectively.

 

As of March 31, 2024, maturities of lease liabilities were as follows:

 

Schedule of Maturities of Lease Liabilities

		Operating
Years Ended December 31,		Leases
2024		$	1,005,731
2025			1,326,705
2026			1,299,824
2027			1,354,008
2028			1,339,747
Thereafter			14,912,964
Total minimal lease payments			21,238,979
Less present value adjustment			(9,495,322	)
Operating lease liabilities			11,743,657
Less current lease liabilities			(459,290	)
Lease liabilities, net of current portion		$	11,284,367

 

9) COMMITMENTS AND CONTINGENCIES

 

Litigation – From time to time, in the normal course of business, the Company is a party to legal proceedings. Management believes that these matters will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows, but, due to the nature of litigation, the ultimate outcome of any potential actions cannot presently be determined.

 

Grape Purchases – The Company has entered into long-term grape purchase agreements with a number of Willamette Valley wine grape growers. With these agreements the Company purchases an annually agreed upon quantity of fruit, at pre-determined prices, within strict quality standards and crop loads. The Company cannot calculate the minimum or maximum payment as such a calculation is dependent in large part on unknowns such as the quantity of fruit needed by the Company and the availability of grapes produced that meet the strict quality standards in any given year. If no grapes are produced that meet the contractual quality levels, the grapes may be refused, and no payment would be due.

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

As used in this Quarterly Report on Form 10-Q, “we,” “us,” “our” and “the Company” refer to Willamette Valley Vineyards, Inc.

 

Forward Looking Statements

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Form 10-Q contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company’s business, and beliefs and assumptions made by management. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates”, “predicts,” “potential,” “should,” or “will” or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to: availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease or smoke from forest fires, changes in consumer spending, and the reduction in consumer demand for premium wines. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions. Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as in the Company’s other Securities and Exchange Commission filings and reports. The forward-looking statements in this report are made as of the date hereof, and, except as otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.

 

Critical Accounting Policies

 

The foregoing discussion and analysis of the Company’s financial condition and results of operations are based upon our unaudited condensed financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed financial statements requires the Company’s management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to revenue recognition, collection of accounts receivable, valuation of inventories, and amortization of vineyard development costs. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. A description of the Company’s critical accounting policies and related judgments and estimates that affect the preparation of the Company’s financial statements is set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Such policies were unchanged during the three months ended March 31, 2024.

 

Overview

 

The Company, one of the largest wine producers in Oregon by volume, believes its success is dependent upon its ability to: (1) grow and purchase high quality vinifera wine grapes; (2) vinify the grapes into premium, super premium and ultra-premium wine; (3) achieve significant brand recognition for its wines, first in Oregon, and then nationally and internationally; (4) effectively distribute and sell its products nationally; and (5) continue to build on its base of direct to consumer sales.

 

The Company’s goal is to continue to build on a reputation for producing some of Oregon’s finest, most sought-after wines. The Company has focused on positioning itself for strategic growth through property purchases, property development and issuance of the Company’s Series A Redeemable Preferred Stock (the “Preferred Stock”). Management expects near term financial results to be negatively impacted by these activities as a result of incurring costs of accrued preferred stock dividends, strategic planning and development costs and other growth associated costs.

 

The Company’s wines are made from grapes grown in vineyards owned, leased or contracted by the Company, and from grapes purchased from other vineyards. The grapes are harvested, fermented and made into wine primarily at the Company’s winery in Turner Oregon (the “Winery”) and the wines are sold principally under the Company’s Willamette Valley Vineyards label, but also under the Griffin Creek, Pambrun, Elton, Maison Bleue, Metis, Natoma, Pere Ami, Elton, Domaine Willamette and Tualatin Estates labels. The Company also owns the Tualatin Estate Vineyards and Winery, located near Forest Grove, Oregon and the Domaine Willamette Winery located near Dundee, Oregon. The Company generates revenues from the sales of wine to wholesalers and direct to consumers.

Direct to consumer sales primarily include sales through the Company’s tasting rooms, telephone, internet and wine club. Direct to consumer sales are at a higher unit price than sales through distributors due to prices received being closer to retail than those prices paid by wholesalers. The Company continues to emphasize growth in direct to consumer sales through the Company’s existing tasting rooms and the opening of new locations, and growth in wine club membership. Additionally, the Company’s Preferred Stock sales since August 2015 have resulted in approximately 14,385 new preferred stockholders many of which the Company believes are wine enthusiasts. When considering joint ownership, we believe these new stockholders represent approximately 21,577 current and potential customers of the Company.

 

Periodically, the Company will sell grapes or bulk wine, due to them not meeting Company standards or being in excess of production targets, however this is not a significant part of the Company’s activities.

 

The Company sold 43,208 and 42,387 cases of produced wine during the three months ended March 31, 2024 and 2023, respectively, an increase of 821 cases, or 2.0% in the current year period over the prior year period.  The increase in wine case sales was primarily the result of having more locations and more availability of some vintages in the quarter when compared to the prior year period.

 

Cost of sales includes grape costs, whether purchased or grown at Company vineyards, winemaking and processing costs, bottling, packaging, warehousing, and shipping and handling costs. For grapes grown at Company vineyards, costs include farming expenditures and amortization of vineyard development costs.

 

At March 31, 2024, wine inventory included 147,351 cases of bottled wine and 658,454 gallons of bulk wine in various stages of the aging process. Case wine is expected to be sold over the next 12 to 24 months and generally before the release date of the next vintage. The Winery bottled 57,908 cases during the three months ended March 31, 2024.

