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]
Willamette Valley Vineyards(WVVI) - 2023 Q3 - Quarterly Report