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What changed in WILLAMETTE VALLEY VINEYARDS INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of WILLAMETTE VALLEY VINEYARDS INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+127 added−124 removedSource: 10-K (2025-03-25) vs 10-K (2024-03-26)

Top changes in WILLAMETTE VALLEY VINEYARDS INC's 2024 10-K

127 paragraphs added · 124 removed · 108 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

38 edited+6 added−7 removed75 unchanged
Biggest changeThe following table summarizes the Company’s acreage: ACRES TONS Vineyard Name Total Producing Pre-Production Plantable Non-Plantable 2023 2022 Owned Vineyards WVV Estate 107 69 — — 38 216 206 Tualatin Estate Vineyard 107 61 — — 46 190 279 Ingram Vineyard 86 63 — — 23 178 364 Pambrun Vineyard 87 20 — 30 37 45 49 Loeza Vineyard 62 20 15 23 4 133 104 Louisa Vineyard 53 — — 25 28 — — Maison Bleue Vineyard 37 15 — 19 3 37 45 Bernau Estate 20 13 — — 7 68 33 Dayton Vineyard 40 — 15 19 6 — — Lafayette Vineyard 36 — — 36 — — — Jory Claim Vineyard 69 — 23 42 4 — — Sub-Total 704 261 53 194 196 867 1,080 Leased Vineyards Peter Michael Vineyard 79 69 — — 10 264 461 Meadowview Vineyard 49 49 — — — 167 307 Elton Vineyard 59 54 — 2 3 187 198 Ingram Vineyard 110 93 — 17 — 286 463 Bernau Estate 17 9 — — 8 — — Sub-Total 314 274 — 19 21 904 1,429 Contracted Vineyards* Various 605 605 — — — 2,421 1,307 Total 1,623 1,140 53 213 217 4,192 3,816 * Contracted acreage is estimated WVV Estate – Established in 1983, the Company’s Estate Vineyard (the “Estate Vineyard”) is located at the Winery location south of Salem, near Turner, Oregon.
Biggest changeThe following table summarizes the Company’s acreage: ACRES TONS Vineyard Name Total Producing Pre-Production Plantable Non-Plantable 2024 2023 Owned Vineyards WVV Estate 107 69 - - 38 272 216 Tualatin Estate Vineyard 107 61 - - 46 204 190 Ingram Vineyard 86 63 - - 23 228 178 Pambrun Vineyard 87 20 - 30 37 44 45 Loeza Vineyard 62 20 15 23 4 97 133 Louisa Vineyard 53 - - 25 28 - - Maison Bleue Vineyard 37 15 - 19 3 31 37 Bernau Estate 20 13 - - 7 37 40 Dayton Vineyard 40 - 16 18 6 - - Lafayette Vineyard 36 - - 36 - - - Jory Claim Vineyard 69 - 23 42 4 - - Sub-Total 704 261 54 193 196 913 839 Leased Vineyards Peter Michael Vineyard 79 69 - - 10 328 264 Meadowview Vineyard 49 49 - - - 213 167 Elton Vineyard 59 54 - 2 3 187 187 Ingram Vineyard 110 93 - 17 - 387 286 Bernau Estate 17 9 - - 8 25 28 Sub-Total 314 274 - 19 21 1,140 932 Contracted Vineyards* Various 338 338 - - - 1,353 2,421 Total 1,356 873 54 212 217 3,406 4,192 * Contracted acreage is estimated WVV Estate – Established in 1983, the Company’s Estate Vineyard (the “Estate Vineyard”) is located at the Winery location south of Salem, near Turner, Oregon.
According to the State of the Wine Industry 2023 by Rob McMillan, younger wine consumers are not limited by cost; instead, they seek something enticing to draw them in to learn more about wine, including but not limited to health, sustainability, social values, and transparent labeling, The Company’s Board of Directors and management believe the winery’s focus on integrity in winemaking, small scale, storied estate vineyards, environmental stewardship, support for community needs and participatory wine experiences are reflective of the values of a number of prospective, developing wine enthusiasts.
According to the State of the Wine Industry Report 2023 by Rob McMillan, younger wine consumers are not limited by cost; instead, they seek something enticing to draw them in to learn more about wine, including but not limited to health, sustainability, social values, and transparent labeling, The Company’s Board of Directors and management believe the winery’s focus on integrity in winemaking, small scale, storied estate vineyards, environmental stewardship, support for community needs and participatory wine experiences are reflective of the values of a number of prospective, developing wine enthusiasts.
Direct sales include retail sales in the tasting rooms, wine club sales, online sales, on-site events, kitchen and catering sales and other sales made directly to the consumer without the use of an intermediary. Distributor sales include all sales through a third party where prices are given at a wholesale rate.
Direct sales include retail sales in our tasting rooms, wine club sales, online sales, on-site events, kitchen and catering sales and other sales made directly to the consumer without the use of an intermediary. Distributor sales include all sales through a third party where prices are given at a wholesale rate.
The two outstanding loans require aggregate monthly principal and interest payments of $62,067 for the life of the loans, at annual fixed interest rates of 4.75% and 5.21%, and with maturity dates of 2028 and 2032, respectively.
The first two outstanding loans require aggregate monthly principal and interest payments of $62,067 for the life of the loans, at annual fixed interest rates of 4.75% and 5.21%, and with maturity dates of 2028 and 2032, respectively.
T he Company holds U.S. federal and/or Oregon state trademark registrations for the trademarks material to the business, including but not limited to: Willamette, Willamette Valley Vineyards, WVV, Domaine Willamette, Willamette Whiskey, Willamette+, Whole Cluster, Give Your Whole Heart with Willamette Whole Cluster, Daedalus Cellars, Elton, Griffin, Griffin Creek, Ingram Estate, It’s Willamette, Dammit!, Jory Claim, Pambrun, Pambrun Cross Logo, SIP.
The Company holds U.S. federal and/or Oregon state trademark registrations for the trademarks material to the business, including but not limited to: Willamette, Willamette Valley Vineyards, WVV, Domaine Willamette, Willamette Whiskey, Willamette+, Whole Cluster, Give Your Whole Heart with Willamette Whole Cluster, Daedalus Cellars, Elton, Griffin, Griffin Creek, Ingram Estate, It’s Willamette, Dammit!, Jory Claim, Pambrun, Pambrun Cross Logo, SIP.
The Company offers by-appointment private tours, giving a behind-the-scenes look at sparkling wine production. Domaine Willamette Winery’s biodynamic garden is another attraction for visitors. 11 In 2014, the Company launched daily food pairings to accompany its wines. Led by the Winery Chef, the menu highlights Pacific Northwest inspired dishes paired with the Company’s wines.
The Company offers by-appointment private tours, giving a behind-the-scenes look at sparkling wine production. Domaine Willamette Winery’s biodynamic garden is another attraction for visitors. 11 In 2014, the Company launched daily food pairings to accompany its wines. The menu highlights Pacific Northwest inspired dishes paired with the Company’s wines.
The Company also operates eight additional tasting rooms at the following locations: (i) historic downtown McMinnville, Oregon; (ii) at its Tualatin Vineyard, Oregon; (iii) Lake Oswego, Oregon; (iv) Happy Valley, Oregon; (v) downtown Walla Walla, Washington; (vi) Vancouver, Washington; (vii) Folsom, California, and (viii) Bend, Oregon. The Company holds various festivals and events at its locations throughout the year.
The Company also operates eight additional tasting rooms at the following locations: (i) McMinnville, Oregon; (ii) Tualatin Vineyard, Oregon; (iii) Lake Oswego, Oregon; (iv) Happy Valley, Oregon; (v) Walla Walla, Washington; (vi) Vancouver, Washington; (vii) Folsom, California, and (viii) Bend, Oregon. The Company holds various festivals and events at its locations throughout the year.
This brand’s mission is to be the highest quality producer of Bordeaux and Rhone varietals in Southern Oregon. Under its Elton label, the Company produces and sells the following types of wine in 750 ml bottles: Pinot Noir, $79 per bottle; and Chardonnay, $79 per bottle.
This brand’s mission is to be the highest quality producer of Bordeaux and Rhone varietals in Southern Oregon. Under its Elton label, the Company produces and sells the following types of wine in 750 ml bottles: Pinot Noir, $80 per bottle; and Chardonnay, $80 per bottle.
The Company takes commercially reasonable precautions in an effort to prevent the spread of phylloxera to other vineyards. 6 As a result of these factors, subject to the risks and uncertainties identified in this Annual Report on Form 10-K, the Company believes that long-term prospects for growth in the Oregon wine industry are good.
The Company believes it has taken commercially reasonable precautions in an effort to prevent the spread of phylloxera to other vineyards. 6 As a result of these factors, subject to the risks and uncertainties identified in this Annual Report on Form 10-K, the Company believes that long-term prospects for growth in the Oregon wine industry are good.