 

Willamette Valley Vineyards continues to receive positive recognition through national magazines, regional publications, local newspapers and online bloggers including the accolades below. 

 

James Suckling rated the Company’s 2021 Elton Pinot Noir 92 points and the 2021 Signature Cuvée Pinot Noir 91 points. He also rated the Company’s 2021 Estate Pinot Noir 91 points, Dijon Clone Chardonnay 91 points and the 2022 Pinot Gris 90 points.

 

Owen Bargreen rated the Company’s 2020 Domaine Willamette Méthode Traditionnelle Brut Rosé, 2022 Tualatin Estate Chardonnay, 2021 Mètis Red Blend and 2022 Dry Riesling all 92 points. Bargreen also scored the 2022 Dry Gewürztraminer at 91 points.

 

RESULTS OF OPERATIONS

 

Revenue

 

Sales revenue for the three months ended March 31, 2024 and 2023 was $8,803,080 and $8,308,940, respectively, an increase of $494,140, or 5.9%, in the current year period over the prior year period. This increase was caused by an increase in revenues from direct sales of $214,507 and an increase in revenues from shipments to distributors of $279,633 in the current year’s three-month period over the same period in the prior year. The increase in direct sales to consumers was primarily the result of higher wine club revenues and having an additional tasting room open in 2024 when compared to 2023. The increase in revenue from the distributors was primarily attributed to higher prices in the current year three-month period over the same period in the prior year. 

 

Cost of Sales

 

Cost of sales for the three months ended March 31, 2024 and 2023 was $3,530,358 and $3,830,477, respectively, a decrease of $300,119, or 7.8%, in the current period over the prior year period. This change was primarily the result of the change in the mix of products sold in the first quarter of 2024 when compared to the same quarter in 2023.

Gross Profit

 

Gross profit for the three months ended March 31, 2024 and 2023 was $5,272,722 and $4,478,463, respectively, an increase of $794,259, or 17.7%, in the first quarter of 2024 over the same quarter in the prior year. This increase was primarily the result of a combination of an increase in direct sales combined with higher margins from our sales through distributors in the first three months of the current year compared to the same period in 2023.

 

Gross profit as a percentage of net sales for the three months ended March 31, 2024 and 2023 was 59.9% and 53.9%, respectively, an increase of 6.0 percentage points in the current quarter over the same quarter in the prior year. The increase was primarily the result of the higher prices charged for our products sold through distributors in the current quarter.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses for the three months ended March 31, 2024 and 2023 was $5,875,299 and $5,453,413, respectively, an increase of $421,886, or 7.7%, in the current quarter over the same quarter in the prior year. This increase was primarily the result of an increase in selling expenses of $44,202, or 1.1% and an increase in general and administrative expenses of $377,684, or 25.7% in the current quarter compared to the same quarter last year. Selling expenses increased in 2024 compared to 2023 primarily as a result of having an additional tasting room location in 2024. General and administrative expenses increased in the first quarter of 2024 compared to the same quarter of 2023 primarily as a result of higher legal costs.

 

Interest Expense

 

Interest expense for the three months ended March 31, 2024 and 2023 was $229,687 and $124,422, respectively, an increase of $105,265 or 84.6%, in the first quarter of 2024 over the same quarter in the prior year. The increase in interest expense for the first quarter was primarily the result of higher debt and higher interest rates compared to the first quarter of 2023.

 

Income Tax Benefit

 

The income tax benefit for the three months ended March 31, 2024 and 2023 was $212,407 and $280,963, respectively, a decrease of $68,556 or 24.4%, in the first quarter of 2024 over the same quarter in the prior year, primarily as a result of a lower pre-tax loss in the first quarter of 2024, compared to the same quarter in 2023. The Company’s estimated federal and state combined income tax rate for the three months ended March 31, 2024 and 2023 was 28.9% and 27.4% respectively.

 

Net Loss

 

Net loss for the three months ended March 31, 2024 and 2023 was $521,805 and $744,823, respectively, a decrease of $223,018, or 29.9%, in the first quarter of 2024 over the same quarter in the prior year. The decrease in net loss for the first quarter of 2024, compared to the comparable period in 2023, was primarily the result of higher prices of products sold in 2024.

Net Loss Applicable to Common Shareholders

 

Net loss applicable to common shareholders for the three months ended March 31, 2024 and 2023 was $1,084,982 and $1,256,542, respectively, a decrease of $171,560, or 13.7%, in the first quarter of 2024 over the same quarter in the prior year. The decrease in loss applicable to common shareholders in the first quarter of 2024, compared to the same period of 2023, was the result of a lower net loss being partially offset by a higher accrued preferred stock dividend in the current period.

 

Liquidity and Capital Resources

 

At March 31, 2024, the Company had a working capital balance of $21.6 million and a current working capital ratio of 2.87:1.

 

At March 31, 2024, the Company had a cash balance of $256,472. At December 31, 2023, the Company had a cash balance of $238,482.

 

Total cash used for operating activities in the three months ended March 31, 2024 was $3,012,769. Cash used in operating activities for the three months ended March 31, 2024 was primarily associated with reduced grapes payable and increased inventories, being partially offset by depreciation and amortization.

 

Total cash used in investing activities in the three months ended March 31, 2024 was $330,298. Cash used in investing activities for the three months ended March 31, 2024 consisted of cash used on property and equipment and vineyard development costs.

