Coffee Holding (JVA) 10-K 27 Jan 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Oct. 31, 2016	Jan. 20, 2017	Apr. 30, 2016
Document And Entity Information
Entity Registrant Name	COFFEE HOLDING CO INC
Entity Central Index Key	1,007,019
Document Type	10-K
Document Period End Date	Oct. 31, 2016
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 Public Float			$ 20,042,945
Entity Common Stock, Shares Outstanding		5,863,302
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2016	Oct. 31, 2015
CURRENT ASSETS:
Cash	$ 3,227,981	$ 3,853,816
Accounts receivable, net of allowances of $144,000 for 2016 and 2015	13,517,892	10,968,237
Inventories	14,276,290	13,862,818
Prepaid green coffee	435,577	620,452
Prepaid expenses and other current assets	535,456	256,202
Prepaid and refundable income taxes	481,977	1,434,577
Due from broker	134,722	0
Deferred income tax asset	81,545	997,720
TOTAL CURRENT ASSETS	32,691,440	31,993,822
Machinery and equipment, at cost, net of accumulated depreciation of $4,819,828 and $4,241,256 for 2016 and 2015, respectively	2,269,863	1,845,000
Customer list and relationships, net of accumulated amortization of $50,250 and $41,250 for 2016 and 2015, respectively	219,750	108,750
Trademarks	180,000	180,000
Goodwill	1,017,905	440,000
Equity method investments	95,598	96,571
Deposits and other assets	549,337	610,499
TOTAL ASSETS	37,023,893	35,274,642
CURRENT LIABILITIES:
Accounts payable and accrued expenses	4,062,573	4,021,389
Line of credit	6,958,375	5,554,121
Due to broker	0	483,835
Income taxes payable	1,050	0
TOTAL CURRENT LIABILITIES	11,021,998	10,059,345
Deferred income tax liabilities	167,470	92,370
Deferred rent payable	231,216	222,055
Deferred compensation payable	489,668	482,499
TOTAL LIABILITIES	11,910,352	10,856,269
Redeemable common stock:
Common stock subject to possible redemption, at $200,004; 38,364 shares issued and outstanding at redemption value as of October 31, 2016, none as of October 31, 2015	200,004	0
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS EQUITY:
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued	0	0
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,494,680 and 6,456,316 shares issued; 5,824,938 and 6,162,207 shares outstanding for 2016 and 2015	6,456	6,456
Additional paid-in capital	15,904,109	15,904,109
Retained earnings	11,878,228	9,665,940
Less: Treasury stock, 631,378 and 294,109 common shares, at cost for 2016 and 2015	(3,249,590)	(1,494,712)
Total Coffee Holding Co., Inc. Stockholders Equity	24,539,203	24,081,793
Noncontrolling interest	374,334	336,580
TOTAL EQUITY	24,913,537	24,418,373
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS EQUITY	$ 37,023,893	$ 35,274,642

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
ASSETS:
Allowances for doubtful accounts	$ 144,000	$ 144,000
Accumulated Depreciation	4,819,828	4,241,256
Customer list and relationships, accumulated amortization	$ 50,250	$ 41,250
STOCKHOLDERS EQUITY:
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	6,494,680	6,456,316
Common stock shares outstanding	5,824,938	6,162,207
Treasury Stock, Shares	631,378	294,109

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Consolidated Statements Of Operations
NET SALES	$ 78,948,228	$ 118,153,541
COST OF SALES (which include purchases of approximately $8.5 million and $22.1 million in fiscal years 2016 and 2015, respectively, from a related party)	67,066,050	112,436,831
GROSS PROFIT	11,882,178	5,716,710
OPERATING EXPENSES:
Selling and administrative	7,363,710	7,000,744
Officers' salaries	655,400	653,285
TOTALS	8,019,110	7,654,029
INCOME (LOSS) FROM OPERATIONS	3,863,068	(1,937,319)
OTHER INCOME (EXPENSE):
Interest income	41,176	45,049
Loss from equity method investments	(972)	(833)
Interest expense	(187,310)	(200,074)
TOTAL	(147,106)	(155,858)
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARY	3,715,962	(2,093,177)
Provision (benefit) for income taxes	1,365,920	(763,647)
NET INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY	2,350,042	(1,329,530)
Less: Net income attributable to the non-controlling interest in subsidiary	(137,754)	(83,698)
NET INCOME (LOSS) ATTRIBUTABLE TO COFFEE HOLDING CO., INC.	$ 2,212,288	$ (1,413,228)
Basic and diluted earnings (loss) per share	$ .36	$ (0.23)
Weighted average common shares outstanding:
Basic and diluted	6,082,777	6,212,929

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Consolidated Statements Of Operations Parenthetical
Related party costs	$ 8,500,000	$ 22,100,000

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY - USD ($)	Redeemable Common Stock	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Noncontrolling Interest	Total
Beginning Balance, Shares at Oct. 31, 2014	0	6,215,894	240,422
Beginning Balance, Amount at Oct. 31, 2014	$ 0	$ 6,456	$ (1,267,862)	$ 15,904,109	$ 11,079,168	$ 332,882	$ 26,054,753
Treasury, Shares		(53,687)	53,687
Treasury, Amount			$ (226,850)				(226,850)
Dividend						(80,000)	(80,000)
Net income (loss)					(1,413,228)		(1,413,228)
Non-Controlling Interest						83,698	83,698
Ending Balance, Shares at Oct. 31, 2015	0	6,162,207	294,109
Ending Balance, Amount at Oct. 31, 2015	$ 0	$ 6,456	$ (1,494,712)	15,904,109	9,665,940	336,580	24,418,373
Beginning Balance, Shares at Oct. 31, 2015	0	6,162,207	294,109
Treasury, Shares		(337,269)	337,269
Treasury, Amount			$ (1,754,878)				(1,754,878)
Stock issued in connection with Acquisition, Shares	38,364
Stock issued in connection with Acquisition, Amount	$ 200,004						200,004
Dividend						(100,000)	(100,000)
Net income (loss)					2,212,288		2,212,288
Non-Controlling Interest						137,754	137,754
Ending Balance, Shares at Oct. 31, 2016	38,364	5,824,938	631,378
Ending Balance, Amount at Oct. 31, 2016	$ 200,004	$ 6,456	$ (3,249,590)	$ 15,904,109	$ 11,878,228	$ 374,334	$ 24,913,537