The Company’s historical annual grape harvest and wine production from 2005 to 2023 is as follows: Tons of Tons of Total Tons Gallons of Harvest Grapes Grapes of Grapes Bulk Production Cases Year Grown Purchased Harvested Purchases Year Produced 2005 1,107 25 1,132 - 2005 72,297 2006 1,454 34 1,488 - 2006 81,081 2007 850 896 1,746 - 2007 115,466 2008 551 874 1,425 57,736 2008 121,027 2009 1,033 1,100 2,133 74,954 2009 132,072 2010 674 371 1,045 4,276 2010 110,224 2011 718 609 1,327 9,620 2011 81,357 2012 658 670 1,328 7,910 2012 91,181 2013 755 1,020 1,775 6,257 2013 95,638 2014 1,211 970 2,181 520 2014 108,958 2015 1,266 1,012 2,278 - 2015 120,794 2016 921 1,052 1,973 47,780 2016 141,416 2017 1,631 1,622 3,253 15,900 2017 151,332 2018 1,501 1,063 2,564 800 2018 164,590 2019 1,572 1,046 2,618 - 2019 172,869 2020 1,031 1,470 2,501 13,173 2020 175,357 2021 1,550 1,522 3,072 6,643 2021 206,954 2022 2,509 1,307 3,816 22,000 2022 186,792 2023 1,771 2,421 4,192 11,236 2023 234,086 Cases produced per ton harvested vary between years mainly due to the timing of when the cases are produced. 10 Sales and Distribution Marketing strategy – The Company markets and sells its wines through a combination of direct sales at the retail locations, directly through mailing lists, and through distributors and wine brokers.
The Company’s historical annual grape harvest and wine production from 2005 to 2024 is as follows: Tons of Tons of Total Tons Gallons of Harvest Grapes Grapes of Grapes Bulk Production Cases Year Grown Purchased Harvested Purchases Year Produced 2005 1,107 25 1,132 - 2005 72,297 2006 1,454 34 1,488 - 2006 81,081 2007 850 896 1,746 - 2007 115,466 2008 551 874 1,425 57,736 2008 121,027 2009 1,033 1,100 2,133 74,954 2009 132,072 2010 674 371 1,045 4,276 2010 110,224 2011 718 609 1,327 9,620 2011 81,357 2012 658 670 1,328 7,910 2012 91,181 2013 755 1,020 1,775 6,257 2013 95,638 2014 1,211 970 2,181 520 2014 108,958 2015 1,266 1,012 2,278 - 2015 120,794 2016 921 1,052 1,973 47,780 2016 141,416 2017 1,631 1,622 3,253 15,900 2017 151,332 2018 1,501 1,063 2,564 800 2018 164,590 2019 1,572 1,046 2,618 - 2019 172,869 2020 1,031 1,470 2,501 13,173 2020 175,357 2021 1,550 1,522 3,072 6,643 2021 206,954 2022 2,509 1,307 3,816 22,000 2022 186,792 2023 1,771 2,421 4,192 11,236 2023 234,086 2024 2,053 1,353 3,406 21,731 2024 253,974 10 Sales and Distribution Marketing strategy – The Company markets and sells its wines through a combination of direct sales at the retail locations, directly through mailing lists, and through distributors and wine brokers.
The Company’s mission for this brand is to become the premier producer of Pinot Noir in the Pacific Northwest. 4 Under its Domaine Willamette label, the Company produces and sells the following types of wine in 750 ml bottles: Brut, $75 per bottle; Brut Rose, $75 per bottle; and Blanc de Blancs, $115 per bottle.
The Company’s mission for this brand is to become the premier producer of Pinot Noir in the Pacific Northwest. 4 Under its Domaine Willamette label, the Company produces and sells the following types of wine in 750 ml bottles: Brut, $80 per bottle; Brut Rose, $80 per bottle; and Blanc de Blancs, $90 per bottle.
The Winery has developed a Winery Ambassador program, which connects its “Ambassadors” with customers throughout the United States and offers personalized wine recommendations and easy ordering by phone or email. The Company sells its wine through its own e-commerce website and direct ships where permissible.
The Winery has developed a Winery Ambassador program, which connects its “Ambassadors” with customers throughout the United States and offers personalized wine recommendations and easy ordering by phone or email. The Company sells its wine through its own e-commerce website.
Sales made directly to consumers at retail prices result in an increased profit margin equal to the difference between retail prices and distributor prices. For 2023 and 2022, direct sales contributed approximately 52.4% and 46.4% of the Company’s net sales, respectively.
Sales made directly to consumers at retail prices result in an increased profit margin equal to the difference between retail prices and distributor prices. For 2024 and 2023, direct sales contributed approximately 53.4% and 52.4% of the Company’s net sales, respectively.
Finally, phylloxera, an aphid-like insect that feeds on the roots of grapevines, has been found in several commercial vineyards in Oregon. Contrary to the California experience, most Oregon phylloxera infestations have expanded very slowly and have done only minimal damage. Nevertheless, phylloxera does constitute a significant risk to Oregon vineyards.
Finally, phylloxera, an aphid-like insect that feeds on the roots of grapevines, has been found in several commercial vineyards in Oregon. Contrary to the California experience, most Oregon phylloxera infestations have expanded very slowly. Nevertheless, phylloxera does constitute a significant risk to Oregon vineyards.
According to the Oregon Vineyard and Winery Report produced by University of Oregon’s Institute for Policy Research and Engagement (“UOIPRE”) in 2022, the most recent year such data is available, the overall number of wineries increased from 1,058 to 1,116 with the biggest increases coming from the Willamette Valley, which added 38.
According to the Oregon Vineyard and Winery Report produced by University of Oregon’s Institute for Policy Research and Engagement (“UOIPRE”) in 2023, the most recent year such data is available, the overall number of wineries increased from 1,116 to 1,143 with the biggest increases coming from the Willamette Valley, which added 24 wineries.
Under its Maison Bleue label, the Company produces and sells the following types of wine in 750 ml bottles: Frontiere Syrah, $75 per bottle; Graviére Syrah, $70 per bottle; Voyageur Syrah, $58 per bottle; Bourgeois Grenache, $55 per bottle; Voltigeur Viognier, $45 per bottle; and Lisette Rose, $34 per bottle.
Under its Maison Bleue label, the Company produces and sells the following types of wine in 750 ml bottles: Frontiere Syrah, $80 per bottle; Graviére Syrah, $75 per bottle; Voyageur Syrah, $65 per bottle; Bourgeois Grenache, $65 per bottle; Voltigeur Viognier, $55 per bottle; and Lisette Rose, $45 per bottle.
These wineries are each an approximately 45-minute drive from Portland, the state’s largest metropolitan area . Dependence on Major Customers Historically, the Company’s revenue has been derived from thousands of customers annually. In 2023, sales to one distributor represented approximately 14.5% of total Company revenue.
These wineries are each an approximately 45-minute drive from Portland, the state’s largest metropolitan area . Dependence on Major Customers Historically, the Company’s revenue has been derived from thousands of customers annually. In 2024, sales to one distributor represented approximately 16.1% of total Company revenue.
Under its Pambrun label, the Company produces and sells the following types of wine in 750 ml bottles: Chrysologue, $70 per bottle; Merlot, $65 per bottle; and Cabernet Sauvignon, $75 per bottle.
Under its Pambrun label, the Company produces and sells the following types of wine in 750 ml bottles: Chrysologue, $80 per bottle; Merlot, $70 per bottle; Cabernet Sauvignon, $80 per bottle; and Malbec, $70 per bottle.
The Company’s products are distributed in 49 states and the District of Columbia, and there are three non-domestic (export) customers. For 2023 and 2022, sales to distributors and wine brokers contributed approximately 47.6% and 53.6% of the Company’s revenue from operations, respectively.
The Company’s products are distributed in 49 states and the District of Columbia, and there are two non-domestic (export) customers. For 2024 and 2023, sales to distributors and wine brokers contributed approximately 46.6% and 47.6% of the Company’s revenue from operations, respectively.
In 2022, sales to one distributor represented approximately 17.5% of total Company revenue. 12 Competition The wine industry is highly competitive. In a broad sense, wines may be considered to compete with all alcoholic and nonalcoholic beverages.
In 2023, sales to one distributor represented approximately 14.4% of total Company revenue. 12 Competition The wine industry is highly competitive. In a broad sense, wines may be considered to compete with all alcoholic and nonalcoholic beverages.
Tourists – Oregon wineries are a popular tourist destination with many bed & breakfasts, motels and fine dining restaurants available. The Willamette Valley, Oregon’s leading wine region has approximately 69% of the state’s wineries and vineyards, is home to approximately 1,016 wineries.
Tourists – Oregon wineries are a popular tourist destination with many bed & breakfasts, motels and fine dining restaurants available. The Willamette Valley, Oregon’s leading wine region, has approximately 74% of the state’s wineries and is home to approximately 843 wineries.
Products – Under its Willamette Valley Vineyards label, the Company produces and sells the following types of wine in 750 ml bottles: Pinot Noir, the brand’s flagship and its largest selling varietal, $30 to $120 per bottle; Chardonnay, $28 to $60 per bottle; Pinot Gris, $24 per bottle; Pinot Blanc, $30 per bottle; Sauvignon Blanc, $35 per bottle; Gruner Veltliner, $39 per bottle; Rose, $27 to $32 per bottle ; Brut, $75 per bottle; Brut Rose, $75 per bottle; and Riesling, $19 per bottle (all bottle prices included herein are the suggested retail prices).
Products – Under its Willamette Valley Vineyards label, the Company produces and sells the following types of wine in 750 ml bottles: Pinot Noir, the brand’s flagship and its largest selling varietal, $29 to $120 per bottle; Chardonnay, $28 to $60 per bottle; Pinot Gris, $34 per bottle; Pinot Blanc, $35 per bottle; Sauvignon Blanc, $38 per bottle; Gruner Veltliner, $40 per bottle; Rose, $32 to $34 per bottle; Brut, $80 per bottle; Brut Rose, $80 per bottle; and Riesling, $19 per bottle (all bottle prices included herein are the suggested retail prices).
