v3.25.2
Segment Information
 9 Months Ended
Jul. 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 primarily in North America 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		 
   July 31, 2025   July 31, 2024 
Net sales  $23,910,514   $18,813,162 
Cost of Goods Sold (1)   (20,227,932)   (15,623,586)
Gross Profit   3,682,582    3,189,576 
Trading Profit (Loss) (1)   (769,845)   736,488 
Overhead (2)   (4,007,888)   (3,206,201)
Operating (loss) income  $(1,095,151)  $719,863 

 

         
   Statement of operations
For the nine months ended		 
   July 31, 2025   July 31, 2024 
Net sales  $68,535,860   $57,349,477 
Cost of Goods Sold (1)   (55,940,847)   (47,458,328)
Gross Profit   12,595,013    9,891,149 
Trading Profit (1)   686,868    1,219,194 
Overhead (2)   (11,897,386)   (9,840,219)
Operating income  $1,384,495   $1,270,124 

 

  (1) Trading profit is included in cost of goods sold 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.