v3.25.2
Leases
 9 Months Ended
Jul. 31, 2025
Leases  
Leases

Note 10 – Leases

 

The following summarizes the Company’s operating leases as of July 31, 2025 and October 31, 2024:

 

  July 31, 2025   October 31, 2024 
Assets        
Right-of-use operating lease assets  $2,696,475   $1,166,537 
Total lease assets  $2,696,475   $1,166,537 

 

  July 31, 2025   October 31, 2024 
Liabilities        
Current lease liability  $802,756   $307,364 
Non-current lease liability   1,934,511   $865,668 
Total lease liability  $2,737,267   $1,173,032 

 

The amortization of the right-of-use assets for the three months ended July 31, 2025 and 2024 was $200,913 and $79,812, respectively. The amortization of the right-of-use assets for the nine months ended July 31, 2025, and 2024 was $583,643 and $203,268, respectively.

 

Variable lease payments were $102,000 and   $38,090 during the three months ended July 31, 2025, and 2024, respectively. Variable lease payments were $372,724 and $100,389 during the nine months ended July 31, 2025, and 2024, respectively.

 

Operating lease costs were $736,800 and $356,509 for the nine months ended July 31, 2025, and 2024, respectively. Operating lease costs were $245,600   and $118,836 for the three months ended July 31, 2025, and 2024, respectively.

 

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

 

Weighted average remaining lease term (in years)   3.44 
Weighted average discount rate   6.78%

 

Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows:

  

For the Years Ending October 31,:    
Remainder of fiscal 2025  $239,239 
2026   955,052 
2027   920,091 
2028   864,490 
2029   66,619 
Total lease payments   3,045,491 
Less: imputed interest   (308,224)
Present value of operating lease liabilities  $2,737,267 

 

 

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

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.

 

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.