LEASES

6 Months Ended

Apr. 30, 2022

Leases

LEASES

NOTE 9 - LEASES:

The following summarizes the Company’s operating leases:

	2022		2021
Right-of-use operating lease assets	$	3,365,837	$	3,545,786
Current lease liability		191,374		340,400
Non-current lease liability		3,295,876		3,299,784
Total lease liability	$	3,487,250	$	3,640,184

The amortization of the right-of-use asset for the three months ended April 30, 2022 and 2021 was $77,268 and $112,587, respectively. The amortization of the right-of-use asset for the six months ended April 30, 2022 and 2021 was $179,949 and $226,155, respectively.

Weighted average remaining lease term	11.0
Weighted average discount rate	4.9	%

Maturities of lease liabilities by year for our operating leases are as follows:

2022	$	335,363
2023		499,377
2024		474,670
2025		354,528
2026		360,108
Thereafter		2,701,088
Total lease payments	$	4,725,134
Less: imputed interest		(1,237,884	)
Present value of operating lease liabilities	$	3,487,250

In June 2021, the Company purchased a facility in Colorado for $900,321 that it was previously leasing. On the date of purchase, the Company wrote off the carrying value of the right-of-use asset and lease liability associated with this facility of $242,888.

In September 2021, the Company extended its headquarters lease in Staten Island, New York through September 2036. As a result, on the date of the modification the Company increased its right-of-use asset and lease liability by $2,025,316 as of October 31, 2021.

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2022

(UNAUDITED)