However, these regulatory costs and processes are effectively integrated into the Company’s regular operations and consequently, do not generally cause significant alternative processes or costs. 13 Employees As of December 31, 2023, the Company had approximately 223 full-time employees and 123 part-time, or “on call” employees. In addition, the Company hires additional employees for seasonal work as required.
However, these regulatory costs and processes are effectively integrated into the Company’s regular operations and consequently do not generally cause significant alternative processes or costs. 13 Employees As of December 31, 2024, the Company had approximately 161 full-time employees and 149 part-time employees. In addition, the Company hires additional employees for seasonal work as required.
Under its Griffin Creek label, the Company produces and sells the following types of wine in 750 ml bottles: Syrah, the brand’s flagship, $59 per bottle; Merlot, $55 per bottle; Cabernet Sauvignon, $59 per bottle; Grenache, $59 per bottle; Cabernet Franc, $59 per bottle; Tempranillo, $59 per bottle; Malbec, $59 per bottle; The Griffin (a Bordeaux style blend), $69 per bottle; and Viognier, $39 per bottle.
Under its Griffin Creek label, the Company produces and sells the following types of wine in 750 ml bottles: Syrah, the brand’s flagship, $60 per bottle; Merlot, $60 per bottle; Cabernet Sauvignon, $60 per bottle; Grenache, $60 per bottle; Cabernet Franc, $60 per bottle; Tempranillo, $60 per bottle; Malbec, $60 per bottle; The Griffin (a Bordeaux style blend), $75 per bottle; and Viognier, $45 per bottle.
According to UOIPRE, Oregon case sales in 2022 were 5.7 million, an 8% increase from 2021. Because of climate, soil and other growing conditions, we believe the Willamette Valley in western Oregon is ideally suited to growing superior quality Pinot Noir, Chardonnay, Pinot Gris and Riesling wine grapes.
According to UOIPRE, Oregon case sales in 2023 were 6.0 million, a 5% increase from 2022. Because of climate, soil and other growing conditions, we believe the Willamette Valley in western Oregon is ideally suited to growing superior quality Pinot Noir, Chardonnay, Pinot Gris and Riesling wine grapes.
Winery Wine production facility – The Company’s Estate Winery and production facilities are capable of efficiently producing up to 275,000 cases (654,000 gallons) of wine per year, depending on the type of wine produced. In 2023, the Winery produced approximately 234,086 cases (556,700 gallons) of wine, primarily from its 2021 and 2022 harvest.
Winery Wine production facility – The Company’s Estate Winery and production facilities are capable of efficiently producing up to 275,000 cases (654,000 gallons) of wine per year, depending on the type of wine produced. In 2024, the Winery produced approximately 253,974 cases (603,835 gallons) of wine, primarily from its 2022 and 2023 harvest.
The Company also stores and ages product at the Domaine Willamette Winery location in Dundee, Oregon. Mortgages on properties – The Company’s winery facilities at the Estate Winery are subject to two mortgages with an aggregate principal balance of $4,565,710 at December 31, 2023.
The Company also stores and ages product at the Domaine Willamette Winery location in Dundee, Oregon. Mortgages on properties – The Company’s winery facilities at the Estate Winery are subject to three mortgages with an aggregate principal balance of $14,042,910 at December 31, 2024.
This future winery is expected to produce small vintages of Cabernet Sauvignon and other Bordeaux-varietals, under the Pambrun brand, and Syrah and other Rhone-varietals, under the Maison Bleue brand, to compete in the ultra-premium wine market. The Company has released wines under the Pambrun label beginning with the 2015 vintage year and Maison Bleue label beginning with the 2016 vintage.
This future winery is expected to produce small vintages of Cabernet Sauvignon and other Bordeaux-varietals, under the Pambrun brand, and Syrah and other Rhone-varietals, under the Maison Bleue brand, to compete in the ultra-premium wine market.
Additionally, direct-to-consumer volume and value sales declined and tasting room visitation dropped for the second consecutive year and consumer demand for the overall wine category continued its decline, with fewer U.S. consumers opting for wine and choosing alternatives such as ready-to-drink beverages, spirits, cannabis, or abstaining altogether.
According to this report, US wine volume consumed has reduced over the last four years. Additionally, direct-to-consumer volume declined and tasting room visitation dropped for the third consecutive year and consumer demand for the overall wine category continued its decline, with fewer U.S. consumers opting for wine and choosing alternatives such as ready-to-drink beverages, spirits, cannabis, or abstaining altogether.
These Pinot Noir clones were planted at the Tualatin Vineyards with phylloxera-resistant rootstock and the 667 and 777 clones have been grafted onto seven acres of self-rooted, non-phylloxera-resistant vines at the Company’s Estate Vineyard. In 2023, crop yields were roughly 14% below the 10-year average and the Company’s producing acres yielded approximately 867 tons of grapes.
These Pinot Noir clones were planted at the Tualatin Vineyards with phylloxera-resistant rootstock and the 667 and 777 clones have been grafted onto seven acres of self-rooted, non-phylloxera-resistant vines at the Company’s Estate Vineyard.
Wine production – The Company operates on the principle that winemaking is a natural, but highly technical, process requiring the attention and dedication of the winemaking staff. The Company’s Winery is equipped with current technical innovations and uses modern equipment and software to monitor the progress of each wine through all stages of the winemaking process.
The Company’s Winery is equipped with current technical innovations and uses modern equipment and software to monitor the progress of each wine through all stages of the winemaking process.
Planted acres of wine grape vineyards increased by 2,588 acres from 41,899 to 44,487, an increase of 6%, 40,774 acres of which were harvested. Oregon wine grapes produced a 2022 crop with a total value of $330 million, an increase of 22% from 2021. Pinot Noir leads all varieties accounting for 71% of planted acreage and 67% of production.
Planted acres of wine grape vineyards increased by 1,512 acres from 44,487 to 45,999, an increase of 3%, 40,313 acres of which were harvested. Oregon wine grapes produced a 2023 crop with a total value of $349 million, an increase of 6% from 2022. Pinot Noir leads all varieties accounting for 60% of planted acreage and 59% of production.
Contracted grape purchases are considered an important component of the Company’s long-term growth and risk-management plan. The Company believes high quality grapes will be available for purchase in sufficient quantity to meet the Company’s requirements. Additionally, the Company will continue to evaluate opportunities to plant more acres and purchase properties for future vineyards.
The Company believes high quality grapes will be available for purchase in sufficient quantity to meet the Company’s requirements. Additionally, the Company will continue to evaluate opportunities to plant more acres and purchase properties for future vineyards.
Additionally, the Company has developed a single vineyard brand near Hopewell, Oregon adjacent to the current site of Elton Vineyards to produce wine under the Elton label. This brand produces primarily Pinot Noir and Chardonnay, also for sale in the ultra-premium space. The Company has released wines under the Elton label beginning with the 2015 vintage year.
The Company has released wines under the Pambrun label beginning with the 2015 vintage year and under the Maison Bleue label beginning with the 2016 vintage year. Additionally, the Company has developed a single vineyard brand near Hopewell, Oregon adjacent to the current site of Elton Vineyards to produce wine under the Elton label.
In December 2021, the Company debuted a Pinot Noir Clonal Blending experience giving guests the ability to be a winemaker for a day by crafting their own custom blends from barrel.
The culinary offering has now expanded to include “Pairings Wine Dinners,” which are community-style wine dinners hosted regularly throughout the year. In December 2021, the Company debuted a Pinot Noir Clonal Blending experience giving guests the ability to be a winemaker for a day by crafting their own custom blends from barrel.
Previously considered a “healthy” option on the Healthy Eating Pyramid, alcohol consumption is now cautioned against by organizations like the World Health Organization. 5 Overall, we believe the industry is expected to stabilize in 2024 around the current levels. However, of concern, consumption growth is mainly amongst those over 60 years old, with the most significant growth area among 70-80-year-olds.
Previously considered a “healthy” option on the Healthy Eating Pyramid, alcohol consumption is now cautioned against by organizations like the World Health Organization. 5 Overall, we expect the industry to stabilize in 2025 around the current levels. We believe future positive sales and growth will depend on the industry targeting younger consumers.
The Company fulfills its remaining grape needs by purchasing grapes from other nearby vineyards at competitive prices. In 2023, the Company purchased an additional 2,421 tons of grapes from other growers. The Company cannot grow enough grapes to meet anticipated production needs, and therefore contracts grape purchases to make up the difference.
In 2024, the Company purchased an additional 1,353 tons of grapes from other growers. The Company cannot grow enough grapes to meet anticipated production needs, and therefore contracts grape purchases to make up the difference. Contracted grape purchases are considered an important component of the Company’s long-term growth and risk-management plan.
Market overview – The United States wine industry has seen a rapid increase in wineries established nationwide. The United States wine industry added 400 new wineries in 2022, a 3% increase from 2021, according to Wine Analytics Report .
Market overview – Although the United States wine industry added 400 new wineries in 2022, a 3% increase from 2021, according to Wine Analytics Report . According to a Wine Business Monthly’s February 2024 report, the number of U.S. active wineries in 2023 stood at 11,620, which represented a 1% decrease compared to the number of wineries in 2022.
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From 2009 to 2021, the number of U.S. wineries grew from 6,357 to 11,053, according to Statista, and consequently the wine industry can be considered one of the fastest-growing segments in agriculture.