 

Total cash generated from financing activities in the three months ended March 31, 2024 was $3,361,057. Cash generated from financing activities for the three months ended March 31, 2024 primarily consisted of proceeds from the issuance of Preferred Stock and proceeds from the line of credit and long-term debt, being partially offset by the repayment of long-term debt.

 

In December of 2005, the Company entered into a revolving line of credit agreement with Umpqua Bank (the “Credit Agreement”) that allows borrowing up to $2,000,000 against eligible accounts receivable and inventories, as defined in the agreement. The revolving line bears interest at prime less 0.5%, with a floor of 3.25%, is payable monthly, and is subject to renewal. In July 2021, the Company renewed the Credit Agreement until July 31, 2023. In November 2022, the Company increased the borrowing line up to $5,000,000. In July 2023 the line of credit was renewed for an additional two years. The Company had an outstanding line of credit balance of $3,320,928 at March 31, 2024, at an interest rate of 8.0%, and an outstanding line of credit balance of $2,684,982 at December 31, 2023, at an interest rate of 8.0%.

 

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.

 

As of March 31, 2024, the Company had a 15-year installment note payable of $1,074,712, due in quarterly payments of $42,534, associated with the purchase of property in the Dundee Hills AVA.

 

As of March 31, 2024, the Company had a total long-term debt balance of $9,962,186, including the portion due in the next year, owed to AgWest, exclusive of debt issuance costs of $102,677. As of December 31, 2023, the Company had a total long-term debt balance of $7,590,659, exclusive of debt issuance costs of $105,989.

 

The Company believes that cash flow from operations and funds available under the Company’s existing credit facilities will be sufficient to meet the Company’s short-term needs.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a smaller reporting company, the Company is not required to provide the information required by this item.

 

ITEM 4: CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures – The Company carried out an evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures pursuant to paragraph (b) of Rule 13a-15 and 15d-5 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that review, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective, as of the end of the period covered by this report, to ensure that information required to be disclosed by the Company in the reports the Company files or submit under the Exchange Act (1) is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including the Company’s principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting – There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II: OTHER INFORMATION

 

Item 1 - Legal Proceedings

 

From time to time, the Company is a party to various judicial and administrative proceedings arising in the ordinary course of business. The Company’s management and legal counsel have reviewed the probable outcome of any proceedings that were pending during the period covered by this report, the costs and expenses reasonably expected to be incurred, the availability and limits of the Company’s insurance coverage, and the Company’s established liabilities. While the outcome of legal proceedings cannot be predicted with certainty, based on the Company’s review, the Company believes that any unrecorded liability that may result as a result of any legal proceedings is not likely to have a material effect on the Company’s liquidity, financial condition or results from operations.

 

Item 1A - Risk Factors

 

In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which could materially affect our business, results of operations or financial condition.

 

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may eventually prove to materially adversely affect our business, impact our results of operations or financial condition.

 

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3 - Defaults Upon Senior Securities

 

None.

 

Item 4 - Mine Safety Disclosures

 

Not applicable.

 

Item 5 – Other Information

 

During the three months ended March 31, 2024, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “Non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408(a) of Regulation S-K.

Item 6 – Exhibits

 

3.1	Articles of Incorporation of Willamette Valley Vineyards, Inc. (incorporated by reference from the Company’s Regulation A Offering Statement on Form 1-A, File No. 24S-2996)
3.2	Articles of Amendment, dated August 22, 2000 (incorporated herein by reference to Exhibit 3.4 to the Company’s Form 10-Q for the quarterly period ended June 30, 2008, filed on August 14, 2008, File No. 000-21522)
3.3	Articles of Amendment to the Articles of Incorporation of Willamette Valley Vineyards, Inc., dated August 9, 2022.
3.4	Amended and Restated Bylaws of Willamette Valley Vineyards, Inc. (incorporated by reference from the Company’s Current Reports on Form 8-K filed on November 20, 2015, File No. 001-37610)
31.1	Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 (Filed herewith)
31.2	Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 (Filed herewith)
32.1	Certification of James W. Bernau pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
32.2	Certification of John Ferry pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
101	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Condensed Balance Sheets, (ii) Condensed Statements of Operations; (iii) Condensed Statements of Shareholders’ Equity; (iv) Condensed Statements of Cash Flows; and (iv) Notes to Financial Statements, tagged as blocks of text. (Filed herewith)
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 has been formatted in Inline XBRL

SIGNATURES

 

Pursuant to the requirements of the Security Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

WILLAMETTE VALLEY VINEYARDS, INC.
Date: May 13, 2024	By	/s/ James W. Bernau
	James W. Bernau
	Chief Executive Officer
	(Principal Executive Officer)
Date: May 13, 2024	By	/s/ John Ferry
	John Ferry
	Chief Financial Officer
	(Principal Accounting and Financial Officer)

 

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

 

I, James W. Bernau, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Willamette Valley Vineyards, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 13, 2024	By	/s/ James W. Bernau
		James W. Bernau
		Chief Executive Officer
		(Principal Executive Officer)

 

Exhibit 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

 

I, John Ferry, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Willamette Valley Vineyards, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 13, 2024	By	/s/ John Ferry
		John Ferry
		Chief Financial Officer
		(Principal Accounting and Financial Officer)

 

Exhibit 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, James W. Bernau, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

the Quarterly Report of Willamette Valley Vineyards, Inc. on Form 10-Q for the quarterly period ended March 31, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

information contained in the Report fairly presents in all material respects the financial condition and results of operations of Willamette Valley Vineyards, Inc.

