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LONG-TERM DEBT
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
LONG-TERM DEBT

NOTE 7 – LONG-TERM DEBT

 

Long-term debt consists of the following at December 31, 2023 and 2022:

 

   December 31, 
   2023   2022 
AgWest Loan #4  $829,386   $972,941 
AgWest Loan #5   3,736,324    4,089,713 
AgWest loan #6   3,024,949    2,000,000 
Long-Term Debt, Gross   7,590,659    7,062,654 
Debt issuance costs   (105,989)   (119,237)
Current portion of long-term debt   (522,798)   (496,970)
           
Long-Term Debt  $6,961,872   $6,446,447 

 

The Company has three long term debt agreements with AgWest with an aggregate outstanding balance of $7,590,659 and $7,062,654 as of December 31, 2023 and 2022, 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 7.80% and 6.50% at December 31, 2023, and 2022, respectively, with interest due annually and principal at maturity on November 1, 2025.

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

 

2024   522,798 
2025   3,574,920 
2026   578,559 
2027   608,636 
2028   640,299 
Thereafter   1,665,447 
      
Total  $7,590,659 

 

The weighted-average interest rates on the aforementioned borrowings for the years ended December 31, 2023 and 2022, was 6.19% and 5.57% respectively.