Coffee Holding (JVA) 10-Q 15 Jun 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Apr. 30, 2023	Jun. 12, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Apr. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--10-31
Entity File Number	001-32491
Entity Registrant Name	Coffee Holding Co., Inc.
Entity Central Index Key	0001007019
Entity Tax Identification Number	11-2238111
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	3475 Victory Boulevard
Entity Address, City or Town	Staten Island
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10314
City Area Code	(718)
Local Phone Number	832-0800
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	JVA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,708,599

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Apr. 30, 2023	Oct. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 1,468,012	$ 2,515,873
Accounts receivable, net of allowances of $144,000 for 2023 and 2022	6,604,418	7,816,473
Inventories	15,823,297	19,252,214
Due from broker	773,196	818,892
Prepaid expenses and other current assets	282,006	432,126
Prepaid and refundable income taxes	866,155	866,155
TOTAL CURRENT ASSETS	25,817,084	31,701,733
Building, machinery and equipment, net	3,540,586	3,199,790
Customer list and relationships, net of accumulated amortization of $295,133 and $279,883 for 2023 and 2022, respectively	200,000	215,250
Trademarks and tradenames	327,000	327,000
Equity method investments	345,141	354,444
Investment - other	2,500,000	2,500,000
Right of use asset	2,858,346	2,871,773
Deferred income tax assets - net	1,388,437	1,073,187
Deposits and other assets	350,500	449,348
TOTAL ASSETS	37,327,094	42,692,525
CURRENT LIABILITIES:
Accounts payable and accrued expenses	2,084,620	3,814,864
Cash overdrafts		876,148
Due to broker	541,391	1,523,563
Note payable – current portion	4,200	4,200
Lease liability – current portion	137,222	220,734
TOTAL CURRENT LIABILITIES	2,767,433	6,439,509
Line of credit	7,520,000	8,314,000
Lease liabilities	3,230,204	3,136,006
Note payable – long term	6,343	9,105
Deferred compensation payable	144,390	243,238
TOTAL LIABILITIES	13,668,370	18,141,858
Commitments and Contingencies
Coffee Holding Co., Inc. stockholders’ equity:
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,633,930 shares issued for 2023 and 2022; 5,708,599 shares outstanding for 2023 and 2022	6,634	6,634
Additional paid-in capital	19,094,618	19,094,618
Retained earnings	9,435,494	10,327,437
Less: Treasury stock, 925,331 common shares, at cost for 2023 and 2022	(4,633,560)	(4,633,560)
Total Coffee Holding Co., Inc. Stockholders’ Equity	23,903,186	24,795,129
Noncontrolling interest	(244,462)	(244,462)
TOTAL EQUITY	23,658,724	24,550,667
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 37,327,094	$ 42,692,525

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 144,000	$ 144,000
Customer list and relationships, accumulated amortization	$ 295,133	$ 279,883
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	6,633,930	6,633,930
Common stock, shares outstanding	5,708,599	5,708,599
Treasury stock, common shares	925,331	925,331

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Statement [Abstract]
NET SALES	$ 15,320,703	$ 16,498,169	$ 33,646,818	$ 33,203,029
COST OF SALES	12,488,522	14,505,415	28,494,333	26,938,669
GROSS PROFIT	2,832,181	1,992,754	5,152,485	6,264,360
OPERATING EXPENSES:
Selling and administrative	3,071,747	3,215,085	6,013,188	6,784,824
Officers’ salaries	144,888	151,138	324,775	302,275
TOTAL	3,216,635	3,366,223	6,337,963	7,087,099
LOSS FROM OPERATIONS	(384,454)	(1,373,469)	(1,185,478)	(822,739)
OTHER (EXPENSE) INCOME
Interest income	6	2,556	3,113	4,094
Loss from equity method investment	(4,286)	(4,075)	(9,303)	(35,801)
Other income			234,041
Interest expense	(119,106)	(49,683)	(249,566)	(90,293)
TOTAL	(123,386)	(51,202)	(21,715)	(122,000)
LOSS BEFORE BENEFIT FOR INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARY	(507,840)	(1,424,671)	(1,207,193)	(944,739)
Benefit for income taxes	(148,000)	(385,681)	(315,250)	(248,275)
NET (LOSS) INCOME BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY	(359,840)	(1,038,990)	(891,943)	(696,464)
Less: Net loss attributable to the non-controlling interest		670,894		609,231
NET LOSS ATTRIBUTABLE TO COFFEE HOLDING CO., INC.	$ (359,840)	$ (368,096)	$ (891,943)	$ (87,233)
Basic and diluted (loss) earnings per share	$ (0.06)	$ (0.06)	$ (0.16)	$ (0.02)
Weighted average common shares outstanding:
Basic and diluted	5,708,599	5,708,599	5,708,599	5,708,599

