BASIS OF PRESENTATION, RESTATEMENT AND SIGNIFICANT ACCOUNTING POLICY:

9 Months Ended

Jul. 31, 2021

Accounting Policies [Abstract]

BASIS OF PRESENTATION, RESTATEMENT AND SIGNIFICANT ACCOUNTING POLICY:

NOTE 2 - BASIS OF PRESENTATION, RESTATEMENT AND SIGNIFICANT ACCOUNTING POLICY:

The Company’s fiscal year ends on October 31, of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended October 31, 2020. In the opinion of the Company’s management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The October 31, 2020 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended October 31, 2020 and notes thereto included in the Company’s fiscal 2020 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 16, 2021 (the “2020 10-K”). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.

The condensed consolidated financial statements include the accounts of the Company, the Company’s subsidiaries, Organic Products Trading Company, LLC (“OPTCO”), Sonofresco, LLC (“SONO”), Comfort Foods, Inc. (“CFI”) and Generations Coffee Company, LLC (“GCC”), the entity formed as a result of the Company’s joint venture with Caruso’s Coffee, Inc. The Company owns a 60% equity interest in GCC. All inter-company transactions and balances have been eliminated in consolidation.

RESTATEMENT:

The Company is restating its condensed consolidated statement of operations for the six and nine months ended July 31, 2020 to correct its accounting for certain intercompany transactions that should have been eliminated in consolidation. The restatement is being made in accordance with ASC 250, “Accounting Changes and Error Corrections.” The disclosure provision of ASC 250 requires a company that corrects an error to disclose that its previously issued financial statements have been restated, a description of the nature of the error, the effect of the correction on each financial statement line item and any per share amount affected for each prior period presented, and the cumulative effect on retained earnings in the statement of financial position as of the beginning of each period presented.

The effects of the adjustment on the Company’s previously issued July 31, 2020 condensed consolidated statement is summarized as follows:

Selected Condensed Consolidated Statement of Operations for the quarter ended July 31, 2020

	Previously Reported			Increase (Decrease)			As Restated
Net Sales	$	17,344,009		$	(1,832,414	)	$	15,511,595
Cost of Sales	$	(13,517,482	)	$	1,832,414		$	(11,685,068	)
Gross Profit	$	3,826,527		$	-		$	3,826,527

Selected Condensed Consolidated Statement of Operations for the nine months ended July 31, 2020

	Previously Reported			Increase (Decrease)			As Restated
Net Sales	$	56,725,386		$	(6,740,897	)	$	49,984,489
Cost of Sales	$	(45,277,679	)	$	6,740,897		$	(38,536,782	)
Gross Profit	$	11,447,707		$	-		$	11,447,707

Significant Accounting Policy

The significant accounting policies used in the preparation of these condensed consolidated financial statements are disclosed in our 2020 10-K, and there have been no changes to the Company’s significant accounting policies during the three and nine months ended July 31, 2021.

Revenue Recognition

The Company recognizes revenue in accordance with the five-step model as prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Codification (“ASC”) Topic 606 (“ASC 606”) in which the Company evaluates the transfer of promised goods or services and recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to be entitled to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2021

(UNAUDITED)

NOTE 2 - BASIS OF PRESENTATION, RESTATEMENT AND SIGNIFICANT ACCOUNTING POLICY (cont’d):

The following table presents revenues by stream for the nine and three months ended July 31, 2021 and 2020. 

	Nine Months Ended July 31, 2021		Three Months Ended July 31, 2021
Green	$	18,054,298	$	6,003,521
Packaged		28,182,410		7,630,792
Totals	$	46,236,708	$	13,634,313

	(As previously reported) Nine Months Ended July 31, 2020		(Restated) Nine Months Ended July 31, 2020		(As previously reported) Three Months Ended July 31, 2020		(Restated) Three Months Ended July 31, 2020
Green	$	18,453,377	$	17,000,407	$	5,765,246	$	5,451,723
Packaged		38,272,009		32,984,082		11,578,763		10,059,872
Totals	$	56,725,386	$	49,984,489	$	17,344,009	$	15,511,595