10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Mark One)

x       Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ending September 30, 2013

¨       Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                      

Commission File Number: 333-187164

 

TRUETT-HURST, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	46-1561499
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification number)
4035 Westside Road, Healdsburg, California	95448
(Address of principal executive offices)	(zip code)

707.433.4423

(Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   x    No   ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   ¨    No   x

Indicate the number of shares outstanding of each of the Issuer’s classes of common stock, as of the latest practicable date.

Class	Number of Shares Outstanding as of September 30, 2013
Common stock, no par value per share	2,700,000

Explanatory Note:

We are filing this Amendment No. 1 on Form 10-Q/A to our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013 (the “Form 10-Q”), which was originally filed with the Securities and Exchange Commission on November 14, 2013, for the purpose furnishing the required XBRL files within the 30 day grace period allowed by the SEC for first-time XBRL submissions. No changes to the financial content of the original Form 10-Q have been made. This Amendment continues to speak as of the date of the filing of the Original Filing, and the Company has not updated the disclosures contained therein to reflect any events that occurred at any subsequent date.

Exhibit 101 consists of the following materials from Truett-Hurst Inc.’s Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language):

101.INS      XBRL Instance Document

101.SCH     XBRL Taxonomy Extension Schema

101.CAL     XBRL Taxonomy Extension Calculation Linkbase

101.DEF     XBRL Taxonomy Extension Definition Linkbase

101.LAB     XBRL Taxonomy Extension Label Linkbase

101.PRE     XBRL Taxonomy Extension Presentation Linkbase

ITEM 6. EXHIBITS.

	31.1	Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	31.2	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	32.1	Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	32.2	Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101 consists of the following materials from Truett-Hurst Inc.’s Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language):
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase
	101.DEF	XBRL Taxonomy Extension Definition Linkbase
	101.LAB	XBRL Taxonomy Extension Label Linkbase
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase

 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, in the City of Healdsburg, State of California, on the 11th day of December, 2013.

TRUETT-HURST, INC.
/s/ Phillip L. Hurst	December 11, 2013
Phillip L. Hurst
President and Chief Executive Officer
(Principal Executive Officer)
/s/ James D. Bielenberg	December 11, 2013
James D. Bielenberg
Chief Financial Officer
(Principal Financial/Accounting Officer)

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FAIR VALUE of FINANCIAL INSTRUMENTS

3 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 12 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, otherwise known as the “exit price,” in an orderly transaction between market participants at the measurement date. We use the three tier fair value hierarchy as a basis for our assumptions. The hierarchy of inputs used for measuring fair value are as follows: Level 1 – observable inputs such as quoted prices in active markets; Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly in active markets; Level 3 – unobservable inputs in which there is little or no market data and as a result, management assumptions are developed.

The carrying values of cash, accounts receivable, accounts payable, accrued expenses and long-term debt approximate fair value.

In October 2012, we executed an interest rate swap obligation that was measured using observable inputs such as the LIBOR and Ten-year Treasury interest rates, and therefore has been categorized as Level 2. This derivative is not designated as a hedging instrument and has been recorded at fair value on our consolidated balance sheets.  Changes in the fair value of this instrument have been recognized in our consolidated statements of operations in other income (expense).  

The following tables set forth our fair values at September 30, 2013 and at June 30, 2013 by level within the fair value hierarchy (in thousands):

	Fair Value as of		Significant
	September 30,		Unobservable
	2013		Inputs
	(in thousands)
			(Level 2)
Assets
Interest rate swap (1)		107		107
Total	$	107	$	107

⁽¹⁾ Included in "Other Current Assets" in the Consolidated Balance Sheet.

			Significant
	Fair Value as of		Unobservable
	June 30, 2013		Inputs
	(in thousands)
			(Level 2)
Assets
Interest rate swap (1)		110		110
Total	$	110	$	110

⁽¹⁾ Included in "Other Current Assets" in the Consolidated Balance Sheet.

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FAIR VALUE of FINANCIAL INSTRUMENTS (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013		Jun. 30, 2013
Assets
Total	$ 107		$ 110
Fair Value, Inputs, Level 2 [Member]
Assets
Total	107		110
Interest Rate Swap [Member]
Assets
Total	107	[1]	110	[1]
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]
Assets
Total	$ 107	[1]	$ 110	[1]

[1] Included in "Other Current Assets" in the Consolidated Balance Sheet.

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Sales	$ 5,536	$ 5,304
Less excise tax	(150)	(153)
Net sales	5,386	5,151
Cost of sales	3,597	3,521
Gross profit	1,789	1,630
Operating expenses:
Sales and marketing	1,051	767
General and administrative	839	360
Bulk wine sales, net (gain)	0	(2)
Total operating expenses	1,890	1,125
Income (loss) from operations	(101)	505
Other income (expense):
Interest expense	(42)	(121)
Changes in fair value of warrant and interest rate swap	(3)	(7)
Loss on foreign currency	(14)	0
Total other expense	(59)	(128)
Income (loss) before income taxes	(160)	377
Income tax expense (benefit)	(21)	1
Net income (loss) before non-controlling interests	(139)	376
Net income attributable to Truett-Hurst, Inc.	(33)
Net loss per share:
Basic and Diluted (in dollars per share)	$ (0.01)
Shares used in computing net loss per share:
Basic and Diluted (in shares)	2,700,000
Wine Spies, LLC [Member]
Other income (expense):
Less: Net income (loss) attributable to non-controlling interest	(24)	(21)
H.D.D. LLC [Member]
Other income (expense):
Less: Net income (loss) attributable to non-controlling interest	(82)
Truett-Hurst, Inc and H.D.D. LLC [Member]
Other income (expense):
Net income (loss) before non-controlling interests	$ (115)	$ 397

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PROPERTY AND EQUIPMENT, net

3 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 5 – PROPERTY AND EQUIPMENT, net

Property and equipment consisted of the following:

	2013
	September 30,		June 30,
	( in thousands)
Land and land improvements	$	2,804	$	2,804
Building and improvements		1,740		1,740
Machinery and equipment		1,106		960
Vineyard development		353		353
Vineyard equipment		330		330
Furniture and fixtures		161		158
Leasehold improvements		66		66
Vehicles		81		77
		6,641		6,488
Less accumulated depreciation     and amortization		(1,097)		(1,105)
Total fixed assets	$	5,544	$	5,383

Total depreciation and amortization expense for both three-month periods ended September 30, 2013 and 2012 was $0.1 million.

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GOODWILL AND INTANGIBLE ASSETS, net (Tables)

3 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

Intangible asset balances are summarized as follows:

	2013
	September 30,		June 30,
	( in thousands)
Finite lives:
Customer lists	$	213	$	213
Trademarks		169		169
Proprietary technology		95		95
Non-compete agreement		38		38
Patent		29		25
		544		540
Less accumulated amortization		(115)		(91)
		429		449
Indefinite lives:
Trademarks		260		257
	$	689	$	706

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Expected future amortization expense on intangible assets and other assets as of September 30, 2013 is as follows:

Years ending June 30:
(in thousands)
2014	$	113
2015		151
2016		150
2017		84
2018		47
Thereafter		195
	$	740

