STOCKHOLDERS’ EQUITY

12 Months Ended

Oct. 31, 2020

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 12 - STOCKHOLDERS’ EQUITY:

a.	Treasury Stock. The Company utilizes the cost method of accounting for treasury stock. The cost of reissued shares is determined under the last-in, first-out method. The Company did not purchase any shares during the years ended October 31, 2020 and 2019.
b.	Stock Options. The Company has an incentive stock plan, the 2013 Equity Compensation Plan (the “2013 Plan”), and on April 19, 2019, has granted stock options to employees, officers and non-employee directors from the 2013 Plan. Options granted under the 2013 Plan may be Incentive Stock Options or Nonqualified Stock Options, as determined by the Administrator at the time of grant. As of January 31, 2020, the Board of Directors approved 1,000,000 options.
	During the year ended October 31, 2019, the Company granted stock option awards to five board members to purchase an aggregate 59,000 shares of the Company’s common stock at $5.43 per share.

The stock options have an expected term of six years and will vest over a twelve month service period.

The stock options have an aggregate grant date fair value of approximately $233,050. The Company also granted stock option awards to certain officers and employees to purchase an aggregate of 941,000 shares of the Company’s common stock at an exercise price of $5.43 per share. The stock options have an expected term of six years and will vest over a three year service period. These stock options have an aggregate grant date fair value of approximately $2,277,220.

The following table represents stock option activity for the year ended October 31, 2020:

	Stock Options				Exercise Price				Contractual Life		Aggregate Intrinsic
	Outstanding		Exercisable		Outstanding		Exercisable		(Years)		Value
Balance October 31, 2019		1,000,000		-	$	5.43		-		10		-
Exercised		-		-		-		-		-		-
Cancelled		-		-		-		-		-		-
Balance October 31, 2020		1,000,000		-	$	5.43		-		10		-

	Stock Options				Exercise Price				Contractual Life		Aggregate Intrinsic
	Outstanding		Exercisable		Outstanding		Exercisable		(Years)		Value
Balance October 31, 2018		-		-		-		-		-		-
Granted		1,000,000			$	5.43		-		10		-
Exercised		-		-		-		-		-		-
Cancelled		-		-		-		-		-		-
Balance October 31, 2019		1,000,000		-	$	5.43		-		10		-

The Company recorded $868,477 and $476,899 of stock-based compensation during the years ended October 31, 2020 and 2019, respectively.

The unrecognized stock compensation expense as of October 31, 2020 was approximately $1,164,894.

COFFEE HOLDING CO., INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2020 AND 2019