Coffee Holding (JVA) 10-Q 9 Mar 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Jan. 31, 2015	Mar. 04, 2015
Document And Entity Information
Entity Registrant Name	COFFEE HOLDING CO INC
Entity Central Index Key	1007019
Document Type	10-Q
Document Period End Date	31-Jan-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-21
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		6,215,894
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jan. 31, 2015	Oct. 31, 2014
CURRENT ASSETS:
Cash	$3,519,981	$3,782,639
Accounts receivable, net of allowances of $144,000 for 2015 and 2014	21,295,183	15,419,860
Inventories	13,562,889	15,210,153
Prepaid green coffee	218,451	467,155
Prepaid expenses and other current assets	268,670	260,112
Prepaid and refundable income taxes	135,946	759
Deferred income tax asset	819,052	343,657
TOTAL CURRENT ASSETS	39,820,172	35,484,335
Machinery and equipment, at cost, net of accumulated depreciation of $3,847,166 and $3,704,802 for 2015 and 2014, respectively	1,885,769	1,991,094
Customer list and relationships, net of accumulated amortization of $35,625 and $33,750 for 2015 and 2014, respectively	114,375	116,250
Trademarks	180,000	180,000
Goodwill	440,000	440,000
Equity method investments	98,119	97,404
Deposits and other assets	631,158	643,549
TOTAL ASSETS	43,169,593	38,952,632
CURRENT LIABILITIES:
Accounts payable and accrued expenses	8,420,898	8,693,100
Line of credit	5,498,458	2,498,458
Due to broker	1,846,733	484,924
Income taxes payable	474,309	331,051
TOTAL CURRENT LIABILITIES	16,240,398	12,007,533
Deferred income tax liabilities	150,052	165,157
Deferred rent payable	212,744	209,640
Deferred compensation payable	503,158	515,549
TOTAL LIABILITIES	17,106,352	12,897,879
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; 6,215,894 shares outstanding for 2015 and 2014	6,456	6,456
Additional paid-in capital	15,904,109	15,904,109
Retained earnings	11,150,969	11,079,168
Less: Treasury stock, 240,422 common shares, at cost for 2015 and 2014	-1,267,862	-1,267,862
Total Coffee Holding Co., Inc. Stockholders Equity	25,793,672	25,721,871
Noncontrolling interest	269,569	332,882
TOTAL EQUITY	26,063,241	26,054,753
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$43,169,593	$38,952,632

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jan. 31, 2015	Oct. 31, 2014
ASSETS:
Allowances for doubtful accounts	$144,000	$144,000
Accumulated Depreciation	3,847,166	3,704,802
Customer list and relationships, accumulated amortization	$35,625	$33,750
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	6,215,894	6,215,894
Treasury Stock, Shares	240,422	240,422

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Consolidated Statements Of Income
NET SALES	$38,405,979	$27,346,347
COST OF SALES (which include purchases of approximately $9.8 million and $5.0 million for the three months ended January 31, 2015 and 2014, respectively, from a related party)	36,484,535	23,227,722
GROSS PROFIT (LOSS)	1,921,444	4,118,625
OPERATING EXPENSES:
Selling and administrative	1,666,357	1,710,612
Officers' salaries	152,735	159,100
TOTALS	1,819,092	1,869,712
INCOME FROM OPERATIONS	102,352	2,248,913
OTHER INCOME (EXPENSE):
Interest income	8,297	883
Gain (Loss) from equity method investments	715	-182
Interest expense	-53,979	-18,088
TOTAL	-44,967	-17,387
INCOME BEFORE PROVISION FOR INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARY	57,385	2,231,526
(Benefit) provision for income taxes	-31,104	825,925
NET INCOME BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY	88,489	1,405,601
Less: net income attributable to the non-controlling interest in subsidiary	-16,688	-33,861
NET INCOME ATTRIBUTABLE TO COFFEE HOLDING CO., INC.	$71,801	$1,371,740
Basic earnings per share	$0.01	$0.22
Diluted earnings per share	$0.01	$0.21
Weighted average common shares outstanding:
Basic	6,215,894	6,372,309
Diluted	6,215,894	6,639,309

