Financial Performance - Net sales for the three months ended June 30, 2025, were $10,195,763, a decrease of 1.3% compared to $10,332,358 for the same period in 2024[11] - Gross profit for the six months ended June 30, 2025, was $10,975,726, down 6.6% from $11,744,412 in 2024[11] - The company reported a net loss of $636,186 for the six months ended June 30, 2025, compared to a net loss of $325,827 for the same period in 2024[17] - For the three months ended June 30, 2025, the company reported a net income of $92,795, compared to a net income of $195,978 for the same period in 2024, resulting in a loss applicable to common shares of $(470,381) for 2025 versus $(367,271) in 2024[21] - The company’s total revenues for the six months ended June 30, 2025, were $17,737,346, a decrease from $19,135,438 in the same period of 2024[34] Assets and Liabilities - Total current liabilities decreased to $8,912,638 as of June 30, 2025, from $12,980,185 at December 31, 2024, representing a reduction of 31.5%[8] - The company’s total assets decreased to $106,600,616 as of June 30, 2025, from $109,017,140 at December 31, 2024, a decline of 2.3%[9] - Retained earnings decreased to $15,601,306 as of June 30, 2025, down from $17,363,845 at December 31, 2024, a reduction of 10.1%[9] - The company’s long-term debt increased to $15,436,053 as of June 30, 2025, compared to $12,911,831 at December 31, 2024, an increase of 19.5%[8] - The outstanding balance of long-term debt increased to $16,584,054 as of June 30, 2025, from $14,042,910 as of December 31, 2024[27] Cash Flow and Expenses - Cash and cash equivalents increased to $350,643 as of June 30, 2025, from $320,883 at the beginning of the period, reflecting a growth of 9.5%[8] - Operating expenses for the six months ended June 30, 2025, totaled $11,447,540, a slight decrease of 3.1% from $11,810,083 in 2024[11] - Interest paid for the three months ended June 30, 2025, was $267,696, significantly higher than $129,539 for the same period in 2024[30] - The company paid $45,000 in income taxes for the three and six months ended June 30, 2025, compared to zero income taxes for the same periods in 2024[29] Inventory and Sales - The company’s total inventories as of June 30, 2025, amounted to $32,946,595, slightly up from $32,907,489 as of December 31, 2024[22] - The contribution margin for direct sales in the three months ended June 30, 2025, was $791,055, while for distributor sales it was $1,516,909[34] - The gross profit for the six months ended June 30, 2025, was $10,975,726, compared to $11,744,412 for the same period in 2024, indicating a decline in profitability[34] Shareholder Information - The company’s weighted-average number of common shares outstanding remained constant at 4,964,529 for both the three and six months ended June 30, 2025, and 2024[21] - The company accrued preferred stock dividends of $563,176 for the six months ended June 30, 2025[14] - Shareholders have the option to receive dividends as cash or gift cards, with unused dividend gift cards amounting to $1,457,927 as of June 30, 2025[38] Lease and Operating Agreements - The Company has a total minimal lease payment liability of $19,947,582 as of June 30, 2025, with a net present value of operating lease liabilities amounting to $11,117,733[55] - Operating lease costs for vineyards amounted to $250,363 for the six months ended June 30, 2025, compared to $229,564 for the same period in 2024[54] - The weighted-average remaining lease term for operating leases is 14.37 years, with a weighted-average discount rate of 7.66%[54] - The Company has entered into long-term grape purchase agreements with Willamette Valley wine grape growers, but cannot calculate minimum or maximum payments due to variable factors[57] Securities and Offerings - The Company filed a Prospectus Supplement on June 30, 2023, proposing to sell up to 727,835 shares of Series A Redeemable Preferred Stock with proceeds not to exceed $3,530,000, with offering prices ranging from $4.85 to $5.35 per share[36] - As of June 30, 2025, net proceeds of $3,938,066 have been received from previous offerings of Preferred Stock[36] - The Company filed a new shelf Registration Statement on Form S-3 on June 17, 2025, for potential future issuance of securities not to exceed $20,000,000[37]
Willamette Valley Vineyards, Inc.(WVVIP) - 2025 Q2 - Quarterly Report