COFFEE HOLDING CO INC
For the period ended Jul 31, 2025. Filed Sep 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2025 · Filed Sep 12, 2025
JVA$4.86+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-30; filed 2025-06-13.
0001641172-25-014979
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-07-31; filed 2025-09-12.
0001493152-25-013137
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 46 previous paragraphs and 42 current paragraphs.
20 unchanged; 17 reworded; 5 added; 8 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Nine Months Ended July 31, 2025, Compared to the Nine Months Ended July 31, 2024
Current report
***Net Sales.***Net sales totaled $68,535,860 for the nine months ended July 31, 2025, an increase of $11,186,383, or 20%, from $57,349,477 for the nine months ended July 31, 2024. The increase in net sales compared to the prior period was primarily attributable to higher sales of our private-label brands, Café Caribe and Café Supremo, as well as increased sales of green coffee beans to both wholesale and retail customers.
Current report
***Gross Profit.***Gross profit for the nine months ended July 31, 2025 amounted to $13,281,881 or 19.4% of net sales, as compared to $11,110,343 or 19.4% of net sales, for the nine months ended July 31, 2024. The increase in gross profit was primarily attributable to higher sales volumes of our private-label and branded products, as well as green coffee beans, partially offset by the impact of tariffs on imported coffee. Gross profit also reflects the effect of our coffee futures and options trading activity, which resulted in a net gain of approximately $687,000 for the nine-month period ended July 31, 2025 that was recognized in cost of sales (see Note 5).
Current report
***Operating Expenses.***Total operating expenses increased by $2,057,167 to $11,897,386 for the nine months ended July 31, 2025, from $9,840,219 for the nine months ended July 31, 2024. The year-over-year increase reflects the impact of the Second Empire Acquisition, which added approximately $2.2 million to operating expenses during the nine-month period.
Current report
For the nine months ended July 31, 2025, investing activities used cash of $1,254,535, compared to cash provided of $2,879,320 in the nine months ended July 31, 2024. The year-over-year change primarily reflects proceeds of $3,150,000 from the sale of an investment in the prior-year period, which did not recur in fiscal 2025.
Removed paragraphs (8)
Previous report
Six Months Ended April 30, 2025, Compared to the Six Months Ended April 30, 2024
Previous report
***Net Sales.***Net sales totaled $44,625,346 for the six months ended April 30, 2025, an increase of $6,089,031, or 16%, from $38,536,315 for the six months ended April 30, 2024. The increase in net sales was due to increased sales of our private label and Cafe Caribe and Cafe Supremo products brands to our wholesale and retail customers.
Previous report
***Operating Expenses.***Total operating expenses increased by $1,037,134 to $7,671,152 for the six months ended April 30, 2025 from $6,634,018 for the six months ended April 30, 2024. Selling and administrative expenses increased by $896,956 and officers’ salaries increased by $140,178. Operating expenses increased for the six months ended April 30, 2025 compared to the six months ended April 30, 2024 primarily due to the acquisition of Second Empire adding approximately $1.3 to operating expenses for the six months ended.
Previous report
On April 25, 2017, we and one of our subsidiaries, Organic Products Trading Company, LLC (“OPTCO” and together with us, 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”), which was later acquired by Webster Financial Corp. (“Webster”), which consolidated (i) the financing agreement between us and Sterling, dated February 17, 2009, as modified, and (ii) the financing agreement between us, as guarantor, OPTCO and Sterling, dated March 10, 2015, amongst other things.
Previous report
On March 17, 2022, we reached an agreement for a new loan modification agreement and credit facility which extended the maturity date to June 29, 2022. The facility was then approved for a two-year extension. All other terms of the A&R Loan Agreement and A&R Loan Facility remained the same.
Previous report
On June 28, 2022, we 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, and (ii) changed the interest rate per annum to SOFR plus 1.75% (with such interest rate not to be lower than 3.50%). All other terms of the A&R Loan Agreement and A&R Loan Facility remained the same.
Previous report
On March 15, 2023, the A&R Loan Agreement was also modified to, among other things: (i) provide for a requirement for subordination agreements, if necessary, (ii) change the terms of transactions with affiliates from a dollar limitation to allowable in the ordinary course of business, and (iii) establish a new covenant for a fixed charge coverage ratio. As further explained in Note 6 to the unaudited condensed consolidated financial statements, we are required to maintain certain financial covenants with respect to our line of credit agreement. We were not in compliance with these requirements as of October 31, 2023. We have since received a waiver from the lender on May 24, 2024 and are in compliance with all requirements.