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The total US wine market was estimated at $81.3 billion in 2023 by Grand View research. Average wine consumption per United States resident was 2.68 gallons in 2023, down 15 percent compared to the 2021 peak. (Statista). Additionally, according to Silicon Valley Bank’s 2025 annual report, premium wineries faced a challenging landscape in 2024.
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According to Wine Business Monthly’s February 2024 report, the number of US active wineries in 2023 stood at 11,620, showing a 1% decrease compared to the peak in 2022. The total retail value of wine sales has increased from $26.3 billion in 2000 to $78.4 billion in 2021, according to Statista.
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According to the Wine Business Analytics 2024 Year in Review direct to consumer shipping in 2024 was down 10% year over year in volume and down 5% year over year in value.
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Additionally, 1.1 billion gallons of wine were consumed in 2021, an increase of 413 million from 2005 (Statista). This growth rate has recently slowed and according to Silicon Valley Bank’s 2024 annual report premium wineries faced a challenging landscape in 2023.
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The Company’s Board of Directors and management believe the Winery’s focus on integrity in winemaking, small scale, storied estate vineyards, environmental stewardship, support for community needs and participatory wine experiences are reflective of the values of a number of prospective, developing wine enthusiasts.
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According to this report, while the value of premium wine continued to grow, volume sales were anticipated to finish lower for the year.
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This brand produces primarily Pinot Noir and Chardonnay, also for sale in the ultra-premium space. The Company has released wines under the Elton label beginning with the 2015 vintage year.
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Consequently, we believe future positive sales and growth will depend on the industry targeting younger consumers.
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In 2024, crop yields were roughly 1% above the 10-year average and the Company’s producing acres yielded approximately 913 tons of grapes an increase of 5.3% over approximately 867 tons of grapes produced in 2023. The Company fulfills its remaining grape needs by purchasing grapes from other nearby vineyards at competitive prices.
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The culinary offering has now expanded to include “Pairings Wine Dinners,” which are community-style wine dinners hosted regularly throughout each month. In 2019, the Company added a new experience offered throughout the week called Pairings Exploration that features four wines paired with four small bites to educate guests on food and wine pairing.
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The third outstanding loan currently requires aggregate monthly principal and interest payments of $87,989 on the loan, at an annual variable interest rate of 6.66% with a maturity date of 2039. Wine production – The Company operates on the principle that winemaking is a natural, but highly technical, process requiring the attention and dedication of the winemaking staff.
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Larger scale production is necessary to satisfy retailers’ and restaurants’ demand and the Company believes that additional production capacity will be needed to meet estimated future demand.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

10 edited+1 added−1 removed77 unchanged
Biggest changeChanges in consumer spending in these and other regions can affect both the quantity and the price of wines that customers are willing to purchase at restaurants or through retail outlets.
Biggest changeChanges in consumer spending can affect both the quantity and the price of wines that customers are willing to purchase at restaurants or through retail outlets. Reduced consumer confidence and spending may result in reduced demand for the Company’s products, limitations on the Company’s ability to increase prices and increased levels of selling and promotional expenses.
There can be no assurance that in the future the Company will be able to successfully compete with its current competitors or that it will not face greater competition from other wineries and beverage manufacturers. 15 The Willamette Valley AVA value may be eroded by out of state competition who use it inappropriately or as fanciful marketing Wine grape growing regions in the United States are divided into AVA) by the United States Department of the Treasury’s TTB, based on distinguishable geographic features.
There can be no assurance that in the future the Company will be able to successfully compete with its current competitors or that it will not face greater competition from other wineries and beverage manufacturers. 15 The Willamette Valley AVA value may be eroded by out of state competition who use it inappropriately or as fanciful marketing Wine grape growing regions in the United States are divided into AVA’s by the United States Department of the Treasury’s TTB, based on distinguishable geographic features.
Because the average active trading volume is thin, there is less opportunity for shareholders to sell their shares of the Company’s common stock on the open market, resulting in the common stock being less liquid than common stock in other publicly traded companies. 17 The Company may face liabilities associated with the offer and sale of its Preferred Stock.
Because the average active trading volume is thin, there is less opportunity for shareholders to sell their shares of Common Stock on the open market, resulting in the common stock being less liquid than Common Stock in other publicly traded companies. 17 The Company may face liabilities associated with the offer and sale of its Preferred Stock.
Additionally, the Company had notes payable to private parties of approximately $1.1 million as of December 31, 2023. Costs of being a publicly-held company may put the Company at a competitive disadvantage As a public company, the Company incurs substantial costs that are not incurred by its competitors that are privately-held.
Additionally, the Company had notes payable to private parties of approximately $1.0 million as of December 31, 2024. Costs of being a publicly-held company may put the Company at a competitive disadvantage As a public company, the Company incurs substantial costs that are not incurred by its competitors that are privately-held.
The Company’s ability to operate requires adequate funding The Company’s cash flow from operations historically has not been sufficient to provide all funds necessary for the Company’s operations. The Company has entered into a line of credit agreement to provide such funds and entered into term loan arrangements.
The Company’s ability to operate requires adequate funding The Company’s cash flow from operations historically has not been sufficient to provide all funds necessary for the Company’s operations. The Company has entered into two line of credit agreements to provide such funds and entered into term loan arrangements.
Failure to comply with all conditions of the credit facilities, or to have sufficient funds for operations could adversely affect the Company’s results of operations and stockholder value. As of December 31, 2023, the Company’s outstanding long-term debt was approximately $7.6 million, with $2.7 million drawn under its short-term line of credit.
Failure to comply with all conditions of the credit facilities, or to have sufficient funds for operations could adversely affect the Company’s results of operations and stockholder value. As of December 31, 2024, the Company’s outstanding long-term debt was approximately $14.0 million, with $2.4 million drawn under its short-term line of credit.
The Company’s wines also compete with popular generic wines and with other alcoholic and, to a lesser degree, non-alcoholic beverages, for shelf space in retail stores and for marketing focus by the Company’s independent distributors, many of which carry extensive brand portfolios. One result of this intense competition has been upward pressure on the Company’s selling and promotional expenses.
The Company’s wines also compete with popular generic wines and with other alcoholic and, to a lesser degree, non-alcoholic beverages, for shelf space in retail stores and for marketing focus by the Company’s independent distributors, many of which carry extensive brand portfolios. In addition, the wine industry has experienced significant consolidation.
Increased regulation and/or taxation could adversely affect the Company The wine industry is subject to extensive regulation by the TTB and various foreign agencies, state liquor authorities (such as the OLCC) and local authorities.
This, in turn, may have a considerable negative impact upon the Company’s sales and profit margins. Increased regulation and/or taxation could adversely affect the Company The wine industry is subject to extensive regulation by the TTB and various foreign agencies, state liquor authorities (such as the OLCC) and local authorities.
In addition, the wine industry has experienced significant consolidation. Many of the Company’s competitors have greater financial, technical, marketing, and public relations resources than the Company does. In particular, wine production in the United States is dominated by large California wineries that have significantly greater resources than the Company.
Many of the Company’s competitors have greater financial, technical, marketing, and public relations resources than the Company does. In particular, wine production in the United States is dominated by large California wineries that have significantly greater resources than the Company. Additionally, greater worldwide label recognition and larger production levels give many of the Company’s competitors certain unit cost advantages.
Additionally, greater worldwide label recognition and larger production levels give many of the Company’s competitors certain unit cost advantages. Company sales may be harmed to the extent it is not able to compete successfully against such wine or alternative beverage producers’ costs.
Company sales may be harmed to the extent it is not able to compete successfully against such wine or alternative beverage producers’ costs.
Removed
Reduced consumer confidence and spending may result in reduced demand for the Company’s products, limitations on the Company’s ability to increase prices and increased levels of selling and promotional expenses. This, in turn, may have a considerable negative impact upon the Company’s sales and profit margins.
Added
We consider our trademarks to be of considerable value and importance to our business, and if we fail to protect our trademarks, we may be unable to successfully market our products and compete effectively.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeITEM 1C. CYBERSECURITY The Company has not adopted any formal cybersecurity risk management program or formal processes for assessing, identifying, and managing material risks from cybersecurity threats. The full board of directors has oversight responsibility for the Company’s overall risk management, including cybersecurity risk, and has not delegated oversight authority for cybersecurity risks to any committee.
Biggest changeITEM 1C. CYBERSECURITY The Company has not adopted any formal cybersecurity risk management program or formal processes for assessing, identifying, and managing material risks from cybersecurity threats.
In fiscal year 2023, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition.
In fiscal year 2024, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition.
Added
At the management level, our Chief Executive Officer and Chief Financial Officer are responsible for addressing cybersecurity incidents, while our full Board has oversight responsibility for the Company’s overall risk management, including cybersecurity risk, and has not delegated oversight authority for cybersecurity risks to any committee.
Added
In the event a cybersecurity incident occurs, the Company’s Chief Executive Officer and the Chief Financial Officer are expected to inform the Board of the details of such incident as well as the measures taken in response to such incident.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIn 2023, the Winery produced approximately 234,086 cases (556,551 gallons) of wine, mostly from its 2022 and 2021 harvest. The Winery is 12,784 square feet in size and contains areas for processing, fermenting, aging, and bottling wine, as well as an underground wine cellar, meeting rooms, and administrative offices.
Biggest changeIn 2024, the Winery produced approximately 253,974 cases (603,836 gallons) of wine, mostly from its 2023 and 2022 harvests. The Winery is 12,784 square feet in size and contains areas for processing, fermenting, aging, and bottling wine, as well as an underground wine cellar, meeting rooms, and administrative offices.