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Treasury Stock, Common [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Oct. 31, 2021	$ 6,634	$ (4,633,560)	$ 18,688,797	$ 14,471,222	$ 837,226	$ 29,370,319
Beginning balance, shares at Oct. 31, 2021	5,708,599	925,331
Net income (loss)				280,863		280,863
Stock Compensation			189,768			189,768
Dividend to common shareholders				(399,000)		(399,000)
Non-controlling Interest					61,663	61,663
Ending, balance value at Jan. 31, 2022	6,634	(4,633,560)	18,878,565	14,353,085	898,889	29,503,613
Beginning balance, value at Oct. 31, 2021	$ 6,634	$ (4,633,560)	18,688,797	14,471,222	837,226	29,370,319
Beginning balance, shares at Oct. 31, 2021	5,708,599	925,331
Net income (loss)						(87,233)
Non-controlling Interest						(609,231)
Ending, balance value at Apr. 30, 2022	$ 6,634	$ (4,633,560)	19,052,806	13,984,989	7,952	28,418,821
Ending balance, shares at Apr. 30, 2022	5,708,599	925,331
Beginning balance, value at Jan. 31, 2022	$ 6,634	$ (4,633,560)	18,878,565	14,353,085	898,889	29,503,613
Net income (loss)				(368,096)		(368,096)
Stock Compensation			174,241			174,241
Non-controlling Interest					(670,894)	(670,894)
Distribution to non-controlling interest					(220,043)	(220,043)
Ending, balance value at Apr. 30, 2022	$ 6,634	$ (4,633,560)	19,052,806	13,984,989	7,952	28,418,821
Ending balance, shares at Apr. 30, 2022	5,708,599	925,331
Beginning balance, value at Oct. 31, 2022	$ 6,634	$ (4,633,560)	19,094,618	10,327,437	(244,462)	24,550,667
Beginning balance, shares at Oct. 31, 2022	5,708,599	925,331
Net income (loss)				(532,103)		(532,103)
Ending, balance value at Jan. 31, 2023	$ 6,634	$ (4,633,560)	19,094,618	9,795,334	(244,462)	24,018,564
Ending balance, shares at Jan. 31, 2023	5,708,599	925,331
Beginning balance, value at Oct. 31, 2022	$ 6,634	$ (4,633,560)	19,094,618	10,327,437	(244,462)	24,550,667
Beginning balance, shares at Oct. 31, 2022	5,708,599	925,331
Net income (loss)						(891,943)
Non-controlling Interest
Ending, balance value at Apr. 30, 2023	$ 6,634	$ (4,633,560)	19,094,618	9,435,494	(244,462)	23,658,724
Ending balance, shares at Apr. 30, 2023	5,708,599	925,331
Beginning balance, value at Jan. 31, 2023	$ 6,634	$ (4,633,560)	19,094,618	9,795,334	(244,462)	24,018,564
Beginning balance, shares at Jan. 31, 2023	5,708,599	925,331
Net income (loss)				(359,840)		(359,840)
Non-controlling Interest
Ending, balance value at Apr. 30, 2023	$ 6,634	$ (4,633,560)	$ 19,094,618	$ 9,435,494	$ (244,462)	$ 23,658,724
Ending balance, shares at Apr. 30, 2023	5,708,599	925,331

