Coffee Holding (JVA) 10-Q 14 Mar 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Jan. 31, 2014	Mar. 14, 2014
Document And Entity Information	'	'
Entity Registrant Name	'COFFEE HOLDING CO INC	'
Entity Central Index Key	'0001007019	'
Document Type	'10-Q	'
Document Period End Date	31-Jan-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--10-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	6,372,309
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jan. 31, 2014	Oct. 31, 2013
CURRENT ASSETS:	'	'
Cash	$4,532,936	$4,035,669
Accounts receivable, net of allowances of $144,000 for 2014 and 2013	10,037,140	12,362,792
Inventories	8,966,557	9,373,018
Prepaid green coffee	620,960	439,290
Prepaid expenses and other current assets	429,083	336,494
Prepaid and refundable income taxes	592,613	1,000,317
Deferred income tax asset	906,606	1,330,666
TOTAL CURRENT ASSETS	26,085,895	28,878,246
Machinery and equipment, at cost, net of accumulated depreciation of $3,277,275 and $3,130,902 for 2014 and 2013, respectively	2,037,851	2,060,350
Customer list and relationships, net of accumulated amortization of $28,125 and $26,250 for 2014 and 2013, respectively	121,875	123,750
Trademarks	180,000	180,000
Goodwill	440,000	440,000
Equity method investments	97,996	98,178
Deposits and other assets	618,511	618,498
TOTAL ASSETS	29,582,128	32,399,022
CURRENT LIABILITIES:	'	'
Accounts payable and accrued expenses	5,240,419	7,244,822
Line of credit	0	1,229,182
Due to broker	0	984,040
Income taxes payable	200	0
TOTAL CURRENT LIABILITIES	5,240,619	9,458,044
Deferred income tax liabilities	135,706	145,666
Deferred rent payable	200,329	195,452
Deferred compensation payable	515,511	515,498
TOTAL LIABILITIES	6,092,165	10,314,660
STOCKHOLDERS EQUITY:	'	'
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,456,316 shares issued; 6,372,309 shares outstanding for 2014 and 2013	6,456	6,456
Additional paid-in capital	15,904,109	15,904,109
Retained earnings	7,483,373	6,111,633
Less: Treasury stock, 84,007 common shares, at cost for 2014 and 2013	-272,133	-272,133
Total Coffee Holding Co., Inc. Stockholders Equity	23,121,805	21,750,065
Noncontrolling interest	368,158	334,297
TOTAL EQUITY	23,489,963	22,084,362
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$29,582,128	$32,399,022

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jan. 31, 2014	Oct. 31, 2013
ASSETS:	'	'
Allowances for doubtful accounts	$144,000	$144,000
Accumulated Depreciation and Amortization	3,277,275	3,130,902
Customer list and relationships, accumulated amortization	$28,125	$26,250
STOCKHOLDERS EQUITY:	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock shares authorized	30,000,000	30,000,000
Common stock shares issued	6,456,316	6,456,316
Common stock shares outstanding	6,372,309	6,372,309
Treasury Stock, Shares	84,007	84,007

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Consolidated Statements Of Income	'	'
NET SALES	$27,346,347	$31,318,804
COST OF SALES (which include purchases of approximately $5.0 million and $9.7 million for the three months ended January 31, 2014 and 2013, respectively, from a related party)	23,227,722	27,636,207
GROSS PROFIT	4,118,625	3,682,597
OPERATING EXPENSES:	'	'
Selling and administrative	1,710,612	1,765,241
Officers' salaries	159,100	129,937
TOTALS	1,869,712	1,895,178
INCOME FROM OPERATIONS	2,248,913	1,787,419
OTHER INCOME (EXPENSE):	'	'
Interest income	883	7,579
Loss from equity method investments	-182	-104,437
Interest expense	-18,088	-38,399
TOTAL	-17,387	-135,257
INCOME BEFORE PROVISION FOR INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARY	2,231,526	1,652,162
Provision for income taxes	825,925	635,484
NET INCOME BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY	1,405,601	1,016,678
Less: net income attributable to the non-controlling interest	-33,861	-79,141
NET INCOME ATTRIBUTABLE TO COFFEE HOLDING CO., INC.	$1,371,740	$937,537
Basic earnings per share	$0.22	$0.15
Diluted earnings per share	$0.21	$0.14
Dividends declared per share	$0	$0.06
Weighted average common shares outstanding:	'	'
Basic	6,372,309	6,372,309
Diluted	6,639,309	6,639,309

