UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~April~~July 3031, 2017

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ~~_________~~_____ to _________

Commission File Number: 000-31797

CRYSTAL ROCK HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	03-0366218
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
1050 Buckingham St., Watertown, CT	06795
(Address of principal executive offices)	(Zip Code)

860) 945-0661

1050 Buckingham St., Watertown, CT	06795
(Address of principal executive offices)	(Zip Code)

(860) 945-0661

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No ___

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes X No ___

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ~~___~~____ Accelerated filer ___ Non-accelerated filer ___ Smaller reporting company XX_ (Do not check if smaller reporting company) Emerging Growth Company ~~___~~_____

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ___

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ___ No XX_

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

	Shares outstanding at
Class	September 12, 2017
Class	June 12, 2017
Common Stock, $.001 Par Value	21,358,411

CRYSTAL ROCK HOLDINGS, INC. AND SUBSIDIARY

Table of Contents

		Page	~~Page~~
Part I - Financial Information
Item 1.	Financial Statements.
	Consolidated Balance Sheets as of April 30, 2017 and October 31, 2016		3
	Consolidated Balance Sheets as of July 31, 2017 and October 31, 2016	3
	Consolidated Statements of Operations for the Three and Six Months Ended April 30, 2017 and 2016		4
	Consolidated Statements of Operations for the Three and Nine Months Ended July 31, 2017 and 2016	4
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended April 30, 2017 and 2016		5
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended July 31, 2017 and 2016	5
	Consolidated Statements of Cash Flows for the Six Months Ended April 30, 2017 and 2016		6
	Consolidated Statements of Cash Flows for the Nine Months Ended July 31, 2017 and 2016	6
	Notes to Consolidated Financial Statements	7-15	~~7-15~~
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	16–23	~~16–23~~
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	24	24
Item 4.	Controls and Procedures.	24	24
Part II - Other Information
Item 1.	Legal Proceedings.	25	25
Item 1A.	Risk Factors.	25	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	25	25
Item 3.	Defaults Upon Senior Securities.	25	25
Item 4.	Mine Safety Disclosures.	25	25
Item 5.	Other Information.	25	25
Item 6.	Exhibits.	26	~~25-26~~
Signature		27	27

CRYSTAL ROCK HOLDINGS, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

	April 30,			October 31,
	July 31, 2017			October 31, 2016
	2017			2016
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3497,~~436,880~~332		$	5,553,815
Accounts receivable, trade - net of reserve of $372,115 and $268,711 for 2017 and 2016, respectively		7,284,608			8,022,952
Accounts receivable, trade - net of reserve of $445,648 and $268,711 for 2017 and 2016, respectively		6,993,451			8,022,952
Inventories		2,~~124~~391,~~681~~779			2,061,713
Other current assets		1,~~314~~332,~~588~~447			901,374
Unrealized gain on derivatives		~~401~~2,055			-
TOTAL CURRENT ASSETS		1411,~~161~~217,~~158~~064			16,539,854
PROPERTY AND EQUIPMENT - net		6,~~819~~809,~~518~~932			6,768,185
OTHER ASSETS:
Goodwill		12,156,790			12,156,790
Other intangible assets - net		1983,~~153,222~~086			1,493,694
Deferred tax asset		692,373			692,373
Other assets		~~244~~106,~~473~~926			278,633
TOTAL OTHER ASSETS		1413,~~246~~939,~~858~~175			14,621,490
TOTAL ASSETS	$	3531,~~227~~966,~~534~~171		$	37,929,529
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt	$	1,599,996		$	1,599,996
Line of credit	$	2,000,000		$	-
Current portion of subordinated debt		4,500,000			-
Current portion of long term debt		1,599,996			1,599,996
Accounts payable		21,~~777~~822,~~417~~315			3,268,951
Accrued expenses		1,~~762~~996,~~934~~823			3,087,566
Current portion of customer deposits		~~652~~680,~~375~~801			647,460
Current portion of unrealized loss on derivatives		-			24,793
TOTAL CURRENT LIABILITIES		118,~~292~~099,~~722~~935			8,628,766
Long term debt, less current portion		76,~~333~~933,~~345~~346			8,133,343
Deferred tax liability		4,472,100			4,472,100
Subordinated debt		4,500,000			9,000,000
Customer deposits, less current portion		2,552,987			2,529,300
Other liability		43,670			-
Customer deposits, less current portion		2,668,733			2,529,300
Long term portion of unrealized loss on derivatives		-			7,660
TOTAL LIABILITIES		3026,~~151~~717,~~154~~784			32,771,169
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock - $.001 par value, 50,000,000 authorized shares, 21,960,229 issued and 21,358,411 outstanding shares as of April 30, 2017 and October 31, 2016		21,960			21,960
Common stock - $.001 par value, 50,000,000 authorized shares, 21,960,229 issued and 21,358,411 outstanding shares as of July 31, 2017 and October 31, 2016		21,960			21,960
Additional paid in capital		58,464,742			58,464,742
Treasury stock, at cost, 601,818 shares as of April 30, 2017 and October 31, 2016		(900,360	)		(900,360	)
Treasury stock, at cost, 601,818 shares as of July 31, 2017 and October 31, 2016		(900,360	)		(900,360	)
Accumulated deficit		(52,~~510~~339,~~202~~187	)		(52,408,509	)
Accumulated other comprehensive income (loss)		~~240~~1,232			(19,473	)
TOTAL STOCKHOLDERS' EQUITY		5,~~076~~248,~~380~~387			5,158,360
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	3531,~~227~~966,~~534~~171		$	37,929,529

See the notes to the consolidated financial statements.