 

Date: May 13, 2024	By	/s/ James W. Bernau
		James W. Bernau
		Title: Chief Executive Officer
		(Principal Executive Officer)

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Willamette Valley Vineyards, Inc. and will be retained by Willamette Valley Vineyards, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Willamette Valley Vineyards, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that Willamette Valley Vineyards, Inc. specifically incorporates it by reference.

 

Exhibit 32.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, John Ferry, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

the Quarterly Report of Willamette Valley Vineyards, Inc. on Form 10-Q for the quarterly period ended March 31, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

information contained in the Report fairly presents in all material respects the financial condition and results of operations of Willamette Valley Vineyards, Inc.

 

Date: May 13, 2024	By	/s/ John Ferry
		John Ferry
		Title: Chief Financial Officer
		(Principal Accounting and Financial Officer)

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Willamette Valley Vineyards, Inc. and will be retained by Willamette Valley Vineyards, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Willamette Valley Vineyards, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that Willamette Valley Vineyards, Inc. specifically incorporates it by reference.

v3.24.1.1.u2

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 13, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
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 A Redeemable Preferred Stock
Title of 12(b) Security	Series A Redeemable Preferred Stock
Trading Symbol	WVVIP
Security Exchange Name	NASDAQ

v3.24.1.1.u2

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 256,472	$ 238,482
Accounts receivable, net	3,211,644	2,994,829
Inventories	28,881,664	28,314,779
Prepaid expenses and other current assets	507,758	522,854
Income tax receivable	333,359	121,959
Total current assets	33,190,897	32,192,903
Other assets	13,824	13,824
Vineyard development costs, net	8,686,472	8,704,352
Property and equipment, net	53,009,801	53,369,637
Operating lease right of use assets	11,287,131	11,427,433
TOTAL ASSETS	106,188,125	105,708,149
CURRENT LIABILITIES
Accounts payable	1,953,128	2,026,352
Accrued expenses	1,779,337	1,482,254
Investor deposits for preferred stock		718,857
Bank overdraft	522,521	393,416
Line of credit	3,320,928	2,684,982
Note payable	1,074,712	1,100,735
Current portion of long-term debt	529,463	522,798
Current portion of lease liabilities	459,290	450,452
Unearned revenue	1,939,956	1,970,661
Grapes payable		2,446,233
Total current liabilities	11,579,335	13,796,740
Long-term debt, net of current portion and debt issuance costs	9,330,046	6,961,872
Lease liabilities, net of current portion	11,284,367	11,402,714
Deferred income taxes	2,911,618	2,911,618
Total liabilities	35,105,366	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 $43,057,405, at March 31, 2024 and 10,046,833 shares issued and outstanding, liquidation preference $41,694,357, at December 31, 2023.	43,920,572	42,388,036
Common stock, no par value, 10,000,000 shares authorized, 4,964,529 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively.	8,512,489	8,512,489
Retained earnings	18,649,698	19,734,680
Total shareholders’ equity	71,082,759	70,635,205
LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 106,188,125	$ 105,708,149

v3.24.1.1.u2

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Mar. 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	$ 43,057,405		$ 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

v3.24.1.1.u2

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
SALES, NET	$ 8,803,080	$ 8,308,940
COST OF SALES	3,530,358	3,830,477
GROSS PROFIT	5,272,722	4,478,463
OPERATING EXPENSES:
Sales and marketing	4,027,782	3,983,580
General and administrative	1,847,517	1,469,833
Total operating expenses	5,875,299	5,453,413
LOSS FROM OPERATIONS	(602,577)	(974,950)
OTHER INCOME (EXPENSE)
Interest expense	(229,687)	(124,422)
Other income, net	98,052	73,586
LOSS BEFORE INCOME TAXES	(734,212)	(1,025,786)
INCOME TAX BENEFIT	212,407	280,963
NET LOSS	(521,805)	(744,823)
Accrued preferred stock dividends	(563,177)	(511,719)
LOSS APPLICABLE TO COMMON SHAREHOLDERS	$ (1,084,982)	$ (1,256,542)
Loss per common share after preferred dividends, basic and diluted	$ (0.22)	$ (0.25)
Weighted-average number of common shares outstanding, basic and diluted	4,964,529	4,964,529

v3.24.1.1.u2

CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($)	Series A Redeemable Preferred Stock	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 loss			(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, 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 loss			(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

v3.24.1.1.u2

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (521,805)	$ (744,823)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization	833,510	767,393
Non-cash lease expense	140,302	205,775
Loan fee amortization	3,312	3,312
Change in operating assets and liabilities:
Accounts receivable	(216,815)	1,096,856
Inventories	(566,885)	(368,046)
Prepaid expenses and other current assets	15,096	(141,355)
Income tax receivable	(211,400)	(261,508)
Unearned revenue	(30,705)	(60,415)
Lease liabilities	(109,509)	(179,888)
Grapes payable	(2,446,233)	(1,208,673)
Accounts payable	(198,720)	(287,113)
Accrued expenses	297,083	(101,447)
Net cash from operating activities	(3,012,769)	(1,279,932)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to vineyard development costs	(23,644)	(19,232)
Additions to property and equipment	(306,654)	(1,480,944)
Net cash from investing activities	(330,298)	(1,500,176)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment on installment note for property purchase	(26,023)	(24,519)
Proceeds from bank overdraft	129,105	316,339
Proceeds from line of credit	635,946	1,011,461
Payment on long-term debt	(128,473)	(110,252)
Proceeds from long-term debt	2,500,000	1,000,000
Proceeds from issuance of preferred stock	250,502	402,743
Net cash from financing activities	3,361,057	2,595,772
NET CHANGE IN CASH AND CASH EQUIVALENTS	17,990	(184,336)
CASH AND CASH EQUIVALENTS, beginning of period	238,482	338,676
CASH AND CASH EQUIVALENTS, end of period	256,472	154,340
NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchases of property and equipment and vineyard development costs included in accounts payable	194,351	4,015
Reduction in investor deposits for preferred stock	718,857	147,511
Accrued preferred stock dividends	563,177	511,719
Right of use assets obtained in exchange for operating lease liabilities	$ 0	$ 695,565