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
OPERATING ACTIVITIES:
Net income (loss)	$ 2,350,042	$ (1,329,530)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	587,572	545,390
Unrealized (gain) on commodities	(618,557)	(1,089)
Loss on equity method investments	972	833
Deferred rent	9,161	12,415
Deferred income taxes	991,275	(726,850)
Changes in operating assets and liabilities:
Accounts receivable	(2,465,512)	4,451,623
Inventories	(143,907)	1,347,335
Prepaid expenses and other current assets	(279,254)	3,910
Prepaid green coffee	184,875	(153,297)
Prepaid and refundable income taxes	952,600	(1,433,818)
Accounts payable and accrued expenses	(30,860)	(4,671,711)
Deposits and other assets	68,331	0
Income taxes payable	1,050	(331,051)
Net cash provided by (used in) operating activities	1,607,788	(2,285,840)
INVESTING ACTIVITIES:
Cash paid for acquisition of business	(819,564)	0
Purchases of machinery and equipment	(963,435)	(391,796)
Net cash used in investing activities	(1,782,999)	(391,796)
FINANCING ACTIVITIES:
Line of credit	1,404,254	3,055,663
Purchase of treasury stock	(1,754,878)	(226,850)
Payment of dividend	(100,000)	(80,000)
Net cash (used in) provided by financing activities	(450,624)	2,748,813
NET (DECREASE) INCREASE IN CASH	(625,835)	71,177
CASH, BEGINNING OF PERIOD	3,853,816	3,782,639
CASH, END OF PERIOD	3,227,981	3,853,816
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid	181,007	196,556
Income taxes paid	34,183	$ 1,651,156
SUPPLEMENTAL DISCLOSURE OF NON­CASH INVESTING AND FINANCING ACTIVITIES:
Accounts receivable	84,142
Inventory	269,565
Equipment	40,000
Customer list	120,000
Goodwill	577,905
Less: liabilities assumed	(72,044)
Net assets acquired:	1,019,568
Redeemable Common Stock	200,004
Net cash paid	$ 819,564

1. BUSINESS ACTIVITIES

1. BUSINESS ACTIVITIES	12 Months Ended
	Oct. 31, 2016
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 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.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Oct. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION: The consolidated financial statements include the accounts of the Company, Organic Products Trading Company, LLC (“OPTCO”), Sonofresco LLC (“Sono”) and Generations Coffee Company, LLC (“GCC”). All significant inter-company balances and transactions have been eliminated in consolidation. USE OF ESTIMATES: The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Significant estimates include allowance for uncollectible accounts receivable and reserves, inventory obsolescence, depreciation, intangible asset valuations and useful lives, taxes, contingencies, and valuation of financial instruments. These estimates may be adjusted as more current information becomes available, and any adjustment could have a significant impact on recorded amounts. CASH: Cash consists primarily of unrestricted cash on deposit at financial institutions and brokerage firms. PREPAID GREEN COFFEE: Prepaid coffee is an item that emanates from OPTCO. 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 $41,176 and $45,049 as of October 31, 2016 and 2015, respectively. The prepaid coffee balance was $435,577 and $620,452 as of October 31, 2016 and 2015, respectively. 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: 2016 2015 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 INVENTORIES: Inventories are stated at the lower of cost (First in, first out basis) or market, including provisions for obsolescence commensurate with known or estimated exposures. There are no reserves for obsolescence as of October 31, 2016 and 2015. MACHINERY AND EQUIPMENT: Machinery and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Purchases of machinery and equipment and additions and betterments which substantially extend the useful life of an asset are capitalized at cost. Expenditures which do not materially prolong the normal useful life of an asset are charged to operations as incurred. The Company also provides for amortization of leasehold improvements. COMMODITIES HELD BY BROKER: The commodities held at broker represent the market value of the Company’s trading account, which consists of option 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 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: 2016 2015 Option contracts $ (83,753 ) $ (134,613 ) Future contracts 218,475 (349,222 ) Commodities due to broker $ 134,722 $ (483,835 ) The Company classifies its options and future contracts as trading securities and accordingly, unrealized holding gains and losses are included in earnings. At October 31, 2016, the Company held 22 futures contracts (generally with terms of three to four months) for the purchase of 825,000 pounds of green coffee at a weighted average price of $1.45 per pound. The fair market value of coffee applicable to such contracts was $1.64 per pound at that date. At October 31, 2016, the Company did not have any options. At October 31, 2015, the Company held 38 futures contracts (generally with terms of three to four months) for the purchase of 1,425,000 pounds of green coffee at a weighted average price of $1.23 per pound. The fair market value of coffee applicable to such contracts was $1.21 per pound at that date. At October 31, 2015, the Company held 20 options covering an aggregate of 750,000 pounds of green coffee beans at $1.25 per pound. The fair market value of these options, which was obtained from observable market data of similar instruments was $42,750. Included in cost of sales for the years ended October 31, 2016 and 2015, the Company recorded realized and unrealized gains and losses respectively, on these contracts as follows: Year Ended October 31, 2016 2015 Gross realized gains $ 1,443,046 $ 1,292,471 Gross realized (losses) (1,000,976 ) (6,778,407 ) Unrealized gains 618,558 1,089 Total $ 1,060,628 $ (5,484,847 ) GOODWILL AND TRADEMARKS: The Company has determined that its goodwill and trademarks, which consist of product lines, trade names and packaging designs have an indefinite useful life. The value of the goodwill and trademarks was allocated based on an independent valuation. Goodwill and trademarks are not amortized but are assigned to a specific reporting unit or asset class and tested for impairment at least annually or upon the occurrence of an event or when circumstances indicate that the reporting unit’s carrying amount of goodwill and trademarks is greater than its fair value. As of October 31, 2016 and 2015, the Company has determined by using a qualitative assessment that an impairment did not exist. In 2011, the Company adopted Financial Accounting Standard ASB ASU 2011-08 Intangibles – Goodwill and Other – Testing Goodwill for Impairment, which allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under this amendment, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendment includes a number of events and circumstances for an entity to consider in conducting the qualitative assessment. CUSTOMER LIST AND RELATIONSHIPS: Customer list and relationships consist of a specific customer lists and customer contracts obtained by the Company in the acquisition of OPTCO and Sono which are being amortized on the straight-line method over their estimated useful life of twenty years. ADVERTISING: The Company expenses the cost of advertising and promotion as incurred. Advertising costs charged to operations totaled $170,774 and $157,922 for the years ended October 31, 2016 and 2015, respectively. INCOME TAXES: The Company accounts for EARNINGS PER SHARE: 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 and diluted earnings per share were 6,082,777 and 6,212,929 for the years ended October 31, 2016 and 2015, respectively. FAIR VALUE OF FINANCIAL INSTRUMENTS: The carrying amounts of cash, accounts receivable, notes receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. The carrying amount of the bank line of credit borrowings approximates fair value because the debt is based on current rates at which the Company could borrow funds with similar remaining maturities. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instruments when available. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. REVENUE RECOGNITION: The Company recognizes revenue in accordance with the authoritative guidance. Revenue is recognized at the point title and risk of ownership transfers to its customers upon the Company’s shippers taking possession of the goods at the time of shipment because i) title passes in accordance with the terms of the Company’s purchase orders and with its agreements with its customers, ii) any risk of loss is covered by the Company’s customers’ insurance, iii) there is persuasive evidence of a sales arrangement, iv) the sales price is determinable and v) collection of the resulting receivable is reasonably assured. Thus, revenue is recognized at the point of shipment to its customers. Returns: The Company does not accept returns for damaged goods on packaged coffee and usable green coffee, as the customer takes possession of our product at the point of shipment. In the event a customer claims receipt of damaged goods, the Company, acting as an agent on behalf of the customer, may file a claim for reimbursement with the shipper. The Company is not obligated or required to act as an agent on behalf of its customers, but may make the business decision to do so as a convenience to its customers. The shipper keeps the damaged product. The Company will then ship a completely new order to the customer once a claim has been filed and the Company receives reimbursement or credit from the shipper for the initial shipment. The Company does evaluate the need, if any, of an accrual for returns for damaged goods. To date, returns for damaged goods have been immaterial. The Company estimates that, based on historical trends, that future returns for damaged goods should also be immaterial. In the event that the Company ships an incorrect order or has returns for short dated product, the Company will accept those two types of items back as returns. The amount for these two types of returns are estimated, accrued and recognized at the date of sale. These amounts are included in the determination of net sales. Slotting fees: Certain retailers require the payment of slotting fees in order to obtain space for the Company’s products on the retailer’s store shelves. The cost of these fees are estimated, accrued and recognized at the earlier of the date cash is paid or a liability to the retailer is created. The amounts are included in the determination of net sales. Sales discounts: The amount of sales discounts are estimated, accrued and recognized at the date of the sale. These amounts are included in the determination of net sales. Volume-based incentives: These incentives typically involve rebates or refunds of a specific amount of cash consideration that are redeemable only if the reseller completes a specified cumulative level of sales transactions. Under incentive programs of this nature, the Company estimates and accrues the cost of the rebate when it is taken by the reseller. These amounts are included in the determination of net sales. Cooperative advertising: Under these arrangements, the Company will agree to reimburse the reseller for a portion of the costs incurred by the reseller to advertise and promote certain of the Company’s products. The Company estimates, accrues and recognizes the cost of cooperative advertising programs in the period in which the advertising and promotional activity first takes place. The costs of these incentives are included in advertising expense. SHIPPING AND HANDLING FEES AND COSTS: Revenue earned from shipping and handling fees is reflected in net sales. Costs associated with shipping product to customers aggregating approximately $1,506,000 and $1,352,000 for the years ended October 31, 2016 and 2015, respectively, is included in selling and administrative expenses. CONCENTRATION OF RISK: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at financial institutions and brokerage firms. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to certain limits. At October 31, 2016 and 2015, the Company had approximately $1,539,429 and $220,422 in excess of FDIC insured limits, respectively. The accounts at the brokerage firm contain cash and securities. Balances are insured up to $500,000, with a limit of $100,000 for cash, by the Securities Investor Protection Corporation (“SIPC”). At October 31, 2016 and 2015, the Company had approximately $348,041 and $2,818,431 in excess of SIPC insured limits, respectively. See Note 10 for concentration of risks with respect to trade receivables and purchases from accounts payable vendors. OPERATING LEASES: The Company has operating lease agreements for its corporate office and warehouses, some of which contain provisions for future rent increases or periods in which rent payments are abated. Operating leases which provide for lease payments that vary materially from the straight-line basis are adjusted for financial accounting purposes to reflect rental income or expense on the straight-line basis in accordance with the authoritative guidance issued by the FASB. The excess of straight-line rent over actual payments by the Company of $231,216 and $222,055 is included as deferred rent payable as of October 31, 2016 and 2015, respectively. EQUITY METHOD OF ACCOUNTING: Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an Investee depends on an evaluation of several factors including, among others, representation on the Investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the Investee company. Under the equity method of accounting, an Investee company’s accounts are not reflected within the Company’s Consolidated Balance Sheets and Consolidated Statements of Income; however, the Company’s share of the earnings or losses of the Investee company is reflected in the caption “Loss from equity method investments” in the Consolidated Statements of Income. The Company’s carrying value in an equity method Investee company is reflected in the caption “Equity method investments” in the Company’s Consolidated Balance Sheets. The Company’s investment in a company that is accounted for on the equity method of accounting consist of the following: (1) 20% interest in Healthwise Gourmet Coffees, LLC, a distributor of low acidity coffees. The investments in this company amounted to $100,000. The loss recognized amounted to $972 and $833 for the years ended October 31, 2016 and 2015, respectively. The net value of this investment as presented on our consolidated balance sheet at October 31, 2016 and 2015 was $95,598 and $96,571, respectively.

