Coffee Holding Co. Files Q3 2024 10-Q

TL;DR

COFFEE HOLDING CO INC (JVA) filed their 10-Q for 7/31/24. Check financials.

AI Summary

Coffee Holding Co., Inc. filed its 10-Q for the period ending July 31, 2024. The company, previously known as Transpacific International Group Corp., is based in Staten Island, NY, and operates in the miscellaneous food preparations sector. The filing covers financial information for the third quarter and nine months of fiscal year 2024.

Why It Matters

This filing provides investors with an update on Coffee Holding Co.'s financial performance and position as of July 31, 2024, crucial for understanding its current business health.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks highlighted.

Key Players & Entities

• Coffee Holding Co., Inc. (company) — Filer of the 10-Q
• Transpacific International Group Corp. (company) — Former name of Coffee Holding Co., Inc.
• July 31, 2024 (date) — End of the reporting period
• Staten Island, NY (location) — Business and mailing address

FAQ

Key Financial Figures

• $0.001 — of each class Common Stock, par value $0.001 per share Trading Symbol(s) JVA N

Filing Documents

• form10-q.htm (10-Q) — 922KB
• ex31-1.htm (EX-31.1) — 17KB
• ex32-1.htm (EX-32.1) — 10KB
• 0001493152-24-036225.txt ( ) — 3756KB
• jva-20240731.xsd (EX-101.SCH) — 23KB
• jva-20240731_cal.xml (EX-101.CAL) — 52KB
• jva-20240731_def.xml (EX-101.DEF) — 63KB
• jva-20240731_lab.xml (EX-101.LAB) — 251KB
• jva-20240731_pre.xml (EX-101.PRE) — 189KB
• form10-q_htm.xml (XML) — 449KB

SIGNATURES

SIGNATURES 11 PART I. FINANCIAL INFORMATION COFFEE HOLDING CO., INC. CONDENSED CONSOLIDATED BALANCE SHEETS July 31, 2024 October 31, 2023 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,098,158 $ 2,733,977 Accounts receivable, net of allowances for credit losses of $ 144,000 for 2024 and 2023 7,449,547 7,983,032 Receivable from sale of investment — 3,150,000 Inventories 14,506,015 18,986,539 Due from broker 1,263,603 345,760 Prepaid expenses and other current assets 213,443 413,752 Prepaid and refundable income taxes 311,306 365,876 TOTAL CURRENT ASSETS 26,842,072 33,978,936 Building, machinery, and equipment, net 3,329,576 3,494,450 Customer list and relationships, net of accumulated amortization of $ 278,125 and $ 310,383 for 2024 and 2023, respectively 161,875 184,750 Trademarks and tradenames 327,000 327,000 Equity method investments 39,676 39,676 Right-of-use asset 1,192,834 2,696,159 Deferred income tax assets, net 1,017,453 1,341,407 Deposits and other assets 141,529 129,523 TOTAL ASSETS $ 33,052,015 $ 42,191,901 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 4,535,476 $ 5,206,442 Line of credit 1,900,000 9,620,000 Due to broker 275,276 292,407 Note payable - current portion — 4,200 Lease liabilities - current portion 636,534 255,625 TOTAL CURRENT LIABILITIES 7,347,286 15,378,674 Note payable, net of current 2,860 3,034 Lease liabilities, net of current 903,821 2,974,579 Deferred compensation payable 126,978 120,523 TOTAL LIABILITIES 8,380,945 18,476,810 Commitments and Contingencies (Note 8) - - STOCKHOLDERS' EQUITY: 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 202

financial statements are issued

financial statements are issued. F-5 COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 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 its annual consolidated financial statements for the fiscal year ended October 31, 2023. 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 its 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, 2023 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, 2023 and notes thereto included in the Company's fiscal 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC") on February 9, 2024 (the "2023 10-K"). The results of operations and cash flows for the

financial statements and related disclosures

financial statements and related disclosures. Recent Accounting Pronouncements – Not Yet Adopted In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements – Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This standard affects a wide variety of Topics in the Codification. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. Early adoption is prohibited. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting – Improving Reportable Segment Disclosures (Topic 280)." The standard is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The standard requires disclosure to include significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The standard also requires all annual disclosures currently required by ASC Topic 280 to be included in interim periods. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures," a final standard on improvements to income tax disclosures, The standard require

financial statements and related disclosures

financial statements and related disclosures. Note 3 - Inventories Inventories at July 31, 2024 and October 31, 2023 consisted of the following: Schedule of Inventories July 31, 2024 October 31, 2023 Packed coffee $ 2,076,739 $ 3,582,935 Green coffee 10,232,622 13,151,993 Roasters and parts 476,313 537,108 Packaging supplies 1,720,341 1,714,503 Totals $ 14,506,015 $ 18,986,539 Inventories $ 14,506,015 $ 18,986,539 F-7 COFFEE HOLDING CO., INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 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 level 1 investments 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 impact earnings volatility in any particular period. The Company records all open contract positions on the condensed 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, realized and unrealized holding gains and losses are included in the statement of operations as a component of cost of sales. The Company recorded realize

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