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10. COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2016
Commitments And Contingencies  
NOTE 10. COMMITMENTS AND CONTINGENCIES

Litigation – From time to time, in the normal course of business, the Company is a party to legal proceedings. Management believes that these matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows, but, due to the nature of litigation, the ultimate outcome of any potential actions cannot presently be determined.

 

Grape Purchases - The Company entered into three long-term grape purchase agreements, in 2004, 2006 and 2007, with one of its Willamette Valley wine grape growers that included expiration dates in 2015 and 2016.  In March 2016, the Company agreed to contract extensions, for these three contracts, through harvest year 2019.  With these contracts, the Company is obligated to purchase, at pre-determined prices, quantities determined annually and produced within the strict quality standards and crop loads.  The Company cannot calculate the minimum or maximum payment as such a calculation is dependent on annual agreed upon quantities and the amount of grapes produced that meet the strict quality standards in any given year.