3. RECENTLY ISSUED ACCOUNTING P

3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY	12 Months Ended
	Oct. 31, 2016
Accounting Changes and Error Corrections [Abstract]
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY	The FASB has issued ASU No. 201517, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes how deferred taxes are classified on organizations' balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For private companies, notforprofit organizations, and employee benefit plans, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position and results of operations. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance. The FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-01 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Nonpublic business entities should apply the amendments for fiscal years beginning after December 15, 2019 (i.e., January 1, 2020, for a calendar year entity), and interim periods within fiscal years beginning after December 15, 2020. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently evaluating the impact of adopting this guidance. On March 17, 2016 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-08 that amends the guidance for Principle versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606), In May 2014 the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers - Deferral of the Effective Date Principal versus Agent Considerations Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients,

4. INVENTORIES

4. INVENTORIES	12 Months Ended
	Oct. 31, 2016
Inventory Disclosure [Abstract]
INVENTORIES	Inventories at October 31, 2016 and 2015 consisted of the following: 2016 2015 Packed coffee $ 1,804,633 $ 1,441,451 Green coffee 11,434,024 11,730,006 Roasters and parts 210,007 - Packaging supplies 827,626 691,361 Totals $ 14,276,290 $ 13,862,818

5. FORMATION OF SUBSIDIARY

5. FORMATION OF SUBSIDIARY	12 Months Ended
	Oct. 31, 2016
Formation Of Subsidiary
FORMATION OF SUBSIDIARY	On June 23, 2016, the Company formed a wholly-owned subsidiary named Sonofresco, LLC a Delaware limited liability company. Pursuant to the terms of an Agreement for Purchase and Sale of Assets dated June 23, 2016 (the “Sono Agreement”), by and among the Company, Coffee Kinetics LLC, a Washington limited liability company (the “Seller”), the members of the Seller and Sono (the “Buyer”), the Company, through its wholly-owned subsidiary Sono, purchased substantially all the assets, including equipment, inventory, customer list and relationships (the “Assets”) of the Seller. The acquisition was accounted for using the purchase method in accordance with ASC 805, “Business Combinations.” The Buyer purchased the Assets for a purchase price consisting of $819,564 in cash and 38,364 shares of the Company's redeemable common stock (the “Sono Shares”) with a value of $200,004 (the "Common Stock Payment Amount") issued on June 29, 2016. As part of the transaction, all of the employees of the Seller became employees of the Buyer. In addition, on June 29, 2016, the Company entered into a one-year advisory agreement (the “Advisory Agreement”), with one of the Seller’s executives (the “Executive”), on an independent contractor basis, to ensure continuity of the business and to continue to operate the business located in Washington. The Advisory Agreement will automatically renew for an additional one year term upon the expiration of the first year term unless terminated by the Company. After completion of the first year term, the Advisory Agreement is subject to renewal by mutual agreement of the parties. Pursuant to the terms of the Advisory Agreement, the Executive is entitled to cash compensation of $50,000 per annum. If the Advisory Agreement is terminated prior to the end of the first year term, the Executive is entitled to receive an additional $50,000 termination fee. If the term of the Advisory Agreement is extended past the first year term, subject to certain exceptions, the Executive will be entitled to the $50,000 termination fee upon termination of the Advisory Agreement. The following table summarizes the estimated fair value of the assets and liabilities assumed at the acquisition: Assets acquired: Accounts receivable $ 84,142 Inventory 269,565 Equipment 40,000 Customer list 120,000 Goodwill 577,905 Less: liabilities assumed (72,044 ) Net assets acquired: $ 1,019,568 Purchase of assets funded by: Cash paid $ 819,564 Redeemable Common Stock 200,004 $ 1,019,568 Pursuant to the terms of Sono Agreement, the value of the Sono shares was based on the three day average of the closing price of the Company's common stock for the three trading days immediately prior to June 23, 2016. In addition, pursuant to the terms of the Sono Agreement, during the twelve month period commencing on June 29, 2016 (the "Closing Date"), if Seller informs Buyer of its desire to sell all, but not less than all of the Sono Shares to the Company, Buyer agrees to repurchase all but not less than all of the Sono Shares at the Common Stock Payment amount. Pro Forma Results of Operations (unaudited) The following pro forma results of operations for the years ended October 31, 2016 and 2015 have been prepared as though the acquisition of Sono had occurred as of the beginning of the earliest period presented. This pro forma financial information is not indicative of the results of operations that the Company would have attained had the acquisition of Sono occurred at the beginning of the periods presented, nor is the pro forma financial information indicative of the results of operations that may occur in the future: Year ended October 31, 2016 2015 Pro forma sales $ 80,132,616 $ 119,711,018 Pro forma net income (loss) $ 2,290,084 $ (1,433,493 ) Pro forma basic and diluted earnings per share $ .38 $ (.23 ) Basic and diluted weighted average common shares outstanding 6,082,777 6,212,929 The operations of Sono have been included in the Company’s consolidated statement of operations since the date of the acquisition on June 29, 2016. The total revenue included for the period is $560,736.

6. MACHINERY AND EQUIPMENT

6. MACHINERY AND EQUIPMENT	12 Months Ended
	Oct. 31, 2016
Notes to Financial Statements
MACHINERY AND EQUIPMENT	Machinery and equipment at October 31, 2016 and 2015 consisted of the following: Estimated Useful Life 2016 2015 Improvements 15-30 years $ 202,285 $ 199,035 Machinery and equipment 7 years 6,004,156 5,274,277 Furniture and fixtures 7 years 883,250 612,944 7,089,691 6,086,256 Less, accumulated depreciation 4,819,828 4,241,256 $ 2,269,863 $ 1,845,000 Depreciation expense totaled $578,572 and $537,890 for the years ended October 31, 2016 and 2015, respectively.

7. LINE OF CREDIT

7. LINE OF CREDIT	12 Months Ended
	Oct. 31, 2016
Debt Disclosure [Abstract]
LINE OF CREDIT	On March 10, 2015, the Company entered into a loan modification agreement (the “Modification Agreement”) with its lender Sterling National Bank (“Sterling”) which modified the terms of the financing agreement with Sterling previously entered into on February 17, 2009 (the “Financing Agreement”). Prior to the Modification Agreement, the Financing Agreement, as amended, provided for a credit facility in which the Company had a revolving line of credit for a maximum of $7,000,000 (the “Loan Facility”). On February 3, 2011, the Company amended the Financing Agreement to create a sublimit within the revolving line of credit in the form of a $300,000 term loan for the benefit of GCC. The Financing Agreement was set to expire on March 31, 2015. Pursuant to the Modification Agreement, the Financing Agreement was modified to, among other things, (i) extend the term of the Financing Agreement until February 28, 2017; (ii) increase the maximum amount of the Loan Facility from $7,000,000 to $9,000,000; (iii) reduce the interest rate on the average unpaid balance of the line of credit from an interest rate equal to a per annum reference rate of 3.75% to an interest rate per annum equal to the Wall Street Journal Prime Rate; and (iv) require the Company to pay, upon the occurrence of certain termination events, a prepayment premium of 0.50% of the maximum amount of the credit facility in effect as of the date of the termination event. Other than as described above, the Financing Agreement remains in full force and effect. Pursuant to the Modification Agreement, the Company is able to draw on the loan Facility up to an amount of 85% of eligible accounts receivable and 25% of eligible inventory consisting of green coffee beans and finished coffee not to exceed $1,000,000. The Loan Facility is secured by all tangible and intangible assets of the Company. The Loan Facility contains covenants that place annual restrictions on our operations, including covenants related 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 restrictive transactions. The Loan 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 October 31, 2016 and 2015. As of October 31, 2016 and 2015, the outstanding balance under the bank line of credit was $5,121,375 and $4,317,121, respectively. Also on March 10, 2015, the Company, as guarantor, and OPTCO (the “Borrower”), as borrower, entered into a new loan facility agreement with Sterling. The new loan facility is a revolving line of credit for a maximum of $3,000,000 (the “New Loan Facility”). The New Loan Facility terminates on February 28, 2017. The Borrower is able to draw on the New Loan Facility at an amount up to 85% of eligible accounts receivable, not to exceed 25% of all accounts of the Borrower. The New Loan Facility is payable monthly in arrears on the average unpaid balance of the line of credit at an interest rate per annum equal to the Wall Street Journal Prime Rate (currently 3.5%). The New Loan Facility is secured by all tangible and intangible assets of the Company. In connection with the New Loan Facility, the Company entered into a security agreement with Sterling and provided Sterling with a guarantee of the Borrower’s obligations.

8. INCOME TAXES

8. INCOME TAXES	12 Months Ended
	Oct. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	The 2016 2015 Current Federal $ 219,562 $ (73,407 ) State and local 155,083 36,610 374,645 (36,797 ) Deferred Federal 941,150 (657,500 ) State and local 50,125 (69,350 ) 991,275 (726,850 ) Income tax (benefit) expense $ 1,365,920 $ (763,647 ) A reconciliation of the difference between the expected income tax rate using the statutory U.S. federal tax rate and the Company’s effective tax rate is as follows: 2016 2015 Tax at the federal statutory rate of 34% $ 1,263,427 $ (711,680 ) Other permanent differences (32,944 ) (30,359 ) State and local tax, net of federal benefit 135,437 (21,608 ) Provision for income taxes $ 1,365,920 $ (763,647 ) Effective income tax rate 37 % (37 %) The 2016 2015 Current deferred tax assets: Accounts receivable $ 67,034 $ 53,605 Net operating loss 714,150 Unrealized loss 180,112 Inventory 64,384 49,853 Total current deferred tax asset $ 131,418 $ 997,720 Non-current deferred tax assets: Deferred rent 107,635 82,666 Deferred compensation 227,947 179,614 Total non-current deferred tax asset $ 335,582 $ 262,280 Total deferred tax asset $ 467,000 $ 1,260,000 Current deferred tax liability: Unrealized gain $ 49,873 $ Non-current deferred tax liability: Fixed assets $ 503,052 354,650 Total deferred tax liabilities $ 552,925 $ 354,650 A valuation allowance was not provided at October 31, 2016 or 2015. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are expected to be deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income are reduced. As of October 31, 2016 and 2015, 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 October 31, 2016 and 2015, 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, Connecticut, Idaho, Kansas, Michigan, New Jersey, New York, Texas, Rhode Island, South Carolina, Virginia 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 2013. 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 2010. The Company’s Oregon, New York, Kansas, South Carolina, Rhode Island, Connecticut and Michigan and Texas income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2011.