CONSOLIDATED_STATEMENTS_OF_INC1

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014
Consolidated Statements Of Income
Related party costs	$9.80	$5

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
OPERATING ACTIVITIES:
Net income	$88,489	$1,405,601
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	145,673	148,248
Unrealized loss (gain) on commodities	1,361,809	-1,179,594
(Gain) loss on equity method investments	-715	182
Deferred rent	3,104	4,877
Deferred income taxes	-490,500	414,100
Changes in operating assets and liabilities:
Accounts receivable	-5,875,323	2,325,651
Inventories	1,647,264	406,461
Prepaid expenses and other current assets	-8,558	102,965
Prepaid green coffee	248,704	-181,670
Prepaid and refundable income taxes	-135,187	407,704
Accounts payable and accrued expenses	-272,203	-2,004,402
Income taxes payable	143,258	200
Net cash (used in) provided by operating activities	-3,144,185	1,850,323
INVESTING ACTIVITIES:
Purchases of machinery and equipment	-38,473	-123,874
Net cash used in investing activities	-38,473	-123,874
FINANCING ACTIVITIES:
Advances under bank line of credit	5,000,000	40,202
Principal payments under bank line of credit	-2,000,000	-1,269,384
Payment of dividend	-80,000	0
Net cash provided by financing activities	2,920,000	-1,229,182
NET (DECREASE) INCREASE IN CASH	-262,658	497,267
CASH, BEGINNING OF PERIOD	3,782,639	4,035,669
CASH, END OF PERIOD	3,519,981	4,532,936
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid	46,479	21,225
Income taxes paid	$453,205	$5,089

1_BUSINESS_ACTIVITIES

1. BUSINESS ACTIVITIES	3 Months Ended
	Jan. 31, 2015
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.
	Liquidity
	As of January 31, 2015, the Company has a financing agreement with Sterling National Bank (“Sterling”) for a credit facility that expires on March 31, 2015. The Company is currently in discussions with Sterling to extend the term of the credit facility and the Company expects to finalize a long term extension prior to March 31, 2015. The Company anticipates that its existing working capital will be adequate to fund its operating, investing and financing needs for the next twelve months. However, if the credit facility is not extended, the Company may need to pursue additional financing arrangements, including new credit facilities, issuance of debt, reduce expenditures, or a combination of the preceding, to meet the Company’s cash requirements. The Company can provide no assurance that additional financing will be available at all or, if available, that the Company will be able to obtain additional financing on terms favorable to it.

2_BASIS_OF_PRESENTATION

2. BASIS OF PRESENTATION	3 Months Ended
	Jan. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	The following (a) condensed consolidated balance sheet as of October 31, 2014, 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 23, 2015 for the fiscal year ended October 31, 2014 (“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, 2015, and results of operations for the three months ended January 31, 2015  and the cash flows for the three months ended January 31, 2015 , as applicable, have been made.
	The results of operations for the three months ended January 31, 2015 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, 2015
Accounting Changes and Error Corrections [Abstract]
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY	During the third quarter of fiscal year 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.
	The amendments in this ASU provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward.
	To the extent that a net operating loss carryforward, similar tax loss, or a tax credit carryforward is not available at the reporting date to settle ant additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets.
	Effective: For fiscal years, and interim periods within those years, beginning after December 15, 2013 for public entities.  The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date.  Retrospective application is also permitted.

4_PREPAID_GREEN_COFFEE

4. PREPAID GREEN COFFEE	3 Months Ended
	Jan. 31, 2015
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 $8,297 and $883 for the three months ended January 31, 2015 and 2014, respectively.  The prepaid coffee balance was $218,451 at January 31, 2015 and $467,155 at October 31, 2014.