CONSOLIDATED_STATEMENTS_OF_INC1

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Consolidated Statements Of Income	'	'
Related party costs	$5	$9.70

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
OPERATING ACTIVITIES:	'	'
Net income (loss)	$1,405,601	$1,016,678
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	148,248	117,616
Unrealized gain on commodities	-1,179,594	-453,882
Loss on equity method investments	182	104,437
Deferred rent	4,877	4,012
Deferred income taxes	414,100	202,000
Changes in operating assets and liabilities:	'	'
Accounts receivable	2,325,651	2,409,537
Inventories	406,461	1,565,618
Prepaid expenses and other current assets	102,965	53,558
Prepaid green coffee	-181,670	-55,000
Prepaid and refundable income taxes	407,704	10,657
Accounts payable and accrued expenses	-2,004,402	-4,516,084
Deposits and other assets	0	1,873
Income taxes payable	200	74,993
Net cash provided by operating activities	1,850,323	536,013
INVESTING ACTIVITIES:	'	'
Proceeds from disposition of equity method investment	0	232,069
Purchases of machinery and equipment	-123,874	-68,394
Net cash (used in) provided by investing activities	-123,874	163,675
FINANCING ACTIVITIES:	'	'
Advances under bank line of credit	40,202	3,441,192
Principal payments under bank line of credit	-1,269,384	-3,050,121
Payment of dividend	0	-387,377
Net cash (used in) provided by financing activities	-1,229,182	3,694
NET INCREASE IN CASH	497,267	703,382
CASH, BEGINNING OF PERIOD	4,035,669	7,568,583
CASH, END OF PERIOD	4,532,936	8,271,965
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:	'	'
Interest paid	21,225	41,191
Income taxes paid	5,089	347,834
Proceeds from disposition of equity method investment:	'	'
Inventory received	0	503,500
Settlement of accounts payable	0	992,402
Total noncash proceeds	$0	$1,495,902

1_BUSINESS_ACTIVITIES

1. BUSINESS ACTIVITIES	3 Months Ended
	Jan. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
BUSINESS ACTIVITIES	'
	Coffee Holding Co., Inc. (the “Company”) conducts wholesale coffee operations, including manufacturing, roasting, packaging, marketing and distributing roasted and blended coffees for private labeled accounts and its own brands, and it sells green coffee.  The Company’s core product, coffee, can be summarized and divided into three product categories (“product lines”) as follows:
	Wholesale Green Coffee:  unroasted raw beans imported from around the world and sold to large and small roasters and coffee shop operators;
	Private Label Coffee: coffee roasted, blended, packaged and sold under the specifications and names of others, including supermarkets that want to have their own brand name on coffee to compete with national brands; and
	Branded Coffee: coffee roasted and blended to the Company’s own specifications and packaged and sold under the Company’s seven proprietary and licensed brand names in different segments of the market.
	The Company’s private label and branded coffee sales are primarily to customers that are located throughout the United States with limited sales in Canada and the Far East.  Such customers include supermarkets, wholesalers, and individually-owned and multi-unit retailers.  The Company’s unprocessed green coffee, which includes over 90 specialty coffee offerings, is sold primarily to specialty gourmet roasters and to coffee shop operators in the United States with limited sales in Australia, Canada, England and China.
	The Company’s wholesale green, private label, and branded coffee product categories generate revenues and cost of sales individually but incur selling, general and administrative expenses in the aggregate. There are no individual product managers and discrete financial information is not available for any of the product lines. The Company’s product portfolio is used in one business and it operates and competes in one business activity and economic environment. In addition, the three product lines share customers, manufacturing resources, sales channels, and marketing support. Thus, the Company considers the three product lines to be one single reporting segment.
	On April 26, 2012, the Company entered into a stock purchase agreement with Healthwise Gourmet Coffees, LLC (“HGC”) to purchase an additional 10% interest in HGC.  HGC is a coffee distributor specializing in a TechnoRoasting process that results in a coffee with lower acidity levels.  The Company invested $100,000 for the additional 10% interest.  Previously, the Company was awarded a 10% interest in HGC in return for setting up the production process in Colorado as well as other technical support.
	On November 30, 2011, the Company entered into a stock purchase agreement with Global Mark LLC, Peter Schmalfeld and Lawrence Elsie to purchase a 40% interest in Global Mark LLC (“GM”).  The terms of the agreement provided for the Company to pay up to an aggregate of $2,000,000 in cash to fund operations and for GM to provide to the Company a preferred pricing arrangement for the supply of instant coffee.  On December 10, 2012, the Company entered into an agreement with GM and other members of GM, whereby the Company withdrew as a member of GM.
	As a result of GM’s inability to successfully develop a significant customer base (other than the Company) and the Company’s evaluation of the long term prospects of the GM relationship, the Company determined that it was in the best interests of the parties to terminate the relationship.  In connection with withdrawing from GM, the Company received assets comprised of cash, receivables and inventory equal to approximately $1.8 million, resulting in a write down of approximately $130,000, which was recognized as of October 31, 2012.  Subsequent to the end of the first quarter of 2013, the Company received the final accounting of the GM business.  The amount of cash received was approximately $104,000 less than originally expected, resulting in the final write down that was recognized as of January 31, 2013.
	On May 17, 2010, the Company entered into an asset purchase agreement with Organic Products Trading Company, Inc. to purchase certain assets.  The Company formed a wholly-owned subsidiary, Coffee Holding Acquisition Company, LLC to purchase the assets. Subsequent to the closing, the Company changed the name of the subsidiary to Organic Products Trading Company, LLC (“OPTCO”).  The financial statements of OPTCO are consolidated with those of the Company.
	On April 7, 2006, the Company entered into a joint venture with Caruso’s Coffee, Inc. and formed Generations Coffee Company, LLC (“GCC”).  The Company now owns a 60% equity interest in GCC.  GCC operates the facility located in Brecksville, Ohio and is in the same general business as the Company.  The Company also exercises control of GCC.  As a result of its 60% equity interest and control of GCC, the financial statements of GCC are consolidated with those of the Company.

2_BASIS_OF_PRESENTATION

2. BASIS OF PRESENTATION	3 Months Ended
	Jan. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
BASIS OF PRESENTATION	'
	The following (a) condensed consolidated balance sheet as of October 31, 2013, which has been derived from audited financial statements, and (b) the unaudited interim condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.  It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest shareholders’ annual report on Form 10-K filed with the SEC on January 24, 2014 for the fiscal year ended October 31, 2013 (“Form 10-K”).
	In the opinion of management, all adjustments (which include normal and recurring nature adjustments) necessary to present a fair statement of the Company’s financial position as of January 31, 2014, and results of operations for the three months ended January 31, 2014 and 2013 and the cash flows for the three months ended January 31, 2014 and 2013, as applicable, have been made.
	The results of operations for the three months ended January 31, 2014 and 2013 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
	The condensed consolidated financial statements include the accounts of the Company, OPTCO and GCC.  All significant inter-company transactions and balances have been eliminated in consolidation.

3_RECENTLY_ISSUED_ACCOUNTING_P

3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY	3 Months Ended
	Jan. 31, 2014
Accounting Changes and Error Corrections [Abstract]	'
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY	'
	During the first quarter, the Financial Accounting Standards Board has issued Accounting Standards Update (ASU) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.  Upon adoption an entity is required to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position.  The amendments in this guidance are effective for the Company for the first annual reporting period beginning on or after January 1, 2013, and interim periods within those annual periods. Management is still evaluating the effects of adoption.

4_PREPAID_GREEN_COFFEE

4. PREPAID GREEN COFFEE	3 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
4. PREPAID GREEN COFFEE	'
	The balance represents advance payments made by OPTCO to several coffee growing cooperatives for the purchase of green coffee.  Interest is charged to the cooperatives for these advances.  Interest earned was $883 and $7,579 for the three months ended January 31, 2014 and 2013, respectively.  The prepaid coffee balance was $620,960 at January 31, 2014 and $439,290 at October 31, 2013.

5_ACCOUNTS_RECEIVABLE

5. ACCOUNTS RECEIVABLE	3 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
5. ACCOUNTS RECEIVABLE	'
	Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectibility of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. Past due balances over 60 days and other higher risk amounts are reviewed individually for collectibility. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.
	The reserve for sales discounts represents the estimated discount that customers will take upon payment.  The reserve for other allowances represents the estimated amount of returns, slotting fees and volume based discounts estimated to be incurred by the Company from its customers.  The allowances are summarized as follows:
		January 31,		October 31,
		2014		2013
	Allowance for doubtful accounts	$	65,000	$	65,000
	Reserve for other allowances		35,000		35,000
	Reserve for sales discounts		44,000		44,000
	Totals	$	144,000	$	144,000

6_INVENTORIES

6. INVENTORIES	3 Months Ended
	Jan. 31, 2014
Inventory Disclosure [Abstract]	'
INVENTORIES	'
	Inventories at January 31, 2014 and October 31, 2013 consisted of the following:
		January 31,		October 31,
		2014		2013
	Packed coffee	$	1,830,197	$	1,873,982
	Green coffee		6,399,585		6,818,261
	Packaging supplies		736,775		680,775
	Totals	$	8,966,557	$	9,373,018

7_COMMODITIES_HELD_BY_BROKER

7. COMMODITIES HELD BY BROKER	3 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
7. COMMODITIES HELD BY BROKER	'
	The commodities held at the broker represent the market value of the Company’s trading account, which consists of options and future contracts for coffee held with a brokerage firm.  The Company uses options and futures contracts, which are not designated or qualifying as hedging instruments, to partially hedge the effects of fluctuations in the price of green coffee beans.  Options and futures contracts are recognized at fair value in the condensed consolidated financial statements with current recognition of gains and losses on such positions.  The Company’s accounting for options and futures contracts may increase earnings volatility in any particular period.
	The Company has open position contracts held by the broker, which are summarized as follows:
		January 31,			October 31,
		2014			2013
	Option Contracts		(113,587	)		(188,819	)
	Future Contracts		309,141			(795,221	)
	Total Commodities		195,554			(984,040	)
	The Company classifies its options and future contracts as trading securities and accordingly, unrealized holding gains and losses are included in earnings and not reflected as a net amount as a separate component of stockholders’ equity.
	At January 31, 2014, the Company held 47 futures contracts for the purchase of 1,762,500 pounds of green coffee at a weighted average price of $1.1390 per pound.  The fair market value of coffee applicable to such contracts was $1.2520 per pound at that date.
	At October 31, 2013, the Company held 149 futures contracts for the purchase of 5,587,500 pounds of green coffee at a weighted average price of $1.19 per pound.  The fair market value of coffee applicable to such contracts was $1.08 per pound at that date.  The Company also held 120 options covering an aggregate of 4,500,000 pounds of green coffee beans at $1.10 per pound.  The fair market value of these options, which was obtained from observable market data of similar instruments was $244,800
	The Company recorded realized and unrealized gains and losses respectively, on these contracts as follows:
		Three Months Ended January 31,
		2014			2013
	Gross realized gains	$	820,982		$	767,057
	Gross realized losses		(971,255	)		(1,193,058	)
	Unrealized gains		1,179,594			453,882
	Total	$	1,029,321		$	27,881

8_LINE_OF_CREDIT

8. LINE OF CREDIT	3 Months Ended
	Jan. 31, 2014
Debt Disclosure [Abstract]	'
LINE OF CREDIT	'
	On February 17, 2009, the Company entered into a financing agreement with Sterling National Bank (“Sterling”) for a $5,000,000 credit facility.  The credit facility is a revolving $5,000,000 line of credit and the Company can draw on the line at an amount up to 85% of eligible accounts receivable and 25% of eligible inventory consisting of green coffee beans and finished coffee not to exceed $1,000,000.  Sterling shall have the right from time to time to adjust the foregoing percentages based upon, among other things, dilution, its sole determination of the value or likelihood of collection of eligible accounts receivables owed to the Company, and considerations regarding inventory.  The credit facility is payable monthly in arrears on the average unpaid balance of the line of credit at an interest rate equal to a per annum reference rate (4.25% at January 31, 2014 and October 31, 2013).
	On July 22, 2010, the credit facility was increased to $7,000,000.  In addition, OPTCO was added as a co-borrower and the inventory sublimit was raised from $1,000,000 to $2,000,000.  Subsequent to July 31, 2010, $1,800,000 of the credit facility was allocated to OPTCO.
	The initial term of the credit facility was for three years and expired on February 17, 2012.  The terms of the credit facility provide that the credit facility may be automatically extended for successive periods of one year each unless one party shall have provided the other party with a written notice of termination at least ninety days prior to the expiration of the then current term.  Prior to the expiration of the initial term, and effective as of February 12, 2012, the term was extended until February 17, 2014 and the interest rate was reduced to the Wall Street Journal Prime rate (which is currently 3.25%) plus one percent (1%).  On May 10, 2013, the credit facility was extended until February 17, 2015.  The credit facility is secured by all tangible and intangible assets of the Company.
	The credit facility contains covenants that place annual restrictions on the Company’s operations, including covenants relating to debt restrictions, capital expenditures, minimum deposit restrictions, tangible net worth, net profit, leverage, employee loan restrictions, distribution restrictions (common stock and preferred stock), dividend restrictions, and restrictions on intercompany transactions.  The credit facility also requires that the Company maintain a minimum working capital at all times.  The Company was in compliance with all required financial covenants at January 31, 2014 and October 31, 2013.
	On February 3, 2011, the Company amended its credit facility regarding the creation of a sublimit within the revolving line of credit in the form of a $300,000 term loan for the benefit of GCC.  The Company provided a corporate guarantee to Sterling in connection with the amendment.
	The Company previously was a party to a Guarantee Agreement with CORDAID, a non-profit organization that supports development projects in developing countries, registered under the laws of the Netherlands, in which it had agreed to make available $1,800,000 (which was subsequently reduced to $1,500,000) to be used as collateral for a loan facility from Sterling to the Company under a Guarantee Agreement.  The Guarantee Agreement expired on March 31, 2012 and the parties did not renew this agreement.
	Triodos Bank is one of the world’s leading sustainable banks, with a mission to make money work for positive social, environmental and cultural change.  Triodos has offices in the Netherlands, Germany, Spain, UK and Belgium.  The Company initiated a corporate guarantee on April 15, 2011 to Triodos Sustainable Trade Fund (“TSTF”) up to a maximum amount of $250,000.  TSTF provides financing to two coffee growing cooperatives up to a maximum of $1,000,000 based upon relationships established with OPTCO.
	As of January 31, 2014 and October 31, 2013, the outstanding balance under the bank line of credit was $0 and $1,229,182, respectively.

9_INCOME_TAXES

9. INCOME TAXES	3 Months Ended
	Jan. 31, 2014
Income Tax Disclosure [Abstract]	'
INCOME TAXES	'
	The Company accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.  The income tax provision or benefit is the tax incurred for the period plus or minus the change during the period in deferred tax assets and liabilities.
	The Company adopted FASB authoritative guidance for accounting for uncertainty in income taxes.  As of  January 31, 2014 and October 31, 2013, the Company did not have any unrecognized tax benefits or open tax positions.  The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.  As of January 31, 2014 and October 31, 2013, the Company had no accrued interest or penalties related to income taxes.  The Company currently has no federal or state tax examinations in progress.
	The Company files a U.S. federal income tax return and California, Colorado, New Jersey, New York, Kansas, Oregon, Rhode Island, South Carolina and Texas state tax returns.  The Company’s federal income tax return is no longer subject to examination by the federal taxing authority for the years before fiscal 2010.  The Company’s California, Colorado and New Jersey income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2007.  The Company’s Oregon and New York income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2008.

10_EARNINGS_PER_SHARE

10. EARNINGS PER SHARE	3 Months Ended
	Jan. 31, 2014
Earnings Per Share [Abstract]	'
10. EARNINGS PER SHARE	'
	The Company presents “basic” and “diluted” earnings per common share pursuant to the provisions included in the authoritative guidance issued by FASB, “Earnings per Share,” and certain other financial accounting pronouncements.  Basic earnings per common share were computed by dividing net income by the sum of the weighted-average number of common shares outstanding.   Diluted earnings per common share is computed by dividing the net income by the weighted-average number of common shares outstanding plus the dilutive effect of common shares issuable upon exercise of potential sources of dilution.
	The weighted average common shares outstanding used in the computation of basic earnings per share were 6,372,309 for the three months ended January 31, 2014 and 2013. The weighted average common shares outstanding used in the computation of diluted earnings per share were 6,639,309 for the three months ended January 31, 2014 and 2013.  The 267,000 shares that could be exercised pursuant to the warrant agreement attached to the units issued in September 2011 have been included in the diluted earnings per share calculation because of their dilutive impact.

11_ECONOMIC_DEPENDENCY

11. ECONOMIC DEPENDENCY	3 Months Ended
	Jan. 31, 2014
Risks and Uncertainties [Abstract]	'
ECONOMIC DEPENDENCY	'
	Approximately 55% of the Company’s sales were derived from one customer during the three months ended January 31, 2014.  This customer also accounted for approximately $4,081,000 of the Company’s accounts receivable balance at January 31, 2014.  Approximately 51% of the Company’s sales were derived from one customer during the three months ended January 31, 2013.  This customer also accounted for approximately $3,350,000 of the Company’s accounts receivable balance at January 31, 2013.  Approximately 60% of the Company’s sales were derived from one customer during the year ended October 31, 2013.  This customer also accounted for approximately $6,277,000 of the Company’s accounts receivable balance at October 31, 2013.  Concentration of credit risk with respect to other trade receivables is limited due to the short payment terms generally extended by the Company, by ongoing credit evaluations of customers, and by maintaining an allowance for doubtful accounts that management believes will adequately provide for credit losses.
	For the three months ended January 31, 2014, approximately 61% of the Company’s purchases were from four vendors.  These vendors accounted for approximately $3,058,000 of the Company’s accounts payable at January 31, 2014.  For the three months ended January 31, 2013, approximately 60% of the Company’s purchases were from four vendors.  These vendors accounted for approximately $3,500,000 of the Company’s accounts payable at January 31, 2013. For the year ended October 31, 2013, approximately 75% of the Company’s purchases were from ten vendors.  Two of these vendors accounted for 53% of total purchases.  These two vendors accounted for approximately $4,122,000 of the Company’s accounts payable at October 31, 2013.  Management does not believe the loss of any one vendor would have a material adverse effect of the Company’s operations due to the availability of many alternate suppliers.

12_RELATED_PARTY_TRANSACTIONS

12. RELATED PARTY TRANSACTIONS	3 Months Ended
	Jan. 31, 2014
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	The Company has engaged its 40% partner in GCC as an outside contractor (the “Partner”).  Included in contract labor expense are expenses incurred from the Partner during the three months ended January 31, 2014 and 2013 of $107,067 and $94,588, respectively, for the processing of finished goods.
	An employee of one of the top four vendors is a director of the Company.  Purchases from that vendor totaled approximately $5,000,000 and $9,700,000 for the three months ended January 31, 2014 and 2013, respectively.  The corresponding accounts payable balance to this vendor was approximately $1,419,000 and $2,373,000 at January 31, 2014 and 2013, respectively.
	In January 2005, the Company established the “Coffee Holding Co., Inc. Non-Qualified Deferred Compensation Plan.”  Currently, there is only one participant in the plan: Andrew Gordon, the Company’s Chief Executive Officer.  Within the plan guidelines, this employee is deferring a portion of his current salary and bonus.  The assets are held in a separate trust.  The deferred compensation payable represents the liability due to an officer of the Company.  The assets are included in the Deposits and other assets in the accompanying balance sheets.  The deferred compensation asset and liability at January 31, 2014 and October 31, 2013 were $515,511 and $515,498, respectively.

13_STOCKHOLDERS_EQUITY

13. STOCKHOLDERS' EQUITY	3 Months Ended
	Jan. 31, 2014
Equity [Abstract]	'
STOCKHOLDERS' EQUITY	'
		a.	Treasury Stock.  The Company utilizes the cost method of accounting for treasury stock.  The cost of reissued shares is determined under the last-in, first-out method.  In January 2014, the Board of Directors authorized a share repurchase program pursuant to which the Company may repurchase up to $1 million of its outstanding common stock from time to time on the open market and in privately negotiated transactions subject to market conditions, share price and other factors.  The Company did not purchase any shares during the three months ended January 31, 2014 and 2013.
		b.	Dividends:  On December 27, 2012, the Company paid a cash dividend of $387,379 ($0.06 per share) to all stockholders of record as of December 15, 2012.

14_FAIR_VALUE_MEASUREMENTS

14. FAIR VALUE MEASUREMENTS	3 Months Ended
	Jan. 31, 2014
Fair Value Disclosures [Abstract]	'
FAIR VALUE MEASUREMENTS	'
	The Company adopted the authoritative guidance on “Fair Value Measurements.”  The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not adjusted for transaction costs.  The guidance also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) as described below:
	Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company;
	Level 2 Inputs – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly;
	Level 3 Inputs – Unobservable inputs for the asset or liability including significant assumptions of the Company and other market participants.
	The Company determines fair values for its investment assets as follows:
	Investments at fair value consist of commodity securities and deferred compensation plan assets.
	The Company maintains a deferred compensation plan.  The fair value of the plan assets are classified within Level 1 as the assets are valued using quoted prices in active markets.  The assets are included with Deposits and other assets in the accompanying balance sheets. Additional information related to the Company’s deferred compensation plan is disclosed in Note 12 to the condensed consolidated financial statements.
	The Company’s commodity securities are classified within Level 2 and include coffee futures and options contracts. To determine fair value, the Company utilizes the market approach valuation technique for the coffee futures and options contracts.  The Company uses Level 2 inputs that are based on market data of similar instruments that are in observable markets. All commodities on the balance sheet are recorded at fair value with changes in fair value included in earnings.
	The following tables present the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
					Fair Value Measurements as of January 31, 2014
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market	$	515,511		$	515,511		–			–
	Commodities  Futures		309,141			–		309,141			–
	Total Assets	$	824,652		$	515,511	$	309,141			–
	Liabilities:
	Commodities  Options		(113,587	)		–		(113,587	)		–
	Total Liabilities	$	(113,587	)		–	$	(113,587	)		–
					Fair Value Measurements as of October 31, 2013
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market	$	515,498		$	515,498		-			–
	Total Assets	$	515,498		$	515,498		-			–
	Liabilities:
	Commodities   Options		(188,819	)				(188,819	)
	Commodities  Futures		(795,221	)		–		(795,221	)		–
	Total Liabilities	$	(984,040	)		–	$	(984,040	)		–

15_SUBSEQUENT_EVENTS

15. SUBSEQUENT EVENTS	3 Months Ended
	Jan. 31, 2014
Subsequent Events [Abstract]	'
15. SUBSEQUENT EVENTS	'
	The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required further adjustment or disclosure in the condensed consolidated financial statements.

5_ACCOUNTS_RECEIVABLE_Tables

5. ACCOUNTS RECEIVABLE (Tables)	3 Months Ended
	Jan. 31, 2014
Accounts Receivable Tables	'
Schedule of Accounts Receivable	'
		January 31,		October 31,
		2014		2013
	Allowance for doubtful accounts	$	65,000	$	65,000
	Reserve for other allowances		35,000		35,000
	Reserve for sales discounts		44,000		44,000
	Totals	$	144,000	$	144,000

6_INVENTORIES_Tables

6. INVENTORIES (Tables)	3 Months Ended
	Jan. 31, 2014
Inventory Disclosure [Abstract]	'
Schedule of inventories	'
		January 31,		October 31,
		2014		2013
	Packed coffee	$	1,830,197	$	1,873,982
	Green coffee		6,399,585		6,818,261
	Packaging supplies		736,775		680,775
	Totals	$	8,966,557	$	9,373,018

7_COMMODITIES_HELD_BY_BROKER_T

7. COMMODITIES HELD BY BROKER (Tables)	3 Months Ended
	Jan. 31, 2014
Commodities Held By Broker Tables	'
Schedule of Commodities held by Broker	'
		January 31,			October 31,
		2014			2013
	Option Contracts		(113,587	)		(188,819	)
	Future Contracts		309,141			(795,221	)
	Total Commodities		195,554			(984,040	)
Schedule of realized and unrealized gains and losses	'
		Three Months Ended January 31,
		2014			2013
	Gross realized gains	$	820,982		$	767,057
	Gross realized losses		(971,255	)		(1,193,058	)
	Unrealized gains		1,179,594			453,882
	Total	$	1,029,321		$	27,881

