Leases

6 Months Ended

Apr. 30, 2024

Leases [Abstract]

Leases

Note 9 – Leases

The following summarizes the Company’s operating leases:

Assets	2024		2023
Right-of-use operating lease assets	$	2,572,703	$	2,858,346
Total lease assets	$	2,572,703	$	2,858,346

Liabilities		2024		2023
Current lease liability	$	627,209	$	137,222
Non-current lease liability		2,501,749		3,230,204
Total lease liability	$	3,128,958	$	3,367,426

The amortization of the right-of-use asset for the three months ended April 30, 2024 and 2023 was $83,096 and $80,180, respectively. The amortization of the right-of-use asset for the six months ended April 30, 2024 and 2023 was $123,456 and $159,843, respectively.

The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:

Weighted average remaining lease term (in years)	10.8
Weighted average discount rate	4.9	%

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

2024	$	588,365
2025		400,868
2026		376,679
2027		367,788
2028		305,648
Thereafter		2,052,475
Total lease payments		4,091,823
Less: imputed interest		(962,865	)
Present value of operating lease liabilities	$	3,128,958

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 December 2023, the Company extended its lease at its subsidiary Sonofresco in Washington through December 2024. As a result, on the date of the modification the Company increased its right-of-use asset and lease liability by $41,962 as of January 31, 2024.

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.

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)