9. COMMITMENTS AND CONTINGENCIE

9. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Oct. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	OPERATING LEASES: In February 2004, the Company entered into a lease for office and warehouse space in La Junta City, Colorado. This lease, which is at a monthly rental of $8,341 beginning January 2005, expires on January 31, 2024. Rent charged to operations amounted to $95,504 for the years ended October 31, 2016 and 2015. In October 2008, the Company entered into a lease for office and warehouse space in Staten Island, NY. This lease, which is at a monthly rental beginning November 2008, expires on October 31, 2023 and includes annual rent increases. Rent charged to operations amounted to $143,171 and $146,423 for the years ended October 31, 2016 and 2015. The Company also uses a variety of independent, bonded commercial warehouses to store its green coffee beans. In March 2015, the Company entered into a lease for office space in Vancouver, WA. This lease, which is at a monthly rental beginning April 1, 2015, expires on March 31, 2017. Rent charged to operations amounted to $37,745 and $36,721 for the years ended October 31, 2016 and 2015, respectively. In December 2016, the Company entered into a lease for office and warehouse space in Burlington WA. This lease which is at a monthly rental beginning December 1, 2016, expires on December 31, 2017. The aggregate minimum future lease payments as of October 31, 2016 for each of the next five years and thereafter are as follows: October 31, 2017 $ 300,123 2018 260,683 2019 262,413 2020 271,051 2021 279,051 Thereafter 610,416 $ 1,983,737 401 (K) RETIREMENT PLAN: 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. Contributions to the plan aggregated $67,083 and $67,166 for the years ended October 31, 2016 and 2015, respectively.

10. ECONOMIC DEPENDENCY

10. ECONOMIC DEPENDENCY	12 Months Ended
	Oct. 31, 2016
Risks and Uncertainties [Abstract]
ECONOMIC DEPENDENCY	Approximately 29% of the Company’s sales were derived from one customer during the year ended October 31, 2016. This customer also accounted for approximately $3,661,000 or 27% of the Company’s accounts receivable balance at October 31, 2015. Approximately 54% of the Company’s sales were derived from one customer during the year ended October 31, 2015. This customer also accounted for approximately $4,113,000 or 38% of the Company’s accounts receivable balance at October 31, 2015. 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 and other allowances that management believes will adequately provide for credit losses. For the year ended October 31, 2016, approximately 43% of the Company’s purchases were from four vendors. These vendors accounted for approximately $609,000 of the Company’s accounts payable at October 31, 2016. For the year ended October 31, 2015, approximately 64% of the Company’s purchases were from five vendors. These vendors accounted for approximately $2,664,000 of the Company’s accounts payable at October 31, 2015. 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.

11. RELATED PARTY TRANSACTIONS

11. RELATED PARTY TRANSACTIONS	12 Months Ended
	Oct. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	The Company has engaged its 40% partner in Generation Coffee Company, LLC as an outside contractor (the “Partner”). Included in contract labor expense, which is a component of cost of sales, are expenses incurred from the Partner during the years ended October 31, 2016 and 2015 of $459,345 and $422,039, respectively. An employee of one of the top two vendors is a director of the Company. Purchases from that vendor totaled approximately $8,475,000 and $22,143,000 for the years ended October 31, 2016 and 2015, respectively. The corresponding accounts payable balance to this vendor was approximately $237,000 and $586,000 at October 31, 2016 and 2015, 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 CEO. Within the plan guidelines, this employee is deferring a portion of his current salary and bonus. The deferred compensation payable represents the liability due to an officer of the Company. The deferred compensation liability at October 31, 2016 and 2015 was $489,668 and $482,499, respectively. Deferred compensation expenses included in officers’ salaries were $0 during the years ended October 31, 2016 and 2015, respectively.

12. STOCKHOLDERS' EQUITY

12. STOCKHOLDERS' EQUITY	12 Months Ended
	Oct. 31, 2016
Equity [Abstract]
STOCKHOLDERS' EQUITY	a. Treasury Stock b. Share Repurchase Program.

13. FAIR VALUE MEASUREMENTS

13. FAIR VALUE MEASUREMENTS	12 Months Ended
	Oct. 31, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	Fair value is 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; and 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 10. 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 and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. Fair Value Measurements as of October 31, 2016 Total Level 1 Level 2 Level 3 Assets: Money market 489,826 489,826 – – Commodities-Futures 218,475 218,475 Total Assets $ 708,301 $ 489,826 218,475 – Liabilities: Commodities – Options (83,753 ) (83,753 ) Total Liabilities $ (83,753 ) – $ (83,753 ) – Fair Value Measurements as of October 31, 2015 Total Level 1 Level 2 Level 3 Assets: Money market 482,499 482,499 – – Total Assets $ 482,499 $ 482,499 – – Liabilities: Commodities – Options (134,613 ) (134,613 ) Commodities – Futures (349,222 ) – (349,222 ) – Total Liabilities $ (483,835 ) – $ (483,835 ) –

14. SUBSEQUENT EVENTS

14. SUBSEQUENT EVENTS	12 Months Ended
	Oct. 31, 2016
Subsequent Events [Abstract]
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.

