Financial Performance - For the three months ended September 30, 2025, net sales were $8,353,200, a decrease of 10.8% compared to $9,370,713 for the same period in 2024[13] - Gross profit for the nine months ended September 30, 2025, was $15,979,698, down 9.0% from $17,552,526 in the prior year[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 for the same period in 2024, representing a 286.5% increase in losses[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 loss applicable to common shareholders of $(1,655,627) for the three months ended September 30, 2025, compared to $(846,195) for the same period in 2024, representing a 95.6% increase in losses[13] - Gross profit for the three months ended September 30, 2025, was $5,003,972, down 13.9% from $5,808,114 in the prior year[36] - For the nine months ended September 30, 2025, net sales totaled $26,090,546, a decrease of 8.5% from $28,506,151 in the same period of 2024[36] - The company reported a loss per common share after preferred dividends of $(0.69) for the nine months ended September 30, 2025, compared to $(0.46) for the same period in 2024[22] Assets and Liabilities - Total current assets increased to $37,979,155 as of September 30, 2025, from $36,919,057 at December 31, 2024, reflecting a growth of 2.9%[8] - Total liabilities rose to $40,003,821 as of September 30, 2025, compared to $39,783,410 at December 31, 2024, indicating a 0.6% increase[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 2.4%[11] - The current portion of long-term debt was $993,875 as of September 30, 2025, compared to $952,171 at December 31, 2024, reflecting a 4.4% increase[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] - The company has lease liabilities totaling $11,010,791, net of current portion, as of September 30, 2025[61] Cash Flow and Expenses - The company had a net cash from operating activities of $(1,445,702) for the nine months ended September 30, 2025, an improvement from $(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] - The company paid $62,500 in income taxes for the nine months ended September 30, 2025, compared to $27,000 for the same period in 2024, indicating a significant increase[30] - The company’s depreciation expense for the nine months ended September 30, 2025, was $2,289,716, slightly down from $2,368,537 for the same period in 2024[24] - 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 Sales - 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 contribution margin for the three months ended September 30, 2025, was $(105,308), compared to a positive contribution margin of $41,582 in the same period of 2024[36] - Selling expenses increased to $4,444,433 for the three months ended September 30, 2025, from $4,326,851 in the prior year, reflecting a rise of 2.7%[36] Lease Agreements - The weighted-average remaining lease term for operating leases was 14.25 years as of September 30, 2025[60] - The company has entered into long-term grape purchase agreements, but cannot calculate minimum or maximum payments due to variable factors[63] - The Company has long-term grape purchase agreements with Willamette Valley wine grape growers, but cannot determine minimum or maximum payments due to variable factors[63] - The Company extended the lease for the Peter Michael Vineyard until January 2030, with options to extend through January 2035[49] - The Company has entered into multiple leases for retail wine facilities, with terms ranging from 10 years to 34 years, and various escalation provisions tied to CPI[54][55][56][57][58][59]
Willamette Valley Vineyards, Inc.(WVVIP) - 2025 Q3 - Quarterly Report