The production capacity at the Tualatin Estate Winery is not currently used, but is available to the Company to meet future production needs. The storage capacity at the Tualatin Estate Winery is periodically used to store excess bulk wine. Additionally, the Company operates a small retail store and tasting room at the Tualatin Estate Winery.
The production capacity at the Tualatin Estate Winery is available to the Company to meet future production needs. The storage capacity at the Tualatin Estate Winery is periodically used to store excess bulk wine. Additionally, the Company operates a small retail store and tasting room at the Tualatin Estate Winery.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The Company’s Common Stock is traded on the NASDAQ Capital Market under the symbol “WVVI.” Holders As of March 26, 2024, the Company had approximately 3,177 Common Stock stockholders of record.
Biggest changeITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The Company’s Common Stock is traded on the NASDAQ Capital Market under the symbol “WVVI.” Holders As of March 25, 2025, the Company had approximately 3,249 Common Stock stockholders of record.
The Company intends to use its earnings to expand its vineyards, winemaking, and customer service facilities. 20 Equity Compensation Plans The Company had no equity compensation plan pursuant to which equity awards could be granted and no outstanding options or other equity awards as of December 31, 2023. Recent Sales of Unregistered Securities None. Issuer Purchases of Equity Securities None.
The Company intends to use its earnings to expand its vineyards, winemaking, and customer service facilities. 20 Equity Compensation Plans The Company had no equity compensation plan pursuant to which equity awards could be granted and no outstanding options or other equity awards as of December 31, 2024. Recent Sales of Unregistered Securities None. Issuer Purchases of Equity Securities None.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeSee the Statement of Cash Flows set out in our financial statements included herein. 25 The following table provides a reconciliation of net loss (the most comparable GAAP measure) to EBITDA for the periods indicated: Year Ended December 31, 2023 2022 Net loss $ (1,198,593 ) $ (646,492 ) Depreciation and amortization expense 3,426,977 2,315,901 Interest expense 594,106 367,745 Interest income (27 ) (5,496 ) Income tax benefit (487,861 ) (119,646 ) EBITDA $ 2,334,602 $ 1,912,012 Sales Wine case sales for the years ended December 31, 2023 and 2022 and ending inventory amounts for the year ended December 31, 2023, are shown in the following table: Cases Sold Cases Sold Cases On-Hand Varietal/Product 2023 2022 December 31, 2023 Pinot Noir/Estate 17,334 16,079 21,554 Pinot Noir/Barrel Select 10,093 19,789 1,185 Pinot Noir/Founders Reserve 3,988 4,519 5,091 Pinot Noir/Special Designates 12,706 14,083 16,028 Pinot Noir/Whole Cluster 60,070 50,674 32,697 Pinot Gris 33,279 33,568 9,109 Riesling 19,982 19,298 7,879 Chardonnay 5,191 5,010 5,246 Other 28,976 24,351 32,858 Total 191,619 187,371 131,647 Approximately 54% of the Company’s case sales during 2023 were of the Company’s flagship varietal, Pinot Noir.
Biggest changeSee the Statement of Cash Flows set out in our financial statements included herein. 25 The following table provides a reconciliation of net loss (the most comparable GAAP measure) to EBITDA for the periods indicated: Year Ended December 31, 2024 2023 Net loss $ (117,894 ) $ (1,198,593 ) Depreciation and amortization expense 3,323,613 3,426,977 Interest expense 1,016,215 594,106 Income tax benefit (226,799 ) (487,861 ) EBITDA $ 3,995,135 $ 2,334,629 Sales Wine case sales for the years ended December 31, 2024 and 2023 and ending inventory amounts for the year ended December 31, 2024, are shown in the following table: Cases Sold Cases Sold Cases On-Hand Varietal/Product 2024 2023 December 31, 2024 Pinot Noir/Estate 16,176 17,334 13,222 Pinot Noir/Barrel Select 17,774 10,093 9,714 Pinot Noir/Founders Reserve 4,031 3,988 11,202 Pinot Noir/Special Designates 14,371 12,706 25,150 Pinot Noir/Whole Cluster 58,367 60,070 58,604 Pinot Gris 30,162 33,279 19,183 Riesling 13,237 19,982 12,743 Chardonnay 4,708 5,191 15,598 Other 27,593 28,976 39,023 Total 186,419 191,619 204,438 Approximately 59% of the Company’s case sales during 2024 were of the Company’s flagship varietal, Pinot Noir.
The Company plans to address long-term grape supply needs by developing new vineyards on properties currently owned or secured by lease. The Company has approximately 53 acres of vineyards that have been planted but are in the pre-productive stage. We anticipate that these vineyards will begin producing grapes within the next one to three years.
The Company plans to address long-term grape supply needs by developing new vineyards on properties currently owned or secured by lease. The Company has approximately 54 acres of vineyards that have been planted but are in the pre-productive stage. We anticipate that these vineyards will begin producing grapes within the next one to three years.
The Company believes that cash flow from operations and funds available under its existing credit facilities and preferred stock program will be sufficient to meet the Company’s foreseeable short and long-term operating needs. Inflation The Company’s management does not believe inflation has had a material impact on the Company’s revenues or loss during 2023 or 2022.
The Company believes that cash flow from operations and funds available under its existing credit facilities and preferred stock program will be sufficient to meet the Company’s foreseeable short and long-term operating needs. Inflation The Company’s management does not believe inflation has had a material impact on the Company’s revenues or loss during 2024 or 2023.
Vineyard Development – The Company capitalizes internal vineyard development costs prior to the vineyard land becoming fully productive. These costs consist primarily of the costs of the vines and expenditures related to labor and materials to prepare the land and construct vine trellises.
Other Accounting Policies and Estimates Vineyard Development – The Company capitalizes internal vineyard development costs prior to the vineyard land becoming fully productive. These costs consist primarily of the costs of the vines and expenditures related to labor and materials to prepare the land and construct vine trellises.
Management believes sufficient bulk wine inventory is on-hand to bottle approximately 330,000 cases of wine in 2023, and that sufficient stock is on hand to meet current demand levels until the 2023 vintage becomes available.
Management believes sufficient bulk wine inventory is on-hand to bottle approximately 310,000 cases of wine in 2025, and that sufficient stock is on hand to meet current demand levels until the 2024 vintage becomes available.
The increase in retail sales revenues in 2023 compared to 2022 was mostly a result of increased revenues from new retail locations being open for longer during 2023.
The increase in retail sales revenues in 2024 compared to 2023 was mostly a result of increased revenues from a new retail location being open for longer during 2024.
Direct-to-consumer sales generate a higher gross profit margin than national sales to distributors due to differentiated pricing between these segments. 26 Wine Inventory The Company had 131,647 cases of bottled wine on-hand at the end of 2023.
Direct-to-consumer sales generate a higher gross profit margin than national sales to distributors due to differentiated pricing between these segments. 26 Wine Inventory The Company had 204,438 cases of bottled wine on-hand at the end of 2024.
The grapes are processed into wine, which is typically bottled and available for sale between five months and two years from the date of harvest. The Company received $3,313,483 and $1,868,742 worth of grapes from long-term contracts during the years ended December 31, 2023 and 2022, respectively.
The grapes are processed into wine, which is typically bottled and available for sale between five months and two years from the date of harvest. The Company received $2,275,162 and $3,313,483 worth of grapes from long-term contracts during the years ended December 31, 2024 and 2023, respectively.
The Company’s payment arrangements with wholesalers provide primarily 30-day terms and, to a limited extent, 45-day, 60-day, or longer terms for some international wholesalers. Direct sales through the Company’s tasting rooms are recognized at the point of sales. Sales through the internet and wine club sales are recognized when the product has shipped to the customer.
The Company’s payment arrangements with wholesalers provide primarily 30-day terms and, to a limited extent, 45-day, 60-day, or longer terms for some international wholesalers. Direct sales through the Company’s tasting rooms are recognized at the point of sales.
These three sales channels represent 52.4%, 14.4% and 33.2%, of total revenue for the year ended December 31, 2023, respectively. This compares to 46.4%, 17.5% and 36.1% of total revenue for the year ended December 31, 2022, respectively. Miscellaneous and grape sales are included in direct-to-consumer sales.
These three sales channels represent 53.4%, 16.1% and 30.5%, of total revenue for the year ended December 31, 2024, respectively. This compares to 52.4%, 14.4% and 33.2% of total revenue for the year ended December 31, 2023, respectively. Miscellaneous and grape sales are included in direct-to-consumer sales.
The debt with AgWest was used to finance the Estate Hospitality Center and subsequent remodels, invest in winery equipment to increase the Company’s winemaking capacity, acquire new vineyard land for future development and provide operating capital. 28 As of December 31, 2023, the Company had an installment note payable of $1,100,735, due in quarterly payments of $42,534 through February 2032, associated with the purchase of property in the Dundee Hills AVA.
The debt with AgWest was used to finance the Estate Hospitality Center and subsequent remodels, invest in winery equipment to increase the Company’s winemaking capacity, acquire new vineyard land for future development and finance new tasting room locations. 28 As of December 31, 2024, the Company had an installment note payable of $995,968, due in quarterly payments of $42,534 through February 2032, associated with the purchase of property in the Dundee Hills AVA.
The increase in case sales in 2023 compared to 2022 was the result of an increase in direct-to-consumer case sales. The Company has three primary sales channels: 1) direct-to-consumer sales; 2) in-state sales to distributors; and 3) out-of-state sales to distributors.
