September 30,

December 31,

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

2,239,624

$

1,612,470

Accounts receivable trade, net

1,036,711

1,609,697

Inventories

6,968,523

6,751,927

Prepaid expenses and other current assets

426,264

107,743

Deferred income taxes

100,000

107,000

Total current assets

10,771,122

10,188,837

Vineyard development cost, net

1,474,340

1,538,002

Property and equipment, net

4,143,959

3,985,680

Note receivable

250,000

—

Debt issuance costs, net

22,894

28,258

Other assets

59,531

57,667

Total assets

$

16,721,846

$

15,798,444

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Current portion of long term debt

$

251,437

$

251,437

Accounts payable

1,420,115

945,741

Accrued expenses

391,404

392,952

Income taxes payable

—

305,608

Grapes payable

94,352

481,590

Total current liabilities

2,157,308

2,377,328

Long-term debt, less current portion

1,044,718

1,237,571

Deferred rent liability

215,690

190,951

Deferred gain

386,048

410,119

Deferred income taxes

222,000

242,000

Total liabilities

4,025,764

4,457,969

Shareholders’ equity

Common stock, no par value - 10,000,000 shares authorized, 4,807,102 and 4,793,027 shares issued and outstanding at September 30, 2007 and December 31, 2006

8,269,258

7,935,829

Retained earnings

4,426,824

3,404,646

Total shareholders’ equity

12,696,082

11,340,475

Total liabilities and shareholders’ equity

$

16,721,846

$

15,798,444