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SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details 1)	1 Months Ended	3 Months Ended
	Feb. 26, 2013	Sep. 30, 2013 Wholesale [Member] Customer A [Member]	Sep. 30, 2012 Wholesale [Member] Customer A [Member]	Sep. 30, 2013 Wholesale [Member] Customer B [Member]	Sep. 30, 2012 Wholesale [Member] Customer B [Member]	Sep. 30, 2013 Wholesale [Member] Customer C [Member]	Sep. 30, 2012 Wholesale [Member] Customer C [Member]	Sep. 30, 2013 Wholesale [Member] Customer D [Member]	Sep. 30, 2012 Wholesale [Member] Customer D [Member]	Sep. 30, 2013 Wholesale [Member] Customer E [Member]	Sep. 30, 2012 Wholesale [Member] Customer E [Member]	Sep. 30, 2013 Wholesale [Member] Customer F [Member]	Sep. 30, 2012 Wholesale [Member] Customer F [Member]	Sep. 30, 2013 Accounts Receivable [Member] Customer A [Member]	Sep. 30, 2012 Accounts Receivable [Member] Customer A [Member]	Sep. 30, 2013 Accounts Receivable [Member] Customer B [Member]	Sep. 30, 2012 Accounts Receivable [Member] Customer B [Member]	Sep. 30, 2013 Accounts Receivable [Member] Customer C [Member]	Sep. 30, 2012 Accounts Receivable [Member] Customer C [Member]	Sep. 30, 2013 Accounts Receivable [Member] Customer D [Member]	Sep. 30, 2012 Accounts Receivable [Member] Customer D [Member]	Sep. 30, 2013 Accounts Receivable [Member] Customer E [Member]	Sep. 30, 2012 Accounts Receivable [Member] Customer E [Member]	Sep. 30, 2013 Accounts Receivable [Member] Customer F [Member]	Sep. 30, 2012 Accounts Receivable [Member] Customer F [Member]
Concentration Risk Percentage	5.00%	9.00%	23.00%	0.00%	13.00%	7.00%	8.00%	41.00%	7.00%	0.00%	15.00%	22.00%	0.00%	0.00%	7.00%	0.00%	5.00%	4.00%	4.00%	32.00%	7.00%	9.00%	31.00%	27.00%	0.00%

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TAXES

3 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 13 – TAXES

Our effective tax rate was 39.83% for the three-month period ended September 30, 2013. The tax provision for the current year period is based on an estimate of our annualized income tax rate. Our effective tax rate includes a rate benefit attributable to the fact our subsidiaries operate as a limited liability company which is not subject to federal or state income tax.  Accordingly, a portion of our earnings are not subject to corporate level taxes. 

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STOCK-BASED COMPENSATION (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	12 Months Ended
	Sep. 30, 2013	Jun. 30, 2013
Number of Shares Outstanding at beginning	252,000
Number of Shares, Granted	0
Number of Shares, Released	0
Number of Shares, Cancelled/forfeited/expired	0
Number of Shares, Outstanding at End	252,000	252,000
Number of Shares, Expected to Vest	252,000
Weighted Average Remaining ContractualLife at beginning	2 years	2 years
Weighted Average Remaining ContractualLife, Expected to Vest	2 years
Aggregate Intrinsic Value at beginning	$ 1,193
Aggregate Intrinsic Value Outstanding at End	1,193	1,193
Aggregate Intrinsic Value, Expected to Vest	$ 1,193

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SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Revenue, Net, Total	$ 5,386	$ 5,151
International Sales [Member]
Revenue, Net, Total	$ 300

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GOODWILL AND INTANGIBLE ASSETS, net (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
2014	$ 113
2015	151
2016	150
2017	84
2018	47
Thereafter	195
Finite Lived Intangible Assets And Other Assets	$ 740

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ACCRUED EXPENSES (Tables)

3 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

Accrued expenses consisted of the following:

	2013
		September 30,		June 30,
	( in thousands)
IPO related fees	$	-	$	999
Accrued bulk wine		888		331
Other		415		173
Personnel		142		163
Wine futures		30		32
Accrued interest		3		12
Totals	$	1,478	$	1,710

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Long Term Debt Borrowings [Table Text Block]

Note to a related party consisted of the following (in thousands, except payments in footnotes):

		2013
		September 30,		June 30,
		( in thousands)
Related party notes:
Note 1	(1)	$	120	$	137
Less current maturities			(71)		(70)
Total related party notes		$	49	$	67

⁽¹⁾ Note payable to a member for the repurchase of a certain percentage of their ownership interest in the LLC; pursuant to exercise of put right; unsecured; payable monthly in principal and interest payments of $6,245; matures in May 2015, at which time a lump sum payment for any remaining principal and interest is due; fixed interest rate of 4.5%.

Schedule Of Future Principal And Interest Payments [Table Text Block]

Future principal and interest payments for the related party notes as of September 30, 2013 are as follows:

Years ending June 30:
( in thousands)
2014	$	53
2015		67
	$	120
Add: Estimated interest		5
Total	$	125

Schedule Of Notes To Related Party [Table Text Block]

Borrowings consisted of the following (in thousands, except payments in footnotes):

		2013
		September 30,		June 30,
Long term debt:
Note 1	(1)		3,224		3,257
Note 2	(2)		105		117
Note 3	(3)		313		330
Total bank notes payable			3,642		3,704
Less current maturities			(251)		(250)
Total long term debt		$	3,391	$	3,454

⁽¹⁾ Note payable to a bank, collateralized by a deed of trust on property payable monthly in principal payments of $11,270 plus interest, matures May 31, 2022, variable interest of 2.25% above LIBOR.

⁽²⁾ Note payable to a bank, collateralized by equipment payable monthly with principal and interest payments of $4,226, matures November 1, 2015; at 3.75% interest.

⁽³⁾ Note payable to a bank, collateralized by equipment payable monthly with principal and interest payments of $6,535, matures January 15, 2018; at 3.75% interest.

Schedule of Related Party, Future principal and interest payments [Table Text Block]

Future principal and interest payments for the long-term debt as of September 30, 2013 are as follows:

Years ending June 30:
( in thousands)
2014	$	188
2015		254
2016		229
2017		210
2018		180
Thereafter		2,581
		3,642
Add: Estimated interest		947
Total	$	4,589

Schedule Of Future Minimum Inventory Commitments [Table Text Block]

Future minimum inventory commitments at September 30, 2013 are as follows:

	Third		Related
Years ending June 30:	Parties		Parties		Total
	(in thousands)
2014	$	3,282	$	521	$	3,803
2015		3,137		1,071		4,208
2016		2,727		257		2,984
Totals	$	9,146	$	1,849	$	10,995

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COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	1 Months Ended		0 Months Ended	1 Months Ended	3 Months Ended		12 Months Ended							3 Months Ended		3 Months Ended	2 Months Ended			3 Months Ended	1 Months Ended	3 Months Ended		3 Months Ended
	Feb. 26, 2013	Sep. 30, 2012	Jul. 16, 2012	Feb. 28, 2011	Sep. 30, 2013	Sep. 30, 2012	Jun. 30, 2012	Jun. 30, 2013	Jul. 16, 2012 Hurst Trust [Member]	Jul. 16, 2012 Hambrecht Trust [Member]	Jul. 16, 2012 Dolan 2005 Trust [Member]	Jul. 16, 2012 Dolan 2003 Trust [Member]	Jul. 16, 2012 Carroll Obremskey Trust [Member]	Mar. 31, 2013 Warrant [Member]	May 31, 2012 Warrant [Member]	Sep. 30, 2013 Notes Payable To Related Party [Member]	Mar. 31, 2011 Related Party Member [Member]	Sep. 30, 2013 Related Party Member [Member]	Sep. 30, 2012 Related Party Member [Member]	Sep. 30, 2013 Mark De Meulenaere [Member]	Jun. 30, 2012 Phillip L. Hurst [Member]	Sep. 30, 2013 Phillip L. Hurst [Member]	Jun. 30, 2012 CEO [Member]	Sep. 30, 2013 Notes Payable To Bank One [Member]	Sep. 30, 2013 Notes Payable To Bank Two [Member]	Sep. 30, 2013 Notes Payable To Bank Three [Member]
Operating Leases, Rent Expense					$ 70,000	$ 70,000
Lease Term				5 years
Line of Credit Facility, Interest Rate Description			The facilities include a line of credit for $9.0 million that was funded in July 2012 that carries an interest rate of 1.75% above LIBOR and is due on or before May 31, 2014; $0.1 million to fund previously purchased capital equipment that was funded in August 2012 at a fixed interest rate of 3.75% and due on January 15, 2018; an incremental $0.4 million capital equipment line to purchase new equipment that was funded in January 2013 at a fixed rate of interest of 3.75% and is due on January 15, 2018; a $0.1 million foreign exchange facility that has not yet been funded, that carries a 10% credit percentage and allows us to enter into any spot or forward transaction to purchase from or sell to Bank of the West a foreign currency and is due on or before May 31, 2014; and a real estate loan for $3.4 million that was funded in August 2012, that carries an interest rate of 2.25% above LIBOR.
Working Capital			13,000,000
Line of Credit Facility, Annual Principal Payment							5,500,000
Percentage of warrant member interest		3.00%				3.00%
Stockholders Equity Attributable to Parent, Total					7,594,000			7,513,000							500,000
Proceeds from Warrant Exercises														500,000
Related Party Transaction, Due from (to) Related Party, Total					700,000
Convertible Debt					400,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate					10.00%											4.50%									3.75%	3.75%
Debt Instrument, Maturity Date																May 31, 2015				May 03, 2015				May 31, 2022	Nov. 01, 2015	Jan. 15, 2018
Notes Payable, Total																				200,000		300,000	400,000
Debt Instrument, Interest Rate During Period																				4.50%	6.50%
Debt Instrument, Periodic Payment																6,245				6,245,000		12,556,000		11,270	4,226	6,535
Debt instrument accrued interest rate																						0.43%
Debt Instrument, Interest Rate Terms																								variable interest of 2.25% above LIBOR
Annual Rent For Tasting																	100,000
Percentage Of Annual Increase Rent For Tasting and Winery		3.00%
Future Lease Minimum Payment Commitments				700,000
Payments For Lease, Applied To Reduce Due					0	40,000
Supply Agreement Term	seven years
Long-term Purchase Commitment, Amount	800,000
Concentration Risk, Percentage	5.00%
Sales Revenue, Services, Net, Total	1,000,000
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year					3,500,000
Inventory, Finished Goods, Gross																		800,000	200,000
Due to Related Parties		$ 200,000			$ 800,000	$ 200,000
Limited Guaranty Obligation Percentage									42.00%	35.00%	26.00%	26.00%	26.00%

