LEASES:

9 Months Ended

Jul. 31, 2023

Leases

LEASES:

NOTE 9 - LEASES:

The following summarizes the Company’s operating leases:

	2023		2022
Right-of-use operating lease assets	$	2,777,685	$	2,871,773
Current lease liability	$	69,044	$	220,734
Non-current lease liability		3,230,204		3,136,006
Total lease liability	$	3,299,248	$	3,356,740

The amortization of the right-of-use asset for the three months ended July 31, 2023 and 2022 was $80,662 and $78,079, respectively. The amortization of the right-of-use asset for the nine months ended July 31, 2023 and 2022 was $240,504 and $258,028, respectively.

Weighted average remaining lease term	10.5
Weighted average discount rate	4.9	%

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

2023	$	365,579
2024		519,304
2025		393,668
2026		376,683
2027		367,788
Thereafter		2,333,300
Total lease payments	$	4,356,322
Less: imputed interest		(1,057,074	)
Present value of operating lease liabilities	$	3,299,248

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 $40,797 as of January 31, 2023.

In March 2023, the Company extended its lease at its subsidiary Organics Products Trading Company in Washington through March 2026. As a result, on the date of the modification the Company increased its right-of-use asset and lease liability by $105,619 as of April 30, 2023.

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2023

(UNAUDITED)