v3.26.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

6) SEGMENT REPORTING

 

The Company has identified two operating segments, Direct Sales and Distributor Sales, based upon their different distribution channels, margins and selling strategies. Direct Sales include retail sales in the tasting rooms, wine club sales, internet sales, on-site events, kitchen and catering sales and other sales made directly to the consumer without the use of an intermediary, including sales of bulk wine or grapes. Distributor Sales include all sales through a third party where prices are given at a wholesale rate.

 

The two segments reflect how the Company’s operations are evaluated by senior management and the structure of its internal financial reporting. The Company evaluates performance based on the gross profit of the respective business segments. Selling expenses that can be directly attributable to the segment, including depreciation of segment specific assets, are included, however, centralized selling expenses and general and administrative expenses are not allocated between operating segments. Therefore, net income (loss) information for the respective segments is not available. Discrete financial information related to segment assets, other than segment specific depreciation associated with selling, is not available and that information continues to be aggregated.

 

The following table outlines the sales, cost of sales, gross margin, directly attributable selling expenses, and contribution margin of the segments for the three months ended March 31, 2026 and 2025. Sales figures are net of related excise taxes.

                                 
   Three Months Ended March 31,
   Direct Sales   Distributor Sales   Unallocated   Total  
   2026   2025   2026   2025   2026   2025   2026   2025 
                                 
Sales, net  $4,227,366   $4,310,474   $4,028,787   $3,231,109   $-   $-   $8,256,153   $7,541,583 
Cost of Sales   1,228,289    1,185,593    1,998,800    1,596,882    -    -    3,227,089    2,782,475 
Gross Profit   2,999,077    3,124,881    2,029,987    1,634,227    -    -    5,029,064    4,759,108 
Selling and Marketing Expenses   3,078,716    3,086,255    742,947    640,035    262,182    241,420    4,083,845    3,967,710 
Contribution Margin (Loss)  $(79,639)  $38,626   $1,287,040   $994,192                     
Percent of Sales   51.2%   57.2%   48.8%   42.8%                    
General and Administration Expenses                       1,623,013    1,661,376    1,623,013    1,661,376 
Loss from Operations                                $(677,794)  $(869,978)