We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Coffee Holdings Co | NASDAQ:JVA | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.03 | -2.27% | 1.29 | 1.20 | 1.32 | 1.35 | 1.28 | 1.34 | 15,857 | 23:00:05 |
☒
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
☐
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
Nevada
|
|
11-2238111
|
(State
or other jurisdiction of incorporation or
organization)
|
|
(I.R.S.
Employer Identification No.)
|
|
|
|
3475 Victory Boulevard, Staten Island, New York
|
|
10314
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
Title
of each class:
|
|
Name of
each exchange on which registered:
|
Common Stock, Par Value $0.001 Per Share
|
|
NASDAQ Capital Market
|
Large
accelerated filer ☐
|
Non-accelerated
filer ☐
|
Accelerated
filer ☐
|
Smaller
Reporting Company ☒
|
|
|
Page
|
PART
I
|
|
1
|
|
|
|
ITEM
1.
|
BUSINESS
|
1
|
ITEM
1A.
|
RISK
FACTORS
|
7
|
ITEM
1B.
|
UNRESOLVED
STAFF COMMENTS
|
14
|
ITEM
2.
|
PROPERTIES
|
14
|
ITEM
3.
|
LEGAL
PROCEEDINGS
|
14
|
ITEM
4.
|
MINE
SAFETY DISCLOSURES
|
14
|
|
|
|
PART
II
|
|
15
|
|
|
|
ITEM
5.
|
MARKET
FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES
|
15
|
ITEM
6.
|
SELECTED
FINANCIAL DATA
|
16
|
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
16
|
ITEM
7A.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
21
|
ITEM
8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA
|
22
|
ITEM
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
22
|
ITEM
9A.
|
CONTROLS
AND PROCEDURES
|
22
|
ITEM
9B.
|
OTHER
INFORMATION
|
23
|
|
|
|
PART
III
|
|
24
|
|
|
|
ITEM
10.
|
DIRECTORS,
EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
24
|
ITEM
11.
|
EXECUTIVE
COMPENSATION
|
24
|
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
24
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
|
24
|
ITEM
14.
|
PRINCIPAL
ACCOUNTING FEES AND SERVICES
|
24
|
|
|
|
PART
IV
|
|
25
|
|
|
|
ITEM
15.
|
EXHIBITS,
FINANCIAL STATEMENT SCHEDULES
|
25
|
|
|
|
SIGNATURES
|
|
28
|
|
|
|
INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS
|
F-1
|
|
High
|
Low
|
|
2016
|
|
1st
Quarter
|
$
4.90
|
$
3.00
|
2nd
Quarter
|
$
4.49
|
$
3.05
|
3rd
Quarter
|
$
6.15
|
$
3.50
|
4th
Quarter
|
$
6.00
|
$
5.01
|
|
2015
|
|
1st
Quarter
|
$
6.20
|
$
4.50
|
2nd
Quarter
|
$
5.38
|
$
4.39
|
3rd
Quarter
|
$
5.50
|
$
4.70
|
4th
Quarter
|
$
5.07
|
$
3.74
|
|
October 31,
2016
|
Customer list and
relationships, net
|
$
219,750
|
Trademarks
|
180,000
|
Goodwill
|
1,017,905
|
|
$
1,417,655
|
Exhibit No.
|
|
Description
|
2.1
|
|
Agreement
and Plan of Merger, dated October 31, 1997, by and among
Transpacific International Group Corp. and Coffee Holding Co., Inc.
(incorporated herein by reference to Exhibit 2 to Post-Effective
Amendment No. 1 to the Company’s Registration Statement on
Form SB-2 filed on November 10, 1997 (File No.
333-00588-NY)).
|
|
|
|
2.2
|
|
Asset
Purchase Agreement, dated February 4, 2004, by and between Coffee
Holding Co., Inc. and Premier Roasters LLC (incorporated herein by
reference to Exhibit 2.1 to the Company’s Current Report on
Form 8-K filed on February 20, 2004 (File No.
333-00588-NY)).
|
|
|
|
3.1
|
|
Amended
and Restated Articles of Incorporation of the Company (incorporated
herein by reference to Exhibit 3.1 to the Company’s
Registration Statement on Form 8-A the “2005 Registration
Statement” filed on May 2, 2005 (File No.
