Willamette Valley Vineyards(WVVI) - 2025 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2025, net sales decreased to $8,353,200, down 10.8% from $9,370,713 in the same period of 2024[13] - Gross profit for the nine months ended September 30, 2025, was $15,979,698, a decline of 9% compared to $17,552,526 for the same period in 2024[13] - The company reported a net loss of $1,092,450 for the three months ended September 30, 2025, compared to a net loss of $282,945 in the same period of 2024, representing an increase in loss of 286%[13] - For the nine months ended September 30, 2025, the company reported a net loss of $1,728,636 compared to a net loss of $608,772 for the same period in 2024[18] - The company reported a basic loss per share of $0.69 for the nine months ended September 30, 2025, compared to $0.46 for the same period in 2024[22] - Loss from operations for the three months ended September 30, 2025, was $(1,213,527), compared to a loss of $(136,506) in the same period of 2024[36] Assets and Liabilities - Total current assets increased to $37,979,155 as of September 30, 2025, compared to $36,919,057 at December 31, 2024, reflecting a growth of 2.86%[8] - Total liabilities rose to $40,003,821 as of September 30, 2025, compared to $39,783,410 at December 31, 2024, indicating an increase of 0.55%[10] - Shareholders' equity decreased to $67,594,226 as of September 30, 2025, down from $69,233,730 at December 31, 2024, a decline of 2.37%[11] - The company’s total assets decreased to $107,598,047 as of September 30, 2025, from $109,017,140 at December 31, 2024, a decline of 1.3%[8] - The current portion of long-term debt increased to $993,875 as of September 30, 2025, compared to $952,171 at December 31, 2024, reflecting a rise of 4.4%[10] - The company’s long-term debt increased to $15,428,093 as of September 30, 2025, compared to $14,042,910 as of December 31, 2024[28] Cash Flow and Expenses - The company had a net cash outflow from operating activities of $1,445,702 for the nine months ended September 30, 2025, an improvement from a net cash outflow of $2,159,828 in the same period of 2024[18] - The company paid $723,311 in interest on debt and the line of credit for the nine months ended September 30, 2025, compared to $391,962 for the same period in 2024[32] - Operating expenses for the three months ended September 30, 2025, totaled $6,217,499, an increase of 4.6% from $5,944,620 in the same period of 2024[13] - The company recognized $89,132 in stock-based compensation expense during the three months ended September 30, 2025, related to the 2025 Omnibus Equity Incentive Plan[45] Inventory and Assets Management - The company's total inventories increased to $34,267,179 as of September 30, 2025, up from $32,907,489 as of December 31, 2024, reflecting a rise in finished goods and work-in-process[23] - The company’s property and equipment, net, was valued at $50,098,097 as of September 30, 2025, down from $52,012,151 as of December 31, 2024[24] - The company has unamortized debt issuance costs of $163,586 as of September 30, 2025, down from $178,908 as of December 31, 2024[29] Lease Agreements - The company extended its lease for the Peter Michael Vineyard until January 2030, with options to extend through January 2035[49] - The Meadowview Vineyard lease has been extended through November 2033, with a maximum increase of 4% every three years[50] - The company entered into a new lease for a retail wine facility in Bend, Oregon, for 10 years with three five-year renewal options[59] - The weighted-average remaining lease term for operating leases was 14.25 years as of September 30, 2025, down from 15.19 years in 2024[60] - Total lease liabilities as of September 30, 2025, amounted to $11,485,723, compared to $11,354,746 at the end of 2024, showing a marginal increase of 1.15%[61] Stock and Equity - The company has received net proceeds of $3,558,807 from the issuance of Preferred Stock as of September 30, 2025[38] - The company filed a shelf Registration Statement on Form S-3 with the SEC for potential future issuance of securities, with a maximum aggregate offering amount of $20,000,000[40] - The company granted 285,000 restricted shares and share units under the 2025 Plan during the three months ended September 30, 2025[44] - The company has identified two operating segments: Direct Sales and Distributor Sales, with performance evaluated based on gross profit[33][34]