v3.24.1.1.u2

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	1) BASIS OF PRESENTATION   The accompanying unaudited interim condensed financial statements as of March 31, 2024 and for the three months ended March 31, 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 (the “2023 Report”). 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 unaudited interim condensed financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2023, as presented in the Company’s Annual Report on Form 10-K.   Operating results for the three months ended March 31, 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 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 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 March 31,       2024     2023   Numerator                                   Net loss   $ (521,805 )   $ (744,823 ) Accrued preferred stock dividends     (563,177 )     (511,719 )                   Net loss applicable to common shareholders   $ (1,084,982 )   $ (1,256,542 )                   Denominator                                   Weighted-average number of common shares outstanding basic and diluted     4,964,529       4,964,529                     Loss per common share after preferred dividends, basic and diluted   $ (0.22 )   $ (0.25 )   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 Company’s unaudited interim condensed financial statements.

v3.24.1.1.u2

INVENTORIES	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
INVENTORIES	2) INVENTORIES   The Company’s inventories, by major classification, are summarized as follows, as of the dates shown:    Schedule of Inventories     March 31, 2024     December 31, 2023   Winemaking and packaging materials   $ 1,757,981     $ 1,113,170   Work-in-process (costs relating to unprocessed and/or unbottled wine products)     15,417,269       15,952,118   Finished goods (bottled wine and related products)     11,706,414       11,249,491                     Total inventories   $ 28,881,664     $ 28,314,779

v3.24.1.1.u2

PROPERTY AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	3) PROPERTY AND EQUIPMENT, NET   The Company’s property and equipment consists of the following, as of the dates shown:   Schedule of Property and Equipment, Net     March 31, 2024     December 31, 2023   Construction in progress   $ 912,895     $ 639,840   Land, improvements, and other buildings     14,491,827       14,491,827   Winery buildings and tasting rooms     44,112,526       43,991,586   Equipment     20,141,690       20,103,535                     Property and equipment, gross     79,658,938       79,226,788                     Accumulated depreciation     (26,649,137 )     (25,857,151 )                   Property and equipment, net   $ 53,009,801     $ 53,369,637     Depreciation expense for the three months ended March 31, 2024 and 2023 was $791,986 and $726,564, respectively.

v3.24.1.1.u2

DEBT	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
DEBT	4) DEBT   Line of Credit Facility – In December of 2005, the Company entered into a revolving line of credit agreement with Umpqua Bank (the “Credit Agreement”) that allows borrowing up to $2,000,000 against eligible accounts receivable and inventories, as defined in the agreement. The revolving line bears interest at prime less 0.5%, with a floor of 3.25%, is payable monthly, and is subject to renewal. In July 2021, the Company renewed the Credit Agreement until July 31, 2023. In November 2022, the Company increased the borrowing line up to $5,000,000. In July 2023 the line of credit was renewed for an additional two years. The Company had an outstanding line of credit balance of $3,320,928 at March 31, 2024, at an interest rate of 8.0%, and an outstanding line of credit balance of $2,684,982 at December 31, 2023, at an interest rate of 8.0%.   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 – In February 2017, the Company purchased property, including vineyard land, bare land, and structures in the Dundee Hills American Viticultural Area (AVA) under terms that included a 15 year note payable with quarterly payments of $42,534, bearing interest at 6%. The note may be called by the owner, up to the outstanding balance, with 180 days written notice. As of March 31, 2024, the Company had a balance of $1,074,712 due on this note. As of December 31, 2023, the Company had a balance of $1,100,735 due on this note. Long-Term Debt – The Company has three long term debt agreements with AgWest with an aggregate outstanding balance of $9,962,186 and $7,590,659 as of March 31, 2024 and December 31, 2023, respectively. The first two outstanding loans require monthly principal and interest payments of $62,067 for the life of the loans, at annual fixed interest rates of 4.75% and 5.21%, and with maturity dates of 2028 and 2032, respectively. The general purposes of these loans were to make capital improvements to the winery and vineyard facilities. The third loan bears interest at Northwest Variable base, which was 7.80% at March 31, 2024, and December 31, 2023, respectively, with interest due annually and principal at maturity on November 1, 2025.   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     394,325   2025     6,074,920   2026     578,559   2027     608,636   2028     640,299   Thereafter     1,665,447             Total   $ 9,962,186     As of March 31, 2024, the Company had unamortized debt issuance costs of $102,677. As of December 31, 2023, the Company had unamortized debt issuance costs of $105,989.

