RELATED PARTY TRANSACTIONS

3 Months Ended

Jan. 31, 2012

Notes to Financial Statements

RELATED PARTY TRANSACTIONS

NOTE 13 - 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 are expenses incurred from the Partner during the three months ended January 31, 2012 and 2011 of $147,885 and $94,564, respectively for the processing of finished goods. 

The company has also engaged GM its 40% owned equity investment to provide instant coffees as required. Included in inventory at January 31, 2012 are purchases made from GM aggregating $336,058. 

An employee of one of the top four vendors is a director of the Company. Purchases from that vendor totaled approximately $10,500,000 and $4,800,000 for the three months ended January 31, 2012 and 2011, respectively. The corresponding accounts payable balance to this vendor was approximately $3,619,000 and $642,000 at January 31, 2012 and 2011, 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 Company’s Chief Executive Officer. Within the plan guidelines, this employee is deferring a portion of his current salary and bonus. The assets are held in a separate trust. The deferred compensation payable represents the liability due to an officer of the Company. The assets are included in the Deposits and other assets in the accompanying balance sheets. Additional information related to the Company’s deferred compensation plan is disclosed in Note 15 to the consolidated financial statements. The deferred compensation asset and liability at January 31, 2012 and October 31, 2011 were $569,790 and $538,707, respectively.