001-32491)).
|
|
|
|
3.2
|
|
ByLaws
of the Company (incorporated herein by reference to Exhibit 3.2 to
the 2005 Registration Statement (File No. 001-32491)).
|
|
|
|
4.1
|
|
Form of
Stock Certificate of the Company (incorporated herein by reference
to the Company’s Registration Statement on Form SB-2 filed on
June 24, 2004 (Registration No. 333-116838)).
|
|
|
|
10.1
|
|
Loan
and Security Agreement, dated February 17, 2009, by and between
Sterling National Bank and Coffee Holding Co., Inc. (incorporated
herein by reference to Exhibit 10.21 to the Company’s Current
Report on Form 8-K filed on February 23, 2009 (File No.
001-32491)).
|
|
|
|
10.2
|
|
Lease,
dated February 4, 2004, by and between Coffee Holding Co., Inc. and
the City of La Junta, Colorado (incorporated herein by reference to
Exhibit 10.12 to Amendment No. 1 to the Company’s
Registration Statement on Form SB-2/A filed on August 12, 2004
(Registration No. 333-116838)).
|
|
|
|
10.3
|
|
Trademark
License Agreement, dated February 4, 2004, between Del Monte
Corporation and Coffee Holding Co., Inc. (incorporated herein by
reference to Exhibit 10.13 to the Company’s Quarterly Report
on Form 10-QSB/A for the quarter ended April 30, 2004 filed on
August 26, 2004 (File No. 333-00588-NY)) as amended by that First
Amendment to Trademark License Agreement, dated January 4,
2013.
|
10.4
|
|
First
Amendment to Trademark License Agreement, dated January 4, 2013, by
and between Del Monte Corporation and Coffee Holding Co., Inc.
Certain portions of Exhibit 10.4 are omitted based upon approval of
the Company’s request for confidential treatment through
January 28, 2023. The omitted portions were filed
separately with the SEC on a confidential basis (incorporated
herein by reference to Exhibit 10.4 to the Company’s Annual
Report on Form 10-K for the year ended October 31, 2012 filed on
January 28, 2013 (File No. 001-32491)).
|
|
|
|
10.5
|
|
Amended
and Restated Employment Agreement, dated April 11, 2008, by and
between Coffee Holding Co., Inc. and Andrew Gordon (incorporated
herein by reference to Exhibit 10.14 of the Company’s Current
Report on Form 8-K filed on April 16, 2008 (File No.
001-32491)).
|
|
|
|
10.6
|
|
Amended
and Restated Employment Agreement, dated April 11, 2008, by and
between Coffee Holding Co., Inc. and David Gordon (incorporated
herein by reference to Exhibit 10.15 of the Company’s Current
Report on Form 8-K filed on April 16, 2008 (File No.
001-32491)).
|
|
|
|
10.7
|
|
Coffee
Holding Co., Inc. Non-Qualified Deferred Compensation Plan
(incorporated herein by reference to Exhibit 10.19 of the
Company’s Quarterly Report on Form 10-QSB filed on June 14,
2005 (File No. 001-32491)).
|
|
|
|
10.8
|
|
Contract
of Sale, dated April 14, 2009, by and between Coffee Holding Co.,
Inc. and 4401 1st Ave LLC (incorporated herein by reference to
Exhibit 10.7 to the Company's Annual Report on Form 10-K filed on
January 28, 2010 (File No. 001-32491)).
|
|
|
|
10.9
|
|
First
Amendment to Loan and Security Agreement between Coffee Holding
Co., Inc. and Sterling National Bank, dated July 23, 2010
(incorporated herein by reference to Exhibit 103 to the
Company’s Annual Report on Form 10-K filed on January 31,
2011 (File No. 001-32491)).
|
|
|
|
10.10
|
|
Placement
Agency Agreement, dated as of September 27, 2011, by and among the
Company, the selling stockholders named therein, Roth Capital
Partners, LLC and Maxim Group, LLC (incorporated herein by
reference to Exhibit 10.1 to the Company’s Report on Form 8-K
filed on September 27, 2011 (File No. 001-32491)).
|
|
|
|
10.11
|
|
Subscription
Agreement, dated as of September 27, 2011, by and between the
Company, the selling stockholders named therein and each of the
purchasers identified on the signature pages thereto (incorporated
herein by reference to Exhibit 10.2 to the Company’s Current
Report on Form 8-K filed on September 27, 2011 (File No.
001-32491)).
|
|
|
|
10.12
|
|
2013
Equity Compensation Plan (incorporated by reference to Annex A of
the Company’s Definitive Proxy Statement filed on February
28, 2013 (File No. 13653320)).
|
|
|
|
10.13
|
|
Loan
Modification Agreement, dated as of May 10, 2013, by and between
Sterling National Bank and Coffee Holding Co., Inc. (incorporated
herein by reference to Exhibit 10.11 to the Company’s Annual
Report on Form 10-K filed on January 24, 2014 (File No.