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
OPERATING ACTIVITIES:
Net (loss)	$ (891,943)	$ (696,464)
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	283,585	280,594
Stock-based compensation		364,009
Unrealized loss (gain) on commodities	(936,476)	(112,446)
Loss on equity method investments	9,303	35,801
Write-off of accounts receivable		415,096
Write-down of obsolete inventory		718,353
Amortization of right to use asset	159,843	179,949
Deferred income taxes	(315,250)	(37,567)
Changes in operating assets and liabilities:
Accounts receivable	1,212,055	1,548,935
Inventories	3,428,917	(949,058)
Prepaid expenses and other current assets	150,120	111,286
Prepaid and refundable income taxes		(299,465)
Lease liability	(135,730)	(152,934)
Deposits and other assets		(68,757)
Accounts payable and accrued expenses	(1,730,244)	(2,423,835)
Income taxes payable		(410,235)
Net cash provided by (used in) operating activities	1,234,180	(1,496,738)
INVESTING ACTIVITIES:
Purchases of machinery and equipment	(609,131)	(871,919)
Net cash used in investing activities	(609,131)	(871,919)
FINANCING ACTIVITIES:
Advances under bank line of credit	934,783	2,500,000
Cash overdraft	(876,148)
Principal payments on note payable	(2,762)	(2,631)
Payment of dividend		(399,000)
Principal payments under bank line of credit	(1,728,783)	(400,850)
Net cash (used in) provided by financing activities	(1,672,910)	1,697,519
NET (DECREASE) INCREASE IN CASH	(1,047,861)	(671,138)
CASH, BEGINNING OF PERIOD	2,515,873	3,696,275
CASH, END OF PERIOD	1,468,012	3,025,137
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid	243,100	84,967
Income taxes paid		498,992
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of inventory by non-controlling interest		$ 220,043
Initial recognition of operating lease right of use asset	$ 146,416

BUSINESS ACTIVITIES

BUSINESS ACTIVITIES	6 Months Ended
	Apr. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS ACTIVITIES	NOTE 1 - 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 also manufactures and sells coffee roasters. The Company’s core product, coffee, can be summarized and divided into three product categories (“product lines”) as follows: Wholesale Green Coffee: Private Label Coffee: Branded Coffee: 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 certain countries in Asia. 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 September 29, 2022, the Company entered into a Merger and Share Exchange Agreement (the “Merger Agreement”), by and among the Company, Delta Corp Holdings Limited, a Cayman Islands exempted company (“Pubco”), Delta Corp Holdings Limited, a company incorporated in England and Wales (“Delta”), CHC Merger Sub Inc., a Nevada corporation and wholly owned subsidiary of Pubco (“Merger Sub”), and each of the holders of ordinary shares of Delta as named therein (the “Sellers”). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company, with the Company surviving as a direct, wholly-owned subsidiary of Pubco (the “Merger”). As a result of the Merger, each issued and outstanding share of the Company common stock, $ 0.001 0.0001 COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED)

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY	6 Months Ended
	Apr. 30, 2023
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY	NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY The Company’s fiscal year ends on October 31, of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended October 31, 2022. In the opinion of the Company’s management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The October 31, 2022 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended October 31, 2022 and notes thereto included in the Company’s fiscal 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 29, 2023 (the “2022 10-K”). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. The condensed consolidated financial statements include the accounts of the Company, the Company’s subsidiaries, Organic Products Trading Company, LLC (“OPTCO”), Sonofresco, LLC (“SONO”), Comfort Foods, Inc. (“CFI”) and Generations Coffee Company, LLC (“GCC”), the entity formed as a result of the Company’s joint venture with Caruso’s Coffee, Inc. The Company owns a 60 Significant Accounting Policies The significant accounting policies used in the preparation of these condensed consolidated financial statements are disclosed in our 2022 10-K, and there have been no changes to the Company’s significant accounting policies during the three and six months ended April 30, 2023. Revenue Recognition The Company recognizes revenue in accordance with the five-step model as prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Codification (“ASC”) Topic 606 (“ASC 606”) in which the Company evaluates the transfer of promised goods or services and recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to be entitled to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED) NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY (cont’d): The following table presents revenues by stream for the six and three months ended April 30, 2023 and 2022. SCHEDULE OF REVENUE Six Months Ended April 30, 2023 Three Months Ended April 30, 2023 Six Months Ended April 30, 2022 Three Months Ended April 30, 2022 Green $ 14,432,796 $ 6,773,848 $ 14,148,853 $ 7,197,280 Packaged $ 19,214,022 $ 8,546,855 $ 19,054,176 $ 9,300,889 Totals $ 33,646,818 $ 15,320,703 $ 33,203,029 $ 16,498,169 Revenues $ 33,646,818 $ 15,320,703 $ 33,203,029 $ 16,498,169

