Core Points - Willamette Valley Vineyards, Inc. declared a cash dividend of $0.22 per share on its Series A Redeemable Preferred stock, payable on December 31, 2024 [1] - The dividend is for shareholders of record at the close of business on December 6, 2024 [1] - Future dividends will require approval from the company's board of directors and will be based on the terms outlined in the Amended and Restated Certificate of Designation [1] Company Information - Willamette Valley Vineyards, Inc. is a leading producer of Pinot Noir based in Oregon [1] - The company's common stock is traded on NASDAQ under the ticker WVVI [2] - The company operates its Estate Vineyard near Salem, Oregon [2]

Core Viewpoint - Willamette Valley Vineyards, Inc. reported a loss per common share of $0.07 for the three months ended June 30, 2024, a slight improvement from a loss of $0.08 in the same period of 2023, indicating a challenging market environment influenced by various economic factors [1]. Financial Performance - Sales revenue decreased by $393,885, or 3.7%, from $10,726,243 in Q2 2023 to $10,332,358 in Q2 2024, primarily due to a $597,059 drop in distributor sales, partially offset by a $203,174 increase in direct sales [2]. - Gross profit margin improved to 62.6% in Q2 2024 from 58.3% in Q2 2023, an increase of 4.3 percentage points, attributed to higher product prices [3]. - Selling, general and administrative expenses slightly decreased by $6,955, or 0.1%, from $5,941,739 in Q2 2023 to $5,934,784 in Q2 2024, with a notable reduction in selling and marketing expenses [4]. - Net income rose significantly by $87,525, or 80.7%, from $108,453 in Q2 2023 to $195,978 in Q2 2024, driven by higher product prices [5]. Market Challenges - The CEO highlighted a rapidly changing market influenced by interest costs, inflation, and shifting consumer trends, with wholesalers and retailers reducing wine inventories and reallocating shelf space to alternative alcoholic beverages [6]. - The company aims to enhance direct consumer engagement through wine, culinary, and hospitality experiences at its ten locations, hoping to improve financial results in both wholesale and retail segments [6]. Operational Overview - The company’s headquarters is located at its Estate Vineyard near Salem, Oregon, and its common stock is traded on NASDAQ under the ticker WVVI [7].

Financial Performance - Net sales for the three months ended March 31, 2024, were $8.80 million, up from $8.31 million in the same period of 2023, representing a year-over-year increase of 5.95%[15] - Gross profit for Q1 2024 was $5.27 million, compared to $4.48 million in Q1 2023, indicating a 17.73% increase[15] - The net loss for the three months ended March 31, 2024, was $521,805, an improvement from a net loss of $744,823 in Q1 2023[19] - For the three months ended March 31, 2024, the net loss applicable to common shareholders was $1,084,982, a decrease from a net loss of $1,256,542 in the same period of 2023, resulting in a loss per common share of $0.22 compared to $0.25[24] - The company reported a net loss of $521,805 for the three months ended March 31, 2024, compared to a net loss of $744,823 for the same period in 2023, showing a reduction in losses[15] - The company reported a loss from operations of $(602,577) for the three months ended March 31, 2024, compared to a loss of $(974,950) in 2023[38] Assets and Liabilities - Total assets increased to $106.19 million as of March 31, 2024, compared to $105.71 million at December 31, 2023, reflecting a growth of 0.45%[9] - Total current liabilities decreased to $11.58 million as of March 31, 2024, from $13.80 million at December 31, 2023, a reduction of 16.01%[11] - The company's property and equipment, net, was valued at $53,009,801 as of March 31, 2024, slightly down from $53,369,637 as of December 31, 2023, with depreciation expense for the period at $791,986[27] - Long-term debt increased to $9,962,186 as of March 31, 2024, from $7,590,659 as of December 31, 2023, with future minimum principal payments outlined for the next five years[32] - The outstanding line of credit balance was $3,320,928 at March 31, 2024, up from $2,684,982 at December 31, 2023, both at an interest rate of 8.0%[28] Cash Flow - Cash and cash equivalents at the end of Q1 2024 were $256,472, up from $238,482 at the beginning of the period, marking a 7.67% increase[19] - The company reported a cash outflow from operating activities of $3.01 million for Q1 2024, compared to an outflow of $1.28 million in Q1 2023[19] - The company reported cash flows from operating activities of $(3,012,769) for the three months ended March 31, 2024, compared to $(1,279,932) for the same period in 2023, indicating a decline in cash flow[20] - The company’s cash and cash equivalents at the end of the period were $256,472, compared to $154,340 at the end of the same period in 2023, showing a 66% increase[20] Inventory and Sales - Total inventories as of March 31, 2024, amounted to $28,881,664, an increase from $28,314,779 as of December 31, 2023, with work-in-process inventory at $15,417,269[26] - Direct Sales generated $4,286,156 in net sales for the three months ended March 31, 2024, compared to $4,071,649 in 2023, while Distributor Sales increased to $4,516,924 from $4,237,291[38] - The contribution margin for Direct Sales was $(272,370) for the three months ended March 31, 2024, an improvement from $(432,785) in the same period of 2023[38] - For the three months ended March 31, 2024, total net sales were $8,803,080, an increase of 5.93% from $8,308,940 in the same period of 2023[38] - Gross profit for the same period was $5,272,722, up 17.74% from $4,478,463 in 2023, resulting in a gross margin of 59.9%[38] Shareholder Equity and Stock - The company issued 192,740 shares of preferred stock during the quarter, increasing the total to 10,239,573 shares outstanding[17] - The company has received net proceeds of $3,938,066 from the issuance of Preferred Stock as of March 31, 2024, under various offerings[41] - The company accrued preferred stock dividends of $563,177 for the three months ended March 31, 2024, compared to $511,719 for the same period in 2023, representing a 10% increase[24] - The company’s total shareholders' equity increased to $71,082,759 as of March 31, 2024, compared to $70,635,205 at the end of 2023[12] Lease and Operating Expenses - Operating expenses for Q1 2024 totaled $5.88 million, compared to $5.45 million in Q1 2023, reflecting an increase of 7.93%[15] - Total lease cost for the three months ended March 31, 2024, was $373,849, up from $338,339 in the same period of 2023, indicating a 10.5% increase[59] - Operating lease liabilities as of March 31, 2024, totaled $11,743,657, with a weighted-average remaining lease term of 15.59 years[61] - The weighted-average discount rate for operating leases increased to 7.88% as of March 31, 2024, from 5.36% in the previous year[59] - Selling and marketing expenses rose to $4,027,782 in 2024, compared to $3,983,580 in 2023, reflecting a 1.11% increase[38] Legal and Agreements - The Company is involved in legal proceedings, but management believes these will not materially affect its financial position or cash flows[62] - The company has entered into long-term grape purchase agreements with Willamette Valley wine grape growers, although specific financial terms are not calculable due to variable factors[63] - Payment for grape purchases is contingent on the availability of grapes that meet strict quality standards, with potential refusal of grapes if standards are not met[63]

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 ...