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11. SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
NOTE 11. SUBSEQUENT EVENTS

Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued.  The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing the financial statements.  The Company’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before financial statements are issued.

 

In November of 2015 the Board approved a program to repurchase common stock of the Company.  Under the November 2015 board action, the Company funded a plan to repurchase up to $250,000 of common stock through the open market.  This plan is intended to remain in place until all funding for the plan is depleted or the plan is expanded or terminated by the Board.  As of March 31, 2016, $128,842 remained unspent under this plan.  On April 25, 2016, the Board approved allocating additional funds to increase the plan balance back to the $250,000 level.  This plan is intended to remain in place until all funding for the plan is depleted or the plan is expanded or terminated by the Board of Directors.

 

In April of 2015 the Company purchased approximately 42 acres of farmland in the Walla Walla AVA for the development of a vineyard to be named Pambrun Vineyard.  Under the terms of the purchase, the Company was granted an option to buy an additional parcel of approximately 45 acres for $433,000 with the option exercisable no later than December 31, 2016.  On April 25, 2016 the Board voted to exercise the option to purchase the additional acreage.  Payments for the purchase will be in three equal annual installments with the first payment being made at closing which is anticipated to be in January 2017.