INVENTORIES

INVENTORIES	6 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 3 - INVENTORIES Inventories at April 30, 2023 and October 31, 2022 consisted of the following: SCHEDULE OF INVENTORIES April 30, October 31, Packed coffee $ 3,164,089 $ 2,677,617 Green coffee 10,582,615 14,847,708 Roasters and parts 539,175 576,778 Packaging supplies 1,537,418 1,150,111 Totals $ 15,823,297 $ 19,252,214 Inventories $ 15,823,297 $ 19,252,214 COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED)

COMMODITIES HELD BY BROKER

COMMODITIES HELD BY BROKER	6 Months Ended
	Apr. 30, 2023
Broker-Dealer [Abstract]
COMMODITIES HELD BY BROKER	NOTE 4 - COMMODITIES HELD BY BROKER The Company has used, and intends to continue to use in a limited capacity, short term coffee futures and options contracts primarily for the purpose of partially hedging and minimizing the effects of changing green coffee prices and to reduce cost of sales. The commodities held by broker represent the market value of the Company’s trading account, which consists of options and futures 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. We record all open contract positions on our consolidated balance sheets at fair value in the due from and due to broker line items and typically do not offset these assets and liabilities. 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. The Company recorded realized and unrealized gains and losses respectively, on these contracts as follows: SCHEDULE OF REALIZED AND UNREALIZED GAINS AND LOSSES ON CONTRACTS 2023 2022 Three Months Ended April 30, 2023 2022 Gross realized gains $ 247,983 $ 1,000,908 Gross realized losses (626,311 ) (878,440 ) Unrealized gain 164,455 179,213 Total $ (213,873 ) $ 301,681 Gain (Loss) on Investments $ (213,873 ) $ 301,681 2023 2022 Six Months Ended April 30, 2023 2022 Gross realized gains $ 376,908 $ 1,323,048 Gross realized losses (1,292,361 ) (1,257,359 ) Unrealized gain 936,476 112,446 Total $ 21,023 $ 178,135 Gain (Loss) on Investments $ 21,023 $ 178,135 COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED)