v3.24.1.1.u2

INTEREST AND TAXES PAID	3 Months Ended
	Mar. 31, 2024
Other Income and Expenses [Abstract]
INTEREST AND TAXES PAID	5) INTEREST AND TAXES PAID   Income taxes – The Company paid zero in income taxes for the three months ended March 31, 2024, and received $19,456 in income tax refunds for the three months ended March 31, 2023.   Interest – The Company paid $134,979 and $93,805 for the three months ended March 31, 2024 and 2023, respectively, in interest on long-term debt, line of credit and the bank overdraft.

v3.24.1.1.u2

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
SEGMENT REPORTING	6) 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 include retail sales in the tasting rooms, wine club sales, internet 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 (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 margin, directly attributable selling expenses, and contribution margin of the segments for the three months ended March 31, 2024 and 2023. Sales figures are net of related excise taxes.   Schedule of Segment reporting     Three Months Ended March 31,       Direct Sales     Distributor Sales     Unallocated     Total       2024     2023     2024     2023     2024     2023     2024     2023   Sales, net   $ 4,286,156     $ 4,071,649     $ 4,516,924     $ 4,237,291     $ -     $ -     $ 8,803,080     $ 8,308,940   Cost of Sales     1,295,145       1,289,933       2,235,213       2,540,544       -       -       3,530,358       3,830,477   Gross Profit     2,991,011       2,781,716       2,281,711       1,696,747       -       -       5,272,722       4,478,463   Selling and Marketing Expenses     3,263,381       3,214,501       504,424       531,741       259,977       237,338       4,027,782       3,983,580   Contribution Margin   $ (272,370 )   $ (432,785 )   $ 1,777,287     $ 1,165,006                                   Percent of Sales     48.7 %     49.0 %     51.3 %     51.0 %                                 General and Administration Expenses                                     1,847,517       1,469,833       1,847,517       1,469,833   Loss from Operations                                                   $ (602,577 )   $ (974,950 )   Direct sales include zero bulk wine sales in the three months ended March 31, 2024 compared to $10,000 bulk wine sales in the three months ended March 31, 2023.

v3.24.1.1.u2

SALE OF PREFERRED STOCK	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
SALE OF PREFERRED STOCK	7) SALE OF PREFERRED STOCK   On June 11, 2021, the Company filed with the SEC an additional Prospectus Supplement to the 2020 Form S-3, pursuant to which the Company sold an aggregate of 1,918,939 shares of its Series A Redeemable Preferred Stock for aggregate proceeds of $9,008,334 net of acquisition costs.   On July 1, 2022, the Company filed a new shelf Registration Statement on Form S-3 (the “July 2022 Form S-3”) with 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. On August 1, 2022 and September 1 2022, the Company filed with the SEC 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 213,158 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,097,765 and up to 284,995 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,467,729, respectively. Each of these Prospectus Supplements established that our shares of preferred stock were to be sold in three offering periods with three separate offering prices beginning with an offering price of $5.15 per share and concluding with an offering of $5.35 per share. On October 3, 2022, 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 233,564 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,226,211. 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 $5.25 per share and concluding with an offering of $5.35 per share. On November 1, 2022, 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 344,861 shares of Series A Redeemable Preferred Stock having proceeds not to exceed $1,845,009. This Prospectus Supplement established that our shares of preferred stock were to be sold in one offering period with an offering price of $5.35 per share. Net proceeds of $3,558,807 have been received under these offerings as of March 31, 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 $5.35 per share. Net proceeds of $3,938,066 have been received under these offering as of March 31, 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 March 31, 2024 and December 31, 2023 was $1,099,872 and $1,480,138, respectively, and is recorded as unearned revenue on the balance sheets. Revenue from gift cards is recognized when the gift card is redeemed by a customer. When the likelihood of a gift card being redeemed by a customer is determined to be remote and the Company expects to be entitled to the breakage, then the value of the unredeemed gift card is recognized as revenue. We determine the gift card breakage rate based upon Company-specific historical redemption patterns. To date we have determined that no breakage should be recognized related to our gift cards.   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.

v3.24.1.1.u2

LEASES	3 Months Ended
	Mar. 31, 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, 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.   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 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. 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.   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.   Operating Leases – Non-Vineyard – 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.   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.   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.   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.   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 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 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 assumed it will operate in this location for 10 years.   The following tables provide lease cost and other lease information:   Schedule of Lease Cost and Information     Three Months Ended     Three Months Ended       March 31, 2024     March 31, 2023   Lease Cost                 Operating lease cost - Vineyards   $ 114,782     $ 114,782   Operating lease cost - Other     250,640       219,982   Short-term lease cost     8,427       3,575   Total lease cost   $ 373,849     $ 338,339                     Other Information                 Cash paid for amounts included in the measurement of lease liabilities                 Operating cash flows from operating leases - Vineyard   $ 115,266     $ 113,921   Operating cash flows from operating leases - Other   $ 219,363     $ 194,955   Weighted-average remaining lease term - Operating leases in years     15.59       10.81   Weighted-average discount rate - Operating leases     7.88 %     5.36 % Right-of-use assets obtained in exchange for new operating lease obligations were zero and $695,565 for the three months ended March 31, 2024 and 2023, respectively.   As of March 31, 2024, maturities of lease liabilities were as follows:   Schedule of Maturities of Lease Liabilities     Operating   Years Ended December 31,   Leases   2024   $ 1,005,731   2025     1,326,705   2026     1,299,824   2027     1,354,008   2028     1,339,747   Thereafter     14,912,964   Total minimal lease payments     21,238,979   Less present value adjustment     (9,495,322 ) Operating lease liabilities     11,743,657   Less current lease liabilities     (459,290 ) Lease liabilities, net of current portion   $ 11,284,367

