v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 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 profit, directly attributable selling expenses, and contribution margin of the segments for the three and six month periods ended June 30, 2026 and 2025. Sales figures are net of related excise taxes.

                                 
   Three Months Ended June 30,
   Direct Sales  Distributor Sales  Unallocated  Total
   2026  2025  2026  2025  2026  2025  2026  2025
                         
Sales, net  $5,235,480   $5,497,973   $4,800,795   $4,697,790   $-   $-   $10,036,275   $10,195,763 
Cost of sales   1,537,267    1,451,868    2,725,283    2,527,277    -    -    4,262,550    3,979,145 
Gross profit   3,698,213    4,046,105    2,075,512    2,170,513    -    -    5,773,725    6,216,618 
Selling expenses   3,356,449    3,255,050    826,232    653,604    241,133    284,981    4,423,814    4,193,635 
Contribution margin  $341,764   $791,055   $1,249,280   $1,516,909                     
Percent of total sales   52.2%   53.9%   47.8%   46.1%                    
General and administration expenses                       2,703,880    1,624,819    2,703,880    1,624,819 
Income (loss) from operations                                $(1,353,969)  $398,164 
                                 
    Six Months Ended June 30,
    Direct Sales    Distributor Sales    Unallocated    Total 
    2026    2025    2026    2025    2026    2025    2026    2025 
                                         
Sales, net  $9,462,846   $9,808,448   $8,829,582   $7,928,898   $-   $-   $18,292,428   $17,737,346 
Cost of sales   2,765,556    2,637,462    4,724,083    4,124,158    -    -    7,489,639    6,761,620 
Gross profit   6,697,290    7,170,986    4,105,499    3,804,740    -    -    10,802,789    10,975,726 
Selling expenses   6,435,164    6,341,306    1,569,179    1,293,639    503,315    526,400    8,507,658    8,161,345 
Contribution margin  $262,126   $829,680   $2,536,320   $2,511,101                     
Percent of total sales   51.7%   55.3%   48.3%   44.7%                    
General and administration expenses                       4,326,894    3,286,195    4,326,894    3,286,195 
Loss from operations                                $(2,031,763)  $(471,814)