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OTHER CURRENT ASSETS (Details Textual) (Interest Rate Swap [Member], USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Interest Rate Swap [Member]
Other Assets, Fair Value Disclosure	$ 0.1	$ 0.1
Other Prepaid Expense, Current	$ 0.3	$ 0.1

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OTHER ASSETS, net (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Other Assets, Gross	$ 365	$ 301
Less accumulated amortization	(54)	(42)
Other Assets	311	259
Label Design Costs [Member]
Other Assets, Gross	218	218
Loan Fees [Member]
Other Assets, Gross	18	18
Lease Costs Related Party [Member]
Other Assets, Gross	23	23
Website Design Costs [Member]
Other Assets, Gross	41	41
Computer Software, Intangible Asset [Member]
Other Assets, Gross	64	0
Other [Member]
Other Assets, Gross	$ 1	$ 1

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STOCK-BASED COMPENSATION (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Expense	$ 114	$ 0
Selling and Marketing Expense [Member]
Share-based Compensation Expense	106
General and Administrative Expense [Member]
Share-based Compensation Expense	$ 8

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SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables)

3 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table reflects net sales, cost of sales and gross margin percentage by segment for each of the three-month periods ended September 30, 2013 and 2012:

	Three Month Periods Ended September 30,
Net Sales (in thousands)	2013		2012
Wholesale	$	4,022	$	4,225
Direct to consumer		928		748
Internet		436		178
Total net sales	$	5,386	$	5,151

	Three Month Periods Ended September 30,
Cost of sales (in thousands)	2013		2012
Wholesale	$	2,967	$	3,148
Direct to consumer		371		266
Internet		259		107
Total cost of sales	$	3,597	$	3,521

	Three Month Periods Ended September 30,
Gross Margin Percentage	2013		2012
Wholesale	26	%	25	%
Direct to consumer	60	%	64	%
Internet	41	%	40	%

Schedule Of Concentrations Of Wholesale Sales And Accounts Receivable As A Percent Of Each [Table Text Block]

The following tables set forth concentrations of wholesale sales and accounts receivable as a percent of each total:

	Net Sales for the
	Three Month Periods Ended				Accounts Receivable
	September 30,				as of September 30,
	2013		2012		2013		2012
Customer A	9	%	23	%	-		7	%
Customer B	-		13	%	-		5	%
Customer C	7	%	8	%	4	%	4	%
Customer D	41	%	7	%	32	%	7	%
Customer E	-		15	%	9	%	31	%
Customer F	22	%	-		27	%	-

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COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013		Jun. 30, 2013
Long term debt:
Total bank notes payable	$ 3,642		$ 3,704
Less current maturities	(251)		(250)
Total long term debt	3,391		3,454
Notes Payable To Bank One [Member]
Long term debt:
Total bank notes payable	3,224	[1]	3,257	[1]
Notes Payable To Bank Two [Member]
Long term debt:
Total bank notes payable	105	[2]	117	[2]
Notes Payable To Bank Three [Member]
Long term debt:
Total bank notes payable	$ 313	[3]	$ 330	[3]

[1] Note payable to a bank, collateralized by a deed of trust on property payable monthly in principal payments of $11,270 plus interest, matures May 31, 2022, variable interest of 2.25% above LIBOR.

[2] Note payable to a bank, collateralized by equipment payable monthly with principal and interest payments of $4,226, matures November 1, 2015; at 3.75% interest.

[3] Note payable to a bank, collateralized by equipment payable monthly with principal and interest payments of $6,535, matures January 15, 2018; at 3.75% interest.

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OTHER ASSETS, net (Tables)

3 Months Ended

Sep. 30, 2013

Other Assets, Noncurrent Disclosure [Abstract]

Schedule of Other Assets, Noncurrent [Table Text Block]

Other assets consist of the following:

	2013
	September 30,		June 30,
	( in thousands)
Label design costs	$	218	$	218
Loan fees		18		18
Lease costs - related party		23		23
Website design costs		41		41
Software		64		-
Other		1		1
		365		301
Less accumulated amortization		(54)		(42)
	$	311	$	259

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed consolidated financial statements for the three-month period ended September 30, 2013 and the June 30, 2013 balance sheet, include the results of Truett-Hurst, Inc. and its subsidiaries: H.D.D. LLC (“LLC”) and its consolidated subsidiary, The Wine Spies, LLC (“Wine Spies”) (collectively, “we,” “Truett-Hurst,” “our,” “us,” or “the Company”). The unaudited condensed consolidated financial statements for the three-month period ended September 30, 2012 reflect the results of the LLC and Wine Spies. Truett-Hurst, Inc.’s fiscal 2013 period is from June 26, 2013 to June 30, 2013 due to the completion of the Company’s initial public offering (“IPO”) on June 25, 2013. Unless the context suggests otherwise, references in this report to Truett-Hurst Inc. refer (1) prior to the June 2013 IPO of Truett-Hurst Inc. and related transactions, to the LLC and its consolidated subsidiary and (2) after our IPO and related formation transactions, to Truett-Hurst Inc. and its consolidated subsidiaries.

The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All intercompany transactions have been eliminated. Accordingly, the accompanying unaudited financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. We prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013, and, in the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013 filed with the SEC on September 27, 2013.

Certain reclassifications have been made to these fiscal 2013 quarter condensed consolidated financial statements to conform to the current fiscal 2014 quarter presentation. Reclassifications had no material impact on previously reported results of operations, financial position or cash flows.

Unless otherwise indicated, the notes to the unaudited condensed consolidated financial statements relate to the discussion of our continuing operations.

Critical Accounting Policies and Estimates

Critical accounting policies are those we believe are most important to portraying our financial condition and results of operations and also require the greatest amount of subjective or complex judgments by management. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Judgments and uncertainties regarding the application of these policies and estimates may result in materially different amounts being reported under various conditions or using different assumptions. There have been no material changes to the critical accounting policies and estimates previously disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

Accounting Pronouncements

We have reviewed all recently issued, but not yet effective, accounting pronouncements and we do not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of our operations.

