Net Sales

Fell 9% from $15.93M in Q1 2024 to $14.46M in Q1 2025

Net sales declined by approximately 9% due to reduced wholesale shipments–notably a $1.2M decrease impacted by order timing shifts and tariffs affecting export shipments " " –along with a modest decline in direct-to-consumer sales driven by lower wine club performance despite Ecommerce gains. " "

Gross Profit

Declined from $7.70M in Q1 2024 to $6.65M in Q1 2025 (margins from 48.3% to 46.0%)

Gross profit decreased by about $1.05M with margins falling from about 48.3% to 46.0%, reflecting a combination of lower overall sales volumes and a challenging mix of product sales that eroded pricing power and cost efficiencies. " "

Operating Losses

Increased 39% from $1.11M loss in Q1 2024 to $1.54M loss in Q1 2025

Operating losses widened by 39% as a consequence of the combined adverse effects of lower net sales and compressed gross margins, which amplified the impact of fixed operating costs—further strained by market pressures such as inventory rebalancing and tariff-related disruptions. " "

Net Income

Worsened nearly 48% from a loss of $633K in Q1 2024 to a loss of $936K in Q1 2025

Net income deteriorated by approximately 48%, a result of the declining sales and margins that increased operating losses, compounded by elevated expense pressures affecting overall profitability. " "

Basic and Fully Diluted EPS

Declined from -$0.03 in Q1 2024 to -$0.05 in Q1 2025

EPS worsened from -$0.03 to -$0.05, reflecting the more significant net loss per share driven by the overall decline in operating performance and profitability. " "

Operating Cash Flow

Rebounded from -$3.66M in Q1 2024 to +$113K in Q1 2025

Operating cash flow improved dramatically, turning positive in Q1 2025 due to non-cash adjustments and better working capital management, which mitigated the negative operating performance despite ongoing revenue and margin challenges. " "

Cash and Cash Equivalents

Dropped from $21.03M at Q4 2024 to $12.66M at Q1 2025

Liquidity tightened significantly, with cash and cash equivalents falling by nearly $8.4M, likely due to cash outflows from capital or debt-related expenditures though the documents do not provide detailed underlying causes. " "