Previous report
For the six months ended April 30, 2025, our investing activities used cash of $992,907 as compared to the six months ended April 30, 2024 when net cash provided in investing activities was $2,925,927. The decrease in our cash provided by investing activities was due to the proceeds from the sale of an investment of $3,150,000 during the three months ended April 30, 2024.
Reworded paragraphs (17)
Previous wording
There have been no changes to our critical accounting policies during the three and six months ended April 30, 2025. Critical accounting policies and the significant estimates in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under “Critical Accounting Policies and Estimates” in “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as in our consolidated financial statements and notes thereto, each in our 2024 10-K.
Current wording
There have been no changes to our critical accounting policies during the three and nine months ended July 31, 2025. Critical accounting policies and the significant estimates in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under “Critical Accounting Policies and Estimates” in “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as in our consolidated financial statements and notes thereto, each in our 2024 10-K.
Previous wording
Net Sales. Net sales totaled $23,320,061 for the three months ended April 30, 2025, an increase of $4,324,148, or 23%, from $18,995,913 for the three months ended April 30, 2024. The increase in net sales was due to increased sales of our private label and Cafe Caribe and Cafe Supremo products brands to our wholesale and retail customers.
Current wording
Net Sales. Net sales totaled $23,910,514 for the three months ended July 31, 2025, an increase of $5,097,352, or 27%, from $18,813,162 for the three months ended July 31, 2024. The increase in net sales was due to increased sales of our private label, Cafe Caribe, Cafe Supremo brands, and green coffee beans to our wholesale and retail customers.
Previous wording
Cost of Sales. Cost of sales for the three months ended April 30, 2025 was $18,901,189, or 81.1% of net sales, as compared to $15,291,933, or 80.5% of net sales, for the three months ended April 30, 2024, an increase of $3,609,256. Cost of sales consists primarily of the cost of green coffee and packaging materials. The increase in cost of sales relates to the increase in net sales of our private label and branded products to both wholesale and retail customers.
Current wording
Cost of Sales. Cost of sales for the three months ended July 31, 2025 was $20,997,777, or 87.8% of net sales, as compared to $14,887,098, or 79.1% of net sales, for the three months ended July 31, 2024, an increase of $6,110,679. Cost of sales consists primarily of the cost of green coffee and packaging materials. The increase in cost of sales was driven by higher tariffs on imported coffee as well as a net trading loss of approximately $770,000 or 14 cents a share, related to coffee futures and options contracts, which are recorded in cost of sales in accordance with our accounting policy for commodities held by broker (see Note 5). In addition, the increase reflects higher net sales of our private label, branded products, and green wholesale coffee across both wholesale and retail channels.
Previous wording
Gross Profit. Gross profit for the three months ended April 30, 2025 amounted to $4,418,872 or 18.9% of net sales, as compared to $3,703,980 or 19.5% of net sales, for the three months ended April 30, 2024. The increase in gross profits on a percentage and dollar basis was attributable to the factors listed above.
Current wording
Gross Profit. Gross profit for the three months ended July 31, 2025 amounted to $2,912,737 or 12.2% of net sales, as compared to $3,926,064 or 20.9% of net sales, for the three months ended July 31, 2024. The decrease in gross profits on a percentage and dollar basis was attributable to the factors listed above.
Previous wording
Operating Expenses. Total operating expenses decreased by $240,373 to $3,530,257 for the three months ended April 30, 2025 from $3,770,630 for the three months ended April 30, 2024. Selling and administrative expenses decreased by $342,595 and officers’ salaries increased by $102,222. The decrease in selling and administrative expenses was due to lower payroll costs and professional fees.
Current wording
Operating Expenses. Total operating expenses increased by $801,687 to $4,007,888 for the three months ended July 31, 2025 from $3,206,201 for the three months ended July 31, 2024. The increase in selling and administrative expenses was primarily due to the acquisition of Empire Coffee Company.
Previous wording
Other Income (Expense). Other income for the three months ended April 30, 2025 was $17,487, a decrease of $15,336 from other income of $32,823 for the three months ended April 30, 2024. The change was attributable to a decrease in interest expense of $55,701.