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INVENTORIES

3 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 3 – INVENTORIES

Inventories consisted of the following:

	2013
	September 30,		June 30,
	( in thousands)
Bulk wine	$	4,671	$	6,245
Bottled wine		11,780		6,688
Merchandise and other		495		165
Capitalized cultural costs		171		124
	$	17,117	$	13,222

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GOODWILL AND INTANGIBLE ASSETS, net

3 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 6 – GOODWILL AND INTANGIBLE ASSETS, net

In August 2012, we entered into a membership purchase interest agreement with an individual to purchase a 50% interest in Wine Spies, to further develop our presence in on-line wine sales. We hold three of the four management control positions and therefore have consolidated the business as of the acquisition date. Non-controlling interest is shown in the consolidated financial statements. Acquisition has been accounted for as a business combination. We recorded the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair values assigned to the identifiable intangible assets acquired were based on estimates and assumptions determined by management and totaled $0.5 million. The intangibles are being amortized over their estimated lives ranging from four to ten years. We recorded the excess of consideration transferred over the aggregate fair values as goodwill in the amount of $0.1 million. The purchase consideration was $0.3 million, consisting of cash and a non-interest bearing note, which was paid in full March 1, 2013.

Intangible asset balances are summarized as follows:

	2013
	September 30,		June 30,
	( in thousands)
Finite lives:
Customer lists	$	213	$	213
Trademarks		169		169
Proprietary technology		95		95
Non-compete agreement		38		38
Patent		29		25
		544		540
Less accumulated amortization		(115)		(91)
		429		449
Indefinite lives:
Trademarks		260		257
	$	689	$	706

Total amortization expense of intangible assets and other assets was $0.04 million for the three-month periods ended September 30, 2013 and 2012, respectively. Expected future amortization expense on intangible assets and other assets as of September 30, 2013 is as follows:

Years ending June 30:
(in thousands)
2014	$	113
2015		151
2016		150
2017		84
2018		47
Thereafter		195
	$	740

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OTHER CURRENT ASSETS

3 Months Ended

Sep. 30, 2013

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets [Text Block]

NOTE 4 – OTHER CURRENT ASSETS

Other current assets as of September 30, 2013, include the fair market value of an interest rate swap for $0.1 million and other prepaid amounts of $0.3 million. Other current assets as of June 30, 2013, include the fair market value of the interest rate swap for $0.1 million and other prepaid amounts of $0.1 million.

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COMMITMENTS AND CONTINGENCIES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013		Jun. 30, 2013
Related party notes:
Note 1	$ 120	[1]	$ 137	[1]
Less current maturities	(71)		(70)
Total related party notes	$ 49		$ 67

[1] Note payable to a member for the repurchase of a certain percentage of their ownership interest in the LLC; pursuant to exercise of put right; unsecured; payable monthly in principal and interest payments of $6,245; matures in May 2015, at which time a lump sum payment for any remaining principal and interest is due; fixed interest rate of 4.5%.

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Nonvested Restricted Stock Shares Activity [Table Text Block]

Information regarding restricted stock awards outstanding at September 30, 2013 is summarized below:

		Weighted
		Average
		Remaining	Aggregate
	Number of	Contractual Life	Intrinsic
	Shares	(Years)	Value
	(in thousands, except price and contractual terms)
Outstanding at beginning	252,000	2.00	$	1,193
Granted	-
Released	-
Cancelled/forfeited/expired	-
Outstanding	252,000	2.00	$	1,193
Expected to Vest	252,000	2.00	$	1,193

Schedule Of Stock Based Compensation Expense [Table Text Block]

The following table shows total stock-based compensation expense included in the unaudited condensed consolidated statement of operations for the three months ended September 30, 2013.

	September 30, 2013
Sales and Marketing	$	106
General and administrative		8
	$	114

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ACCOUNTS RECEIVABLE PLEDGED UNDER FACTORING AGREEMENT (Details Textual) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Interest Paid, Total	$ 53,000	$ 106,000
November 2011,January 2012 and April 2012 [Member]
Accounts Receivable, Related Parties	2,600,000
Loans Receivable, Description of Variable Rate Basis	We agreed to assign and sell receivables related to these transactions to the factor at a rate of 100% of each receivable plus 1.25% per month of the unpaid principal amount of the loan.
April 2012 Agreement [Member]
Due from Related Parties			900,000
Interest Paid, Total	$ 30,000	$ 30,000

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GOODWILL AND INTANGIBLE ASSETS, net (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Finite lives:
Customer lists	$ 213	$ 213
Trademarks	169	169
Proprietary technology	95	95
Non-compete agreement	38	38
Patent	29	25
Finite-Lived Intangible Assets, Gross	544	540
Less accumulated amortization	(115)	(91)
Finite-Lived Intangible Assets, Net, Total	429	449
Indefinite lives:
Trademarks	260	257
Intangible Assets, Net (Including Goodwill), Total	$ 689	$ 706

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SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Net Sales	$ 5,386	$ 5,151
Cost of sales	3,597	3,521
Wholesale [Member]
Net Sales	4,022	4,225
Cost of sales	2,967	3,148
Gross Margin Percentage	26.00%	25.00%
Direct To Consumer [Member]
Net Sales	928	748
Cost of sales	371	266
Gross Margin Percentage	60.00%	64.00%
Internet [Member]
Net Sales	436	178
Cost of sales	$ 259	$ 107
Gross Margin Percentage	41.00%	40.00%

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STOCK-BASED COMPENSATION (Details Textual) (USD $)	3 Months Ended				3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Officer [Member]	Dec. 28, 2012 Officer [Member]	Sep. 30, 2013 Director [Member]	Feb. 04, 2013 Director [Member]
Share Based Compensation Arrangement by Share Based Payment Award Equity Instrument Other than Options, Grant in Period, Fair Value				$ 100,000		$ 900,000
Noncontrolling Interest, Ownership Percentage by Parent				1.00%		5.00%
Share-based Compensation, Total	$ 114,000	$ 0	$ 10,000		$ 100,000

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COMMITMENTS AND CONTINGENCIES (Details 4) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
2014	$ 3,803
2015	4,208
2016	2,984
Totals	10,995
Third Parties [Member]
2014	3,282
2015	3,137
2016	2,727
Totals	9,146
Related Parties [Member]
2014	521
2015	1,071
2016	257
Totals	$ 1,849

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2013	Jun. 30, 2013
Preferred Stock, No Par Value (In dollars per share)	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Class A [Member]
Common Stock, No Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	7,000,000	7,000,000
Common Stock, Shares, Issued	2,700,000	2,700,000
Common Stock, Shares, Outstanding	2,700,000	2,700,000
Common Class B [Member]
Common Stock, No Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	1,000	1,000
Common Stock, Shares, Issued	10	10
Common Stock, Shares, Outstanding	10	10

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ACCRUED EXPENSES

3 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 9 - ACCRUED EXPENSES

Accrued expenses consisted of the following:

	2013
		September 30,		June 30,
	( in thousands)
IPO related fees	$	-	$	999
Accrued bulk wine		888		331
Other		415		173
Personnel		142		163
Wine futures		30		32
Accrued interest		3		12
Totals	$	1,478	$	1,710

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ (139)	$ 376
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	121	67
Deferred rent	(3)	(1)
Deferred taxes	(21)	0
Contributed rent	0	36
Loss on fair value of warrant and interest rate swap	3	7
Stock-based compensation	114	0
Changes in operating assets and liabilities, net
Accounts receivable	955	(856)
Inventories	(3,895)	(1,309)
Bulk wine deposit	0	220
Other assets, current	(195)	(26)
Accounts payable and accrued expenses	612	1,442
Net cash used in operating activities	(2,448)	(44)
Cash flows from investing activities:
Acquisition of property and equipment	(247)	(340)
Acquisition of intangible and other assets	(71)	(40)
Acquisition of The Wine Spies, LLC	0	(275)
Proceeds from sale of assets	2	0
Net cash used in investing activities	(316)	(655)
Cash flows from financing activities:
Net proceeds from (repayments on) line of credit	(869)	1,877
Advances from related parties	706	156
Payments on related party notes	(17)	0
Proceeds from long-term debt	0	3,382
Payments on long-term debt	(62)	(3,850)
Payments on amount due factor	0	(869)
Net cash provided by (used in) financing activities	(242)	696
Net decrease in cash	(3,006)	(3)
Cash at beginning of period	11,367	167
Cash at end of period	8,361	164
Supplemental disclosure of cash flow information:
Interest paid during year	53	106
Income taxes paid during year, net of refunds	1	1
Supplemental disclosure of non-cash transactions
Contributed rent for membership interest	$ 0	$ 36

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SUBSEQUENT EVENTS (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended			1 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Feb. 28, 2011	Oct. 31, 2013 Subsequent Event [Member]
Operating Leases, Rent Expense	$ 0.07	$ 0.07		$ 0.02
Future Lease Minimum Payment Commitments			$ 0.7	$ 0.1
Lease Rental Agreement Description	The lease commences on October 15, 2013 and ends on October 31, 2016, and contains three one year renewal options with an adjustment to market rents.