CRYSTAL ROCK HOLDINGS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three months ended April 30,						Six months ended April 30,
	Three months ended July 31,						Nine months ended July 31,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
NET SALES	$	14,~~475~~943,~~351~~972		$	16,~~710~~394,~~816~~476		$	2944,~~125~~069,~~497~~469		$	3249,~~842~~236,~~376~~852
COST OF GOODS SOLD		6,~~806~~819,~~292~~101			87,~~481~~560,~~945~~207			1320,~~762~~581,~~704~~805			1724,~~024~~584,~~062~~269
GROSS PROFIT		78,~~669~~124,~~059~~871			8,~~228~~834,~~871~~269			1523,~~362~~487,~~793~~664			1524,~~818~~652,~~314~~583
OPERATING EXPENSES:
Selling, general and administrative expenses		7,~~098~~265,~~955~~379			76,~~150~~933,~~233~~393			1421,~~270~~536,~~759~~138			1421,~~099~~032,~~096~~489
Advertising expenses		98126,~~647~~506			~~115~~137,~~492~~247			~~218~~344,~~086~~592			~~251~~388,~~461~~708
Amortization		170,~~135~~136			170,~~789~~739			~~340~~510,~~472~~608			~~330~~500,~~061~~800
Gain on disposal of property and equipment		-(600	)		~~(820~~-	)		-(600	)		(4,120	)
TOTAL OPERATING EXPENSES		7,~~367~~561,~~737~~421			7,~~435~~241,~~694~~379			1422,~~829~~390,~~317~~738			1421,~~676~~917,~~498~~877
INCOME FROM OPERATIONS		~~301~~563,~~322~~450			~~793~~1,~~177~~592,890			~~533~~1,~~476~~096,926			12,~~141~~734,~~816~~706
OTHER EXPENSE:
Interest expense - net		~~344~~291,~~304~~997			~~406~~416,~~108~~895			~~694~~986,~~894~~891			~~803~~1,~~553~~220,448
INCOME (LOSS) BEFORE INCOME TAXES		(42,982	)		387,069			(161,418	)		338,263
INCOME BEFORE INCOME TAXES		271,453			1,175,995			110,035			1,514,258
INCOME TAX EXPENSE (BENEFIT)		(15,903	)		147,818			(59,725	)		128,540
INCOME TAX EXPENSE		100,438			446,878			40,713			575,418
NET INCOME (LOSS)	$	(27,079	)	$	239,251		$	(101,693	)	$	209,723
NET INCOME	$	171,015		$	729,117		$	69,322		$	938,840
NET INCOME (LOSS) PER SHARE - BASIC	$	(0.00	)	$	0.01		$	(0.00	)	$	0.01
NET INCOME PER SHARE - BASIC	$	0.01		$	0.03		$	0.00		$	0.04
NET INCOME (LOSS) PER SHARE - DILUTED	$	(0.00	)	$	0.01		$	(0.00	)	$	0.01
NET INCOME PER SHARE - DILUTED	$	0.01		$	0.03		$	0.00		$	0.04
WEIGHTED AVERAGE SHARES USED IN COMPUTATION - BASIC		21,358,411			21,358,411			21,358,411			21,358,411
WEIGHTED AVERAGE SHARES USED IN COMPUTATION - DILUTED		21,358,411			21,358,411			21,358,411			21,358,411

See the notes to the consolidated financial statements.

CRYSTAL ROCK HOLDINGS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three months ended April 30,					Six months ended April 30,
	Three months ended July 31,					Nine months ended July 31,
	2017			2016		2017			2016
	(unaudited)					(unaudited)
NET INCOME (LOSS)	$	(27,079	)	$	239,251	$	(101,693	)	$	209,723
NET INCOME	$	171,015		$	729,117	$	69,322		$	938,840
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Cash Flow Hedges:
Unrealized gain (loss) on derivatives designated as cash flow hedges		~~6,431~~992			~~2,510~~692		1920,~~713~~705			(2524,~~216~~524	)
Other Comprehensive Income (Loss), net of tax		~~6,431~~992			~~2,510~~692		1920,~~713~~705			(2524,~~216~~524	)
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(20,648	)	$	241,761	$	(81,980	)	$	184,507
TOTAL COMPREHENSIVE INCOME	$	172,007		$	729,809	$	90,027		$	914,316

See the notes to the consolidated financial statements.

CRYSTAL ROCK HOLDINGS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended April 30,
	Nine months ended July 31,
	2017			2016
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(101,693	)	$	209,723
Net income	$	69,322		$	938,840
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,~~332~~893,~~092~~091			1,~~379~~985,~~445~~337
Provision for bad debts on accounts receivable		~~407~~527,~~153~~539			~~115~~193,~~926~~302
Amortization		~~340~~510,~~472~~608			~~330~~500,~~061~~800
Non cash interest expense on subordinated debt		-			~~562~~854,~~034~~982
Gain on disposal of property and equipment		-(600	)		(4,120	)
Non cash share-based compensation		-			(1,580	)
Changes in operating assets and liabilities:
Accounts receivable		~~331~~501,~~191~~962			~~275~~98,~~630~~808
Inventories		(62330,~~968~~066	)		~~261~~109,~~479~~568
Other current assets		(~~426~~444,~~355~~876	)		4468,~~135~~500
Other assets		34171,~~160~~707			-
Accounts payable		(~~491~~1,~~534~~446,636	)		(~~305~~433,~~151~~601	)
Accrued expenses		(1,~~324~~047,~~632~~073	)		~~(150~~672,~~101~~034	)
Customer deposits		28172,~~602~~774			~~(36~~105,~~026~~339	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		66577,~~488~~752			25,~~681~~088,~~455~~209
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(1,~~383~~934,~~425~~838	)		(~~854~~1,~~396~~611,526	)
Proceeds from sale of property and equipment		-600			16,116
NET CASH USED BY INVESTING ACTIVITIES		(1,~~383~~934,~~425~~238	)		(~~838~~1,~~280~~595,410	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long term debt		(799,998	)		(799,998	)
Net line of credit borrowings		2,000,000			-
NET CASH USED BY FINANCING ACTIVITIES		(799,998	)		(799,998	)
Principal payments on long term debt		(5,699,997	)		(1,199,997	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(2,116,935	)		1,043,177
NET CASH USED BY FINANCING ACTIVITIES		(3,699,997	)		(1,199,997	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(5,056,483	)		2,292,802
CASH AND CASH EQUIVALENTS - beginning of period		5,553,815			3,091,471
CASH AND CASH EQUIVALENTS - end of period	$	3497,~~436,880~~332		$	45,~~134~~384,~~648~~273
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$	~~722~~1,~~962~~145,662		$	~~225~~339,~~720~~933
Cash paid for income taxes	$	564,550		$	279,750
Cash paid (refunds received) for income taxes, net	$	566,050		$	(54,068	)

See the notes to the consolidated financial statements.