Current wording
Other Income (Expense). Other expense for the three months ended July 31, 2025 was $92,683, a decrease of $258,865 from other income of $166,182 for the three months ended July 31, 2024. The change was mainly attributable to a decrease in gain on extinguishment of lease of $210,567.
Previous wording
Income Taxes. Our expense for income taxes for the three months ended April 30, 2025 totaled $227,073 compared to our benefit of $77,632 for the three months ended April 30, 2024. The change was primarily attributable to the difference in the income for the quarter ended April 30, 2025, versus the loss in the quarter ended April 30, 2024.
Current wording
Income Taxes. Our expense for income taxes for the three months ended July 31, 2025 was $17,584 compared to our expense of $259,249 for the three months ended July 31, 2024. The change was primarily attributable to the difference in the income for the quarter ended July 31, 2024, versus the loss in the quarter ended July 31, 2025.
Previous wording
Net Income (Loss). We had net income of $644,055, or $0.11 per share basic and diluted, for the three months ended April 30, 2025, compared to a net loss of $21,841, or $0.00 per share basic and diluted, for the three months ended April 30, 2024.
Current wording
Net Income (Loss). We had net loss of $1,205,413, or ($0.21) per share basic and diluted, for the three months ended July 31, 2025, compared to a net income of $626,796, or $0.11 per share basic and diluted, for the three months ended July 31, 2024. The decrease in profitability was primarily due to higher cost of sales, which included the impact of tariffs on imported coffee and a net trading loss on coffee-related futures and options contracts (see Note 5), as well as increased operating expenses.
Previous wording
***Cost of Sales.***Cost of sales for the six months ended April 30, 2025 was $34,474,548, or 77.3% of net sales, as compared to $31,352,036, or 81.4% of net sales, for the six months ended April 30, 2024. Cost of sales consists primarily of the cost of green coffee and packaging materials and realized and unrealized gains or losses on hedging activity. This increase in gross margin was due to favorable green coffee prices that were initiated during the six months ended April 30, 2025, for our roasted coffee customers and the cost of goods sold was favorably impacted by improved inventory management, along with increased prices to both our wholesale and retail customers, reflecting higher market conditions. Additionally, net sales increased due to higher sales of our private label and branded products to both wholesale and retail customers.
Current wording
***Cost of Sales.***Cost of sales for the nine months ended July 31, 2025, was $55,253,979, or 80.6% of net sales, as compared to $46,239,134, or 80.6% of net sales, for the nine months ended July 31, 2024. Cost of sales consists primarily of the cost of green coffee and packaging materials and realized and unrealized gains or losses on hedging activity. The increase of $9,014,845 was primarily attributable to higher sales volumes of our private label and branded products, as well as the impact of tariffs on imported coffee. In addition, cost of sales reflects the effect of our futures and options trading activity, which resulted in a net gain of approximately $687,000 for the nine-month period ended July 31, 2025, that was recognized in cost of sales in accordance with our accounting policy for commodities held by broker (see Note 5).
Previous wording
***Other Income (Expense).***Other expense for the six months ended April 30, 2025 was $49,170, a decrease of $107,203 from $156,373 for the six months ended April 30, 2024. The decrease was attributable to a decrease in interest income of $34,390 and a decrease in our interest expense of $141,564, during the six months ended April 30, 2024.
Current wording
***Other Income (Expense).***Other expense for the nine months ended July 31, 2025 was $141,848, a decrease of $151,657 from other income of $9,809 for the nine months ended July 31, 2024. The decrease was mainly attributable to a decrease in gain on extinguishment of lease of $210,538 and offset by decrease in our interest expense of $93,522, during the nine months ended July 31, 2024.
Previous wording
***Income Taxes.***Our expense for income taxes for the six months ended April 30, 2025 totaled $633,165 compared to an expense of $64,705 for the six months ended April 30, 2024. The change was primarily attributable to the difference in the income for the six months ended April 30, 2025 versus the income in the six months ended April 30, 2024.
Current wording
***Income Taxes.***Our expense for income taxes for the nine months ended July 31, 2025 totaled $650,749 compared to an expense of $323,954 for the nine months ended July 31, 2024. The change was primarily attributable to the difference in the income for the nine months ended July 31, 2025 versus the income in the nine months ended July 31, 2024.