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
ASSETS
Cash	$ 8,361	$ 11,367
Accounts receivable	1,861	2,816
Inventories	17,117	13,222
Other current assets	436	245
Total current assets	27,775	27,650
Property and equipment, net	5,544	5,383
Goodwill	134	134
Intangible assets, net	689	706
Other assets, net	311	259
Total assets	34,453	34,132
LIABILITIES and STOCKHOLDERS' EQUITY
Line of credit	6,018	6,887
Accounts payable	2,967	2,123
Accrued expenses	1,478	1,710
Due to related parties	777	71
Current portion of deferred taxes	75	96
Current maturities of related party notes	71	70
Current maturities of long-term debt	251	250
Total current liabilities	11,637	11,207
Deferred rent liability	50	53
Deferred taxes, net of current portion	127	127
Related party notes, net of current maturities	49	67
Long-term debt, net of current maturities	3,391	3,454
Total liabilities	15,254	14,908
Commitments and contingencies (Note 8)
Stockholders' equity
Preferred stock, par value of $0.001 per share,5,000,000 shares authorized and zero issued and outstanding	0	0
Additional paid-in capital	11,091	10,977
Accumulated deficit	(3,500)	(3,467)
Total Truett-Hurst, Inc. equity	7,594	7,513
Non-controlling interests	11,605	11,711
Total equity	19,199	19,224
Total liabilities and stockholders' equity	34,453	34,132
Common Class A [Member]
Stockholders' equity
Common Stock, Value	3	3
Common Class B [Member]
Stockholders' equity
Common Stock, Value	$ 0	$ 0

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NET LOSS PER SHARE (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Numerator:
Numerator for basic and diluted net loss per Class A common share-net loss attributable to Truett-Hurst, Inc.	$ (33)
Denominator:
Denominator for basic & dilutive net loss per Class A common share-weighted average shares	2,700,000
Basic and diluted net loss per common share attributable to Truett-Hurst, Inc.	$ (0.01)

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NET LOSS PER SHARE (Tables)

3 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted net income per common share:

		Three Month Period
		Ended September 30,
(in thousands, except share data)		2013
Numerator:
Numerator for basic and diluted net loss per Class A common share-net loss attributable to Truett-Hurst, Inc.	$	(33)
Denominator:
Denominator for basic & dilutive net loss per Class A common share-weighted average shares		2,700,000
Basic and diluted net loss per common share attributable to Truett-Hurst, Inc.	$	(0.01)

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PROPERTY AND EQUIPMENT, net (Tables)

3 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment consisted of the following:

	2013
	September 30,		June 30,
	( in thousands)
Land and land improvements	$	2,804	$	2,804
Building and improvements		1,740		1,740
Machinery and equipment		1,106		960
Vineyard development		353		353
Vineyard equipment		330		330
Furniture and fixtures		161		158
Leasehold improvements		66		66
Vehicles		81		77
		6,641		6,488
Less accumulated depreciation     and amortization		(1,097)		(1,105)
Total fixed assets	$	5,544	$	5,383

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COMMITMENTS AND CONTINGENCIES (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
2014	$ 188
2015	254
2016	229
2017	210
2018	180
Thereafter	2,581
Long-term Debt, Total	3,642	3,704
Add: Estimated interest	947
Total	$ 4,589

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TAXES (Details Textual)	3 Months Ended
	Sep. 30, 2013
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	39.83%

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GOODWILL AND INTANGIBLE ASSETS, net (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended			1 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Aug. 31, 2012	Aug. 31, 2012 Minimum [Member]	Aug. 31, 2012 Maximum [Member]
Business Acquisition, Percentage of Voting Interests Acquired			50.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 0.5
Finite-Lived Intangible Asset, Useful Life				4 years	10 years
Goodwill, Fair Value Disclosure			0.1
Business Acquisition Purchase Consideration Of Cash And Non-Interest Bearing Note			0.3
Amortization of Intangible Assets	$ 0.04	$ 0.04

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PROPERTY AND EQUIPMENT, net (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Property, Plant and Equipment, Gross	$ 6,641	$ 6,488
Less accumulated depreciation and amortization	(1,097)	(1,105)
Total fixed assets	5,544	5,383
Land and Land Improvements [Member]
Property, Plant and Equipment, Gross	2,804	2,804
Building Improvements [Member]
Property, Plant and Equipment, Gross	1,740	1,740
Machinery and Equipment [Member]
Property, Plant and Equipment, Gross	1,106	960
Vineyard Development Member [Member]
Property, Plant and Equipment, Gross	353	353
Vineyard Equipment Member [Member]
Property, Plant and Equipment, Gross	330	330
Furniture and Fixtures [Member]
Property, Plant and Equipment, Gross	161	158
Leaseholds and Leasehold Improvements [Member]
Property, Plant and Equipment, Gross	66	66
Vehicles [Member]
Property, Plant and Equipment, Gross	$ 81	$ 77

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PROPERTY AND EQUIPMENT, net (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Depreciation, Depletion and Amortization, Nonproduction, Total	$ 0.1	$ 0.1

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 8 – COMMITMENTS AND CONTINGENCIES

Leases

In February 2011, we entered into a lease agreement with a related party, the Hambrecht Wine Group, to lease a tasting room and winery.  The lease is for five years, commencing on March 1, 2011 and ending on February 29, 2016, and contains one option to extend for an additional period of five years.  We have the right of first refusal in the event the related party desires to sell the leased property.  Annual rent for the tasting room is $0.1 million, due monthly.  The winery rent is subject to adjustment based on the actual number of cases produced each year; however, future payments are based on a minimum number of cases, as specified in the agreement.  Beginning on September 1, 2012 and annually thereafter, tasting room and winery rent is increased by 3%.  Lease expense is accounted for on a straight-line basis. Future lease payment commitments total approximately $0.7 million.

For the three-month periods ended September 30, 2013 and 2012, nil and $0.04 million, respectively, of lease payments were applied to reduce the amount due from a member.  Lease expense for the three-month periods ended September 30, 2013 and 2012 was $0.07 million for both periods, respectively.

Credit Facilities

In June 2012, a bank extended the maturity date for a loan in order to allow us to finalize a new financing facility with a different bank. On July 16, 2012, we executed credit facilities with Bank of the West totaling $13.0 million to provide funds for working capital needs, to refinance existing debt, and to purchase new equipment. The credit facilities are collateralized by substantially all of our assets, require compliance with certain financial covenants and are guaranteed by certain of our affiliates.  The facilities include a line of credit for $9.0 million that was funded in July 2012 that carries an interest rate of 1.75% above LIBOR and is due on or before May 31, 2014; $0.1 million to fund previously purchased capital equipment that was funded in August 2012 at a fixed interest rate of 3.75% and due on January 15, 2018; an incremental $0.4 million capital equipment line to purchase new equipment that was funded in January 2013 at a fixed rate of interest of 3.75% and is due on January 15, 2018; a $0.1 million foreign exchange facility that has not yet been funded, that carries a 10% credit percentage and allows us to enter into any spot or forward transaction to purchase from or sell to Bank of the West a foreign currency and is due on or before May 31, 2014; and a real estate loan for $3.4 million that was funded in August 2012, that carries an interest rate of 2.25% above LIBOR.  These funds were used to settle $5.5 million of amounts due in the June 30, 2012 consolidated financial statements.

