LEASES

9 Months Ended

Jul. 31, 2022

Leases

LEASES

NOTE 9 - LEASES:

The following summarizes the Company’s operating leases:

	2022		2021
Right-of-use operating lease assets	$	3,287,758	$	3,545,786
Current lease liability		122,456		340,400
Non-current lease liability		3,299,951		3,299,784
Total lease liability	$	3,422,407	$	3,640,184

The amortization of the right-of-use asset for the three months ended July 31, 2022 and 2021 was $78,079 and $95,766, respectively. The amortization of the right-of-use asset for the nine months ended July 31, 2022 and 2021 was $258,028 and $321,921, 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 remaining	$	239,912
2023		499,377
2024		474,670
2025		354,528
2026		360,108
Thereafter		2,701,088
Total lease payments	$	4,629,683
Less: imputed interest		(1,207,276	)
Present value of operating lease liabilities	$	3,422,407

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

JULY 31, 2022

(UNAUDITED)