The decrease in case sales in 2024 compared to 2023 was the result of a decrease in sales to distributors. The Company has three primary sales channels: 1) direct-to-consumer sales; 2) in-state sales to distributors; and 3) out-of-state sales to distributors.
Production Capacity Current production volumes are within the current production capacity constraints of the Winery, when including storage capacity at the Tualatin Winery and utilization of temporary storage when appropriate. In 2023, 234,086 cases were produced.
Production Capacity Current production volumes are within the current production capacity constraints of the Winery, when including storage capacity at the Tualatin Winery and utilization of temporary storage when appropriate. In 2024, 253,974 cases were produced.
The Company had 11,541 wine club memberships for the year ended December 31, 2023, a net increase of 1,540 when compared to 2022. Additionally, the Company’s Preferred Stock sales since August 2015 have resulted in approximately 14,385 preferred stockholders, many of which the Company believes are wine enthusiasts.
The Company had 11,183 wine club memberships for the year ended December 31, 2024, a net decrease of 358 when compared to 2023. Additionally, the Company’s Preferred Stock sales since August 2015 have resulted in approximately 14,715 preferred stockholders, many of which the Company believes are wine enthusiasts.
At December 31, 2023, wine inventory included 131,647 cases of bottled wine and 785,363 gallons of bulk wine in various stages of the aging process. Cased wine is expected to be sold over the next 12 to 24 months (and generally before the release date of the next vintage).
At December 31, 2024, wine inventory included 204,438 cases of bottled wine and 736,396 gallons of bulk wine in various stages of the aging process. Cased wine is expected to be sold over the next 12 to 24 months (and generally before the release date of the next vintage).
When considering joint ownership, we believe these new shareholders represent approximately 21,577 potential customers of the Company. The Company also has approximately 3,177 shareholders of Common Stock which we believe represent an estimated 4,765 potential customers when considering joint ownership.
When considering joint ownership, we believe these new shareholders represent approximately 22,072 potential customers of the Company. The Company also has approximately 3,249 shareholders of Common Stock which we believe represent an estimated 4,873 potential customers when considering joint ownership.
The Company also pays taxes on the grape harvest on a per ton basis to the OLCC for the Oregon Wine Board. The Company’s excise related taxes for the years ended December 31, 2023 and 2022 were $431,714 and $312,103, respectively, an increase of $119,611, for the year ended December 31, 2023 over the prior year period.
The Company also pays taxes on its grape harvest on a per ton basis to the OLCC for the Oregon Wine Board. The Company’s excise related taxes for the years ended December 31, 2024 and 2023 were $405,392 and $431,714, respectively, a decrease of $26,322, for the year ended December 31, 2024 over the prior year period.
The Company has three primary sales channels: direct-to-consumer retail sales, in-state sales to distributors, and out-of-state sales to distributors. During 2023, revenues from retail sales increased 31.0%, revenues from in-state sales decreased 5.0%, and revenues from out-of-state sales increased 6.1%, compared to 2022.
The Company has three primary sales channels: direct-to-consumer retail sales, in-state sales to distributors, and out-of-state sales to distributors. During 2024, revenues from retail sales increased 3.8%, revenues from in-state sales increased 13.8%, and revenues from out-of-state sales decreased 6.7%, compared to 2023.
The Company considers short-term contracts to be for single vintage years and long-term contracts to cover multiple vintage years. Grapes are typically harvested and received in September and October of the vintage year. Upon receipt, the grapes are weighed, and a quality analysis is performed to ensure the grapes meet the standards set forth in the purchase contract.
Grapes are typically harvested and received in September and October of the vintage year. Upon receipt, the grapes are weighed, and a quality analysis is performed to ensure the grapes meet the standards set forth in the purchase contract.
The Company received $1,941,572 and $639,677 worth of grapes from short-term contracts during the years ended December 31, 2023 and 2022, respectively. Total grapes payable was $2,446,233 and $1,208,673 as of December 31, 2023 and 2022, respectively. Total grapes payable includes $1,357,649 and $934,371 of grapes payable from long-term contracts as of December 31, 2023 and 2022, respectively.
The Company received $681,705 and $1,941,572 worth of grapes from short-term contracts during the years ended December 31, 2024 and 2023, respectively. Total grapes payable was $1,519,087 and $2,446,233 as of December 31, 2024 and 2023, respectively. Total grapes payable includes $1,023,171 and $1,357,649 of grapes payable from long-term contracts as of December 31, 2024 and 2023, respectively.
The Company also reimburses for samples used by distributors up to 1.5% of product sold to the distributors. Sample expenses are recognized at the time the Company is billed by the distributor as a selling, general and administrative expense. 21 Amounts paid by customers to the Company for shipping and handling expenses are included in the net revenue.
Sample expenses are recognized at the time the Company is billed by the distributor as a selling, general and administrative expense. 21 Amounts paid by customers to the Company for shipping and handling expenses are included in the net revenue. Expenses incurred for outbound shipping and handling charges are included in selling, general and administrative expense.
This increase in the gross profit percentage was primarily the result of higher direct sales prices and more sales coming from direct to consumer sales in 2023. 24 Selling, general and administrative expenses were $23,764,330 and $19,360,514 for the years ended December 31, 2023 and 2022, respectively, an increase of $4,403,816, or 22.7%, for the year ended December 31, 2023 over the prior year period.
This increase in the gross profit percentage was primarily the result of higher direct sales prices and more sales coming from direct to consumer sales in 2024. 24 Selling, general and administrative expenses were $23,623,598 and $23,764,330 for the years ended December 31, 2024 and 2023, respectively, a decrease of $140,732, or 0.6%, for the year ended December 31, 2024 over the prior year period.
Direct sales included $69,924 and $97,652 of bulk wine and grape sales in the years ended December 31, 2023 and 2022, respectively, and represented approximately 52.4% and 46.4% of the Company’s total revenue for 2023 and 2022, respectively, while the Company’s remaining revenues came from sales through distributors. 23 The following table sets forth certain information regarding the Company’s revenue, excluding excise taxes, from the Winery’s operations for the twelve months ended December 31, 2023 and 2022: Year ended December 31, 2023 2022 Retail sales $ 20,680,024 $ 15,786,241 In-state sales 5,686,517 5,987,410 Out-of-state sales 13,131,363 12,374,881 Bulk wine/miscellaneous sales 69,924 97,652 Total revenue 39,567,828 34,246,184 Less excise taxes (431,714 ) (312,103 ) Sales, net $ 39,136,114 $ 33,934,081 Retail sales revenues for the years ended December 31, 2023 and 2022 were $20,680,024 and $15,786,241 respectively, an increase of $4,893,783, or 31.0%, for the year ended December 31, 2023 over the prior year period.
Direct sales included $0 and $69,924 of bulk wine and grape sales in the years ended December 31, 2024 and 2023, respectively, and represented approximately 53.4% and 52.4% of the Company’s total revenue for 2024 and 2023, respectively, while the Company’s remaining revenues came from sales through distributors. 23 The following table sets forth certain information regarding the Company’s revenue, excluding excise taxes, from the Winery’s operations for the twelve months ended December 31, 2024 and 2023: Year ended December 31, 2024 2023 Retail sales $ 21,465,475 $ 20,680,024 In-state sales 6,470,363 5,686,517 Out-of-state sales 12,251,996 13,131,363 Bulk wine/miscellaneous sales - 69,924 Total revenue 40,187,834 39,567,828 Less excise taxes (405,392 ) (431,714 ) Sales, net $ 39,782,442 $ 39,136,114 Retail sales revenues for the years ended December 31, 2024 and 2023 were $21,465,475 and $20,680,024 respectively, an increase of $785,451, or 3.8%, for the year ended December 31, 2024 over the prior year period.
The Company pays depletion allowances to the Company’s distributors based on their sales to their customers. The Company sets these allowances on a monthly basis and the Company’s distributors bill them back on a monthly basis. All depletion expenses associated with a given month are recognized in that month as a reduction of revenues.
The Company sets these allowances on a monthly basis and the Company’s distributors bill them back on a monthly basis. All depletion expenses associated with a given month are recognized in that month as a reduction of revenues. The Company also reimburses for samples used by distributors up to 1.5% of product sold to the distributors.
Total cash provided from financing activities for the year ended December 31, 2023 was $6,615,626, which primarily consisted of proceeds from the issuance of Preferred Stock and an increase in the line of credit and long term debt, being partially offset by the payment of a preferred stock dividend.
Total cash provided from financing activities for the year ended December 31, 2024 was $5,409,849, which primarily consisted of proceeds from long term debt, being partially offset by the payment of a preferred stock dividend and payments on long term debt.
Loss per common share after preferred dividends was $0.65 and $0.51 for the years ended December 31, 2023 and 2022, respectively, an increase of $0.14, or 29.2%, for the year ended December 31, 2023 over the prior year period.
Loss per common share after preferred dividends was $0.48 and $0.65 for the years ended December 31, 2024 and 2023, respectively, a decrease of $0.17, or 26.0%, for the year ended December 31, 2024 over the prior year period.
The Company has received a waiver from Umqua Bank waiving this violation until the next measurement date of December 31, 2024. As of December 31, 2023, the Company had a total long-term debt balance of $7,590,659 owed to AgWest, including the portion due in the next year, exclusive of debt issuance costs of $105,989.
As of December 31, 2024, the Company had a total long-term debt balance of $14,042,910 owed to AgWest, including the portion due in the next year, exclusive of debt issuance costs of $178,908. As of December 31, 2023, the Company had a total long-term debt balance of $7,590,659, exclusive of debt issuance costs of $105,989.
