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1. BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

NOTE 1. BASIS OF PRESENTATION

The accompanying unaudited interim financial statements as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015 have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements. The financial information as of December 31, 2015 is derived from the audited financial statements presented in the Willamette Valley Vineyards, Inc. (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2015. Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments necessary (which are of a normal recurring nature) for the fair statement of the results of the interim periods presented. The accompanying financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2015, as presented in the Company’s Annual Report on Form 10-K.

Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 2016, or any portion thereof.

The Company’s revenues include direct-to-consumer sales and national sales to distributors. These sales channels utilize shared resources for production, selling and distribution.

Basic earnings per share after preferred stock dividends are computed based on the weighted-average number of common shares outstanding each period. Diluted earnings per share are computed using the weighted average number of shares of common stock and dilutive common shares outstanding during the period. Dilutive shares from stock options and other instruments are excluded from the computation when their effect is anti-dilutive. There were no anti-dilutive shares outstanding as of June 30, 2016 and 2015. 4,069 and 74,602 potentially dilutive shares are included in the computation of dilutive earnings per share for the three month periods ended June 30, 2016 and 2015, respectively. 3,980 and 69,665 potentially dilutive shares are included in the computation of dilutive earnings per share for the six month periods ended June 30, 2016 and 2015, respectively.

The following table presents the earnings per share after preferred stock dividends calculation for the periods shown:

		Three months ended June 30,								Six months ended June 30,
		2016				2015				2016				2015
Numerator

Net income		$	477,172			$	510,231			$	965,062			$	824,469
Accrued preferred stock dividends			(114,691	)			-				(193,586	)			-

Net income applicable to common shares		$	362,481			$	510,231			$	771,476			$	824,469

Denominator

Basic weighted average common shares			4,999,514				4,908,605				4,993,324				4,896,289
Dilutive stock options			4,069				74,602				3,980				69,665

Diluted weighted average common shares			5,003,583				4,983,207				4,997,304				4,965,954

Basic income per common share
after preferred dividends		$	0.07			$	0.10			$	0.15			$	0.17

Diluted income per common share
after preferred dividends		$	0.07			$	0.10			$	0.15			$	0.17

Restricted Cash - In August 2015, the Company commenced a public offering of our Series A Redeemable Preferred Stock pursuant to a registration statement filed with the Securities and Exchange Commission. The Company also registered this transaction with the securities authorities of the States of Oregon and Washington. Under the terms of this agreement, the Company remits cash received for stock subscriptions to the transfer agent who holds those funds in escrow until released in accordance with the registration statement. As of June 30, 2016, the Company held restricted cash of $243,491 associated with funds for subscription agreements that had not yet been processed through the transfer agent. Additionally, the Company held restricted cash of $1,023,237 in escrow with the transfer agent for a total restricted cash of $1,266,728. The Company established a corresponding liability for this preferred stock funding.