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LONG-TERM DEBT
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
LONG-TERM DEBT

NOTE 7 – LONG-TERM DEBT

 

Long-term debt consists of the following at December 31, 2022 and 2021:

 

   December 31, 
   2022     2021 
Northwest Farm Credit Services Loan #4  $972,941   $1,109,860 
Northwest Farm Credit Services Loan #5   4,089,713    4,425,236 
Northwest Farm Credit Services Loan   2,000,000    - 
Long-Term Debt, Gross   7,062,654    5,535,096 
Debt issuance costs   (119,237)   (132,483)
Current portion of long-term debt   (496,970)   (472,420)
           
Long-Term Debt  $6,446,447   $4,930,193 

 

The Company has three long term debt agreements with Northwest Farm Credit Services (“FCS”) with an aggregate outstanding balance of $7,062,654 and $5,535,096 as of December 31, 2022 and 2021, respectively. The first two 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, respectively. The general purposes of these loans were to make capital improvements to the winery and vineyard facilities. The third loan bears interest at Northwest Variable base which was 6.50% at December 31, 2022, with interest due annually and principal at maturity on November 1, 2025.

Future minimum principal payments of long-term debt mature as follows for the years ending December 31:

 

2023  $496,970 
2024   522,798 
2025   2,549,971 
2026   578,559 
2027   608,636 
Thereafter   2,305,720 
      
Future minimum principal payments of long-term debt total  $7,062,654 

 

The weighted-average interest rates on the aforementioned borrowings for the years ended December 31, 2022 and 2021 was 5.57% and 5.12% respectively.