CRYSTAL ROCK HOLDINGS, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.	BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the consolidated financial position, results of operations, and cash flows for the periods presented. The results have been determined on the basis of generally accepted accounting principles and practices of the United States of America (“GAAP”), applied consistently with the Annual Report on Form 10-K of Crystal Rock Holdings, Inc. (the “Company”) for the year ended October 31, 2016.

Certain information and footnote disclosures normally included in audited consolidated financial statements presented in accordance with GAAP have been condensed or omitted. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended October 31, 2016. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.

The financial statements herewith reflect the consolidated operations and financial condition of Crystal Rock Holdings, Inc. and its wholly owned subsidiary Crystal Rock LLC.

2. GOODWILL AND OTHER INTANGIBLE ASSETS

Major components of intangible assets consisted of:

	April 30, 2017						October 31, 2016
	July 31, 2017						October 31, 2016
	~~Gross Carrying Amount~~	Gross Carrying Amount	~~Accumulated Amortization~~	Accumulated Amortization	~~Wgt. Avg. Amort. Years~~	Wgt. Avg. Amort. Years	~~Gross Carrying Amount~~	Gross Carrying Amount	~~Accumulated Amortization~~	Accumulated Amortization	~~Wgt. Avg. Amort. Years~~	Wgt. Avg. Amort. Years
Amortized Intangible Assets:
Covenants Not to Compete	$	2,536,488	$	2,~~476~~493,~~822~~087		1.5047	$	2,536,488	$	2,444,293		1.80
Customer Lists		10,313,819		9,~~508~~654,~~905~~686		1.5837		10,313,819		9,217,143		2.02
Other Identifiable Intangibles		608,393		~~319~~327,~~751~~841		22.5632		608,393		303,570		23.04
Total	$	13,458,700	$	12,~~305~~475,~~478~~614			$	13,458,700	$	11,965,006

Amortization expense for the three month periods ending ~~April~~July 3031, 2017 and 2016 was $170,~~135~~136 and $170,~~789~~739, respectively. Amortization expense for the ~~six~~nine month periods ending ~~April~~July 3031, 2017 and 2016 was $~~340~~510,~~472~~608 and $~~330~~500,~~061~~800, respectively. There were no changes in the carrying amount of goodwill for the three and ~~six~~nine month periods ending ~~April~~July 3031, 2017.

DEBT

On May 20, 2015 the Company amended its Credit Agreement (the “Agreement”) with Bank of America to provide a senior financing facility consisting of term debt and a revolving line of credit. Under the Agreement, the Company became obligated on $12,000,000 of debt in the form of a term note to refinance the previous senior term debt and to fund repayment of a portion of its outstanding subordinated debt. Additionally, the Agreement includes a $5,000,000 revolving line of credit that can be used for the purchase of fixed assets, to fund acquisitions, to collateralize letters of credit, and for operating capital.

~~The~~Effective September 12, 2016, the Company further amended its Credit Agreement ~~amortizes~~with Bank of America (the ~~term~~“Second ~~debt~~Amendment”). ~~over~~Under athe ~~five~~Second ~~year period~~Amendment, ~~with~~interest 59is ~~equal~~paid ~~monthly~~at a ~~installments~~rate of ~~$133,333~~one-month ~~and~~LIBOR plus a ~~final~~margin ~~payment~~based on the achievement of $4a specified leverage ratio. As of July 31,~~133~~ 2017,~~333~~ ~~due~~the inmargin was ~~May~~2.50% ~~2020~~for the term note and 2.25% ~~The~~for the revolving line of credit. ~~matures~~The inCompany ~~May~~fixed ~~2018.~~the ~~There~~interest ~~are~~rate ~~various~~on ~~restrictive~~a ~~covenants~~portion ~~under~~of ~~the~~its term ~~Agreement~~debt by entering into an interest rate swap. As of July 31, ~~and~~2017, the Company ishad ~~prohibited~~$4,266,000 ~~from~~of ~~entering into~~the ~~other~~term debt ~~agreements~~subject ~~without~~to ~~the~~variable interest ~~bank’s consent~~rates. The ~~Agreement~~one-month ~~also~~LIBOR ~~prohibits~~was ~~the~~1.22% ~~Company~~on ~~from~~July ~~paying~~31, ~~dividends~~2017 ~~without~~resulting in total variable interest rates of 3.72% and 3.47%, for the ~~prior~~term ~~consent~~note ofand the ~~bank~~revolving line of credit, respectively, as of July 31, 2017.