Net loss applicable to common shareholders was $3,245,690 and $2,512,943, for the years ended December 31, 2023 and 2022, respectively, an increase of $732,747, or 29.2%, for the year ended December 31, 2023 over the prior year period. This increase was primarily driven by a higher net loss and higher preferred stock dividends.
Net loss applicable to common shareholders was $2,370,835 and $3,245,690, for the years ended December 31, 2024 and 2023, respectively, a decrease of $874,855, or 27.0%, for the year ended December 31, 2024 over the prior year period. This decrease was primarily driven by a lower net loss, being partially offset by higher preferred stock dividends.
This increase was due primarily to a larger crop processed and the timing of removals in 2023. Cost of Sales was $16,578,986 and $15,119,985 for the years ended December 31, 2023 and 2022, respectively, an increase of $1,459,001, or 9.6%, for the year ended December 31, 2023, over the prior year period.
This decrease was due primarily to the timing of removals in 2024. Cost of Sales was $15,586,986 and $16,578,986 for the years ended December 31, 2024 and 2023, respectively, a decrease of $992,000, or 6.0%, for the year ended December 31, 2024, over the prior year period.
This increase was generally driven by an increase in sales revenues in 2023. The gross margin percentage was 57.6% and 55.4% for the years ended December 31, 2023 and 2022, respectively, an increase of 2.2 percentage points, for the year ended December 31, 2023 over the prior year period.
The gross margin percentage was 60.8% and 57.6% for the years ended December 31, 2024 and 2023, respectively, an increase of 3.2 percentage points, for the year ended December 31, 2024 over the prior year period.
Case sales of Pinot Gris and Riesling follow with approximately 17% and 10% of case sales, respectively. The Company sold approximately 191,619 and 187,371 cases of Company-produced wine during the years ended December 31, 2023 and 2022, respectively. This represents an increase of approximately 4,248 cases, or 2.3%, 2023 compared to 2022.
Case sales of Pinot Gris and Riesling follow with approximately 16% and 7% of case sales, respectively. The Company sold approximately 186,419 and 191,619 cases of Company-produced wine during the years ended December 31, 2024 and 2023, respectively. This represents a decrease of approximately 5,200 cases, or 2.7%, 2024 compared to 2023.
James Suckling rated the Company’s 2021 Estate Pinot Noir 91 points, Dijon Clone Chardonnay 91 points and the 2022 Pinot Gris 90 points. Wine Enthusiast Magazine rated the Company’s 2021 Estate Pinot Noir 91 points, 2021 Dijon Clone Pinot Noir 90 points and 2021 Founders’ Reserve Pinot Noir 90 points.
James Suckling rated the Company’s 2021 Elton Pinot Noir 92 points and the 2021 Signature Cuvée Pinot Noir 91 points. He also rated the Company’s 2021 Estate Pinot Noir 91 points, Dijon Clone Chardonnay 91 points, 2021 Elton Chardonnay 91 points and the 2022 Pinot Gris 90 points.
In-state sales revenues for the years ended December 31, 2023 and 2022 were $5,686,517 and $5,987,410, respectively, a decrease of $300,893, or 5.0%, for the year ended December 31, 2023 over the prior year period. Out-of-state sales revenues for the years ended December 31, 2023 and 2022 were $13,131,363 and $12,374,881, respectively, an increase of $756,482, or 6.1%.
In-state sales revenues for the years ended December 31, 2024 and 2023 were $6,470,363 and $5,686,517, respectively, an increase of $783,846, or 13.8%, for the year ended December 31, 2024 over the prior year period. Out-of-state sales revenues for the years ended December 31, 2024 and 2023 were $12,251,996 and $13,131,363, respectively, a decrease of $879,367, or 6.7%.
The Company sold approximately 191,619 and 187,371 cases of produced wine during the years ended December 31, 2023 and 2022, respectively, an increase of 4,248 cases, or 2.3% in the current year over the prior year. The increase in case sales was the result of more direct to consumer sales in 2023 when compared to 2022.
The Company sold approximately 186,419 and 191,619 cases of produced wine during the years ended December 31, 2024 and 2023, respectively, a decrease of 5,200 cases, or 2.7% in the current year over the prior year. The decrease in case sales was the result of lower sales to wholesalers in 2024 when compared to 2023.
The Winery bottled 234,086 cases during the year ended December 31, 2023. Results of Operations 2023 compared to 2022 Net loss was $1,198,593 and $646,492, for the years ended December 31, 2023 and 2022, respectively, an increase of $552,101, or 85.4%, for the year ended December 31, 2023 over the prior year period.
The Winery bottled 253,974 cases during the year ended December 31, 2024. Results of Operations 2024 compared to 2023 Net loss was $117,894 and $1,198,593, for the years ended December 31, 2024 and 2023, respectively, a decrease of $1,080,699, or 90.2%, for the year ended December 31, 2024 over the prior year period.
Provision for income tax benefit was $487,861 and $119,646 for the years ended December 31, 2023 and 2022, respectively, an increase of $368,215, for the year ended December 31, 2023 over the prior year period.
Provision for income tax benefit was $226,799 and $487,861 for the years ended December 31, 2024 and 2023, respectively, a decrease of $261,062, or 53.5%, for the year ended December 31, 2024 over the prior year period.
The primary reason for this increase was an increase in net loss and higher preferred stock dividends in 2023 compared to 2022. The Company had cash balances of $238,482 at December 31, 2023, and $338,676 at December 31, 2022. The Company had an outstanding line of credit balance of $2,684,982 at December 31, 2023, and $166,617 at December 31, 2022.
The primary reason for this decrease was a lower net loss partially offset by higher preferred stock dividends in 2024 compared to 2023. The Company had cash balances of $320,883 at December 31, 2024, and $238,482 at December 31, 2023.
Interest expense was $594,106 and $367,745 for the years ended December 31, 2023 and 2022, respectively, an increase of $226,361, or 61.6%, for the year ended December 31, 2023 over the prior year period. The increase in interest expense was mainly due to the increase in average loan balances in 2023 compared to the previous year.
The increase in interest expense was mainly due to the increase in average loan balances in 2024 compared to the previous year. Other income, net, was $99,629 and $114,827 for the years ended December 31, 2024 and 2023, respectively, a decrease of $15,198, or 13.2%, for the year ended December 31, 2024 over the prior year period.
The Company intends to seek out opportunities to acquire land for future grape plantings in order to continue to increase available quantities, maintain control over farming practices, more effectively manage grape costs and mitigate uncertainty associated with long-term contracts. 27 Wine Quality Continued awareness of the Willamette Valley Vineyards brand and the quality of its wines was enhanced by national and regional media coverage throughout 2023 including the accolades below.
The Company has approximately 212 acres of land that is suitable for future vineyard development. The Company intends to seek out opportunities to acquire land for future grape plantings in order to continue to increase available quantities, maintain control over farming practices, more effectively manage grape costs and mitigate uncertainty associated with long-term contracts.
The Company had net sales revenues of $39,136,114 and $33,934,081 for the years December 31, 2023 and 2022, respectively, an increase of $5,202,033, or 15.3%, for the year ended December 31, 2023 over the prior year period primarily as a result of an increase in revenue from direct sales of $4,786,730, or 30.4% in 2023 compared to 2022, and an increase in revenue from sales to distributors of $415,303 or 2.3% in 2023 compared to 2022.
The Company had net sales revenues of $39,782,442 and $39,136,114 for the years December 31, 2024 and 2023, respectively, an increase of $646,328, or 1.7%, for the year ended December 31, 2024 over the prior year period primarily as a result of an increase in revenue from direct sales, net of excise taxes, of $736,057, or 3.6% in 2024 compared to 2023, being partially offset by a decrease in revenue from sales to distributors of $89,729 or 0.5% in 2024 compared to 2023.
The Company regularly reviews inventory quantities on hand and adjusts its production requirements for the next twelve months based on estimated forecasts of product demand. A significant decrease in demand could result in an increase in the amount of excess inventory quantities on hand.
A significant decrease in demand could result in an increase in the amount of excess inventory quantities on hand.
The Company had an outstanding line of credit balance of $2,684,982 at December 31, 2023, at an interest rate of 8.0%, and an outstanding line of credit balance of $166,617 at December 31, 2022, at an interest rate of 6.5%. As of December 31, 2023, the Company was out of compliance with a debt covenant contained in the Credit Agreement.
The Company had an outstanding line of credit balance of $2,405,815 at December 31, 2024, at an interest rate of 7.0%, and an outstanding line of credit balance of $2,684,982 at December 31, 2023, at an interest rate of 8.0%.
During 2023, the Company did not utilize the wine production facilities at the Tualatin Winery but did utilize it for wine storage. The Tualatin Winery has capacity to produce approximately 28,000 cases of wine. Management intends to fully utilize the production capacity at the Estate Winery before expanding into the Tualatin Winery.
The Tualatin Winery has capacity to produce approximately 28,000 cases of wine. Management intends to fully utilize the production capacity at the Estate Winery before expanding into the Tualatin Winery. Grape Supply For the 2024 and 2023 vintages, the Company grew approximately 60% and 42% of all grapes harvested, respectively. The remaining grapes harvested were purchased from other growers.
The Company had cash balances of $238,482, at December 31, 2023. Total cash used in operating activities for the year ended December 31, 2023 was $1,998,850, which resulted primarily from a net loss in 2023 as well as increased inventory and lease liabilities.