v3.24.1.1.u2

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	9) COMMITMENTS AND CONTINGENCIES   Litigation – From time to time, in the normal course of business, the Company is a party to legal proceedings. Management believes that these matters will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows, but, due to the nature of litigation, the ultimate outcome of any potential actions cannot presently be determined.   Grape Purchases – The Company has entered into long-term grape purchase agreements with a number of Willamette Valley wine grape growers. With these agreements the Company purchases an annually agreed upon quantity of fruit, at pre-determined prices, within strict quality standards and crop loads. The Company cannot calculate the minimum or maximum payment as such a calculation is dependent in large part on unknowns such as the quantity of fruit needed by the Company and the availability of grapes produced that meet the strict quality standards in any given year. If no grapes are produced that meet the contractual quality levels, the grapes may be refused, and no payment would be due.

v3.24.1.1.u2

BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 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 March 31,       2024     2023   Numerator                                   Net loss   $ (521,805 )   $ (744,823 ) Accrued preferred stock dividends     (563,177 )     (511,719 )                   Net loss applicable to common shareholders   $ (1,084,982 )   $ (1,256,542 )                   Denominator                                   Weighted-average number of common shares outstanding basic and diluted     4,964,529       4,964,529                     Loss per common share after preferred dividends, basic and diluted   $ (0.22 )   $ (0.25 )

v3.24.1.1.u2

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	The Company’s inventories, by major classification, are summarized as follows, as of the dates shown:    Schedule of Inventories     March 31, 2024     December 31, 2023   Winemaking and packaging materials   $ 1,757,981     $ 1,113,170   Work-in-process (costs relating to unprocessed and/or unbottled wine products)     15,417,269       15,952,118   Finished goods (bottled wine and related products)     11,706,414       11,249,491                     Total inventories   $ 28,881,664     $ 28,314,779

v3.24.1.1.u2

PROPERTY AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	The Company’s property and equipment consists of the following, as of the dates shown:   Schedule of Property and Equipment, Net     March 31, 2024     December 31, 2023   Construction in progress   $ 912,895     $ 639,840   Land, improvements, and other buildings     14,491,827       14,491,827   Winery buildings and tasting rooms     44,112,526       43,991,586   Equipment     20,141,690       20,103,535                     Property and equipment, gross     79,658,938       79,226,788                     Accumulated depreciation     (26,649,137 )     (25,857,151 )                   Property and equipment, net   $ 53,009,801     $ 53,369,637

v3.24.1.1.u2

DEBT (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Future Minimum Principal Payment for Long-Term Debt Maturities	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     394,325   2025     6,074,920   2026     578,559   2027     608,636   2028     640,299   Thereafter     1,665,447             Total   $ 9,962,186

v3.24.1.1.u2

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Segment reporting	The following table outlines the sales, cost of sales, gross margin, directly attributable selling expenses, and contribution margin of the segments for the three months ended March 31, 2024 and 2023. Sales figures are net of related excise taxes.   Schedule of Segment reporting     Three Months Ended March 31,       Direct Sales     Distributor Sales     Unallocated     Total       2024     2023     2024     2023     2024     2023     2024     2023   Sales, net   $ 4,286,156     $ 4,071,649     $ 4,516,924     $ 4,237,291     $ -     $ -     $ 8,803,080     $ 8,308,940   Cost of Sales     1,295,145       1,289,933       2,235,213       2,540,544       -       -       3,530,358       3,830,477   Gross Profit     2,991,011       2,781,716       2,281,711       1,696,747       -       -       5,272,722       4,478,463   Selling and Marketing Expenses     3,263,381       3,214,501       504,424       531,741       259,977       237,338       4,027,782       3,983,580   Contribution Margin   $ (272,370 )   $ (432,785 )   $ 1,777,287     $ 1,165,006                                   Percent of Sales     48.7 %     49.0 %     51.3 %     51.0 %                                 General and Administration Expenses                                     1,847,517       1,469,833       1,847,517       1,469,833   Loss from Operations                                                   $ (602,577 )   $ (974,950 )

v3.24.1.1.u2

LEASES (Tables)	3 Months Ended
	Mar. 31, 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     Three Months Ended     Three Months Ended       March 31, 2024     March 31, 2023   Lease Cost                 Operating lease cost - Vineyards   $ 114,782     $ 114,782   Operating lease cost - Other     250,640       219,982   Short-term lease cost     8,427       3,575   Total lease cost   $ 373,849     $ 338,339                     Other Information                 Cash paid for amounts included in the measurement of lease liabilities                 Operating cash flows from operating leases - Vineyard   $ 115,266     $ 113,921   Operating cash flows from operating leases - Other   $ 219,363     $ 194,955   Weighted-average remaining lease term - Operating leases in years     15.59       10.81   Weighted-average discount rate - Operating leases     7.88 %     5.36 %
Schedule of Maturities of Lease Liabilities	As of March 31, 2024, maturities of lease liabilities were as follows:   Schedule of Maturities of Lease Liabilities     Operating   Years Ended December 31,   Leases   2024   $ 1,005,731   2025     1,326,705   2026     1,299,824   2027     1,354,008   2028     1,339,747   Thereafter     14,912,964   Total minimal lease payments     21,238,979   Less present value adjustment     (9,495,322 ) Operating lease liabilities     11,743,657   Less current lease liabilities     (459,290 ) Lease liabilities, net of current portion   $ 11,284,367

