Wine Production and Sales - The Company produced and sold various types of wine under multiple labels, with Pinot Noir being the flagship varietal priced between $30 to $120 per bottle[19][21]. - In 2023, the company produced approximately 234,086 cases (556,700 gallons) of wine, primarily from its 2021 and 2022 harvests[61]. - The total grape harvest in 2023 was 4,192 tons, which includes 1,771 tons grown and 2,421 tons purchased from other growers[66]. - The company's producing acres yielded approximately 867 tons of grapes in 2023, which is roughly 14% below the 10-year average[53]. - The Company sold approximately 191,619 cases of wine in 2023, a 2.3% increase from 187,371 cases in 2022[148]. - Direct-to-consumer retail sales revenue increased by 31.0% in 2023, while in-state sales decreased by 5.0%[154]. - The Company has an estimated aggregate production capacity of 720,000 gallons (303,000 cases) per year, providing a competitive advantage in the market[83]. Financial Performance - The Company reported a net loss of $1,198,593 for the year ended December 31, 2023, an increase of 85.4% compared to a net loss of $646,492 in 2022[151]. - Net sales revenues increased by $5,202,033, or 15.3%, to $39,136,114 in 2023, driven by a 30.4% increase in direct sales revenue[153]. - Total revenue for the year ended December 31, 2023, was $39,567,828, an increase of $5,321,644, or 15.6%, compared to $34,246,184 in 2022[156]. - Gross profit rose to $22,557,128 in 2023, an increase of $3,743,032, or 19.9%, compared to $18,814,096 in 2022[161]. - The gross margin percentage improved to 57.6% in 2023, up 2.2 percentage points from 55.4% in 2022, driven by higher direct sales prices[162]. - Selling, general and administrative expenses increased by $4,403,816, or 22.7%, to $23,764,330 in 2023 from $19,360,514 in 2022[164]. - Loss from operations increased by $660,784, or 120.9%, to $1,207,202 in 2023 compared to $546,418 in 2022, influenced by higher depreciation costs[165]. - EBITDA for 2023 was $2,334,602, reflecting a 22.1% increase from $1,912,012 in 2022[171]. Market Trends and Industry Insights - The U.S. wine industry added 400 new wineries in 2022, marking a 3% increase from 2021, with a total retail value of wine sales rising from $26.3 billion in 2000 to $78.4 billion in 2021[25]. - The Oregon wine industry saw a 22% increase in the total value of wine grapes produced in 2022, reaching $330 million, with Pinot Noir accounting for 71% of planted acreage[29]. - The Company believes that the Oregon wine industry will grow at a faster rate than the overall domestic wine industry in the coming years, favoring premium wine producers[35]. - The number of active wineries in the U.S. decreased by 1% in 2023 compared to the peak in 2022, indicating a slowdown in industry growth[25][26]. - The wine industry is highly competitive, with significant pressure on selling and promotional expenses due to competition from both domestic and foreign wines[102]. Operational Developments - The Company has embarked on a brand expansion project in the Walla Walla AVA, aiming to produce small vintages of Cabernet Sauvignon and other Bordeaux varietals under the Pambrun brand[40]. - The Company opened a sparkling wine facility and tasting room called Domaine Willamette in 2022, featuring its sparkling wines and biodynamic farming practices[40]. - The Company opened a new sparkling winery, Domaine Willamette Winery, in September 2022, enhancing direct sales and wine tourism opportunities[71]. - The Company operates eight additional tasting rooms across various locations, expanding its market presence[75]. - The Company has developed a Winery Ambassador program to enhance customer engagement and facilitate wine ordering[74]. Grape Supply and Quality - The Company anticipates that its vineyards will enable it to grow approximately 73% of the grapes needed to meet its current production capacity of 654,000 gallons (275,000 cases)[42]. - The company’s contracted grape purchases are considered an important component of its long-term growth and risk-management plan[54]. - The company believes that high-quality grapes will be available for purchase in sufficient quantity to meet its requirements[54]. - Fluctuations in grape supply quality and quantity could adversely affect wine production, impacting sales and operational results[106]. Employee and Corporate Structure - The Company had approximately 223 full-time employees and 123 part-time employees as of December 31, 2023[89]. - The Company believes its unique structure as a publicly owned entity will provide significant advantages in gaining market share[83]. Risks and Challenges - Contamination risks could lead to product recalls, damaging the Company's reputation for quality[107]. - A reduction in consumer demand for premium wines could negatively impact the Company's business, influenced by economic conditions and health trends[108]. - Changes in consumer spending patterns could adversely affect the Company's financial condition and sales[109]. - Increased regulation and taxation in the wine industry could negatively impact the Company's financial results[110]. - The Company relies heavily on independent distributors for sales, which represent a substantial portion of net revenue, and any changes in distributor relationships could harm sales[104]. - The Company's common stock is thinly traded, resulting in lower liquidity compared to other investments[112]. - The issuance of additional shares of Preferred Stock could adversely affect the market price and rights of Common Stock holders[116].