001-32491)).
|
|
|
|
10.14
|
|
Loan
Modification Agreement, dated March 10, 2015, by and between
Sterling National Bank and Coffee Holding Co., Inc. (incorporated
herein by reference to Exhibit 10.1 to the Company’s Current
Report on Form 8-K filed on March 31, 2015).
|
|
|
|
10.15
|
|
Loan
Agreement, dated March 10, 2015, by and between Sterling National
Bank and Organic Products Trading Company LLC (incorporated herein
by reference to Exhibit 10.2 to the Company’s Current Report
on Form 8-K filed on March 31, 2015).
|
|
|
|
10.16
|
|
Security
Agreement, dated March 10, 2015, by and between Sterling National
Bank and Coffee Holding Co., Inc. (incorporated herein by reference
to Exhibit 10.3 to the Company’s Current Report on Form 8-K
filed on March 31, 2015).
|
|
|
|
10.17
|
|
Guarantee,
dated March 10, 2015, by Coffee Holding Co., Inc. (incorporated
herein by reference to Exhibit 10.4 to the Company’s Current
Report on Form 8-K filed on March 31, 2015).
|
|
|
|
21.1
|
|
List of
Significant Subsidiaries.*
|
|
|
|
31.1
|
|
Principal
Executive Officer and Principal Financial Officer’s
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.*
|
|
|
|
32.1
|
|
Principal
Executive Officer and Principal Financial Officer’s
Certification furnished pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.*
|
|
|
|
101.INS
|
|
XBRL
Instance Document.
|
|
|
|
101.SCH
|
|
XBRL
Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL
Taxonomy Extension Calculation Linkbase Document.
|
101.LAB
|
|
XBRL
Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL
Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL
Taxonomy Extension Definition Linkbase Document.
|
|
COFFEE
HOLDING CO., INC.
|
|
|
|
|
|
|
|
By:
|
/s/
Andrew
Gordon
|
|
|
|
Andrew
Gordon
|
|
|
|
President, Chief
Executive Officer
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/Andrew
Gordon
|
|
President,
Chief Executive Officer, Chief Financial Officer, Treasurer
and
|
|
January
27, 2017
|
Andrew
Gordon
|
|
Director
|
|
|
|
|
(principal
executive officer and principal financial and accounting
officer)
|
|
|
|
|
|
|
|
/s/
David Gordon
|
|
Executive
Vice President – Operations, Secretary and
Director
|
|
January
27, 2017
|
David
Gordon
|
|
|
|
|
|
|
|
|
|
/s/
Gerard DeCapua
|
|
Director
|
|
January
27, 2017
|
Gerard
DeCapua
|
|
|
|
|
|
|
|
|
|
/s/
Daniel Dwyer
|
|
Director
|
|
January
27, 2017
|
Daniel
Dwyer
|
|
|
|
|
|
|
|
|
|
/s/
Barry Knepper
|
|
Director
|
|
January
27, 2017
|
Barry
Knepper
|
|
|
|
|
|
|
|
|
|
/s/
John Rotelli
|
|
Director
|
|
January
27, 2017
|
John
Rotelli
|
|
|
|
|
|
|
|
|
|
/s/
George F. Thomas
|
|
Director
|
|
January
27, 2017
|
George
F. Thomas
|
|
|
|
|
Exhibit No.
|
|
Description
|
2.1
|
|
Agreement
and Plan of Merger, dated October 31, 1997, by and among
Transpacific International Group Corp. and Coffee Holding Co., Inc.
(incorporated herein by reference to Exhibit 2 to Post-Effective
Amendment No. 1 to the Company’s Registration Statement on
Form SB-2 filed on November 10, 1997 (File No.
333-00588-NY)).
|
|
|
|
2.2
|
|
Asset
Purchase Agreement, dated February 4, 2004, by and between Coffee
Holding Co., Inc. and Premier Roasters LLC (incorporated herein by
reference to Exhibit 2.1 to the Company’s Current Report on
Form 8-K filed on February 20, 2004 (File No.
333-00588-NY)).
|
|
|
|
3.1
|
|
Amended
and Restated Articles of Incorporation of the Company (incorporated
herein by reference to Exhibit 3.1 to the Company’s
Registration Statement on Form 8-A the “2005 Registration
Statement” filed on May 2, 2005 (File No.
