Our key differentiator is our diversification-what we call our three-legged stool business model.

Key Measures to Assess the Performance of our Business

Selling, General and Administrative Expenses

The following table summarize 9-liter equivalent cases by segment:

Within our three tier distribution structure, depletion measures the sale of our inventory from the distributor to the retailer. Depletions are an important indicator of customer satisfaction, which management uses for evaluating performance of our brands and for forecasting.

Trends and Other Factors Affecting Our Business

Various trends and other factors affect or have affected our operating results, including:

In addition, extreme weather events, such as wildfires can result in potentially significant expenses to repair or replace a vineyard or facility as well as impact the ability of grape suppliers to fulfill their obligations to us.

Comparison of the years ended June 30, 2022 and 2021

Selling, General, and Administrative Expenses

Segment Results for the Years Ended June 30, 2022 and 2021

Wholesale net revenues for the year ended June 30, 2022 increased by approximately $11.6 million, or 15.9%, from the year ended June 30, 2021. The increase was attributable to $13.4 million in net revenues related to acquisitions, partially offset by discontinued brands.

Corporate and Other Segment Results

The credit facility can be used to fund acquisitions, real estate purchases, capital equipment purchases and for other general corporate purposes.

The credit facility is collateralized by our eligible inventory and accounts receivable and matures as follows:

The credit facility contains various covenants and restrictions.

We are required to maintain compliance with a minimum fixed charge coverage ratio covenant of not less than 1.10:1.00.

Information about our cash flows, by category, is presented in our consolidated statements of cash flows and is summarized below:

Cash Flows provided by (used in) Operating Activities

Cash Flows provided by (used in) Investing Activities

Cash Flows provided by (used in) Financing Activities

Critical Accounting Policies and Estimates

See Note 1 of notes to the consolidated financial statements for a discussion of recent accounting standards and pronouncements.

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