Financial Performance - For the three months ended September 30, 2023, net sales increased to $9,348,066, a 23% increase from $7,602,878 in the same period of 2022[12] - Gross profit for the nine months ended September 30, 2023, was $16,413,619, representing a 32% increase compared to $12,441,469 for the same period in 2022[12] - For the nine months ended September 30, 2023, total net sales reached $28,383,249, a 26% increase from $22,546,057 in the same period of 2022[35] - Gross profit for the three months ended September 30, 2023, was $5,684,578, representing a 46% increase compared to $3,894,183 in the prior year[35] - The company reported a loss from operations of $948,879 for the nine months ended September 30, 2023, compared to a loss of $917,824 in the same period of 2022[35] Losses and Expenses - The net loss for the three months ended September 30, 2023, was $326,982, a decrease from a net loss of $949,821 in the same period of 2022[12] - For the nine months ended September 30, 2023, the company reported a net loss of $963,352, compared to a net loss of $791,362 for the same period in 2022, representing a 21.7% increase in losses year-over-year[16] - Operating expenses for the nine months ended September 30, 2023, totaled $17,362,498, which is a 30% increase from $13,359,293 in the same period of 2022[12] - Selling expenses rose to $4,351,879 for the three months ended September 30, 2023, compared to $3,774,495 in the same period of 2022, reflecting an increase of 15%[35] Assets and Liabilities - Total current assets as of September 30, 2023, were $30,048,987, up from $27,778,432 as of December 31, 2022, indicating an 8% increase[9] - Total liabilities increased to $31,777,256 as of September 30, 2023, compared to $28,322,048 as of December 31, 2022, reflecting a 9% rise[9] - Total current liabilities increased to $12.32 million as of September 30, 2023, from $9.93 million at the end of 2022, marking a rise of approximately 24%[9] - The company had an outstanding long-term debt balance of $7,717,435 as of September 30, 2023, compared to $7,062,654 as of December 31, 2022, indicating an increase of 9.3%[27] Cash Flow and Equities - Cash flows from operating activities resulted in a net cash outflow of $68,089 for the nine months ended September 30, 2023, a significant improvement from a net cash outflow of $2,139,960 in the same period of 2022[16] - The company’s cash and cash equivalents decreased to $213,432 as of September 30, 2023, down from $338,676 as of December 31, 2022[9] - Total shareholders' equity decreased to $69,948,836 as of September 30, 2023, from $70,361,934 as of December 31, 2022[9] - The company reported a loss applicable to common shareholders of $838,701 for the three months ended September 30, 2023, compared to a loss of $1,416,433 in the same period of 2022[12] Inventory and Purchases - Total inventories increased to $26,065,768 as of September 30, 2023, up from $22,201,499 as of December 31, 2022, reflecting a 17.5% rise[22] - The company reported a significant increase in finished goods inventory, which rose to $14,433,828 as of September 30, 2023, from $8,991,070 as of December 31, 2022, marking a 60.5% increase[22] - Grape purchases for the three months ended September 30, 2023, totaled $1.90 million, compared to $1.21 million for the same period in 2022, reflecting a 57% increase[58] Legal and Compliance - The company has received a waiver from Umpqua Bank regarding a debt covenant violation, which was out of compliance as of December 31, 2022, until the next measurement date of December 31, 2023[25] - The company believes ongoing legal proceedings will not materially affect its financial position or cash flows[57] - Management is unable to predict the ultimate outcome of legal proceedings, highlighting the inherent uncertainty in litigation[57] Lease Obligations - Operating lease liabilities net of current portion amounted to $8.93 million as of September 30, 2023, compared to $8.51 million at the end of 2022, indicating a rise of approximately 5%[9] - Total minimal lease payments amount to $12,962,853, with net lease liabilities (after current portion) at $8,926,152[57] - The total present value adjustment for lease liabilities is $3,178,376, reflecting the impact of discounting future payments[57]