2. SUMMARY OF SIGNIFICANT ACC22

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Oct. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	The consolidated financial statements include the accounts of the Company, Organic Products Trading Company, LLC (“OPTCO”), Sonofresco LLC (“Sono”) and Generations Coffee Company, LLC (“GCC”). All significant inter-company balances and transactions have been eliminated in consolidation.
USE OF ESTIMATES	The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Significant estimates include allowance for uncollectible accounts receivable and reserves, inventory obsolescence, depreciation, intangible asset valuations and useful lives, taxes, contingencies, and valuation of financial instruments. These estimates may be adjusted as more current information becomes available, and any adjustment could have a significant impact on recorded amounts.
CASH	Cash consists primarily of unrestricted cash on deposit at financial institutions and brokerage firms.
PREPAID GREEN COFFEE	Prepaid coffee is an item that emanates from OPTCO. 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 $41,176 and $45,049 as of October 31, 2016 and 2015, respectively. The prepaid coffee balance was $435,577 and $620,452 as of October 31, 2016 and 2015, respectively.
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: 2016 2015 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
INVENTORIES	Inventories are stated at the lower of cost (First in, first out basis) or market, including provisions for obsolescence commensurate with known or estimated exposures. There are no reserves for obsolescence as of October 31, 2016 and 2015.
MACHINERY AND EQUIPMENT	Machinery and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Purchases of machinery and equipment and additions and betterments which substantially extend the useful life of an asset are capitalized at cost. Expenditures which do not materially prolong the normal useful life of an asset are charged to operations as incurred. The Company also provides for amortization of leasehold improvements.
COMMODITIES HELD BY BROKER	The commodities held at broker represent the market value of the Company’s trading account, which consists of option 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 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: 2016 2015 Option contracts $ (83,753 ) $ (134,613 ) Future contracts 218,475 (349,222 ) Commodities due to broker $ 134,722 $ (483,835 ) The Company classifies its options and future contracts as trading securities and accordingly, unrealized holding gains and losses are included in earnings. At October 31, 2016, the Company held 22 futures contracts (generally with terms of three to four months) for the purchase of 825,000 pounds of green coffee at a weighted average price of $1.45 per pound. The fair market value of coffee applicable to such contracts was $1.64 per pound at that date. At October 31, 2016, the Company did not have any options. At October 31, 2015, the Company held 38 futures contracts (generally with terms of three to four months) for the purchase of 1,425,000 pounds of green coffee at a weighted average price of $1.23 per pound. The fair market value of coffee applicable to such contracts was $1.21 per pound at that date. At October 31, 2015, the Company held 20 options covering an aggregate of 750,000 pounds of green coffee beans at $1.25 per pound. The fair market value of these options, which was obtained from observable market data of similar instruments was $42,750. Included in cost of sales for the years ended October 31, 2016 and 2015, the Company recorded realized and unrealized gains and losses respectively, on these contracts as follows: Year Ended October 31, 2016 2015 Gross realized gains $ 1,443,046 $ 1,292,471 Gross realized (losses) (1,000,976 ) (6,778,407 ) Unrealized gains 618,558 1,089 Total $ 1,060,628 $ (5,484,847 )
GOODWILL AND TRADEMARKS	The Company has determined that its goodwill and trademarks, which consist of product lines, trade names and packaging designs have an indefinite useful life. The value of the goodwill and trademarks was allocated based on an independent valuation. Goodwill and trademarks are not amortized but are assigned to a specific reporting unit or asset class and tested for impairment at least annually or upon the occurrence of an event or when circumstances indicate that the reporting unit’s carrying amount of goodwill and trademarks is greater than its fair value. As of October 31, 2016 and 2015, the Company has determined by using a qualitative assessment that an impairment did not exist. In 2011, the Company adopted Financial Accounting Standard ASB ASU 2011-08 Intangibles – Goodwill and Other – Testing Goodwill for Impairment, which allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under this amendment, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendment includes a number of events and circumstances for an entity to consider in conducting the qualitative assessment.
CUSTOMER LIST AND RELATIONSHIPS	Customer list and relationships consist of a specific customer lists and customer contracts obtained by the Company in the acquisition of OPTCO and Sono which are being amortized on the straight-line method over their estimated useful life of twenty years.
ADVERTISING	The Company expenses the cost of advertising and promotion as incurred. Advertising costs charged to operations totaled $170,774 and $157,922 for the years ended October 31, 2016 and 2015, respectively.
INCOME TAXES	The Company accounts for
EARNINGS PER SHARE	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 and diluted earnings per share were 6,082,777 and 6,212,929 for the years ended October 31, 2016 and 2015, respectively.
FAIR VALUE OF FINANCIAL INSTRUMENTS	The carrying amounts of cash, accounts receivable, notes receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. The carrying amount of the bank line of credit borrowings approximates fair value because the debt is based on current rates at which the Company could borrow funds with similar remaining maturities. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instruments when available. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
REVENUE RECOGNITION	The Company recognizes revenue in accordance with the authoritative guidance. Revenue is recognized at the point title and risk of ownership transfers to its customers upon the Company’s shippers taking possession of the goods at the time of shipment because i) title passes in accordance with the terms of the Company’s purchase orders and with its agreements with its customers, ii) any risk of loss is covered by the Company’s customers’ insurance, iii) there is persuasive evidence of a sales arrangement, iv) the sales price is determinable and v) collection of the resulting receivable is reasonably assured. Thus, revenue is recognized at the point of shipment to its customers. Returns: The Company does not accept returns for damaged goods on packaged coffee and usable green coffee, as the customer takes possession of our product at the point of shipment. In the event a customer claims receipt of damaged goods, the Company, acting as an agent on behalf of the customer, may file a claim for reimbursement with the shipper. The Company is not obligated or required to act as an agent on behalf of its customers, but may make the business decision to do so as a convenience to its customers. The shipper keeps the damaged product. The Company will then ship a completely new order to the customer once a claim has been filed and the Company receives reimbursement or credit from the shipper for the initial shipment. The Company does evaluate the need, if any, of an accrual for returns for damaged goods. To date, returns for damaged goods have been immaterial. The Company estimates that, based on historical trends, that future returns for damaged goods should also be immaterial. In the event that the Company ships an incorrect order or has returns for short dated product, the Company will accept those two types of items back as returns. The amount for these two types of returns are estimated, accrued and recognized at the date of sale. These amounts are included in the determination of net sales. Slotting fees: Certain retailers require the payment of slotting fees in order to obtain space for the Company’s products on the retailer’s store shelves. The cost of these fees are estimated, accrued and recognized at the earlier of the date cash is paid or a liability to the retailer is created. The amounts are included in the determination of net sales. Sales discounts: The amount of sales discounts are estimated, accrued and recognized at the date of the sale. These amounts are included in the determination of net sales. Volume-based incentives: These incentives typically involve rebates or refunds of a specific amount of cash consideration that are redeemable only if the reseller completes a specified cumulative level of sales transactions. Under incentive programs of this nature, the Company estimates and accrues the cost of the rebate when it is taken by the reseller. These amounts are included in the determination of net sales. Cooperative advertising: Under these arrangements, the Company will agree to reimburse the reseller for a portion of the costs incurred by the reseller to advertise and promote certain of the Company’s products. The Company estimates, accrues and recognizes the cost of cooperative advertising programs in the period in which the advertising and promotional activity first takes place. The costs of these incentives are included in advertising expense.
SHIPPING AND HANDLING FEES AND COSTS	Revenue earned from shipping and handling fees is reflected in net sales. Costs associated with shipping product to customers aggregating approximately $1,506,000 and $1,352,000 for the years ended October 31, 2016 and 2015, respectively, is included in selling and administrative expenses.
CONCENTRATION OF RISK	Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at financial institutions and brokerage firms. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to certain limits. At October 31, 2016 and 2015, the Company had approximately $1,539,429 and $220,422 in excess of FDIC insured limits, respectively. The accounts at the brokerage firm contain cash and securities. Balances are insured up to $500,000, with a limit of $100,000 for cash, by the Securities Investor Protection Corporation (“SIPC”). At October 31, 2016 and 2015, the Company had approximately $348,041 and $2,818,431 in excess of SIPC insured limits, respectively. See Note 10 for concentration of risks with respect to trade receivables and purchases from accounts payable vendors.
OPERATING LEASES	The Company has operating lease agreements for its corporate office and warehouses, some of which contain provisions for future rent increases or periods in which rent payments are abated. Operating leases which provide for lease payments that vary materially from the straight-line basis are adjusted for financial accounting purposes to reflect rental income or expense on the straight-line basis in accordance with the authoritative guidance issued by the FASB. The excess of straight-line rent over actual payments by the Company of $231,216 and $222,055 is included as deferred rent payable as of October 31, 2016 and 2015, respectively.
EQUITY METHOD OF ACCOUNTING	Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an Investee depends on an evaluation of several factors including, among others, representation on the Investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the Investee company. Under the equity method of accounting, an Investee company’s accounts are not reflected within the Company’s Consolidated Balance Sheets and Consolidated Statements of Income; however, the Company’s share of the earnings or losses of the Investee company is reflected in the caption “Loss from equity method investments” in the Consolidated Statements of Income. The Company’s carrying value in an equity method Investee company is reflected in the caption “Equity method investments” in the Company’s Consolidated Balance Sheets. The Company’s investment in a company that is accounted for on the equity method of accounting consist of the following: (1) 20% interest in Healthwise Gourmet Coffees, LLC, a distributor of low acidity coffees. The investments in this company amounted to $100,000. The loss recognized amounted to $972 and $833 for the years ended October 31, 2016 and 2015, respectively. The net value of this investment as presented on our consolidated balance sheet at October 31, 2016 and 2015 was $95,598 and $96,571, respectively.

