LEASES

3 Months Ended

Jan. 31, 2023

Leases

LEASES

NOTE 9 - LEASES:

The following summarizes the Company’s operating leases:

	2023		2022
Right-of-use operating lease assets	$	2,832,907	$	2,871,773
Current lease liability		186,879		220,734
Non-current lease liability		3,142,959		3,136,006
Total lease liability	$	3,329,838	$	3,356,740

The amortization of the right-of-use asset for the three months ended January 31, 2023 and 2022 was $79,663 and $102,681, respectively.

Weighted average remaining lease term	11.1
Weighted average discount rate	4.9	%

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

2023	$	558,758
2024		481,670
2025		354,528
2026		360,108
2027		367,788
Thereafter		2,333,300
Total lease payments	$	4,456,152
Less: imputed interest		(1,126,314	)
Present value of operating lease liabilities	$	3,329,838

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 December 2022, the Company extended its lease at its subsidiary Sonofresco in Washington through December 2023. As a result, on the date of the modification the Company increased its right-of-use asset and lease liability by $40,979 as of January 31, 2023.

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JANUARY 31, 2023

(UNAUDITED)