001-32491)).
|
|
|
|
3.2
|
|
ByLaws
of the Company (incorporated herein by reference to Exhibit 3.2 to
the 2005 Registration Statement (File No. 001-32491)).
|
|
|
|
4.1
|
|
Form of
Stock Certificate of the Company (incorporated herein by reference
to the Company’s Registration Statement on Form SB-2 filed on
June 24, 2004 (Registration No. 333-116838)).
|
|
|
|
10.1
|
|
Loan
and Security Agreement, dated February 17, 2009, by and between
Sterling National Bank and Coffee Holding Co., Inc. (incorporated
herein by reference to Exhibit 10.21 to the Company’s Current
Report on Form 8-K filed on February 23, 2009 (File No.
001-32491)).
|
|
|
|
10.2
|
|
Lease,
dated February 4, 2004, by and between Coffee Holding Co., Inc. and
the City of La Junta, Colorado (incorporated herein by reference to
Exhibit 10.12 to Amendment No. 1 to the Company’s
Registration Statement on Form SB-2/A filed on August 12, 2004
(Registration No. 333-116838)).
|
|
|
|
10.3
|
|
Trademark
License Agreement, dated February 4, 2004, between Del Monte
Corporation and Coffee Holding Co., Inc. (incorporated herein by
reference to Exhibit 10.13 to the Company’s Quarterly Report
on Form 10-QSB/A for the quarter ended April 30, 2004 filed on
August 26, 2004 (File No. 333-00588-NY)) as amended by that First
Amendment to Trademark License Agreement, dated January 4,
2013.
|
|
|
|
10.4
|
|
First
Amendment to Trademark License Agreement, dated January 4, 2013, by
and between Del Monte Corporation and Coffee Holding Co., Inc.
Certain portions of Exhibit 10.4 are omitted based upon a approval
of the Company’s request for confidential treatment through
January 28, 2023. The omitted portions were filed
separately with the SEC on a confidential basis (incorporated
herein by reference to Exhibit 10.4 to the Company’s Annual
Report on Form 10-K for the year ended October 31, 2012 filed on
January 28, 2013 (File No. 001-32491)).
|
|
|
|
10.5
|
|
Amended
and Restated Employment Agreement, dated April 11, 2008, by and
between Coffee Holding Co., Inc. and Andrew Gordon (incorporated
herein by reference to Exhibit 10.14 of the Company’s Current
Report on Form 8-K filed on April 16, 2008 (File No.
001-32491)).
|
|
|
|
10.6
|
|
Amended
and Restated Employment Agreement, dated April 11, 2008, by and
between Coffee Holding Co., Inc. and David Gordon (incorporated
herein by reference to Exhibit 10.15 of the Company’s Current
Report on Form 8-K filed on April 16, 2008 (File No.
001-32491)).
|
10.7
|
|
Coffee
Holding Co., Inc. Non-Qualified Deferred Compensation Plan
(incorporated herein by reference to Exhibit 10.19 of the
Company’s Quarterly Report on Form 10-QSB filed on June 14,
2005 (File No. 001-32491)).
|
|
|
|
10.8
|
|
Contract
of Sale, dated April 14, 2009, by and between Coffee Holding Co.,
Inc. and 4401 1st Ave LLC (incorporated herein by reference to
Exhibit 10.7 to the Company's Annual Report on Form 10-K filed on
January 28, 2010 (File No. 001-32491)).
|
|
|
|
10.9
|
|
First
Amendment to Loan and Security Agreement between Coffee Holding
Co., Inc. and Sterling National Bank, dated July 23, 2010
(incorporated herein by reference to Exhibit 10.9 to the
Company’s Annual Report on Form 10-K filed on January 31,
2011 (File No. 001-32491).
|
|
|
|
10.10
|
|
Placement
Agency Agreement, dated as of September 27, 2011, by and among the
Company, the selling stockholders named therein, Roth Capital
Partners, LLC and Maxim Group, LLC (incorporated herein by
reference to Exhibit 10.1 to the Company’s Report on Form 8-K
filed on September 27, 2011 (File No. 001-32491)).
|
|
|
|
10.11
|
|
Subscription
Agreement, dated as of September 27, 2011, by and between the
Company, the selling stockholders named therein and each of the
purchasers identified on the signature pages thereto (incorporated
herein by reference to Exhibit 10.2 to the Company’s Current
Report on Form 8-K filed on September 27, 2011 (File No.