14_FAIR_VALUE_MEASUREMENTS_Tab

14. FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Jan. 31, 2014
Fair Value Disclosures [Abstract]	'
Schedule of fair value hierarchy	'
					Fair Value Measurements as of January 31, 2014
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market	$	515,511		$	515,511		–			–
	Commodities  Futures		309,141			–		309,141			–
	Total Assets	$	824,652		$	515,511	$	309,141			–
	Liabilities:
	Commodities  Options		(113,587	)		–		(113,587	)		–
	Total Liabilities	$	(113,587	)		–	$	(113,587	)		–
					Fair Value Measurements as of October 31, 2013
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market	$	515,498		$	515,498		-			–
	Total Assets	$	515,498		$	515,498		-			–
	Liabilities:
	Commodities   Options		(188,819	)				(188,819	)
	Commodities  Futures		(795,221	)		–		(795,221	)		–
	Total Liabilities	$	(984,040	)		–	$	(984,040	)		–

5_ACCOUNTS_RECEIVABLE_Details

5. ACCOUNTS RECEIVABLE (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Accounts Receivable Details	'	'
Allowance for doubtful accounts	$65,000	$65,000
Reserve for other allowances	35,000	35,000
Reserve for sales discounts	44,000	44,000
Totals	$144,000	$144,000

6_INVENTORIES_Details

6. INVENTORIES (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Inventories Details	'	'
Packed coffee	$1,830,197	$1,873,982
Green coffee	6,399,585	6,818,261
Packaging supplies	736,775	680,775
Totals	$8,966,557	$9,373,018

7_COMMODITIES_HELD_BY_BROKER_D

7. COMMODITIES HELD BY BROKER (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Commodities Held By Broker Details	'	'
Option Contracts	($113,587)	($188,819)
Future Contracts	309,141	-795,221
Commodities due to broker	$195,554	($984,040)

7_COMMODITIES_HELD_BY_BROKER_D1

7. COMMODITIES HELD BY BROKER (Details 1) (USD $)	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Commodities Held By Broker Details 1	'	'
Gross realized gains	$820,982	$767,057
Gross realized losses	-971,255	-1,193,058
Unrealized gains	1,179,594	453,882
Total	$1,029,321	$27,881

14_FAIR_VALUE_MEASUREMENTS_Det

14. FAIR VALUE MEASUREMENTS (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Assets:	'	'
Money market	$515,511	$515,498
Commodities-Options	309,141	0
Total Assets	824,652	515,498
Liabilities:	'	'
Commodities Options	-113,587	-188,819
Commodities-Futures	0	-795,221
Total Liabilities	-113,587	-984,040
FairValueInputsLevel1Member	'	'
Assets:	'	'
Money market	515,511	515,498
Commodities-Options	0	0
Total Assets	515,511	515,498
Liabilities:	'	'
Commodities Options	0	0
Commodities-Futures	0	0
Total Liabilities	0	0
FairValueInputsLevel2Member	'	'
Assets:	'	'
Money market	0	0
Commodities-Options	309,141	0
Total Assets	309,141	0
Liabilities:	'	'
Commodities Options	-113,587	-188,819
Commodities-Futures	0	-795,221
Total Liabilities	-113,587	-984,040
FairValueInputsLevel3Member	'	'
Assets:	'	'
Money market	0	0
Commodities-Options	0	0
Total Assets	0	0
Liabilities:	'	'
Commodities Options	0	0
Commodities-Futures	0	0
Total Liabilities	$0	$0

4_PREPAID_GREEN_COFFEE_Details

4. PREPAID GREEN COFFEE (Details Narrative) (USD $)	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Oct. 31, 2013
Prepaid Green Coffee Details Narrative	'	'	'
Interest earned	$883	$7,579	'
Prepaid coffee balance	$620,960	'	$439,290

8_LINE_OF_CREDIT_Details_Narra

8. LINE OF CREDIT (Details Narrative) (USD $)	Jan. 31, 2014	Oct. 31, 2013
Line Of Credit Details Narrative	'	'
Bank line of credit	$0	$1,229,182

12_RELATED_PARTY_TRANSACTIONS_

12. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Oct. 31, 2013
Related Party Transactions Details Narrative	'	'	'
Contract labor expense from partner	$107,067	$94,588	'
Purchases from top vendor	5,000,000	9,700,000	'
Top vendor accounts payable	1,419,000	2,373,000	'
Deferred compensation asset and liability	$515,511	'	$515,498