LINE OF CREDIT

LINE OF CREDIT	6 Months Ended
	Apr. 30, 2023
Debt Disclosure [Abstract]
LINE OF CREDIT	NOTE 5 - LINE OF CREDIT On April 25, 2017 the Company and OPTCO (together with the Company, collectively referred to herein as the “Borrowers”) entered into an Amended and Restated Loan and Security Agreement (the “A&R Loan Agreement”) and Amended and Restated Loan Facility (the “A&R Loan Facility”) with Sterling National Bank (“Sterling”) (later acquired by Webster Financial Corp. (“Webster”), which consolidated (i) the financing agreement between the Company and Sterling, dated February 17, 2009, as modified, (the “Company Financing Agreement”) and (ii) the financing agreement between Company, as guarantor, OPTCO and Sterling, dated March 10, 2015 (the “OPTCO Financing Agreement”), amongst other things. On March 17, 2022, the Company reached an agreement for a new loan modification agreement and credit facility which extended the maturity date to June 29, 2022 On June 28, 2022, the Company reached an agreement for a new loan modification agreement and credit facility with Webster. The terms of the new agreement, among other things: (i) provided for a new maturity date of June 30, 2024 1.75 3.50 The Company is subject to certain covenants with respect to its line of credit agreement. The Company was not in compliance with the net profit and non-borrower affiliate covenants as of October 31, 2022. The Company requested a waiver from the lender and the waiver was granted and received on March 15, 2023. The lender also extended the due date of the October 31, 2022 financial statements until April 15, 2023. The loan agreement was also modified on March 15, 2023 to, among other things: (i) provide for a requirement for subordination agreements if necessary, and (ii) change the terms of transactions with affiliates from a dollar limitation to allowable in the ordinary course of business, (iii) establishe a new covenant for a fixed charge coverage ratio. Each of the A&R Loan Facility and A&R Loan Agreement contains covenants, subject to certain exceptions, that place annual restrictions on the Borrowers’ operations, including covenants relating to debt restrictions, capital expenditures, indebtedness, minimum deposit restrictions, tangible net worth, net profit, leverage, employee loan restrictions, dividend and repurchase restrictions (common stock and preferred stock), and restrictions on intercompany transactions. The outstanding balance on the Company’s lines of credit were $ 7,520,000 8,314,000

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 6 - 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. As of April 30, 2023 and October 31, 2022, the Company did no no COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED) NOTE 6 - INCOME TAXES (cont’d): The Company files a U.S. federal income tax return and California, Colorado, Connecticut, Idaho, Kansas, Michigan, New Jersey, New York, New York City, Virginia, Texas, Rhode Island, South Carolina, and Oregon state tax returns. The Company’s federal income tax return is no longer subject to examination by the federal taxing authority for years before fiscal 2019. The Company’s California, Colorado and New Jersey and Texas income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2019. The Company’s Oregon, New York, Kansas, South Carolina, Rhode Island, Connecticut and Michigan income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2019.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Apr. 30, 2023
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	NOTE 7 - EARNINGS (LOSS) 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 (loss) income by the sum of the weighted-average number of common shares outstanding. Diluted earnings per common share is computed by dividing the net (loss) 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 and diluted earnings per share were 5,708,599 1,000,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 - COMMITMENTS AND CONTINGENCIES CLASS ACTION COMPLAINT The Company was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Northern District of Illinois (the “Court”) on or about December 21, 2020. The plaintiffs, Eileen Brodsky and Rhonda Diamond, purported to represent a class of individuals who purchased coffee products at one of our supermarket customers, generally allege that such client sold private label coffee products manufactured by the Company and one of its partners, which falsely described the number of cups of coffee that could be made from the amount of product purchased. These parties were also named as defendants in the action. The complaint asserted a variety of claims under New York and California consumer protection laws, and sought unspecified monetary damages, including disgorgement and restitution, as well as other forms of relief including class certification, declaratory and injunctive relief, attorneys’ fees, and interest. On September 28, 2021, the Court entered an order granting the Company’s motion to dismiss with prejudice (the “Dismissal Order”). In the Dismissal Order, the Court stated that no reasonable coffee drinker would be deceived by the Company’s packaging. The plaintiffs filed an appeal with the 7 th COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED) NOTE 8 - COMMITMENTS AND CONTINGENCIES (cont’d): A significant customer of the Company was named as a defendant in a putative class action lawsuit filed in the United States District Court for the District of Massachusetts on or about February 2, 2021, concerning the labeling on private label coffee productions the Company sold to the customer. The plaintiff, David Cohen, purported to represent a class of individuals who purchased coffee products from the Company’s customer, generally alleged that the customer sold private label coffee products manufactured by the Company which falsely described the number of cups of coffee that could be made from the amount of product purchased. The Company was not named as a defendant in the action, but the Company agreed to indemnify the customer for the costs and expenses incurred in defending the lawsuit and for any liability the customer suffered as a result. The complaint asserted a variety of claims under Massachusetts consumer protection laws, and sought unspecified monetary damages as well as other forms of relief including class certification, declaratory and injunctive relief, attorneys’ fees, and interest. The parties finalized the details of a settlement agreement and the final settlement amount was immaterial to the Company’s operations and results of operations. The Company has a 401(k) Retirement Plan, which covers all the full time employees who have completed one year of service and have reached their 21 st . COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED)

