LEASES

3 Months Ended

Jan. 31, 2026

Leases

LEASES

NOTE 10 - LEASES

The following summarizes the Company’s operating leases:

	January 31, 2026		October 31, 2025
Right-of-use operating lease assets	$	1,917,620	$	2,084,175
Current lease liability		871,265		811,975
Non-current lease liability		1,305,288		1,530,096
Total lease liability	$	2,176,553	$	2,342,071

The amortization of the right-of-use assets for the three months ended January 31, 2026 and 2025 was $166,555 and $189,962, respectively.

Weighted average remaining lease term	2.75
Weighted average discount rate	6.98	%

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

2026	$	711,245
2027		860,331
2028		766,322
2029		66,619
Thereafter		-
Total lease payments		2,404,517
Less: imputed interest		(227,964	)
Present value of operating lease liabilities	$	2,176,553

The aggregate cash payments under these leasing agreements were $277,629 and $189,962 for the three months ended January 31, 2026 and 2025, respectively.

Variable lease payments were $74,102 and $6,658 during the three months ended January 31, 2026 and 2025, respectively. Operating lease costs were $245,600 for each of the three months ended January 31, 2026 and 2025.

In November 2024, the Company entered into a new lease in connection with the Second Empire Acquisition. As a result, the Company recognized a right-of-use asset and lease liability of $2,113,581 in connection with such new lease.

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

In October 2025, the Company ceased operations of its Comfort Foods manufacturing subsidiary and exited the leased facility located in North Andover, Massachusetts. The lease for this facility was scheduled to expire on May 31, 2028. Upon the closure of Comfort Foods, the Company determined that the right-of-use asset associated with the lease was fully impaired, as the facility would no longer be utilized in the Company’s operations. The impairment was recognized in a prior reporting period. Based on ongoing legal discussions with the landlord and management’s estimate of the expected settlement amount, the Company estimates that the remaining lease liability associated with this facility is approximately $200,000 as of January 31, 2026, representing management’s current estimate of the expected settlement obligation.