Total cash used in operating activities for the year ended December 31, 2024 was $3,237,743, which resulted primarily from a net loss in 2024 as well as increased inventory and lower grapes payable. This was partially offset by depreciation, and an increase in accrued expenses.
Loss from operations was $1,207,202 and $546,418 for the years ended December 31, 2023 and 2022, respectively, an increase of $660,784, or 120.9%, for the year ended December 31, 2023 compared to the prior year period. This increase included higher depreciation costs of $1,232,459 in 2023 mostly relating to the investment in new locations.
This decrease was primarily as a result of lower labor selling costs in 2024. Income(loss) from operations was $571,858 and $(1,207,202) for the years ended December 31, 2024 and 2023, respectively, an increase of $1,779,060, or 147.4%, for the year ended December 31, 2024 compared to the prior year period.
This was partially offset by increased depreciation, a reduction in accounts receivable and an increase in grapes payable. Total cash used in investing activities for the year ended December 31, 2023 was $4,726,970, which primarily consisted of cash used on construction activity and vineyard development costs.
Total cash used in investing activities for the year ended December 31, 2024 was $2,089,705, which primarily consisted of cash used on land purchase, property development and vineyard development costs.
This change was primarily the result of increased sales and the mix of sales between direct and distributors between the two periods. Gross profit was $22,557,128 and $18,814,096 for the years ended December 31, 2023 and 2022, respectively, an increase of $3,743,032 or 19.9%, for the year ended December 31, 2023 over the prior year period.
This change was primarily the result of a reduction in the volume of product sold and lower unit costs when compared to the prior year. Gross profit was $24,195,456 and $22,557,128 for the years ended December 31, 2024 and 2023, respectively, an increase of $1,638,328 or 7.3%, for the year ended December 31, 2024 over the prior year period.
Grape Supply For the 2023 and 2022 vintages, the Company grew approximately 42% and 66% of all grapes harvested, respectively. The remaining grapes harvested were purchased from other growers. In 2023 and 2022, 18% and 8% of grapes harvested were purchased under short-term contracts, and 40% and 26% of grapes harvested were purchased under long-term contracts, respectively.
In 2024 and 2023, 11% and 18% of grapes harvested were purchased under short-term contracts, and 29% and 40% of grapes harvested were purchased under long-term contracts, respectively. The Company considers short-term contracts to be for single vintage years and long-term contracts to cover multiple vintage years.
The primary reason for this increase was a higher gross profit from additional sales revenue, being more than offset by higher operating expenses. This was primarily related to higher tasting room expenses as a result of some locations being open for longer for the year ended December 31, 2023, compared to the previous year.
The primary reason for this decrease was a higher gross profit from additional sales revenue at higher margins in the current year being partially offset by higher interest expense in 2024 compared to the previous year.
The Company had a bank overdraft of $393,416 at December 31, 2023, and no overdraft at December 31, 2022. EBITDA In 2023, the Company’s earnings before interest, taxes, depreciation, and amortization (“EBITDA”) increased 22.1% to $2,334,602 from $1,912,012 in 2022, primarily as a result of increased depreciation costs in 2023.
EBITDA In 2024, the Company’s earnings before interest, taxes, depreciation, and amortization (“EBITDA”) increased 71.1% to $3,995,135 from $2,334,629 in 2023, primarily as a result of a lower net loss in 2024. EBITDA does not reflect the impact of a number of items that affect our net income (loss), including financing costs.
This increase in income tax benefit in 2023 compared to 2022 was primarily the result of a higher loss from operations in 2023 and an increase in the effective tax rate in 2023.
This decrease in income tax benefit in 2024 compared to 2023 was primarily the result of a higher income from operations in 2024 compared to 2023 along with the impact of a change in the tax rate related to amended returns to claim the credit for employer social security and medicare taxes paid on certain employee tips.
Typically, first quarter sales are the lowest of any given year, and sales volumes increase progressively through the fourth quarter mostly because of consumer buying habits. Liquidity and Capital Resources At December 31, 2023, the Company had a working capital balance of $18.4 million and a current ratio of 2.33:1.
Seasonality The Company has historically experienced and expects to continue to experience seasonal fluctuations in its revenue and net income. Typically, first quarter sales are the lowest of any given year, and sales volumes increase progressively through the fourth quarter, mostly because of consumer buying habits.
Expenses incurred for outbound shipping and handling charges are included in selling, general and administrative expense. Inventory – The Company values inventories at the lower of actual cost to produce the inventory or net realizable value.
Inventory – The Company values inventories at the lower of actual cost to produce the inventory or net realizable value. The Company regularly reviews inventory quantities on hand and adjusts its production requirements for the next twelve months based on estimated forecasts of product demand.
This increase was primarily as a result of more sales coming from tasting rooms which have higher selling costs and from newer locations being open for longer in 2023.
This increase was primarily the result of higher prices being charged for products and a higher percentage of total sales coming from direct sales in 2024 compared to the prior year.
Removed
Bulk Wine/miscellaneous sales revenues for the years ended December 31, 2023 and 2022 were $69,924 and $97,652, respectively, a decrease of $27,728, or 28.4%, for the year ended December 31, 2023, over the prior year period.
Added
Sales through the internet and wine club sales are recognized when the product has shipped to the customer or is ready for the scheduled pickup. The Company pays depletion allowances to the Company’s distributors based on their sales to their customers.
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Interest income was $27 and $5,496 for the years ended December 31, 2023 and 2022, respectively, a decrease of $5,469 for the year ended December 31, 2023 over the prior year.
Added
This increase was primarily the result of a higher gross profit and lower labor operating expenses in 2024. Interest expense, net was $1,016,180 and $594,079 for the years ended December 31, 2024 and 2023, respectively, an increase of $422,101, or 71.1%, for the year ended December 31, 2024 over the prior year period.
Removed
Other income, net, was $114,827 and $142,529 for the years ended December 31, 2023 and 2022, respectively, a decrease of $27,702, or 19.4%, for the year ended December 31, 2023 over the prior year period.
Added
The Company had an outstanding line of credit balance of $2,405,815 at December 31, 2024, and $2,684,982 at December 31, 2023. The Company had a bank overdraft of $473,016 at December 31, 2024, and $393,416 at December 31, 2023.
Removed
EBITDA does not reflect the impact of a number of items that affect our net income (loss), including financing costs.
Added
Wine Quality Continued awareness of the Willamette Valley Vineyards brand and the quality of its wines was enhanced by national and regional media coverage throughout 2024 including the accolades below.
Removed
The Company has approximately 213 acres of land that is suitable for future vineyard development.
Added
The tasting room at the Company’s Estate Winery in the Salem Hills, Oregon was awarded the Best Wine Tasting Room in the country by USA Today in their 10 Best Readers’ Choice Awards. The Company was also awarded the #2 Best Wine Club in the nation by USA Today.
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The Company’s 2022 Whole Cluster Pinot Noir 90 points, 2022 White Pinot Noir 91 points, 2022 Maison Bleue Voltigeur Viognier 90 points, 2020 Métis Red Blend 92 points and Cellar Selection. Sunset International Wine Competition awarded the Company’s 2022 Whole Cluster Rosé of Pinot Noir 94 points with a Gold Medal.
Added
The Company’s Willamette Valley Vineyards 2021 Elton Pinot Noir received a 93 score, the 2022 Reisling scored 92 points, 2022 Estate Pinot Noir scored 91 points, 2022 Dijon Clone Chardonnay scored 90 points, 2022 Riesling scored 92 points and the 2022 Whole Cluster Pinot Noir scored 90 points from the International Wine Report.
Removed
Sip Magazine’s Best of the Northwest rated the Company’s 2022 Pinot Blanc a Double Gold. Global Fine Wine Challenge awarded the Company’s 2019 Griffin Creek Cabernet Franc and 2019 Domaine Willamette Brut both Gold. Seasonality The Company has historically experienced and expects to continue to experience seasonal fluctuations in its revenue and net income.
Added
The International Wine Report also scored the 2019 Pambrun Chrysologue at 93 points, 2021 Domaine Willamette Brut scored 92 points, 2022 Maison Bleue Voltigeur Viognier 92 points and 2021 Maison Bleue Frontière Syrah 91 points. 27 The Company’s 2021 Bernau Block Pinot Noir received a score of 95 from Beverage Dynamics.
Removed
As of December 31, 2022, the Company had a total long-term debt balance of $7,062,654, exclusive of debt issuance costs of $119,237.
Added
Wine Enthusiast Magazine awarded the Company’s Willamette Valley Vineyards 2021 Bernau Block Pinot Noir 93 points, and the 2022 Dijon Clone Chardonnay was also awarded 91 points. Sunset International Wine Competition awarded Gold and 93 points to 2022 Estate Chardonnay, 2022 White Pinot Noir was also awarded Gold/Best of Class and 90 points.
Added
Owen Bargreen rated the Company’s 2020 Domaine Willamette Méthode Traditionnelle Brut Rosé, 2022 Tualatin Estate Chardonnay, 2021 Mètis Red Blend and 2022 Dry Riesling all 92 points. Bargreen also scored the 2022 Dry Gewürztraminer at 91 points and the 2023 Pinot Blanc and 2022 Tualatin Estate White Pinot Noir 92 points.
Added
Liquidity and Capital Resources At December 31, 2024, the Company had a working capital balance of $23.9 million and a current ratio of 2.84:1. The Company had cash balances of $320,883, at December 31, 2024.

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