LEASES

LEASES	6 Months Ended
	Apr. 30, 2023
Leases
LEASES	NOTE 9 - LEASES The following summarizes the Company’s operating leases: SCHEDULE OF OPERATING LEASES 2023 2022 Right-of-use operating lease assets $ 2,858,346 $ 2,871,773   Current lease liability 137,222 220,734 Non-current lease liability 3,230,204 3,136,006 Total lease liability $ 3,367,426 $ 3,356,740 The amortization of the right-of-use asset for the three months ended April 30, 2023 and 2022 was $ 80,180 77,268 159,843 179,949 Weighted average remaining lease term 10.8 Weighted average discount rate 4.9 % Maturities of lease liabilities by year for our operating leases are as follows: SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS 2023 $ 473,033 2024 519,304 2025 393,668 2026 376,683 2027 367,788 Thereafter 2,333,300 Total lease payments $ 4,463,776 Less: imputed interest (1,096,350 ) Present value of operating lease liabilities $ 3,367,426 In June 2021, the Company purchased a facility in Colorado for $ 900,321 242,888 In December 2022, the Company extended its lease at its subsidiary Sonofresco in Washington through December 2023. As a result, on the date of the modification the Company increased its right-of-use asset and lease liability by $ 40,797 In March 2023, the Company extended its lease at its subsidiary Organics Products Trading Company in Washington through March 2026. As a result, on the date of the modification the Company increased its right-of-use asset and lease liability by $ 105,619 COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED)

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Apr. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10 - RELATED PARTY TRANSACTIONS The Company has engaged its 40 0 94,037 56,851 152,471 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: 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 the Chief Executive Officer of the Company. The assets were $ 144,390 243,238 144,390 243,238

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Apr. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 11 - STOCKHOLDERS’ EQUITY a. Treasury Stock b. Stock Options 1,000,000 5.43 The Company recorded $ 0 174,241 364,009

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY (Policies)	6 Months Ended
	Apr. 30, 2023
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with the five-step model as prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Codification (“ASC”) Topic 606 (“ASC 606”) in which the Company evaluates the transfer of promised goods or services and recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to be entitled to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2023 (UNAUDITED) NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY (cont’d): The following table presents revenues by stream for the six and three months ended April 30, 2023 and 2022. SCHEDULE OF REVENUE Six Months Ended April 30, 2023 Three Months Ended April 30, 2023 Six Months Ended April 30, 2022 Three Months Ended April 30, 2022 Green $ 14,432,796 $ 6,773,848 $ 14,148,853 $ 7,197,280 Packaged $ 19,214,022 $ 8,546,855 $ 19,054,176 $ 9,300,889 Totals $ 33,646,818 $ 15,320,703 $ 33,203,029 $ 16,498,169 Revenues $ 33,646,818 $ 15,320,703 $ 33,203,029 $ 16,498,169

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY (Tables)	6 Months Ended
	Apr. 30, 2023
Accounting Policies [Abstract]
SCHEDULE OF REVENUE	The following table presents revenues by stream for the six and three months ended April 30, 2023 and 2022. SCHEDULE OF REVENUE Six Months Ended April 30, 2023 Three Months Ended April 30, 2023 Six Months Ended April 30, 2022 Three Months Ended April 30, 2022 Green $ 14,432,796 $ 6,773,848 $ 14,148,853 $ 7,197,280 Packaged $ 19,214,022 $ 8,546,855 $ 19,054,176 $ 9,300,889 Totals $ 33,646,818 $ 15,320,703 $ 33,203,029 $ 16,498,169 Revenues $ 33,646,818 $ 15,320,703 $ 33,203,029 $ 16,498,169