Financial Performance - Net sales for the second quarter of 2023 reached $10,726,243, a 23.2% increase from $8,700,861 in the same period of 2022[12] - Gross profit for the six months ended June 30, 2023, was $10,729,041, up 25.5% from $8,547,286 in the prior year[12] - For the three months ended June 30, 2023, the net income was $108,453, compared to a net income of $257,401 for the same period in 2022, resulting in a loss per common share of $0.08[21] - The company reported a net loss of $636,370 for the six months ended June 30, 2023, compared to a net income of $158,459 in the same period of 2022[17] - The company reported a loss per common share of $0.33 for the six months ended June 30, 2023, compared to a loss of $0.16 for the same period in 2022[21] Assets and Liabilities - Total current assets as of June 30, 2023, were $27,753,739, slightly down from $27,778,432 at the end of 2022[9] - Total liabilities increased to $28,724,124 as of June 30, 2023, compared to $28,322,048 at the end of 2022[10] - Cash and cash equivalents at the end of the second quarter of 2023 were $553,180, a significant decrease from $3,128,407 at the end of the second quarter of 2022[17] - The outstanding line of credit balance was $1,505,793 as of June 30, 2023, compared to $166,617 at December 31, 2022, with an interest rate of 7.75%[25] - Long-term debt agreements had an aggregate outstanding balance of $7,841,963 as of June 30, 2023, up from $7,062,654 as of December 31, 2022[28] Operating Expenses - Operating expenses for the second quarter of 2023 totaled $5,941,739, an increase of 35.5% from $4,382,814 in the same quarter of 2022[12] - Selling expenses for the six months ended June 30, 2023, totaled $8,333,623, a 51.5% increase from $5,497,340 in the same period of 2022[36] - The Company had a depreciation expense of $744,048 for the three months ended June 30, 2023, compared to $432,826 for the same period in 2022[24] Inventory and Receivables - Total inventories as of June 30, 2023, amounted to $22,751,848, an increase from $22,201,499 as of December 31, 2022[23] - The company experienced a decrease in accounts receivable, net, to $3,217,445 as of June 30, 2023, from $4,226,948 at the end of 2022[9] - Work-in-process inventory decreased to $10,540,895 as of June 30, 2023, from $12,047,579 as of December 31, 2022[23] Shareholder Equity and Stock - The company issued 118,322 shares of preferred stock during the six-month period ended June 30, 2023, raising $550,254[15] - The company has received net proceeds of $3,558,807 from the issuance of preferred stock as of June 30, 2023[39] - Preferred stock dividends accrued for the six months ended June 30, 2023, were $1,023,439, compared to $933,225 for the same period in 2022[12] - Total shareholders' equity as of June 30, 2023, was $70,275,818, a slight decrease from $70,361,934 as of December 31, 2022[10] Cash Flow - Cash flows from operating activities resulted in a net cash outflow of $147,422 for the six months ended June 30, 2023, an improvement from a net cash outflow of $979,069 in the prior year[17] - Cash and cash equivalents increased to $553,180 as of June 30, 2023, from $338,676 as of December 31, 2022[9] Lease Obligations - The total lease cost for the three months ended June 30, 2023, was $344,590, with operating lease costs for vineyards at $114,782[56] - Right-of-use assets obtained in exchange for new operating lease obligations were $1,090,735 for the six months ended June 30, 2023[57] - Operating lease liabilities, net of current portion, were $9,145,634 as of June 30, 2023, compared to $8,506,830 as of December 31, 2022[9] Legal and Operational Segments - The company has identified two operating segments: Direct Sales and Distributor Sales, reflecting different distribution channels and strategies[32] - The company believes that ongoing legal proceedings will not materially affect its financial position or cash flows[58]

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, 2023 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 Identificati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _______________________ Commission file number: 000-21522 WILLAMETTE VALLEY VINEYARDS, INC. (Exact name of registrant as specified in its char ...

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 September 30, 2022 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 Identifi ...

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 June 30, 2022 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 Identificatio ...

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, 2022 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 Identificati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _______________________ Commission file number: 000-21522 WILLAMETTE VALLEY VINEYARDS, INC. (Exact name of registrant as specified in its char ...

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 September 30, 2021 o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT Commission File Number 001-37610 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 standa ...