COFFEE HOLDING CO., INC.
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(Exact name of registrant as specified in its charter)
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Nevada
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001-32491
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11-2238111
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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3475 Victory Boulevard, Staten Island, New York
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10314
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(Address of principal executive offices)
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(Zip Code)
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Not Applicable
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(Former name or former address, if changed since last
report.)
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Exhibit No.
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Description
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99.1
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Press Release, dated January
27, 2017, issued by
Coffee Holding entitled “Coffee Holding Co., Inc. Reports
Year End Results.”
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COFFEE HOLDING CO., INC. |
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Dated: January 27, 2017 |
By:
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/s/
Andrew
Gordon
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Name:
Andrew
Gordon
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Title:
President and Chief
Executive Officer
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Exhibit No.
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Description
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99.1
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Press Release, dated January
27, 2017, issued by
Coffee Holding entitled “Coffee Holding Co., Inc. Reports
Year End Results.”
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2016
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2015
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ASSETS -
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CURRENT
ASSETS:
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Cash
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$3,227,981
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$3,853,816
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Accounts
receivable, net of allowances of $144,000 for 2016 and
2015
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13,517,892
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10,968,237
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Inventories
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14,276,290
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13,862,818
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Prepaid green
coffee
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435,577
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620,452
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Prepaid expenses
and other current assets
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535,456
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256,202
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Prepaid and
refundable income taxes
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481,977
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1,434,577
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Due from
broker
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134,722
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Deferred income tax
asset
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81,545
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997,720
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TOTAL
CURRENT ASSETS
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32,691,440
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31,993,822
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Machinery and
equipment, at cost, net of accumulated depreciation of $4,819,828
and $4,241,256 for 2016 and 2015, respectively
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2,269,863
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1,845,000
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Customer list and
relationships, net of accumulated amortization of $50,250 and
$41,250 for 2016 and 2015, respectively
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219,750
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108,750
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Trademarks
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180,000
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180,000
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Goodwill
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1,017,905
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440,000
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Equity method
investments
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95,598
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96,571
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Deposits and other
assets
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549,337
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610,499
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TOTAL
ASSETS
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$37,023,893
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$35,274,642
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LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY
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CURRENT
LIABILITIES:
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Accounts payable
and accrued expenses
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$4,062,573
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$4,021,389
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Line of
credit
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6,958,375
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5,554,121
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Due to
broker
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-
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483,835
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Income taxes
payable
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1,050
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-
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TOTAL
CURRENT LIABILITIES
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11,021,998
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10,059,345
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Deferred income tax
liabilities
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167,470
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92,370
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Deferred rent
payable
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231,216
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222,055
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Deferred
compensation payable
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489,668
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482,499
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TOTAL
LIABILITIES
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11,910,352
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10,856,269
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Redeemable common
stock:
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Common stock
subject to possible redemption, at $200,004; 38,364 shares issued
and outstanding at redemption value as of October 31, 2016, none as
of October 31, 2015
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200,004
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COMMITMENTS AND
CONTINGENCIES
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STOCKHOLDERS’
EQUITY:
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Coffee Holding Co.,
Inc. stockholders’ equity:
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Preferred
stock, par value $.001 per share; 10,000,000 shares authorized;
none issued
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-
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-
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Common
stock, par value $.001 per share; 30,000,000 shares authorized,
6,494,680 and 6,456,316 shares issued; 5,824,938 and 6,162,207
shares outstanding for 2016 and 2015
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6,456
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6,456
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Additional
paid-in capital
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15,904,109
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15,904,109
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Retained
earnings
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11,878,228
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9,665,940
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Less:
Treasury stock, 631,378 and 294,109 common shares, at cost for 2016
and 2015
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(3,249,590)
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(1,494,712)
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Total
Coffee Holding Co., Inc. Stockholders’ Equity
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24,539,203
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24,081,793
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Noncontrolling
interest
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374,334
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336,580
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TOTAL
EQUITY
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24,913,537
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24,418,373
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TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’
EQUITY
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$37,023,893
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$35,274,642
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2016
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2015
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NET
SALES
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$78,948,228
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$118,153,541
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COST OF SALES (which include purchases
of approximately $8.5 million and $22.1 million in fiscal years
2016 and 2015, respectively, from a related party)
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67,066,050
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112,436,831
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GROSS
PROFIT
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11,882,178
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5,716,710
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OPERATING