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories at April 30, 2023 and October 31, 2022 consisted of the following: SCHEDULE OF INVENTORIES April 30, October 31, Packed coffee $ 3,164,089 $ 2,677,617 Green coffee 10,582,615 14,847,708 Roasters and parts 539,175 576,778 Packaging supplies 1,537,418 1,150,111 Totals $ 15,823,297 $ 19,252,214 Inventories $ 15,823,297 $ 19,252,214

COMMODITIES HELD BY BROKER (Tab

COMMODITIES HELD BY BROKER (Tables)	6 Months Ended
	Apr. 30, 2023
Broker-Dealer [Abstract]
SCHEDULE OF REALIZED AND UNREALIZED GAINS AND LOSSES ON CONTRACTS	The Company recorded realized and unrealized gains and losses respectively, on these contracts as follows: SCHEDULE OF REALIZED AND UNREALIZED GAINS AND LOSSES ON CONTRACTS 2023 2022 Three Months Ended April 30, 2023 2022 Gross realized gains $ 247,983 $ 1,000,908 Gross realized losses (626,311 ) (878,440 ) Unrealized gain 164,455 179,213 Total $ (213,873 ) $ 301,681 Gain (Loss) on Investments $ (213,873 ) $ 301,681 2023 2022 Six Months Ended April 30, 2023 2022 Gross realized gains $ 376,908 $ 1,323,048 Gross realized losses (1,292,361 ) (1,257,359 ) Unrealized gain 936,476 112,446 Total $ 21,023 $ 178,135 Gain (Loss) on Investments $ 21,023 $ 178,135

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Apr. 30, 2023
Leases
SCHEDULE OF OPERATING LEASES	The following summarizes the Company’s operating leases: SCHEDULE OF OPERATING LEASES 2023 2022 Right-of-use operating lease assets $ 2,858,346 $ 2,871,773   Current lease liability 137,222 220,734 Non-current lease liability 3,230,204 3,136,006 Total lease liability $ 3,367,426 $ 3,356,740 Weighted average remaining lease term 10.8 Weighted average discount rate 4.9 %
SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS	Maturities of lease liabilities by year for our operating leases are as follows: SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS 2023 $ 473,033 2024 519,304 2025 393,668 2026 376,683 2027 367,788 Thereafter 2,333,300 Total lease payments $ 4,463,776 Less: imputed interest (1,096,350 ) Present value of operating lease liabilities $ 3,367,426

BUSINESS ACTIVITIES (Details Na

BUSINESS ACTIVITIES (Details Narrative) - $ / shares	Apr. 30, 2023	Oct. 31, 2022	Sep. 29, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value	$ 0.001	$ 0.001
Pubco [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value			$ 0.0001
Merger Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value			$ 0.001

SCHEDULE OF REVENUE (Details)

SCHEDULE OF REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Revenues	$ 15,320,703	$ 16,498,169	$ 33,646,818	$ 33,203,029
Green Coffee [Member]
Revenues	6,773,848	7,197,280	14,432,796	14,148,853
Packaged Coffee [Member]
Revenues	$ 8,546,855	$ 9,300,889	$ 19,214,022	$ 19,054,176

BASIS OF PRESENTATION AND SIG_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY (Details Narrative)	Apr. 30, 2023
Generations Coffee Company LLC [Member]
Equity method investment, ownership percentage	60%

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Inventories	$ 15,823,297	$ 19,252,214
Packed Coffee [Member]
Inventories	3,164,089	2,677,617
Green Coffee [Member]
Inventories	10,582,615	14,847,708
Roaster Parts [Member]
Inventories	539,175	576,778
Packaging Supplies [Member]
Inventories	$ 1,537,418	$ 1,150,111