2. SUMMARY OF SIGNIFICANT ACC23

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Oct. 31, 2016
Summary Of Significant Accounting Policies Tables
Schedule of accounts receivable	2016 2015 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
Schedule of commodited held by brokers	2016 2015 Option contracts $ (83,753 ) $ (134,613 ) Future contracts 218,475 (349,222 ) Commodities due to broker $ 134,722 $ (483,835 )
Schedule of commodities with realized and unrealized gains/(losses)	Year Ended October 31, 2016 2015 Gross realized gains $ 1,443,046 $ 1,292,471 Gross realized (losses) (1,000,976 ) (6,778,407 ) Unrealized gains 618,558 1,089 Total $ 1,060,628 $ (5,484,847 )

4. INVENTORIES (Tables)

4. INVENTORIES (Tables)	12 Months Ended
	Oct. 31, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	2016 2015 Packed coffee $ 1,804,633 $ 1,441,451 Green coffee 11,434,024 11,730,006 Roasters and parts 210,007 - Packaging supplies 827,626 691,361 Totals $ 14,276,290 $ 13,862,818

5. FORMATION OF SUBSIDIARY (Tab

5. FORMATION OF SUBSIDIARY (Tables)	12 Months Ended
	Oct. 31, 2016
Formation Of Subsidiary Tables
Summary of assets purchased and liabilities assumed	Assets acquired: Accounts receivable $ 84,142 Inventory 269,565 Equipment 40,000 Customer list 120,000 Goodwill 577,905 Less: liabilities assumed (72,044 ) Net assets acquired: $ 1,019,568 Purchase of assets funded by: Cash paid $ 819,564 Redeemable Common Stock 200,004 $ 1,019,568
Pro forma results of operations	Year ended October 31, 2016 2015 Pro forma sales $ 80,132,616 $ 119,711,018 Pro forma net income (loss) $ 2,290,084 $ (1,433,493 ) Pro forma basic and diluted earnings per share $ .38 $ (.23 ) Basic and diluted weighted average common shares outstanding 6,082,777 6,212,929

6. MACHINERY AND EQUIPMENT (Tab

6. MACHINERY AND EQUIPMENT (Tables)	12 Months Ended
	Oct. 31, 2016
Machinery And Equipment Tables
Schedule of machinery and equipment	Estimated Useful Life 2016 2015 Improvements 15-30 years $ 202,285 $ 199,035 Machinery and equipment 7 years 6,004,156 5,274,277 Furniture and fixtures 7 years 883,250 612,944 7,089,691 6,086,256 Less, accumulated depreciation 4,819,828 4,241,256 $ 2,269,863 $ 1,845,000

8. INCOME TAXES (Tables)

8. INCOME TAXES (Tables)	12 Months Ended
	Oct. 31, 2016
Income Taxes Tables
Schedule of income taxes	2016 2015 Current Federal $ 219,562 $ (73,407 ) State and local 155,083 36,610 374,645 (36,797 ) Deferred Federal 941,150 (657,500 ) State and local 50,125 (69,350 ) 991,275 (726,850 ) Income tax (benefit) expense $ 1,365,920 $ (763,647 )
Schedule of income tax reconciliation	2016 2015 Tax at the federal statutory rate of 34% $ 1,263,427 $ (711,680 ) Other permanent differences (32,944 ) (30,359 ) State and local tax, net of federal benefit 135,437 (21,608 ) Provision for income taxes $ 1,365,920 $ (763,647 ) Effective income tax rate 37 % (37 %)
Schedule of tax effects of temporary differences	2016 2015 Current deferred tax assets: Accounts receivable $ 67,034 $ 53,605 Net operating loss 714,150 Unrealized loss 180,112 Inventory 64,384 49,853 Total current deferred tax asset $ 131,418 $ 997,720 Non-current deferred tax assets: Deferred rent 107,635 82,666 Deferred compensation 227,947 179,614 Total non-current deferred tax asset $ 335,582 $ 262,280 Total deferred tax asset $ 467,000 $ 1,260,000 Current deferred tax liability: Unrealized gain $ 49,873 $ Non-current deferred tax liability: Fixed assets $ 503,052 354,650 Total deferred tax liabilities $ 552,925 $ 354,650

9. COMMITMENTS AND CONTINGENC28

9. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Oct. 31, 2016
Commitments And Contingencies Tables
Schedule of minimum lease payments	October 31, 2017 $ 300,123 2018 260,683 2019 262,413 2020 271,051 2021 279,051 Thereafter 610,416 $ 1,983,737

13. FAIR VALUE MEASUREMENTS (Ta

13. FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Oct. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value hierarchy	Fair Value Measurements as of October 31, 2016 Total Level 1 Level 2 Level 3 Assets: Money market 489,826 489,826 – – Commodities-Futures 218,475 218,475 Total Assets $ 708,301 $ 489,826 218,475 – Liabilities: Commodities – Options (83,753 ) (83,753 ) Total Liabilities $ (83,753 ) – $ (83,753 ) – Fair Value Measurements as of October 31, 2015 Total Level 1 Level 2 Level 3 Assets: Money market 482,499 482,499 – – Total Assets $ 482,499 $ 482,499 – – Liabilities: Commodities – Options (134,613 ) (134,613 ) Commodities – Futures (349,222 ) – (349,222 ) – Total Liabilities $ (483,835 ) – $ (483,835 ) –