v3.24.1.1.u2

BASIS OF PRESENTATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounting Policies [Abstract]
Net loss	$ (521,805)	$ (744,823)
Accrued preferred stock dividends	(563,177)	(511,719)
Net loss applicable to common shareholders	$ (1,084,982)	$ (1,256,542)
Weighted-average number of common shares outstanding basic and diluted	4,964,529	4,964,529
Loss per common share after preferred dividends, basic and diluted	$ (0.22)	$ (0.25)

v3.24.1.1.u2

INVENTORIES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Winemaking and packaging materials	$ 1,757,981	$ 1,113,170
Work-in-process (costs relating to unprocessed and/or unbottled wine products)	15,417,269	15,952,118
Finished goods (bottled wine and related products)	11,706,414	11,249,491
Total inventories	$ 28,881,664	$ 28,314,779

v3.24.1.1.u2

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Construction in progress	$ 912,895	$ 639,840
Land, improvements, and other buildings	14,491,827	14,491,827
Winery buildings and tasting rooms	44,112,526	43,991,586
Equipment	20,141,690	20,103,535
Property and equipment, gross	79,658,938	79,226,788
Accumulated depreciation	(26,649,137)	(25,857,151)
Property and equipment, net	$ 53,009,801	$ 53,369,637

v3.24.1.1.u2

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 791,986	$ 726,564

v3.24.1.1.u2

DEBT (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
2024	$ 394,325
2025	6,074,920
2026	578,559
2027	608,636
2028	640,299
Thereafter	1,665,447
Total	$ 9,962,186	$ 7,590,659

v3.24.1.1.u2

DEBT (Details Narrative) - USD ($)	Mar. 31, 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	$ 3,320,928	$ 2,684,982
Notes Payable, Current	1,074,712	1,100,735
Long-Term Debt, Gross	9,962,186	7,590,659
Unamortized Debt Issuance Expense	$ 102,677	$ 105,989

v3.24.1.1.u2

INTEREST AND TAXES PAID (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Other Income and Expenses [Abstract]
Income Taxes Paid	$ 0	$ (19,456)
Income Taxes Paid	0	19,456
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	$ 134,979	$ 93,805

v3.24.1.1.u2

SEGMENT REPORTING (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Sales, net	$ 8,803,080	$ 8,308,940
Cost of Sales	3,530,358	3,830,477
General and Administration Expenses	1,847,517	1,469,833
Loss from Operations	(602,577)	(974,950)
Direct Sales [Member]
Segment Reporting Information [Line Items]
Sales, net	4,286,156	4,071,649
Cost of Sales	1,295,145	1,289,933
Contribution Margin	$ (272,370)	$ (432,785)
Percent of Sales	48.70%	49.00%
Distributor Sales [Member]
Segment Reporting Information [Line Items]
Sales, net	$ 4,516,924	$ 4,237,291
Cost of Sales	2,235,213	2,540,544
Contribution Margin	$ 1,777,287	$ 1,165,006
Percent of Sales	51.30%	51.00%
Unallocated [Member]
Segment Reporting Information [Line Items]
Sales, net
Cost of Sales
General and Administration Expenses	$ 1,847,517	$ 1,469,833

v3.24.1.1.u2

SEGMENT REPORTING (Details Narrative)	3 Months Ended
	Mar. 31, 2024 USD ($) Number	Mar. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | Number	2
Revenues	$ 8,803,080	$ 8,308,940
Direct Sales [Member]
Segment Reporting Information [Line Items]
Revenues	4,286,156	4,071,649
Direct Sales [Member] | Bulk Wine And Grape [Member]
Segment Reporting Information [Line Items]
Revenues	$ 0	$ 10,000

v3.24.1.1.u2

SALE OF PREFERRED STOCK (Details Narrative) - USD ($)		3 Months Ended
	Jun. 11, 2021	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gift Card Liability		$ 1,099,872		$ 1,480,138
Series A Redeemable Preferred Stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Issued During Period, Shares, New Issues	1,918,939	192,740	118,322

v3.24.1.1.u2

LEASES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost - Vineyards	$ 114,782	$ 114,782
Operating lease cost - Other	250,640	219,982
Short-term lease cost	8,427	3,575
Total lease cost	373,849	338,339
Operating cash flows from operating leases - Vineyard	115,266	113,921
Operating cash flows from operating leases - Other	$ 219,363	$ 194,955
Operating Lease, Weighted Average Remaining Lease Term	15 years 7 months 2 days	10 years 9 months 22 days
Operating Lease, Weighted Average Discount Rate, Percent	7.88%	5.36%

v3.24.1.1.u2

LEASES (Details 2) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
2024	$ 1,005,731
2025	1,326,705
2026	1,299,824
2027	1,354,008
2028	1,339,747
Thereafter	14,912,964
Total minimal lease payments	21,238,979
Less present value adjustment	(9,495,322)
Operating lease liabilities	11,743,657
Less current lease liabilities	(459,290)	$ (450,452)
Lease liabilities, net of current portion	$ 11,284,367	$ 11,402,714

v3.24.1.1.u2

LEASES (Details Narrative) - USD ($)	1 Months Ended												3 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	Mar. 31, 2024	Mar. 31, 2023
Business Combination, Separately Recognized Transactions [Line Items]
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability													$ 0	$ 695,565
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.
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 assumed it will operate in this location for 10 years.	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

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