001-32491)).
|
|
|
|
10.12
|
|
2013
Equity Compensation Plan (incorporated by reference to Annex A of
the Company’s Definitive Proxy Statement filed on February
28, 2013 (File No. 13653320)).
|
|
|
|
10.13
|
|
Loan
Modification Agreement, dated as of May 10, 2013, by and between
Sterling National Bank and Coffee Holding Co., Inc. (incorporated
herein by reference to Exhibit 10.11 to the Company’s Annual
Report on Form 10-K filed on January 24, 2014 (File No.
001-32491)).
|
|
|
|
21.1
|
|
List of
Significant Subsidiaries.*
|
|
|
|
31.1
|
|
Principal
Executive Officer and Principal Financial Officer’s
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.*
|
|
|
|
32.1
|
|
Principal
Executive Officer and Principal Financial Officer’s
Certification furnished pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.*
|
|
|
|
101.INS
|
|
XBRL
Instance Document.
|
|
|
|
101.SCH
|
|
XBRL
Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL
Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL
Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL
Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL
Taxonomy Extension Definition Linkbase Document.
|
|
|
PAGE
|
FINANCIAL
STATEMENTS:
|
|
|
|
|
|
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
|
F-2
|
|
|
|
CONSOLIDATED
BALANCE SHEETS AS OF OCTOBER 31, 2016 AND 2015
|
|
F-3
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - YEARS ENDED OCTOBER 31, 2016 AND
2015
|
|
F-4
|
|
|
|
CONSOLIDATED
STATEMENT OF CHANGES IN REDEEMABLE COMMON STOCK AND
STOCKHOLDERS’ EQUITY - YEARS ENDED OCTOBER 31, 2016 AND
2015
|
|
F-5
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - YEARS ENDED OCTOBER 31, 2016 AND
2015
|
|
F-6
|
|
|
|
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
F-7
|
|
2016
|
2015
|
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
|
TOTAL
|
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
|
$
(.23
)
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
Basic and
diluted
|
6,082,777
|
6,212,929
|
Balance,10/31/14
|
|
|
6,215,894
|
$
6,456
|
240,422
|
$
(1,267,862
)
|
$
15,904,109
|
$
11,079,168
|
$
332,882
|
$
26,054,753
|
Treasury
Stock
|
|
|
(53,687
)
|
|
53,687
|
(226,850
)
|
|
|
|
(226,850
)
|
Dividend
|
|
|
|
|
|
|
|
|
(80,000
)
|
(80,000
)
|
Net
loss
|
|
|
|
|
|
|
|
(1,413,228
)
|
|
(1,413,228
)
|
Non-Controlling
Interest
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
83,698
|
83,698
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
10/31/15
|
-
|
$
-
|
6,162,207
|
$
6,456
|
294,109
|
$
(1,494,712
)
|
$
15,904,109
|
$
9,665,940
|
$
336,580
|
$
24,418,373
|
|
|
|
|
|
|
|
|
|
|
|
Treasury
Stock
|
|
|
(337,269
)
|
|
337,269
|
(1,754,878
)
|
|
|
|
(1,754,878
)
|
|
|
|
|
|
|
|
|
|
|
|
Stock
issued in connection with Acquisition
|
38,364
|
200,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend
|
|
|
|
|
|
|
|
|
(100,000
)
|
(100,000
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
2,212,288
|
|
2,212,288
|
|
|
|
|
|
|
|
|
|
|
|
Non-Controlling
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
-
|
-
|
-
|
-
|
-
|
-
|
137,754
|
137,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
10/31/16
|
38,364
|
$
200,004
|
5,824,938
|
$
6,456
|
631,378
|
$
(3,249,590
)
|
$
15,904,109
|
$
11,878,228
|
$
374,334
|
$
24,913,537
|
|
2016
|
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
|
-
|
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
)
|
-
|
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
|
|
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
|
|
2016
|
2015
|
|
|
|
Option
contracts
|
$
(83,753
)
|
$
(134,613
)
|
Future
contracts
|
218,475
|
(349,222
)
|
Commodities due to
broker
|
$
134,722
|
$
(483,835
)
|
|
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
)
|
|
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
|
|
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
|
|
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
|
|
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
)
|
|
|
|
|
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
%)
|
|
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
|
October 31,
|
|
|
|
2017
|
$
300,123
|
2018
|
260,683
|
2019
|
262,413
|
2020
|
271,051
|
2021
|
279,051
|
Thereafter
|
610,416
|
|
|
|
$
1,983,737
|
|
|
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
)
|
–
|
1 Year Coffee Chart |
1 Month Coffee Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions