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]
Willamette Valley Vineyards(WVVI) - 2023 Q2 - Quarterly Report