As of September 30, 2012, we were not in compliance with certain financial covenants included in our credit facility. In March 2013, in connection with the bank issuance of a waiver for the financial covenants, we amended and restated a member warrant to allow for the immediate exercise of the warrant for a 3% member interest.  The original common stock warrant, issued in May 2012, was for 20% of the contributed members’ equity interest equal to $0.5 million. The obligation was satisfied with the exercise of the warrant in March 2013 for $0.5 million. 

Additionally, $0.7 million in related party obligations was subordinated and $0.4 million of newly issued, convertible, subordinated debt was received from four members of the LLC. The debt bears interest at 10% per annum, with interest and principal due before March 1, 2014. Upon completion of the IPO on June 25, 2013, all amounts were released from subordination and paid in full.

The Bank of the West Loan contains usual and customary covenants, including, without limitation:

⋅	limitation on incurring senior indebtedness;
⋅	limitation on making loans and advances;
⋅	limitation on investments, acquisitions, and capital expenditures;
⋅	limitation on liens, mergers and sales of assets; and
⋅	limitations on new activities of Truett-Hurst.

In addition, the Bank of the West Loan contains negative and financial covenants, including, without limitation, a minimum current assets to current liabilities ratio (measured quarterly), debt to effective tangible net worth ratio (measured quarterly) and debt service coverage ratio (measured annually). As of September 30, 2013, we were in compliance with all negative and financial covenants.

Related Party Notes Payable

We executed a $0.2 million unsecured promissory note payable to Mark De Meulenaere, a member of the LLC, in connection with our repurchase of his Put Interest. The note bears interest at 4.5% per annum and is payable monthly in principal and interest payments of $6,245, with any unpaid principal and interest due and payable on May 3, 2015.

In connection with his departure from Winery Exchange Inc. and the termination of his non-compete agreement, we agreed to reimburse Phillip L. Hurst, Director and Chief Executive Officer (“CEO”) of the LLC and Truett-Hurst, Inc., in the amount of $0.3 million, payable monthly in principal and interest payments of $12,556. This amount accrued interest at a rate of 0.43% per annum and matured in November 2012. All amounts due under this agreement have been paid in full.

We executed a $0.4 million note payable to Messrs. Hurst, Director and CEO of the LLC and Truett-Hurst, Inc., Paul Dolan and Heath Dolan, both Directors of the LLC and Truett-Hurst, Inc., in connection with operating capital needs. The note bore interest at 6.5% per annum, with the entire principal balance and unpaid accrued interest due and payable on June 30, 2012. The note was paid in full with funds borrowed under the Bank of the West Loan.

Note to a related party consisted of the following (in thousands, except payments in footnotes):

		2013
		September 30,		June 30,
		( in thousands)
Related party notes:
Note 1	(1)	$	120	$	137
Less current maturities			(71)		(70)
Total related party notes		$	49	$	67

⁽¹⁾ Note payable to a member for the repurchase of a certain percentage of their ownership interest in the LLC; pursuant to exercise of put right; unsecured; payable monthly in principal and interest payments of $6,245; matures in May 2015, at which time a lump sum payment for any remaining principal and interest is due; fixed interest rate of 4.5%.

Future principal and interest payments for the related party notes as of September 30, 2013 are as follows:

Years ending June 30:
( in thousands)
2014	$	53
2015		67
	$	120
Add: Estimated interest		5
Total	$	125

Borrowings

Borrowings consisted of the following (in thousands, except payments in footnotes):

		2013
		September 30,		June 30,
Long term debt:
Note 1	(1)		3,224		3,257
Note 2	(2)		105		117
Note 3	(3)		313		330
Total bank notes payable			3,642		3,704
Less current maturities			(251)		(250)
Total long term debt		$	3,391	$	3,454

⁽¹⁾ Note payable to a bank, collateralized by a deed of trust on property payable monthly in principal payments of $11,270 plus interest, matures May 31, 2022, variable interest of 2.25% above LIBOR.

⁽²⁾ Note payable to a bank, collateralized by equipment payable monthly with principal and interest payments of $4,226, matures November 1, 2015; at 3.75% interest.

⁽³⁾ Note payable to a bank, collateralized by equipment payable monthly with principal and interest payments of $6,535, matures January 15, 2018; at 3.75% interest.

Future principal and interest payments for the long-term debt as of September 30, 2013 are as follows:

Years ending June 30:
( in thousands)
2014	$	188
2015		254
2016		229
2017		210
2018		180
Thereafter		2,581
		3,642
Add: Estimated interest		947
Total	$	4,589

Security Agreements and Limited Guaranties

In connection with our entry into the Bank of the West Loan on July 16, 2012, certain of our executive officers, as well as certain trusts and other entities under their respective control, entered into guarantee agreements.

Limited Guaranty – Hurst Trust: On July 16, 2012, the Hurst Revocable Trust (“Hurst Trust”) , a member of the LLC, and Phillip L. Hurst , director and CEO of the LLC and Truett-Hurst, Inc. and a co-trustee of the Hurst Trust, entered into a Limited Guaranty pursuant to which the Hurst Trust and Mr. Hurst, together, guarantees the full payment to Bank of the West of all sums presently due and owing and all sums which shall in the future become due and owing to Bank of the West from us. The liability of the Hurst Trust and Mr. Hurst, as guarantor, is limited to 42% of the sum of all obligations due to Bank of the West, plus the costs, expenses and interest associated with the collection of amounts recoverable under this guarantee.

Limited Guaranty – Hambrecht Trust: On July 16, 2012, the Hambrecht Trust and William R. Hambrecht, a director of the LLC and Truett-Hurst, Inc. and trustee of the Hambrecht Trust, entered into a Limited Guaranty pursuant to which the Hambrecht Trust and Mr. Hambrecht, together, guarantees the full payment to Bank of the West of all sums presently due and owing and all sums which shall in the future become due and owing to Bank of the West from us. The liability of the Hambrecht Trust and Mr. Hambrecht, as guarantor, is limited to 35% of the sum of all obligations due to Bank of the West, plus the costs, expenses and interest associated with the collection of amounts recoverable under this guarantee.

Limited Guaranty – Dolan 2005 Trust: On July 16, 2012, the Dolan 2005 Trust, a member of the LLC, and Heath E. Dolan, a director of the LLC and Truett-Hurst, Inc. and a co-trustee of the Dolan 2005 Trust, entered into a Limited Guaranty pursuant to which the Dolan 2005 Trust and Mr. Dolan, together, guarantees the full payment to Bank of the West of all sums presently due and owing and all sums which shall in the future become due and owing to Bank of the West from us. The liability of the Dolan 2005 Trust and Mr. Dolan, as guarantor, is limited to 26% of the sum of all obligations due to Bank of the West, plus the costs, expenses and interest associated with the collection of amounts recoverable under this guarantee.

Limited Guaranty – Dolan 2003 Trust: On July 16, 2012, the Dolan 2003 Trust, a member of the LLC, and Paul E. Dolan, III , a director of the LLC and Truett-Hurst, Inc. and trustee of the Dolan 2003 Trust, entered into a Limited Guaranty pursuant to which the Dolan 2003 Trust and Mr. Dolan, together, guarantees the full payment to Bank of the West of all sums presently due and owing and all sums which shall in the future become due and owing to Bank of the West from us. The liability of the Dolan 2003 Trust and Mr. Dolan, as guarantor, is limited to 26% of the sum of all obligations due to Bank of the West, plus the costs, expenses and interest associated with the collection of amounts recoverable under this guarantee.