SCHEDULE OF REALIZED AND UNREAL

SCHEDULE OF REALIZED AND UNREALIZED GAINS AND LOSSES ON CONTRACTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Broker-Dealer [Abstract]
Gross realized gains	$ 247,983	$ 1,000,908	$ 376,908	$ 1,323,048
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]	COST OF SALES	COST OF SALES	COST OF SALES	COST OF SALES
Gross realized losses	$ (626,311)	$ (878,440)	$ (1,292,361)	$ (1,257,359)
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration]	COST OF SALES	COST OF SALES	COST OF SALES	COST OF SALES
Unrealized gain	$ 164,455	$ 179,213	$ 936,476	$ 112,446
Gain (Loss) on Investments	$ (213,873)	$ 301,681	$ 21,023	$ 178,135

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	Jun. 28, 2022	Mar. 17, 2022	Apr. 30, 2023	Oct. 31, 2022
Debt Instrument [Line Items]
Line of credit			$ 7,520,000	$ 8,314,000
New Loan Modification Agreement and Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit expire date		Jun. 29, 2022
New Loan Modification Agreement and Credit Facility [Member] | Webster Bank [Member]
Debt Instrument [Line Items]
Line of credit expire date	Jun. 30, 2024
New Loan Modification Agreement and Credit Facility [Member] | Webster Bank [Member] | Maximum [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate during period	3.50%
New Loan Modification Agreement and Credit Facility [Member] | Webster Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate during period	1.75%

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0	$ 0
Accrued interest or penalties	$ 0	$ 0

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of share outstanding, diluted	5,708,599	5,708,599	5,708,599	5,708,599
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount					1,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	6 Months Ended
	Apr. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Retirement Benefits, Description	The Company has a 401(k) Retirement Plan, which covers all the full time employees who have completed one year of service and have reached their 21st birthday. The Company matches 100% of the aggregate salary reduction contribution up to the first 3% of compensation and 50% of aggregate contribution of the next 2% of compensation

SCHEDULE OF OPERATING LEASES (D

SCHEDULE OF OPERATING LEASES (Details) - USD ($)	Apr. 30, 2023	Oct. 31, 2022	Apr. 30, 2022
Leases
Right-of-use operating lease assets	$ 2,858,346	$ 2,871,773	$ 2,871,773
Current lease liability	137,222	220,734	220,734
Non-current lease liability	3,230,204	$ 3,136,006	3,136,006
Total lease liability	$ 3,367,426		$ 3,356,740
Operating lease weighted average remaining lease term	10 years 9 months 18 days
Operating lease weighted average discount rate percent	4.90%

SCHEDULE OF MINIMUM FUTURE LEAS

SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS (Details) - USD ($)	Apr. 30, 2023	Apr. 30, 2022
Leases
2023	$ 473,033
2024	519,304
2025	393,668
2026	376,683
2027	367,788
Thereafter	2,333,300
Total lease payments	4,463,776
Less: imputed interest	(1,096,350)
Present value of operating lease liabilities	$ 3,367,426	$ 3,356,740

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Jan. 31, 2023	Oct. 31, 2022
Amortization of right-of-use asset		$ 80,180	$ 77,268	$ 159,843	$ 179,949
Payments for purchase of asset	$ 900,321
Right-of-use asset and lease liability wrote off	$ 242,888
Operating right-of-use asset		2,858,346	2,871,773	2,858,346	2,871,773		$ 2,871,773
Operating lease liability		3,367,426	$ 3,356,740	3,367,426	$ 3,356,740
Sonofresco LLC [Member]
Operating right-of-use asset						$ 40,797
Operating lease liability						$ 40,797
Organic Products Trading Company LLC [Member]
Operating right-of-use asset		105,619		105,619
Operating lease liability		$ 105,619		$ 105,619

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Oct. 31, 2022
Contract labor expense	$ 0	$ 94,037	$ 56,851	$ 152,471
Deposit and other assets	144,390		144,390		$ 243,238
Deferred compensation payable	$ 144,390		$ 144,390		$ 243,238
Generation Coffee Company L L C [Member]
Related party transaction percentage			40%

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Apr. 19, 2019
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation		$ 174,241		$ 364,009
2013 Equity Compensation Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options to employees					1,000,000
Exercise price					$ 5.43