AtThe ~~April~~Second ~~30,~~Amendment ~~2017,~~requires ~~there~~the ~~was~~Company noto ~~balance~~be ~~outstanding~~in oncompliance ~~the~~with ~~line~~certain offinancial ~~credit~~covenants ~~and~~as afollows: ~~letter~~(i) ofa ~~credit~~maximum ~~issued~~annual limit for capital expenditures of $14,~~327~~000,000 each fiscal year, (ii) consolidated adjusted operating cash flows to ~~collateralize~~consolidated ~~the~~total ~~Company’s~~debt ~~liability~~service ~~insurance~~ratio, ~~program~~ as ofdefined, ~~that~~to ~~date~~be no less than 1.5 ~~Consequently,~~to 1 asfor ofany ~~April~~reference ~~30,~~period ~~2017~~ending on or after October 31, ~~there~~2016 ~~was~~and $3(iii) senior funded debt to consolidated adjusted EBITDA,~~673~~ as defined,~~000~~ ~~available~~to be no greater than 2.5 to ~~borrow~~1 ~~from~~as of the ~~revolving~~end ~~line~~ of ~~credit. There~~any ~~was~~fiscal ~~$8,933,000~~quarter ~~outstanding~~ending on ~~the~~or ~~term~~after ~~note~~October as31, 2016. As of ~~April~~July 3031, 2017, the Company was in compliance with these financial covenants.

~~Effective~~On ~~September~~June 1213, ~~2016~~2017, the Company ~~further amended~~entered ~~its~~into ~~Credit~~a ~~Agreement~~Third ~~with Bank of America~~ Amendment (the “~~Second~~Third Amendment”). ~~Under~~to the ~~Second~~Agreement ~~Amendment,~~with ~~interest~~Bank ~~is paid at a rate~~ of ~~one-month~~America. ~~LIBOR~~The ~~plus~~Third aAmendment ~~margin~~increases ~~based on~~ the ~~achievement~~aggregate ofprincipal amount aavailable ~~specified~~under ~~leverage~~the ~~ratio.~~revolving Asline of ~~April~~credit 30from $5,000,000 ~~2017~~to $6,000,000. ~~the margin~~The ~~was~~Third ~~2.50%~~Amendment ~~for~~allows the ~~term~~Company ~~note~~to ~~and~~use proceeds ~~2.25%~~from ~~for~~ the revolving line of credit. ~~The~~to ~~Company~~make ~~fixed~~payments on the ~~interest~~Company’s ~~rate~~subordinated ondebt ain ~~portion of~~an ~~its~~amount ~~term~~not ~~debt~~to byexceed $2,000,000. ~~entering~~The ~~into~~Third anAmendment ~~interest~~also ~~rate~~allows ~~swap.~~for Astotal ofprepayments ~~April~~on ~~30,~~subordinated ~~2017,~~debt ~~the~~up ~~Company~~to ~~had~~ $4,~~466~~500,000 ofin the ~~term~~aggregate. ~~debt subject~~There towere ~~variable~~no ~~interest~~other ~~rates.~~changes ~~The~~to ~~one-month~~the ~~LIBOR~~existing ~~was~~term ~~0.99%~~facility, onapplicable ~~April~~margins ~~30,~~for ~~2017~~outstanding ~~resulting~~balances inof ~~total~~term ~~variable~~debt, ~~interest~~or ~~rates~~outstanding line of ~~3.49% and~~credit 3amounts.~~24%,~~ ~~for~~Subsequent to the ~~term~~execution ~~note~~of ~~and~~the Third Amendment, the ~~revolving~~Company ~~line~~paid an aggregate of ~~credit~~$4, ~~respectively~~500,000 as of ~~April~~subordinated debt ~~30,~~principal ~~2017~~payments to Peter and Jack Baker and the Estate of Henry Baker.

The Second Amendment requires the Company to be in compliance with certain financial covenants as follows: (i) a maximum annual limit for capital expenditures of $4,000,000 each fiscal year, (ii) consolidated adjusted operating cash flows to consolidated total debt service ratio, as defined, to be no less than 1.5 to 1 for any reference period ending on or after October 31, 2016 and (iii) senior funded debt to consolidated adjusted EBITDA, as defined, to be no greater than 2.5 to 1 as of the end of any fiscal quarter ending on or after October 31, 2016. As of April 30, 2017, the Company was in compliance with these financial covenants.

InThe ~~addition~~Agreement toamortizes the ~~senior~~term debt, asover ofa ~~April~~five ~~30, 2017,~~year ~~the~~period ~~Company~~with ~~has~~59 ~~subordinated~~equal ~~debt~~monthly ~~owed~~installments toof ~~Henry~~$133,333 ~~Peter~~ and ~~John~~a ~~Baker~~final inpayment ~~the aggregate principal amount~~ of $94,~~000~~133,~~000~~333 ~~that is~~ due ~~November~~ ~~20,~~in May 2020. ~~$4,500,000~~The ofrevolving ~~the~~line ~~outstanding~~of credit ~~principal~~matures ~~amount~~in atMay ~~April~~2018. ~~30,~~There ~~2017~~are ~~has~~various ~~been~~restrictive ~~reclassified~~covenants tounder ~~current~~the ~~liabilities as~~Agreement, weand ~~anticipate~~the toCompany ~~pay~~is ~~down~~prohibited ~~the~~from ~~subordinated~~entering into other debt asagreements ~~allowed~~without by the ~~Third~~bank’s ~~Amendment~~consent. toThe ~~the~~Agreement ~~Credit~~also ~~Agreement~~prohibits ~~with~~the ~~Bank~~Company offrom ~~America. The~~paying ~~interest~~dividends ~~rate~~without the onprior ~~each~~consent of ~~these~~the ~~notes is 12% per annum~~bank.

At July 31, 2017, there was a balance of $2,000,000 outstanding on the line of credit and a letter of credit issued for $1,327,000 to collateralize the Company’s liability insurance program as of that date. Consequently, as of July 31, 2017, there was $2,673,000 available to borrow from the revolving line of credit. There was $8,533,000 outstanding on the term note as of July 31, 2017.

In addition to the senior debt, as of July 31, 2017, the Company has subordinated debt owed to Peter and John Baker in the aggregate principal amount of $4,500,000 that is due November 20, 2020. The interest rate on each of these notes is 12% per annum.

The notes are secured by all of the assets of the Company but specifically subordinated, with a separate agreement between the debt holders, to the senior financing facility described above.