2. SUMMARY OF SIGNIFICANT ACC30

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Summary Of Significant Accounting Policies 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

2. SUMMARY OF SIGNIFICANT ACC31

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Summary Of Significant Accounting Policies Details 1
Option contracts	$ (83,753)	$ (134,613)
Future contracts	218,475	(349,222)
Commodities due to broker	$ 134,722	$ (438,835)

2. SUMMARY OF SIGNIFICANT ACC32

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Summary Of Significant Accounting Policies Details 2
Gross realized gains	$ 1,443,046	$ 1,292,471
Gross realized (losses)	(1,000,976)	(6,778,407)
Unrealized gains	618,558	1,089
Total	$ 1,060,628	$ (5,484,847)

2. SUMMARY OF SIGNIFICANT ACC33

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Summary Of Significant Accounting Policies Details Narrative
Interest earned	$ 41,176	$ 45,049
Prepaid green coffee	435,577	620,452
Advertising costs	$ 170,774	$ 157,922
Weighted average common shares outstanding: Basic and diluted	6,082,777	6,212,929
Shipping and handling costs	$ 1,506,000	$ 1,352,000
Cash in excess of FDIC insured limits	$ 1,539,429	$ 220,422

4. INVENTORIES (Details)

4. INVENTORIES (Details) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Inventories Details
Packed coffee	$ 1,804,633	$ 1,441,451
Green coffee	11,434,024	11,730,006
Roasters and parts	210,007	0
Packaging supplies	827,626	691,361
Totals	$ 14,276,290	$ 13,862,818

5. FORMATION OF SUBSIDIARY (Det

5. FORMATION OF SUBSIDIARY (Details) - USD ($)	12 Months Ended
	Oct. 31, 2016	Jun. 29, 2016	Oct. 31, 2015
Assets acquired:
Accounts receivable		$ 84,142
Inventory		269,565
Equipment		40,000
Customer list		120,000
Goodwill		577,905
Less: liabilities assumed		(72,044)
Net assets acquired:		1,019,568
Cash paid		819,564
Redeemable Common Stock	$ 200,004	$ 200,004	$ 0
Total	$ 1,019,568

5. FORMATION OF SUBSIDIARY (D36

5. FORMATION OF SUBSIDIARY (Details 1) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Formation Of Subsidiary Details 1
Pro forma sales	$ 80,132,616	$ 119,711,018
Pro forma net income (loss)	$ 2,290,084	$ (143,493)
Pro forma basic and diluted earnings per share	$ .38	$ (.23)
Basic and diluted weighted average common shares outstanding	6,082,777	6,212,929

6. MACHINERY AND EQUIPMENT (Det

6. MACHINERY AND EQUIPMENT (Details) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Machinery And Equipment Details
Improvements (15-30 years)	$ 202,285	$ 199,035
Machinery and equipment (7 years)	6,004,156	5,274,277
Furniture and fixtures (7 years)	883,250	612,944
Subtotal	7,089,691	6,086,256
Less, accumulated depreciation	4,819,828	4,241,256
Total	$ 2,269,863	$ 1,845,000

6. MACHINERY AND EQUIPMENT (D38

6. MACHINERY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Machinery And Equipment Details Narrative
Depreciation expense	$ 578,572	$ 537,890

7. LINE OF CREDIT (Details Narr

7. LINE OF CREDIT (Details Narrative) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Line Of Credit Details Narrative
Bank line of credit	$ 5,121,375	$ 4,317,121

8. INCOME TAXES (Details)

8. INCOME TAXES (Details) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Current
Federal	$ 219,562	$ (73,407)
State and local	155,083	36,610
Total Current	374,645	(36,797)
Deferred
Federal	941,150	(657,500)
State and local	50,125	(69,350)
Total Deferred	991,275	(726,850)
Income tax (benefit) expense	$ 1,365,920	$ (763,647)

8. INCOME TAXES (Details 1)

8. INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Income Taxes Details 1
Tax at the federal statutory rate of 34%	$ 1,263,427	$ (711,680)
Other permanent differences	(32,944)	(30,359)
State and local tax, net of federal benefit	135,437	(21,608)
Provision for income taxes	$ 1,365,920	$ (763,647)
Effective income tax rate	37.00%	(37.00%)

8. INCOME TAXES (Details 2)

8. INCOME TAXES (Details 2) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Current deferred tax assets:
Accounts receivable	$ 67,034	$ 53,605
Net operating loss		714,150
Unrealized loss		180,112
Inventory	64,384	49,853
Total current deferred tax asset	131,418	997,720
Non-current deferred tax assets:
Deferred rent	107,635	82,666
Deferred compensation	227,947	179,614
Total non-current deferred tax asset	335,947	262,280
Total deferred tax asset	467,000	1,260,000
Current deferred tax liability:
Unrealized gain	49,873	0
Non-current deferred tax liability:
Fixed assets	503,052	354,650
Total deferred tax liabilities	$ 552,925	$ 354,650

9. COMMITMENTS AND CONTINGENC43

9. COMMITMENTS AND CONTINGENCIES (Details)	Oct. 31, 2016USD ($)
Commitments And Contingencies Details
2,017	$ 300,123
2,018	260,683
2,019	262,413
2,020	271,051
2,021	279,051
Thereafter	610,416
Total	$ 1,983,737

11. RELATED PARTY TRANSACTIONS

11. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Related Party Transactions Details Narrative
Contract labor expense from partner	$ 459,345	$ 422,039
Purchases from related party vendor	8,475,000	22,143,000
Accounts payable from related party vendor	237,000	586,000
Deferred compensation liability	$ 489,668	$ 482,499

13. FAIR VALUE MEASUREMENTS (De

13. FAIR VALUE MEASUREMENTS (Details) - USD ($)	Oct. 31, 2016	Oct. 31, 2015
Assets:
Money market	$ 489,826	$ 482,499
Commodities-Futures	218,475
Total Assets	708,301	482,499
Liabilities:
Commodities Options	(83,753)	(134,613)
Commodities-Futures		(349,222)
Total Liabilities	(83,753)	(483,835)
FairValueInputsLevel1Member
Assets:
Money market	489,826	482,499
Commodities-Futures	0
Total Assets	489,826	482,499
Liabilities:
Commodities Options	0	0
Commodities-Futures		0
Total Liabilities	0	0
FairValueInputsLevel2Member
Assets:
Money market	0	0
Commodities-Futures	218,475
Total Assets	218,475	0
Liabilities:
Commodities Options	(83,753)	(134,613)
Commodities-Futures		(349,222)
Total Liabilities	(83,753)	(483,835)
FairValueInputsLevel3Member
Assets:
Money market	0	0
Commodities-Futures	0
Total Assets	0	0
Liabilities:
Commodities Options	0	0
Commodities-Futures		0
Total Liabilities	$ 0	$ 0