Segment Information

3 Months Ended

Jan. 31, 2025

Segment Reporting [Abstract]

Segment Information

Note 13 – Segment Information

ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

The Company’s chief operating decision maker (“CODM”) is Andrew Gordon, President, Chief Executive Officer, Chief Financial Officer, and Director. The Company has one reportable segment: coffee. The Company derives revenue in North America only and manages the business activities on a consolidated basis.

The coffee segment derives revenue from the sale of wholesale green coffee, private label coffee and branded coffee. Revenue for these product lines is recognized upon shipment to the customer. The CODM assesses performance for the coffee segment and decides how to allocate resources based on operating income (loss) that also is reported on statement of operations as consolidated income (loss) from operations. The measure of segment assets is reported on the condensed consolidated balance sheet as total consolidated assets.

When evaluating the Company’s performance and making key decisions regarding resource allocation the CODM reviews the following key metrics:

	Statement of operations For the three months ended
	January 31, 2025		January 31, 2024
Net sales	$	21,305,285	$	19,540,402
Cost of Goods Sold (1)		17,310,278		16,410,138
Gross Profit		3,995,007		3,130,264
Trading Profit (1)		1,736,919		350,035
Overhead (2)		4,140,895		2,863,388
Operating income	$	1,591,008	$	616,911

(1)	Costs of goods sold and Trading profit is included in cost of sales in the consolidated statement of operations.
(2)	Overhead includes officers’ salaries and selling and administrative expenses included in the consolidated statement of operations.

The CODM uses operating income (loss) to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the coffee segment or into other parts of the entity such as for acquisitions or to pay dividends. Intra-entity sales and cash transfers are eliminated in operating income (loss) used by the CODM.