5_ACCOUNTS_RECEIVABLE

5. ACCOUNTS RECEIVABLE	3 Months Ended
	Jan. 31, 2015
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 collectability 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 collectability. 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:
		31-Jan-15		31-Oct-14
	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, 2015
Inventory Disclosure [Abstract]
INVENTORIES	Inventories at January 31, 2015 and October 31, 2014 consisted of the following:
		31-Jan-15		31-Oct-14
	Packed coffee	$	1,276,449	$	1,578,248
	Green coffee		11,602,667		12,987,257
	Packaging supplies		683,773		644,648
	Totals	$	13,562,889	$	15,210,153

7_COMMODITIES_HELD_BY_BROKER

7. COMMODITIES HELD BY BROKER	3 Months Ended
	Jan. 31, 2015
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, 2015			31-Oct-14
	Option Contracts	$	(700,064	)	$	(217,624	)
	Future Contracts		(1,146,669	)		(267,300	)
	Total Commodities	$	(1,846,733	)	$	(484,924	)
	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, 2015, the Company held 146 futures contracts for the purchase of 5,475,000 pounds of green coffee at a weighted average price of $1.67 to $1.80 per pound.  The fair market value of coffee applicable to such contracts was $1.62 per pound at that date.  The Company also held 610 options covering an aggregate of 22,875,000 pounds of green coffee beans at prices from $1.67 to $1.78 per pound.  The fair market value of these options, which was obtained from observable market data of similar instruments was $(700,064) at January 31, 2015.
	At October 31, 2014, the Company held 60 futures contracts (generally with terms of three to four months) for the purchase of 2,250,000 pounds of green coffee at a weighted average price of $2.00 per pound.  The fair market value of coffee applicable to such contracts was $1.88 per pound at that date. The Company did not hold any options that were in the money at October 31, 2014.
	The Company recorded realized and unrealized gains and losses respectively, on these contracts as follows:
		Three Months Ended January 31,
		2015			2014
	Gross realized gains	$	645,598		$	820,982
	Gross realized losses		(980,681	)		(971,255	)
	Unrealized (loss) gain		(1,361,809	)		1,179,594
	Total	$	(1,696,892	)	$	1,029,321

8_LINE_OF_CREDIT

8. LINE OF CREDIT	3 Months Ended
	Jan. 31, 2015
Debt Disclosure [Abstract]
LINE OF CREDIT	On February 17, 2009, the Company entered into a financing agreement with 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, 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 (3.75% at January 31, 2015 and October 31, 2014).
	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 initial terms of the credit facility provided 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. On February 12, 2015, the term of the credit facility was further extended until March 31, 2015. The Company is currently in discussions with Sterling to extend the term of the credit facility and the Company expects to finalize a long term extension prior to March 31, 2015.
	The Company anticipates that its existing working capital will be adequate to fund its operating, investing and financing needs for the next twelve months. However, if the credit facility is not extended, the Company may need to pursue additional financing arrangements, including new credit facilities, issuance of debt, reduce expenditures, or a combination of the preceding, to meet the Company’s cash requirements. The Company can provide no assurance that additional financing will be available at all or, if available, that the Company will be able to obtain additional financing on terms favorable to it.There is currently no assurance that the term of the credit facility will be extended or if the extended term of the credit facility will be acceptable to the Company. 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, 2015 and October 31, 2014.
	On February 3, 2011, the Company amended their 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.
	As of January 31, 2015 and October 31, 2014, the outstanding balance under the bank line of credit was $5,498,458 and $2,498,458, respectively.

9_INCOME_TAXES

9. INCOME TAXES	3 Months Ended
	Jan. 31, 2015
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, 2015 and October 31, 2014, 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, 2015 and October 31, 2014, 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, Rhode Island, Virginia, Connecticut, Michigan 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 2011.  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 2008.  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, 2015
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 6,215,894 and 6,372,309 for the three months ended January 31, 2015 and 2014. The weighted average common shares outstanding used in the computation of diluted earnings per share were 6,215,894 and 6,639,309 for the three months ended January 31, 2015 and 2014.