Limited Guaranty – Carroll-Obremskey Trust: On July 16, 2012, the Carroll-Obremskey Trust, a member of the LLC, and Daniel A. Carroll, a director of the LLC and Truett-Hurst, Inc. and a co-trustee of the Carroll-Obremskey Trust, entered into a Limited Guaranty pursuant to which the Carroll-Obremskey Trust and Mr. Carroll, together, guarantees the full payment to Bank of the West of all sums presently due and owing and all sums which shall in the future become due and owing to Bank of the West from us. The liability of the Carroll-Obremskey Trust and Mr. Carroll, as guarantor, is limited to 26% of the sum of all obligations due to Bank of the West, plus the costs, expenses and interest associated with the collection of amounts recoverable under this guarantee.

Unlimited Guaranty – Hambrecht Wine Group: On July 16, 2012, the Hambrecht Wine Group, a member of the LLC, entered into an Unlimited Guaranty pursuant to which Hambrecht Wine Group guarantees the full payment to Bank of the West of all sums presently due and owing and all sums which shall in the future become due and owing to Bank of the West from us. The liability of Hambrecht Wine Group, as guarantor, is unlimited.

 

Supply Contract

On February 26, 2013, we executed a supply of goods agreement for our paper wine bottle.  The term of the agreement is seven years and the minimum purchase commitment for the first two years is $0.8 million for each year.  Minimum purchase amounts for years three through seven are to be agreed upon six months before the commencement of each of those years, respectively.  Under the terms of this arrangement, we have exclusive rights to certain geographic regions, as long as minimum purchase levels are maintained.  Additionally, the agreement commits us to an annual marketing spend of the lesser of 5% of our net sales of wine supplied in the products, or $1.0 million. As of September 30, 2013, future commitments for finished goods total approximately $3.5 million.

We enter into short and long-term contracts to supply a portion of our future grapes, bulk wine and finished goods inventory requirements with third parties and related party growers.  Future minimum inventory commitments at September 30, 2013 are as follows:

	Third		Related
Years ending June 30:	Parties		Parties		Total
	(in thousands)
2014	$	3,282	$	521	$	3,803
2015		3,137		1,071		4,208
2016		2,727		257		2,984
Totals	$	9,146	$	1,849	$	10,995

Grape, bulk wine, and finished goods inventory purchases under the agreements with related parties totaled $0.8 million and $0.2 million for the three-month periods ended September 30, 2013 and 2012, respectively.  For the three-month periods ended September 30, 2013 and 2012, amounts due to members for grapes purchased totaling $0.8 million and $0.2 million, respectively, are included in due to related parties.

Litigation

We may be subject to various litigation matters arising in the ordinary course of business from time to time.  However, we are not aware of any current pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on our consolidated financial position, results of operations, or cash flows.

Indemnification

From time to time we enter into certain types of contracts that contingently require us to indemnify various parties against claims from third parties.  These contracts primarily relate to (i) certain real estate leases, under which we may be required to indemnify property owners for environmental and other liabilities, and other claims arising from our use of the applicable premises, (ii) certain agreements with our officers, directors, and employees, under which we may be required to indemnify such persons for liabilities arising out of their employment relationship, (iii) contracts under which we may be required to indemnify customers against third-party claims that our product infringes a patent, copyright, or other intellectual property right, and (iv) procurement or license agreements, under which we may be required to indemnify licensors or vendors for certain claims that may be brought against them arising from our acts or omissions with respect to the supplied products or technology.

Generally, a maximum obligation under these contracts is not explicitly stated.  Because the obligated amounts associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation cannot be reasonably estimated.  Historically, we have not been required to make payments under these obligations, and no liabilities have been recorded at September 30, 2013 and June 30, 2013, for these obligations on our balance sheets.

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FAIR VALUE of FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following tables set forth our fair values at September 30, 2013 and at June 30, 2013 by level within the fair value hierarchy (in thousands):

	Fair Value as of		Significant
	September 30,		Unobservable
	2013		Inputs
	(in thousands)
			(Level 2)
Assets
Interest rate swap (1)		107		107
Total	$	107	$	107

⁽¹⁾ Included in "Other Current Assets" in the Consolidated Balance Sheet.

			Significant
	Fair Value as of		Unobservable
	June 30, 2013		Inputs
	(in thousands)
			(Level 2)
Assets
Interest rate swap (1)		110		110
Total	$	110	$	110

⁽¹⁾ Included in "Other Current Assets" in the Consolidated Balance Sheet.

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COMMITMENTS AND CONTINGENCIES (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
2014	$ 53
2015	67
Long-Term Debt Future principal and interest payments	120
Add: Estimated interest	5
Total	$ 125

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NET LOSS PER SHARE

3 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 11 - NET LOSS PER SHARE

The following table sets forth the computation of basic and diluted net income per common share:

		Three Month Period
		Ended September 30,
(in thousands, except share data)		2013
Numerator:
Numerator for basic and diluted net loss per Class A common share-net loss attributable to Truett-Hurst, Inc.	$	(33)
Denominator:
Denominator for basic & dilutive net loss per Class A common share-weighted average shares		2,700,000
Basic and diluted net loss per common share attributable to Truett-Hurst, Inc.	$	(0.01)

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by giving effect to all potential dilutive common shares, including convertible LLC units and restricted stock. The assumed exchange of 4,102,644 LLC units for Class A common stock and the vesting of 252,000 shares of restricted stock are expected to have an anti-dilutive effect. Accordingly, the effect of exchanging LLC units and restricted stock have been excluded from net income available to Class A common stock per share. Basic net loss per share information is not applicable for reporting periods prior to June 26, 2013, the completion of our initial public offering. The shares of Class B common stock do not share in our earnings and therefore are not participating securities. Accordingly, basic and diluted net income per share of Class B common stock has not been presented.

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OTHER ASSETS, net

3 Months Ended

Sep. 30, 2013

Other Assets, Noncurrent Disclosure [Abstract]

Other Assets Disclosure [Text Block]

NOTE 7 – OTHER ASSETS, net

Other assets consist of the following:

	2013
	September 30,		June 30,
	( in thousands)
Label design costs	$	218	$	218
Loan fees		18		18
Lease costs - related party		23		23
Website design costs		41		41
Software		64		-
Other		1		1
		365		301
Less accumulated amortization		(54)		(42)
	$	311	$	259

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ACCOUNTS RECEIVABLE PLEDGED UNDER FACTORING AGREEMENT

3 Months Ended

Sep. 30, 2013

Accounts Receivable Pledged Under Factoring Agreement [Abstract]

Accounts Receivable Pledged Under Factoring Agreement Disclosure [Text Block]

NOTE 2 - ACCOUNTS RECEIVABLE PLEDGED UNDER FACTORING AGREEMENT

In November 2011, January 2012 and April 2012, we entered into three agreements with a factor borrowing a total of $2.6 million in order to finance three transactions with a vendor. We agreed to assign and sell receivables related to these transactions to the factor at a rate of 100% of each receivable plus 1.25% per month of the unpaid principal amount of the loan. We were fully and unconditionally liable for the principal and interest on the loans; therefore, we accounted for the transfer of receivables as a secured financing. Interest expense includes finance costs associated with these factoring activities.

With the addition of John D. Fruth to our board of directors the factor agreement became a related party agreement. The April 2012 agreement for the amount due of $0.9 million as of June 30, 2012 was paid subsequent to fiscal 2012 year end. Interest of nil and $0.03 million was paid under these agreements for the three-month periods ended September 30, 2013 and 2012, respectively.

