Segments

3 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segments

16. Segments (as restated)

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM, or decision-making group, in deciding how to allocate resources and in assessing performance. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. Our operations are principally managed on a sales distribution basis and are comprised of three reportable segments: Wholesale; Direct-to-Consumer; and Business-to-Business. The factors for determining the reportable segments include the manner in which management evaluates performance for purposes for allocating resources and assessing performance.

We report our segments as follows:

Wholesale Segment—We sell our wine, spirits and cider to wholesale distributors under purchase orders. Wholesale operations generate revenue from product sold to distributors, who then sell them off to off-premise retail locations such as grocery stores, wine clubs, specialty and multi-national retail chains, as well as on-premise locations such as restaurants and bars.

Direct-to-Consumer Segment—We sell our wine and other merchandise directly to consumers through wine club memberships, at wineries’ tasting rooms, at Sommelier wine tasting events, and through the Internet. Winery estates hold various public and private events for customers and our wine club members. The certified Sommeliers provide guided tasting experiences customized for each audience through virtual and in-person events globally.

Business-to-Business Segment—Our Business-to-Business sales channel generates revenue primarily from the sale of private label wines and spirits, and custom winemaking services. Annually, we work with our national retail partners to develop private label wines incremental to their wholesale channel businesses.

Corporate and Other Segment—Our Corporate and Other segment generates revenue from grape and bulk sales and storage services. Other, non-allocable expenses include corporate expenses, non-direct selling expenses and other expenses not specifically allocated to an identified reporting segment.

The following tables present net revenue and income from operations directly attributable to the Company's segments:

	Three Months Ended September 30, 2022
	As Restated
(in thousands)	Wholesale			Direct-to-Consumer		Business-to-Business		Corporate and Other			Total
Segment Results
Net revenue	$	23,366		$	19,863	$	34,081	$	(81	)	$	77,229
Income (loss) from operations	$	(100	)	$	1,977	$	12,180	$	(21,759	)	$	(7,702	)

	Three Months Ended September 30, 2021
(in thousands)	Wholesale		Direct-to-Consumer		Business-to-Business		Corporate and Other			Total
Segment Results
Net revenue	$	16,203	$	14,915	$	24,467	$	102		$	55,687
Income (loss) from operations	$	4,188	$	2,539	$	7,514	$	(8,098	)	$	6,143

There was no inter-segment activity for any of the given reporting periods presented.

Depreciation expense recognized by operating segment is summarized below:

(in thousands)		Wholesale		Direct-to-Consumer		Business-to-Business			Corporate and Other		Total
For the periods ended September 30:
	2022	$	38	$	291	$	(477	)	$	455	$	307
	2021	$	-	$	300	$	-		$	-	$	300

Amortization expense recognized by operating segment is summarized below:

(in thousands)		Wholesale		Direct-to-Consumer		Business-to-Business		Corporate and Other		Total
For the periods ended September 30:
	2022	$	596	$	745	$	364	$	-	$	1,705
	2021	$	10	$	613	$	3	$	25	$	651

Excluding the property, plant, and equipment specific to assets located at our tasting facilities, and the customer Sommelier relationships and intangible assets specific to the Sommelier acquisition, given the nature of our business, revenue generating assets are utilized across segments, therefore, discrete financial information related to segment assets and other balance sheet data is not available and the information continues to be aggregated.