LEASES

12 Months Ended

Oct. 31, 2024

Leases

LEASES

NOTE 9 - LEASES:

The following summarizes the Company’s operating leases:

	2024		2023
Right-of-use operating lease assets	$	1,166,537	$	2,696,159
Current lease liability		307,364		255,625
Non-current lease liability		865,668		2,974,579
Total lease liability	$	1,173,032	$	3,230,204

The amortization of the right-of-use asset for the years ended October 31, 2024 and 2023 was $315,414 and $322,030, respectively.

Weighted average remaining lease term	3.76
Weighted average discount rate	6.4	%

COFFEE HOLDING CO., INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2024 AND 2023

NOTE 9 – LEASES (cont’d):

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

2025	$	371,784
2026		355,024
2027		303,562
2028		226,990
2029		66,619
Thereafter		-
Total lease payments	$	1,323,979
Less: imputed interest		(150,947	)
Present value of operating lease liabilities	$	1,173,032

The aggregate cash payments under these leasing agreements were $288,202 and $429,027 for the years ended October 31, 2024, and 2023, respectively. Variable lease payments were $131,490 and $105,568 during the years ended October 31, 2024, and 2023, respectively. Operating lease costs were $426,200 and $475,346 for the years ended October 31, 2024, and 2023, respectively.

In May 2024, the Company modified its existing lease agreement pertaining to a portion of its office facility. The Company wrote off $1,848,032 in right-of-use assets and $2,058,599 lease liability associated with this agreement, resulting in a gain on extinguishment of lease of $210,567. On May 1, 2024, the Company entered into an amended lease agreement for the remaining portion of its office facility in Staten Island, NY, which changed the lease modification date to April 30, 2029. The amended lease commenced on May 1, 2024. The Company recognized a right-of-use asset and lease liability associated with this modified agreement of $547,975. As a result of the modification, the Company decreased its right-of-use asset by $1,300,057 and lease liability by $1,510,624 as of July 31, 2024.

As of October 31, 2024, the Company was reasonably certain that the option to extend the Sonofresco lease would be exercised through December 2026. As a result, the Company increased its right-of-use asset and lease liability by approximately $85,000 as of October 31, 2024.