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NET LOSS PER SHARE (Details Texual)	3 Months Ended
	Sep. 30, 2013
Convertible LLC Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,102,644
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	252,000

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ACCRUED EXPENSES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
IPO related fees	$ 0	$ 999
Accrued bulk wine	888	331
Other	415	173
Personnel	142	163
Wine futures	30	32
Accrued interest	3	12
Totals	$ 1,478	$ 1,710

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INVENTORIES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Bulk wine	$ 4,671	$ 6,245
Bottled wine	11,780	6,688
Merchandise and other	495	165
Capitalized cultural costs	171	124
Inventory, Net, Total	$ 17,117	$ 13,222

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SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

3 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 14 – SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

In accordance with ASC Topic 280, Segment Reporting, our chief operating decision-maker has been identified as the CEO, who reviews sales, cost of sales, and gross profit to make decisions about allocating our resources and assessing our performance. Operating and other expenses are not allocated between operating segments; therefore, operating and net income information for the respective segments is not available. In addition, discreet financial information related to segment specific assets is not available.

Our primary reporting segments are identified by each distribution channel: wholesale, direct to consumer and internet.  Wholesale sales include our retail exclusive brand label model and four fully-owned brands sold and marketed through the traditional three-tier distribution system.  Direct to consumer sales of our own brands occur through our tasting rooms and wine clubs.  Internet sales occur through Wine Spies and are principally comprised of brands not owned by us.  Sales and cost of sales are reported by segment.

Net Sales

The following table reflects net sales, cost of sales and gross margin percentage by segment for each of the three-month periods ended September 30, 2013 and 2012:

	Three Month Periods Ended September 30,
Net Sales (in thousands)	2013		2012
Wholesale	$	4,022	$	4,225
Direct to consumer		928		748
Internet		436		178
Total net sales	$	5,386	$	5,151

	Three Month Periods Ended September 30,
Cost of sales (in thousands)	2013		2012
Wholesale	$	2,967	$	3,148
Direct to consumer		371		266
Internet		259		107
Total cost of sales	$	3,597	$	3,521

	Three Month Periods Ended September 30,
Gross Margin Percentage	2013		2012
Wholesale	26	%	25	%
Direct to consumer	60	%	64	%
Internet	41	%	40	%

Significant Customer Information:

The following tables set forth concentrations of wholesale sales and accounts receivable as a percent of each total:

	Net Sales for the
	Three Month Periods Ended				Accounts Receivable
	September 30,				as of September 30,
	2013		2012		2013		2012
Customer A	9	%	23	%	-		7	%
Customer B	-		13	%	-		5	%
Customer C	7	%	8	%	4	%	4	%
Customer D	41	%	7	%	32	%	7	%
Customer E	-		15	%	9	%	31	%
Customer F	22	%	-		27	%	-

International sales were $0.3 million and nil for the three-month periods ended September 30, 2013 and 2012, respectively.

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STOCK-BASED COMPENSATION

3 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 10 – STOCK-BASED COMPENSATION

We have granted restricted stock awards and have the right to grant stock options and other stock-based awards to employees, directors and non-employees under our 2012 Stock Incentive Plan. For a complete discussion of 2012 Stock Incentive Plan, please refer to the Note 14- “Stock-based Compensation” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2013.

On December 28, 2012, we granted restricted stock to an officer of our company which vests over three years and had a fair value at date of grant of $0.1 million for a 1% interest in the LLC.  The objective of FASB ASC Topic 718 – Compensation – Stock Compensation (“ASC Topic 718”) is to recognize the employee services received in exchange for the equity issued over the period the services are provided at the fair value of the equity issued.  We recorded employee stock-based compensation expense of $0.01 million for the three-month period ended September 30, 2013.

On February 4, 2013, we granted restricted stock to an independent contractor who serves as our Creative Director.  The award vests over three years, and had a fair value at the date of grant of $0.9 million for a 5% interest in the LLC.  The objective of FASB ASC Topic 718 is to recognize the employee services received in exchange for the equity issued over the period the services are provided at the fair value of the equity issued.  Additionally, FASB ASC Subtopic 505-50, Equity — Equity Based Payments to Non-Employees defines the measurement date as the earlier of the date at which the commitment for performance is reached, or the date at which the performance is complete is the day that the fair value of the equity award is expensed.   We recorded non-employee stock-based compensation expense of $0.1 million for the three-month period ended September 30, 2013.

Information regarding restricted stock awards outstanding at September 30, 2013 is summarized below:

		Weighted
		Average
		Remaining	Aggregate
	Number of	Contractual Life	Intrinsic
	Shares	(Years)	Value
	(in thousands, except price and contractual terms)
Outstanding at beginning	252,000	2.00	$	1,193
Granted	-
Released	-
Cancelled/forfeited/expired	-
Outstanding	252,000	2.00	$	1,193
Expected to Vest	252,000	2.00	$	1,193

For the three-month period ended September 30, 2013, we have not granted or issued stock options, restricted stock units or any other stock incentive permitted by the 2012 Plan.

The following table shows total stock-based compensation expense included in the unaudited condensed consolidated statement of operations for the three months ended September 30, 2013.

	September 30, 2013
Sales and Marketing	$	106
General and administrative		8
	$	114

We did not incur stock-based compensation for the period ended September 30, 2012.

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INVENTORIES (Tables)

3 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consisted of the following:

	2013
	September 30,		June 30,
	( in thousands)
Bulk wine	$	4,671	$	6,245
Bottled wine		11,780		6,688
Merchandise and other		495		165
Capitalized cultural costs		171		124
	$	17,117	$	13,222

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SUBSEQUENT EVENTS

3 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 15 – SUBSEQUENT EVENTS

In October 2013, we entered into a lease agreement for an administrative office space. The lease commences on October 15, 2013 and ends on October 31, 2016, and contains three one year renewal options with an adjustment to market rents. Annual rent for fiscal 2014 totals $0.02 million, due monthly.   Future lease payment commitments total approximately $0.1 million.

We have evaluated all subsequent event activity through the issue date of these condensed consolidated financial statements and concluded that no additional subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements.

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Document And Entity Information	3 Months Ended
	Sep. 30, 2013
Document Information [Line Items]
Entity Registrant Name	Truett-Hurst, Inc.
Entity Central Index Key	0001564709
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	THST
Entity Common Stock, Shares Outstanding	2,700,000
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2014

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The unaudited condensed consolidated financial statements for the three-month period ended September 30, 2013 and the June 30, 2013 balance sheet, include the results of Truett-Hurst, Inc. and its subsidiaries: H.D.D. LLC (“LLC”) and its consolidated subsidiary, The Wine Spies, LLC (“Wine Spies”) (collectively, “we,” “Truett-Hurst,” “our,” “us,” or “the Company”). The unaudited condensed consolidated financial statements for the three-month period ended September 30, 2012 reflect the results of the LLC and Wine Spies. Truett-Hurst, Inc.’s fiscal 2013 period is from June 26, 2013 to June 30, 2013 due to the completion of the Company’s initial public offering (“IPO”) on June 25, 2013. Unless the context suggests otherwise, references in this report to Truett-Hurst Inc. refer (1) prior to the June 2013 IPO of Truett-Hurst Inc. and related transactions, to the LLC and its consolidated subsidiary and (2) after our IPO and related formation transactions, to Truett-Hurst Inc. and its consolidated subsidiaries.

The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All intercompany transactions have been eliminated. Accordingly, the accompanying unaudited financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. We prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013, and, in the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013 filed with the SEC on September 27, 2013.

Certain reclassifications have been made to these fiscal 2013 quarter condensed consolidated financial statements to conform to the current fiscal 2014 quarter presentation. Reclassifications had no material impact on previously reported results of operations, financial position or cash flows.

Unless otherwise indicated, the notes to the unaudited condensed consolidated financial statements relate to the discussion of our continuing operations.

Use of Estimates, Policy [Policy Text Block]

Critical Accounting Policies and Estimates

Critical accounting policies are those we believe are most important to portraying our financial condition and results of operations and also require the greatest amount of subjective or complex judgments by management. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Judgments and uncertainties regarding the application of these policies and estimates may result in materially different amounts being reported under various conditions or using different assumptions. There have been no material changes to the critical accounting policies and estimates previously disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

New Accounting Pronouncements, Policy [Policy Text Block]

Accounting Pronouncements

We have reviewed all recently issued, but not yet effective, accounting pronouncements and we do not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of our operations.