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]
Willamette Valley Vineyards(WVVI) - 2024 Q1 - Quarterly Report