On June 13, 2017, the Company entered into a Third Amendment to its Credit Agreement with Bank of America (the “Third Amendment”) to increase the aggregate principal amount of the credit available under the revolving credit line from $5,000,000 to $6,000,000 and to amend certain other terms of the Credit Agreement. See Note 11, “Subsequent Event.”

4.	INVENTORIES

Inventories consisted of the following at:

	April 30,			October 31,
	July 31, 2017			October 31, 2016
	2017			2016
Finished Goods	$	2,254,596		$	2,117,241
Finished Goods	$	1,992,894		$	2,117,241
Raw Materials		167,183			178,134
Raw Materials		131,787			178,134
Inventory reserve		(30,000	)		(233,662	)
Inventory reserve		-			(233,662	)
Total Inventories	$	2,391,779		$	2,061,713
Total Inventories	$	2,124,681		$	2,061,713

Finished goods inventory consists of products that the Company sells such as, but not limited to, coffee, cups, soft drinks, and snack foods. Raw material inventory consists primarily of bottle caps. The amount of raw and bottled water on hand does not represent a material amount of inventory. ~~The Company estimates that value as of April 30, 2017 and October 31, 2016 to be $44,000 and $47,000, respectively. This value includes the cost of allocated overhead.~~ Bottles are accounted for as fixed assets.

ON-BALANCE SHEET DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Derivative Financial Instruments

The Company has stand-alone derivative financial instruments in the form of interest rate swap agreements, which derive their value from underlying interest rates. These transactions involve both credit and market risk. The notional amount is an amount on which calculations, payments, and the value of the derivative are based. The notional amount does not represent direct credit exposure. Direct credit exposure is limited to the net difference between the calculated amount to be received and paid, if any. Such difference, which represents the fair value of the derivative instrument, is reflected on the Company’s consolidated balance sheet as an unrealized gain or loss on derivatives.

The Company is also exposed to credit-related losses in the event of nonperformance by the counterparties to these agreements. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and currently has no reason to believe that any counterparties will fail to fulfill their obligations.

This interest rate swap agreement is considered a cash flow hedge to hedge against the variability of interest rates on outstanding debt. The net unrealized gain (loss) relating to interest rate swaps was recorded in current and long term assets or liabilities with an offset to other comprehensive income (loss) for the effective portion of the hedge, net of tax. At ~~April~~July 3031, 2017, these cash flow hedges were deemed 100% effective. The portion of the net unrealized gain in current assets is the amount expected to be reclassified to income within the next twelve months.

The following information pertains to the Company's outstanding interest rate swap at ~~April~~July 3031, 2017. The pay rate is fixed and the receive rate is one month LIBOR. The interest rate swap matures May 18, 2018.

Instrument	Notional Amount	Pay Rate	Receive Rate
Interest rate swap	$4,~~466~~266,668	1.25%	01.9922%

The table below details the adjustments to other comprehensive income (loss), on a before tax and net-of tax basis, for the fiscal quarters ended ~~April~~July 3031, 2017 and 2016.

Before-Tax

Tax Benefit (Expense)

Net-of-Tax

Three Months Ended April 30, 2016

Three Months Ended July 31, 2016

Loss on interest rate swap

(39,~~899~~519

)

13,~~560~~807

(25,~~339~~712

)

Reclassification adjustment for loss in income

810,~~082~~673

(34,~~233~~269

)

46,~~849~~404

Net unrealized gain

41,~~183~~154

(~~1,673~~462

)

~~2,510~~692

Three Months Ended April 30, 2017

Three Months Ended July 31, 2017

Gain on interest rate swap

~~6,533~~185

(~~2,614~~74

)

~~3,919~~111

Reclassification adjustment for loss in income

41,~~186~~469

(~~1,674~~588

)

~~2,512~~881

Net unrealized gain

101,~~719~~654

(~~4,288~~662

)

~~6,431~~992

The reclassification adjustments of $41,~~186~~469 and $810,~~082~~ 673 represent interest the Company paid in excess of the amount that would have been paid without the interest rate swap ~~agreement~~ agreement during the quarters ended ~~April~~July 3031, 2017 and 2016, respectively. These amounts were reclassified from accumulated other comprehensive income (loss) and recorded in the consolidated statements of operations as interest expense. No other material amounts were reclassified during the quarters ended ~~April~~July 3031, 2017 and 2016. The table below details the adjustments to other comprehensive income (loss), on a before tax and net-of tax basis, for the ~~six~~nine months ended ~~April~~July 3031, 2017 and 2016.

Before-Tax

Tax Benefit (Expense)

Net-of-Tax

Six Months Ended April 30, 2016

Nine Months Ended July 31, 2016

Loss on interest rate swap

(5464,~~942~~461

)

2125,~~977~~784

(3238,~~965~~677

)

Reclassification adjustment for loss in income

1223,~~915~~588

(59,~~166~~435

)

714,~~749~~153

Net unrealized loss

(4240,~~027~~873

)

16,~~811~~349

(2524,~~216~~524

)

Six Months Ended April 30, 2017

Nine Months Ended July 31, 2017

Gain on interest rate swap

21,~~654~~839

(8,~~662~~736

)

1213,~~992~~103

Reclassification adjustment for loss in income

1112,~~200~~669

(45,~~479~~067

)

67,~~721~~602

Net unrealized gain

3234,~~854~~508

(13,~~141~~803

)

1920,~~713~~705

The reclassification adjustments of $1112,~~200~~669 and $1223,~~915~~588 represent interest the Company paid in excess of the amount that would have been paid without the interest rate swap agreement during the ~~six~~nine months ended ~~April~~July 3031, 2017 and 2016, respectively. These amounts were reclassified from accumulated other comprehensive income (loss) and recorded in the consolidated statements of operations as interest expense. No other material amounts were reclassified during the ~~six~~nine months ended ~~April~~July 3031, 2017 and 2016.