Previous wording
***Net (Loss) Income.***We had net income of $1,797,311 or $0.31 per share basic and diluted, for the six months ended April 30, 2025 compared to net income of $329,183, or $0.06 per share basic and diluted for the six months ended April 30, 2024. The increase in net income was due primarily to the reasons described above.
Current wording
***Net (Loss) Income.***We had net income of $591,898 or $0.10 per share basic and diluted, for the nine months ended July 31, 2025 compared to net income of $955,979, or $0.17 per share basic and diluted for the nine months ended July 31, 2024. The decrease in net income was primarily due to higher operating expenses associated with the Second Empire Acquisition, the impact of tariffs on imported coffee, and unrealized trading losses during the third quarter (see Note 5).
Previous wording
As of April 30, 2025, we had working capital of $25,831,578, which represented a $965,841 increase from our working capital of $21,526,983 as of October 31, 2024. Our working capital increased primarily due to the $1,509,920 increase in inventory, a $1,221,965 increase in due from broker, and a $779,055 increase in accounts receivable offset by a $3,000,000 increase on the line of credit.
Current wording
As of July 31, 2025, we had working capital of $20,979,529, a decrease of $547,454 compared to $21,526,983 as of October 31, 2024. The decrease in working capital was primarily attributable to a $2,339,316 increase in accounts payable and accrued expenses, a $6,250,000 increase in borrowings under our line of credit, and a $1,115,244 increase in due to broker. The decrease was partially offset by a $5,979,428 increase in inventory, a $2,978,120 increase in due from broker, and a $717,207 increase in accounts receivable.
Previous wording
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 our line of credit was $3,000,000 and $0 as of April 30, 2025 and October 31, 2024, respectively.
Current wording
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 our line of credit was $6,250,000 and $0 as of July 31, 2025 and October 31, 2024, respectively.
Previous wording
For the six months ended April 30, 2025, our operating activities used cash of $1,555,954 as compared to the six months ended April 30, 2024 when operating activities provided cash of $3,390,694. The decrease in cash flow from operations was primarily due to the increase in inventory from October 31, 2024 to April 30, 2025. Non-cash charges, including depreciation and amortization, unrealized gain on commodities, amortization of right-of-use assets, and deferred income taxes, resulted in cash used of $603,581 for the six months ended April 30, 2025 compared to non-cash charges provided of $24,165 for the six months ended April 30, 2024.
Current wording
For the nine months ended July 31, 2025, operating activities used cash of $5,396,716, compared to cash provided by operating activities of $5,209,235 for the nine months ended July 31, 2024. The decrease in operating cash flow was primarily attributable to an increase in inventory between October 31, 2024 and July 31, 2025. The increase in inventory was primarily due to higher purchasing activity to support our anticipated sales growth. Non-cash charges, including depreciation and amortization, unrealized gains and losses on commodities, amortization of right-of-use assets, and deferred income taxes, resulted in cash used of $1,102,564 in the nine months ended July 31, 2025, compared to cash used of $159,890 in the prior-year period.
Previous wording
For the six months ended April 30, 2025, our financing activities provided net cash of $3,000,000 compared to net cash used in financing activities of $6,622,909 for the six months ended April 30, 2024. The change in cash flow from financing activities for the six months ended April 30, 2025 was primarily due to our credit line activity.
Current wording
For the nine months ended July 31, 2025, financing activities provided net cash of $6,250,000, compared to net cash used of $7,724,374 in the nine months ended July 31, 2024. The change was primarily due to increased borrowings under our line of credit in the current year.
Previous wording
We expect to fund our operations, including paying our liabilities, funding capital expenditures and making required payments on our indebtedness, through at least the next twelve months from the date these condensed consolidated financial statements are issued, with cash provided by operating activities and the use of our credit facility. In addition, an increase in eligible accounts receivable and inventory would permit us to make additional borrowings under our line of credit.
Current wording
We expect to fund our operations, including working capital needs, capital expenditures, and required debt service, for at least the next twelve months from the date these condensed consolidated financial statements are issued, through a combination of cash provided by operating activities and availability under our credit facility. In addition, an increase in eligible accounts receivable and inventory would permit us to make additional borrowings under our line of credit.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
***Gross Profit.***Gross profit for the six months ended April 30, 2025 amounted to $10,150,798 or 22.8% of net sales, as compared to $7,184,279 or 18.6% of net sales, for the six months ended April 30, 2024. The increase in gross profits on a percentage basis was attributable to the factors listed above.