11_ECONOMIC_DEPENDENCY

11. ECONOMIC DEPENDENCY	3 Months Ended
	Jan. 31, 2015
Risks and Uncertainties [Abstract]
ECONOMIC DEPENDENCY	Approximately 65% of the Company’s sales were derived from one customer during the three months ended January 31, 2015.  This customer also accounted for approximately $14,730,000 of the Company’s accounts receivable balance at January 31, 2015.  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.  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, 2015, approximately 64% of the Company’s purchases were from four vendors.  These vendors accounted for approximately $5,755,000 of the Company’s accounts payable at January 31, 2015.  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. 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, 2015
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, 2015 and 2014 of $85,239 and $107,067, 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 $9,800,000 and $5,000,000 for the three months ended January 31, 2015 and 2014, respectively.  The corresponding accounts payable balance to this vendor was approximately $1,449,000 and $1,419,000 at January 31, 2015 and 2014, 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, 2015 and October 31, 2014 were $503,158 and $515,549, respectively.

13_STOCKHOLDERS_EQUITY

13. STOCKHOLDERS' EQUITY	3 Months Ended
	Jan. 31, 2015
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.  The Company did not purchase any shares during the three months ended January 31, 2015 and 2014.
	b.           Share Repurchase Program. On January 24, 2014, the Company announced that the Board of Directors had approved a share repurchase program (the “Share Repurchase Program”) pursuant to which the Company may repurchase up to $1 million of the 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 Share Repurchase Program may be discontinued or suspended at any time.

14_FAIR_VALUE_MEASUREMENTS

14. FAIR VALUE MEASUREMENTS	3 Months Ended
	Jan. 31, 2015
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, 2015
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market		503,158			503,158		–			–
	Total Assets	$	503,158		$	503,158		–			–
	Liabilities:
	Commodities – Options		(700,064	)				(700,064	)
	Commodities – Futures		(1,146,669	)		–		(1,146,669	)		–
	Total Liabilities	$	(1,846,733	)		–	$	(1,846,733	)		–
					Fair Value Measurements as of October 31, 2014
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market		515,549			515,549		–			–
	Total Assets	$	515,549		$	515,549		–			–
	Liabilities:
	Commodities – Options		(217,624	)				(217,624	)
	Commodities – Futures		(267,300	)		–		(267,300	)		–
	Total Liabilities	$	(484,924	)		–	$	(484,924	)		–

15_SUBSEQUENT_EVENTS

15. SUBSEQUENT EVENTS	3 Months Ended
	Jan. 31, 2015
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.

3_RECENTLY_ISSUED_ACCOUNTING_P1

3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY (Policies)	3 Months Ended
	Jan. 31, 2015
Recently Issued Accounting Pronouncements Affecting Company Policies
Recently issued accounting pronouncements	During the third quarter of fiscal year 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.
	The amendments in this ASU provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward.
	To the extent that a net operating loss carryforward, similar tax loss, or a tax credit carryforward is not available at the reporting date to settle ant additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets.
	Effective: For fiscal years, and interim periods within those years, beginning after December 15, 2013 for public entities.  The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date.  Retrospective application is also permitted.

5_ACCOUNTS_RECEIVABLE_Tables

5. ACCOUNTS RECEIVABLE (Tables)	3 Months Ended
	Jan. 31, 2015
Accounts Receivable Tables
Schedule of Accounts Receivable		31-Jan-15		31-Oct-14
	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, 2015
Inventory Disclosure [Abstract]
Schedule of inventories		31-Jan-15		31-Oct-14
	Packed coffee	$	1,276,449	$	1,578,248
	Green coffee		11,602,667		12,987,257
	Packaging supplies		683,773		644,648
	Totals	$	13,562,889	$	15,210,153

7_COMMODITIES_HELD_BY_BROKER_T

7. COMMODITIES HELD BY BROKER (Tables)	3 Months Ended
	Jan. 31, 2015
Commodities Held By Broker Tables
Schedule of Commodities held by Broker		January 31, 2015			31-Oct-14
	Option Contracts	$	(700,064	)	$	(217,624	)
	Future Contracts		(1,146,669	)		(267,300	)
	Total Commodities	$	(1,846,733	)	$	(484,924	)
Schedule of realized and unrealized gains and losses		Three Months Ended January 31,
		2015			2014
	Gross realized gains	$	645,598		$	820,982
	Gross realized losses		(980,681	)		(971,255	)
	Unrealized (loss) gain		(1,361,809	)		1,179,594
	Total	$	(1,696,892	)	$	1,029,321