6.	FAIR VALUES OF ASSETS AND LIABILITIES

Fair Value Hierarchy

The Company’s assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2			Level 3
Assets (Liabilities):
April 30, 2017
July 31, 2017
Unrealized gain on derivatives	$	-	$	~~401~~2,055		$	-
October 31, 2016
Unrealized loss on derivatives	$	-	$	(32,453	)	$	-

In determining the fair value, the Company uses a model that calculates a present value of the payments as they amortize through the life of the loan (float) based on the variable rate and compares them to the calculated value of the payment based on the fixed rate (fixed) defined in the swap. In calculating the present value, in addition to the term, the model relies on other data – the “rate” and the “discount factor.”

In the “float” model, the rate reflects where the market expects LIBOR to be for the respective period and is based on the Eurodollar futures market.

The discount factor is a function of the volatility of LIBOR.

Payments are calculated by applying the rate to the notional amount and adjusting for the term. Then the present value is calculated by using the discount factor.

There were no assets or liabilities measured at fair value on a nonrecurring basis.

127. COMPENSATION PLANS

7. INCOME (LOSS) PER SHARE AND WEIGHTED AVERAGE SHARES

The Company considers outstanding in-the-money stock options as potential common stock in its calculation of diluted earnings per share, unless the effect would be anti-dilutive, and uses the treasury stock method to calculate the applicable number of shares.

The following calculation provides the reconciliation of the denominators used in the calculation of basic and fully diluted earnings per share:

	Three Months Ended April 30,					Six Months Ended April 30,
	2017			2016		2017			2016
Net Income (Loss)	$	(27,079	)	$	239,251	$	(101,693	)	$	209,723
Denominator:
Basic Weighted Average Shares Outstanding		21,358,411			21,358,411		21,358,411			21,358,411
Dilutive effect of Stock Options		-			-		-			-
Diluted Weighted Average Shares Outstanding		21,358,411			21,358,411		21,358,411			21,358,411
Basic Income (Loss) Per Share	$	(.00	)	$	.01	$	(.00	)	$	.01
Diluted Income (Loss) Per Share	$	(.00	)	$	.01	$	(.00	)	$	.01

As of April 30, 2017 and 2016 there were no options outstanding.

8. COMPENSATION PLANS

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide services in exchange for the award, the requisite service period (usually the vesting period). The Company provides an estimate of forfeitures at the initial date of grant.

In April 2014, the Company’s stockholders approved the 2014 Stock Incentive Plan. The plan provided for issuances of awards of up to 500,000 restricted or unrestricted shares of the Company’s common stock, or incentive or non-statutory stock options to purchase such common stock. Of the total amount of shares authorized under this plan, no options have been granted and 500,000 shares are available for grant at ~~April~~July 3031, 2017.

Options issued under the plan generally vest in periods up to five years based on the continuous service of the recipient and have 10 year contractual terms. Share awards generally vest over one year. Option and share awards provide for accelerated vesting if there is a change in control of the Company (as defined in the plan).

There was one option grant, for a total of 10,000 ~~shares~~ shares that was forfeited in the first ~~six~~nine months of fiscal 2016 issued under the 2004 Stock Incentive Plan (“2004 Plan”). As of February 18, 2014, no further options may be granted under the 2004 Plan. Other than this forfeiture, there was no activity related to stock options and outstanding stock option balances during the three and ~~six~~nine month periods ended ~~April~~July 3031, 2017 and 2016.

Compensation is determined using the Black-Scholes model and the simplified method to derive the expected term of the options and historical volatility over the past five years.

98. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of the ASU to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company isplans ~~currently~~to ~~evaluating~~adopt the ~~transition~~ASU ~~methods~~effective ~~and~~ the ~~impact~~first quarter of ~~the~~fiscal ~~standard~~year 2018 using a modified retrospective method. The Company does not believe ASU 2014-09 will have a material impact on its consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. The ASU requires entities using the first-in, first-out (FIFO) inventory costing method to subsequently value inventory at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU requires prospective application and is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, with early adoption permitted. The Company plans to adopt this ASU effective the first quarter of fiscal year 2018. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, "Leases", which is intended to improve financial reporting about leasing transactions. This ASU requires that leased assets be recognized as assets on the balance sheet and the liabilities for the obligations under the lease also be recognized on the balance sheet. This ASU requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The required disclosures include qualitative and quantitative requirements. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. We are currently in the process of evaluating our adoption timing and the impact of this new pronouncement on our consolidated financial position and results of operations.13

In February 2016, the FASB issued ASU 2016-02, "Leases", which is intended to improve financial reporting about leasing transactions. This ASU requires that leased assets be recognized as assets on the balance sheet and the liabilities for the obligations under the lease also be recognized on the balance sheet. This ASU requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The required disclosures include qualitative and quantitative requirements. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently in the process of evaluating our adoption timing and cannot currently estimate the financial statement impact of the adoption.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), to simplify the process used to test for goodwill. Under the new standard, if “the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.” For public companies, the ASU is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted for impairment tests that occur after January 1, 2017. The Company will use the simplified test in its annual fourth quarter testing. Company does not believe the ASU will have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), to better define and provide guidance about which changes or conditions of a share based payment award require an entity to apply modification accounting in Topic 718. For public companies, the ASU is effective for annual and any interim periods beginning after December 15, 2017. The Company plans to adopt this ASU effective the first quarter of fiscal year 2018. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements.

In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The targeted amendments help simplify certain aspects of hedge accounting and result in a more accurate portrayal of the economics of an entity’s risk management activities in its financial statements. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. The amendments are effective for the Company’s fiscal year beginning November 1, 2019, with early adoption permitted. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption.