EXPENSES:
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Selling and
administrative
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7,363,710
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7,000,744
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Officers’
salaries
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655,400
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653,285
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TOTAL
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8,019,110
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7,654,029
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INCOME
(LOSS) FROM OPERATIONS
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3,863,068
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(1,937,319)
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OTHER
INCOME (EXPENSE):
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Interest
income
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41,176
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45,049
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Loss from equity
method investments
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(972)
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(833)
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Interest
expense
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(187,310)
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(200,074)
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TOTAL
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(147,106)
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(155,858)
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INCOME
(LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES
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AND
NON-CONTROLLING INTEREST IN SUBSIDIARY
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3,715,962
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(2,093,177)
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Provision (benefit)
for income taxes
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1,365,920
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(763,647)
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NET
INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST IN
SUBSIDIARY
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2,350,042
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(1,329,530)
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Less: Net income
attributable to the non-controlling interest in
subsidiary
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(137,754)
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(83,698)
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NET
INCOME (LOSS) ATTRIBUTABLE TO COFFEE HOLDING CO., INC.
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$2,212,288
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$(1,413,228)
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Basic and diluted
earnings (loss) per share
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$.36
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$(.23)
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Weighted average
common shares outstanding:
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Basic and
diluted
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6,082,777
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6,212,929
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2016
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2015
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OPERATING
ACTIVITIES:
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Net income
(loss)
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$2,350,042
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$(1,329,530)
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Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
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Depreciation and
amortization
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587,572
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545,390
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Unrealized (gain)
on commodities
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(618,557)
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(1,089)
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Loss on equity
method investments
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972
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833
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Deferred
rent
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9,161
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12,415
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Deferred income
taxes
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991,275
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(726,850)
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Changes in
operating assets and liabilities:
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Accounts
receivable
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(2,465,512)
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4,451,623
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Inventories
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(143,907)
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1,347,335
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Prepaid expenses
and other current assets
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(279,254)
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3,910
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Prepaid green
coffee
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184,875
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(153,297)
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Prepaid and
refundable income taxes
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952,600
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(1,433,818)
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Accounts payable
and accrued expenses
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(30,860)
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(4,671,711)
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Deposits and other
assets
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68,331
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-
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Income taxes
payable
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1,050
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(331,051)
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Net
cash provided by (used in) operating activities
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1,607,788
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(2,285,840)
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INVESTING
ACTIVITIES:
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Cash paid for
acquisition of business
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(819,564)
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-
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Purchases of
machinery and equipment
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(963,435)
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(391,796)
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Net
cash used in investing activities
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(1,782,999)
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(391,796)
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FINANCING
ACTIVITIES:
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Line of
credit
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1,404,254
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3,055,663
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Purchase
of treasury stock
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(1,754,878)
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(226,850)
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Payment
of dividend
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(100,000)
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(80,000)
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Net
cash (used in) provided by financing activities
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(450,624)
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2,748,813
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NET
(DECREASE) INCREASE IN CASH
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(625,835)
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71,177
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CASH,
BEGINNING OF PERIOD
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3,853,816
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3,782,639
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CASH,
END OF PERIOD
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$3,227,981
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$3,853,816
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2016
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2015
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SUPPLEMENTAL
DISCLOSURE OF CASH FLOW DATA:
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Interest
paid
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$181,007
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$196,556
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Income taxes
paid
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$34,183
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$1,651,156
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SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
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On June 29, 2016
Coffee Holding Co., Inc. acquired certain assets of Coffee
Kinetics, LLC:
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Accounts
receivable
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$84,142
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Inventory
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269,565
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Equipment
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40,000
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Customer
list
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120,000
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Goodwill
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577,905
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Less: liabilities
assumed
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(72,044)
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Net assets
acquired:
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1,019,568
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Redeemable Common
Stock
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200,004
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Net cash
paid
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$819,564
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