14_FAIR_VALUE_MEASUREMENTS_Tab

14. FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Jan. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of fair value hierarchy
					Fair Value Measurements as of January 31, 2015
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market		503,158			503,158		–			–
	Total Assets	$	503,158		$	503,158		–			–
	Liabilities:
	Commodities – Options		(700,064	)				(700,064	)
	Commodities – Futures		(1,146,669	)		–		(1,146,669	)		–
	Total Liabilities	$	(1,846,733	)		–	$	(1,846,733	)		–
					Fair Value Measurements as of October 31, 2014
		Total			Level 1		Level 2			Level 3
	Assets:
	Money market		515,549			515,549		–			–
	Total Assets	$	515,549		$	515,549		–			–
	Liabilities:
	Commodities – Options		(217,624	)				(217,624	)
	Commodities – Futures		(267,300	)		–		(267,300	)		–
	Total Liabilities	$	(484,924	)		–	$	(484,924	)		–

4_PREPAID_GREEN_COFFEE_Details

4. PREPAID GREEN COFFEE (Details Narrative) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Oct. 31, 2014
Prepaid Green Coffee Details Narrative
Interest income	$8,297	$883
Prepaid green coffee	$218,451		$467,155

5_ACCOUNTS_RECEIVABLE_Details

5. ACCOUNTS RECEIVABLE (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
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, 2015	Oct. 31, 2014
Packaging supplies	$683,773	$644,648
Totals	13,562,889	15,210,153
Packed Coffee
Totals	1,276,449	1,578,248
Green Coffee
Totals	$11,602,667	$12,987,257

7_COMMODITIES_HELD_BY_BROKER_D

7. COMMODITIES HELD BY BROKER (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Commodities Held By Broker Details
Option Contracts	($700,064)	($217,624)
Future Contracts	-1,146,669	-267,300
Total Commodities	($1,846,733)	($484,924)

7_COMMODITIES_HELD_BY_BROKER_D1

7. COMMODITIES HELD BY BROKER (Details 1) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Commodities Held By Broker Details 1
Gross realized gains	$645,598	$820,982
Gross realized losses	-980,681	-971,255
Unrealized (loss) gains	-1,361,809	1,179,594
Total	($1,696,892)	$1,029,321

8_LINE_OF_CREDIT_Details_Narra

8. LINE OF CREDIT (Details Narrative) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Line Of Credit Details Narrative
Bank line of credit	$5,498,458	$2,498,458

12_RELATED_PARTY_TRANSACTIONS_

12. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Oct. 31, 2014
Related Party Transactions Details Narrative
Contract labor expense from partner	$85,239	$107,067
Purchases from top vendor	9,800,000	5,000,000
Top vendor accounts payable	1,449,000	1,419,000
Deferred compensation asset and liability		$503,158	$515,549

14_FAIR_VALUE_MEASUREMENTS_Det

14. FAIR VALUE MEASUREMENTS (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Assets:
Money market	$503,158	$515,549
Total Assets	503,158	515,549
Liabilities:
Commodities Options	-700,064	-217,624
Commodities-Futures	-1,146,669	-267,300
Total Liabilities	-1,846,733	-484,924
FairValueInputsLevel1Member
Assets:
Money market	503,158	515,549
Total Assets	503,158	515,549
Liabilities:
Commodities Options	0	0
Commodities-Futures	0	0
Total Liabilities	0	0
FairValueInputsLevel2Member
Assets:
Money market	0	0
Total Assets	0	0
Liabilities:
Commodities Options	-700,064	-217,624
Commodities-Futures	-1,146,669	-267,300
Total Liabilities	-1,846,733	-484,924
FairValueInputsLevel3Member
Assets:
Money market	0	0
Total Assets	0	0
Liabilities:
Commodities Options	0	0
Commodities-Futures	0	0
Total Liabilities	$0	$0