~~In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), to simplify the process used to test for goodwill~~9. ~~Under~~ACCOUNTS the new standard, if “the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.” For public companies, the ASU is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted for impairment tests that occur after January 1, 2017. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.RECEIVABLE

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), to better define and provide guidance about which changes or conditions of a share based payment award require an entity to apply modification accounting in Topic 718. For public companies, the ASU is effective for annual and any interim periods beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact on its consolidated financial statements.

10. ACCOUNTS RECEIVABLE

Trade Accounts Receivable - Uncollectible individual accounts receivable are written off when deemed uncollectible, with any future recoveries recorded as income when received.

For more details regarding the Company’s accounts receivable ~~polices~~policies refer to Note 2, Significant Accounting Policies, in the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended October 31, 2016.

11. SUBSEQUENT EVENT

Effective June 13, 2017, the Company entered into a Third Amendment to its Credit Agreement with Bank of America. The Third Amendment increases the aggregate principal amount available under the revolving credit line from $5,000,000 to $6,000,000. In addition the Third Amendment allows the Company to use proceeds of the revolving credit line to make payments on the Subordinated Debt in an amount not to exceed $2,000,000. The Third Amendment also permits prepayment of up to $4,500,000 in the aggregate of Subordinated Debt. On June 13, 2017, the Company made principal payments of $4,500,000 in the aggregate to the subordinated debt holders as allowed by the Third Amendment to the Credit Agreement with Bank of America.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto as filed in our Annual Report on Form 10-K for the year ended October 31, 2016 as well as the consolidated financial statements and notes contained herein.

Forward-Looking Statements

The “Management’s Discussion and Analysis” (MD&A) portion of this Form 10-Q contains forward-looking statements, including statements about these topics:

(1) the ~~potential~~increasing ~~adverse~~competition ~~effect~~from ofvirtual ~~climate~~stores ~~changes~~selling ~~and~~non-water ~~severe~~products ~~weather~~on the internet,

	(2)	the outstanding debt levels may adversely impact the business profitability and ability to finance future expansion, and
	(3)	the cost pressures related to commodities affecting our business.

(2)

the potential adverse effect of climate changes and severe weather,

The following factors could strain liquidity and working capital availability and cause actual results to differ materially from statements in MD&A about topic (1): We incorporate by reference into this paragraph the full Risk Factor on page 15 of our 2016 Form 10-K beginning “Climate changes and severe weather may impact”.

	(3)	the outstanding debt levels may adversely impact the business profitability and ability to finance future expansion, and
	(4)	the cost pressures related to commodities affecting our business.

The following factors could strain ~~liquidity~~product ~~and~~profit ~~working~~margins ~~capital~~and profitability ~~availability~~and cause actual results to differ materially from statements in MD&A about topic (21): We incorporate by reference into this paragraph the full Risk Factor on page 15 13 of our 2016 Form 10-K beginning “~~Our~~Internet technology ~~Company~~and isvirtual ~~significantly~~stores ~~leveraged~~have lowered the barriers of entry”.

The following factors could strain liquidity and working capital availability and cause actual results to differ materially from statements in MD&A about topic (32): We incorporate by reference into this paragraph the full Risk Factor on page 15 of our 2016 Form 10-K beginning “~~Fluctuations~~Climate changes inand ~~the~~severe ~~cost~~weather ofmay ~~essential raw materials and commodities~~impact”.

~~Results~~The following factors could strain liquidity and working capital availability in MD&A about topic (3): We incorporate by reference into this paragraph the full Risk Factor on page 15 of ~~Operations~~our 2016 Form 10-K beginning “Our Company is significantly leveraged”.

~~Overview~~The following factors could cause actual results to differ materially from statements in MD&A about topic (4): We incorporate by reference into this paragraph the full Risk Factor on page 15 of our 2016 Form 10-K beginning “Fluctuations in the cost of essential raw materials and ~~Trends~~commodities”.

~~Our~~Results ~~strategy~~ of focusing sales efforts on new water customers and providing value-added service has resulted in stronger gross margin percentages for the first six months of fiscal 2017 compared to the comparable period of 2016.Operations

~~Sales~~Overview in the first six months of fiscal 2017 declined $3.7 million or 11% from $32.8 million in the first six months of fiscal 2016, however sales of water products increased 1%. The most notable sales decline for the period was in the office products category which accounted for 65% of the net sales decline. Refreshment products and ~~coffee sales also declined during the first six months of fiscal 2017.~~Trends

16Our strategy of focusing sales efforts on new water customers and providing value-added service has resulted in higher water volume and an increase in equipment rental units for the first nine months of fiscal 2017 compared to the comparable period of 2016.

~~The effect of the total revenue decline through the first six months of fiscal 2017 resulted in a decrease in gross profit of $455,000, or 3%.~~16

~~Operating~~Sales ~~expenses~~in ~~increased $153,000, or 1% during~~ the first ~~six~~nine months of fiscal 2017 declined as$5.2 ~~compared~~million toor ~~2016~~11% from $49.2 ~~This~~million isin the ~~result~~first ofnine ~~adding~~months ~~resources~~of tofiscal ~~increase~~2016, however sales ~~volumes~~ of ~~traditional~~ water ~~and coffee~~ products and ~~improving~~rental revenues ~~customer~~increased ~~service levels~~slightly. The ~~result~~most ofnotable ~~the~~sales ~~lower~~decline ~~gross~~for ~~profit~~the ~~and~~period ~~increased~~was ~~operating~~in ~~expenses~~the ~~resulted in~~office aproducts ~~reduction~~category inwhich ~~operating~~accounted for ~~income~~64% of ~~$609,000~~the innet ~~the~~sales ~~first~~decline. ~~six~~Refreshment ~~months~~products ofand ~~fiscal~~coffee ~~2017~~sales ~~compared~~also todeclined during the ~~comparable~~first ~~period~~nine inmonths ~~2016~~of fiscal 2017.

