4. DEBT	3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
NOTE 4. DEBT	Line of Credit Facility – In December of 2005, the Company entered into a revolving line of credit agreement with Umpqua Bank that would have allowed borrowing up to $2,000,000 against eligible accounts receivable and inventories, as defined in the agreement at March 31, 2021. The revolving line bears interest at prime less 0.5%, with a floor of 3.25%, is payable monthly, and is subject to renewal. In July 2019, the Company renewed the credit agreement until July 31, 2021. At March 31, 2021 and December 31, 2020, there was no outstanding balance on this revolving line of credit. The line of credit agreement includes various covenants, which among other things; require the Company to maintain minimum amounts of tangible net worth, debt/worth ratio, and debt service coverage, as defined. As of March 31, 2021, the Company was in compliance with these financial covenants. In February 2017, the Company purchased property, including vineyard land, bare land, and structures in the Dundee Hills American Viticultural Area (AVA) under terms that included a 15 year note payable with quarterly payments of $42,534, bearing interest at 6%. The note may be called by the owner, up to the outstanding balance, with 180 days written notice. As of March 31, 2021, the Company had a balance of $1,362,815 due on this note. As of December 31, 2020, the Company had a balance of $1,384,581 due on this note. Long-Term Debt –The Company has two long-term debt agreements with Farm Credit Services (FCS) with an aggregate outstanding balance of $5,873,034 and $5,984,272 as of March 31, 2021 and December 31, 2020, respectively. The outstanding loans require 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. The general purposes of these loans were to make capital improvements to the winery and vineyard facilities. The loan agreements contain covenants, which require the Company to maintain certain financial ratios and balances. At March 31, 2021, the Company was in compliance with these covenants. In the event of future noncompliance with the Company’s debt covenants, FCS would have the right to declare the Company in default, and at FCS’ option without notice or demand, the unpaid principal balance of the loan, plus all accrued unpaid interest thereon and all other amounts due would immediately become due and payable. As of March 31, 2021, the Company had unamortized debt issuance costs of $142,420. As of December 31, 2020, the Company had unamortized debt issuance costs of $145,731. The Company obtained a $5,000,000 commercial loan commitment from Farm Credit Services, which is intended to provide the Company with additional liquidity in the event the Company was to experience operating losses from sales disruptions due to the COVID-19 pandemic. This Commitment came into effect in July 2020 and as of the filing date the Company has not drawn down any funds on this commitment.

4. DEBT

3 Months Ended

Mar. 31, 2021

Line of Credit Facility – In December of 2005, the Company entered into a revolving line of credit agreement with Umpqua Bank that would have allowed borrowing up to $2,000,000 against eligible accounts receivable and inventories, as defined in the agreement at March 31, 2021. The revolving line bears interest at prime less 0.5%, with a floor of 3.25%, is payable monthly, and is subject to renewal. In July 2019, the Company renewed the credit agreement until July 31, 2021. At March 31, 2021 and December 31, 2020, there was no outstanding balance on this revolving line of credit.

The line of credit agreement includes various covenants, which among other things; require the Company to maintain minimum amounts of tangible net worth, debt/worth ratio, and debt service coverage, as defined. As of March 31, 2021, the Company was in compliance with these financial covenants.

In February 2017, the Company purchased property, including vineyard land, bare land, and structures in the Dundee Hills American Viticultural Area (AVA) under terms that included a 15 year note payable with quarterly payments of $42,534, bearing interest at 6%. The note may be called by the owner, up to the outstanding balance, with 180 days written notice. As of March 31, 2021, the Company had a balance of $1,362,815 due on this note. As of December 31, 2020, the Company had a balance of $1,384,581 due on this note.

Long-Term Debt –The Company has two long-term debt agreements with Farm Credit Services (FCS) with an aggregate outstanding balance of $5,873,034 and $5,984,272 as of March 31, 2021 and December 31, 2020, respectively. The outstanding loans require 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. The general purposes of these loans were to make capital improvements to the winery and vineyard facilities.

The loan agreements contain covenants, which require the Company to maintain certain financial ratios and balances. At March 31, 2021, the Company was in compliance with these covenants. In the event of future noncompliance with the Company’s debt covenants, FCS would have the right to declare the Company in default, and at FCS’ option without notice or demand, the unpaid principal balance of the loan, plus all accrued unpaid interest thereon and all other amounts due would immediately become due and payable.

As of March 31, 2021, the Company had unamortized debt issuance costs of $142,420. As of December 31, 2020, the Company had unamortized debt issuance costs of $145,731.

The Company obtained a $5,000,000 commercial loan commitment from Farm Credit Services, which is intended to provide the Company with additional liquidity in the event the Company was to experience operating losses from sales disruptions due to the COVID-19 pandemic. This Commitment came into effect in July 2020 and as of the filing date the Company has not drawn down any funds on this commitment.