~~Results~~The effect of ~~Operations~~the ~~for~~total revenue decline through the ~~Three~~first ~~Months~~nine ~~Ended~~months ~~April~~of ~~30,~~fiscal 2017 ~~(Second~~resulted ~~Quarter) Compared~~in toa ~~the~~decrease ~~Three~~in ~~Months~~gross ~~Ended~~profit ~~April~~of 30$1.2 million, ~~2016~~or 5%.

~~Sales~~Operating expenses increased $473,000, or 2% during the first nine months of fiscal 2017 as compared to 2016. This is the result of adding resources to increase sales volumes of traditional water and coffee products and improving customer service levels. The result of the lower gross profit and increased operating expenses resulted in a reduction in operating income of $1.6 million in the first nine months of fiscal 2017 compared to the comparable period in 2016.

~~Sales~~Results of Operations for the ~~three~~Three ~~months~~Months ~~ended~~Ended ~~April~~July 3031, 2017 ~~were~~(Third ~~$14,475,000~~Quarter) ~~compared~~Compared to ~~$16,711,000 for~~ the ~~corresponding~~Three ~~period~~Months inEnded ~~2016,~~July ~~a decrease of $2~~31,~~236,000~~ or 13%. Other than equipment rental, all sales categories declined. The most notable decline was that of office products. The comparative breakdown of sales of the product lines for the respective three-month periods ended April 30, 2017 and 2016 ~~is as follows:~~

Product Line (000’s $)	2017		2016		Difference			% Diff.
Water	$	6,711	$	6,905	$	(194	)		(3	%)
Coffee		2,624		2,993		(369	)		(12	%)
Refreshment		2,029		2,507		(478	)		(19	%)
Equipment Rental		1,759		1,744		15			1	%
Office Products		864		2,053		(1,189	)		(58	%)
Other		488		509		(21	)		(4	%)
Total	$	14,475	$	16,711	$	(2,236	)		(13	%)

Sales

~~Water –~~ Sales offor ~~water~~the ~~decreased~~three 3%months ~~for~~ended ~~the~~July ~~second quarter~~31, 2017 aswere $14,944,000 compared to $16,394,000 for the ~~same~~corresponding period ofin 2016., ~~The~~a decrease isof ~~attributable~~$1,450,000 toor a9%. ~~volume~~Other ~~decrease~~than ofequipment 1%rental, ~~and~~all sales ancategories ~~average~~declined. ~~price decrease~~The most notable decline was that of 2%office products. The comparative breakdown of sales of the product lines for the respective three-month periods ended July 31, 2017 and 2016 is as follows:

Coffee – The decrease in sales was attributable to a decline in our traditional higher volume bulk and K-cup lines. Bulk products sales continued to be negatively influenced by the single serve lines and K-cup sales declined as a result of ongoing commoditization of coffee products.

Product Line (000’s $)	2017		2016		Difference			% Diff.
Water	$	7,427	$	7,525	$	(98	)		(1	%)
Coffee		2,461		2,591		(130	)		(5	%)
Refreshment		2,214		2,626		(412	)		(16	%)
Equipment Rental		1,756		1,754		2			0	%
Office Products		677		1,444		(767	)		(53	%)
Other		409		454		(45	)		(10	%)
Total	$	14,944	$	16,394	$	(1,450	)		(9	%)

~~Refreshment~~Water – ~~Complementary~~Sales ~~coffee~~of ~~products,~~water ~~single~~decreased 1% for the third quarter ~~serve~~2017 ~~drinks,~~as ~~small~~compared ~~package~~to ~~water,~~the ~~and~~same ~~cups,~~period ~~all~~of ~~declined~~2016. ~~The~~Though ~~Company~~volume noincreased ~~longer~~3% ~~services~~for ~~vending~~the ~~machines~~third ~~which~~quarter ~~accounted~~2017 ~~for $214,000~~as ofcompared to the ~~sales~~same ~~decline~~period of in2016, ~~this~~the ~~category~~average price declined 4%.

~~Equipment~~Coffee ~~Rental~~ – The ~~increase~~decrease in sales was aattributable ~~result~~to of a 3%decline ~~increase~~ in ~~the~~our ~~number~~traditional ofhigher ~~rental~~volume ~~units~~bulk inand ~~the~~K-cup ~~field~~lines. ~~offset~~Bulk products sales continued to be negatively influenced by the single serve lines and K-cup sales declined as a ~~decrease~~result of 2%ongoing incommoditization ~~the~~of ~~average~~coffee ~~monthly~~products ~~rental~~and ~~price~~availability ~~per~~of products ~~rental~~on ~~unit~~the internet through virtual storefronts.

~~Office~~Refreshment ~~Products~~ – ~~The~~Complementary ~~decrease~~coffee inproducts, ~~sales was a result~~single ofserve ~~implemented~~drinks, ~~price~~small ~~increases~~package onwater, ~~items~~and ~~previously~~cups, ~~sold~~all atdeclined. ~~cost~~The orCompany ~~near~~no ~~cost~~longer asservices ~~well~~vending asmachines awhich ~~decreased~~accounted ~~focus~~for $219,000 onof the sales decline in this category.

~~Other~~Equipment Rental – The ~~decrease~~minimal isincrease ~~attributable~~in tosales ~~lower late~~was ~~payment~~a ~~finance~~result ~~charges~~of ~~and~~ a ~~reduction~~2.1% increase in ~~fees~~the ~~that~~number ~~are~~of ~~charged~~rental tounits in the field partially offset ~~energy~~by ~~costs~~a ~~for~~decrease ~~delivery~~of ~~and~~1.9% ~~freight,~~in ~~raw~~the ~~materials~~average monthly ~~and~~rental ~~bottling~~price ~~operations~~per rental unit.

~~Gross~~Office ~~Profit/Cost~~Products ~~of Goods Sold~~ – The decrease in sales ~~for~~was ~~the three months ended April 30, 2017 resulted in~~ a ~~decrease~~ result of ~~gross~~implemented ~~profit~~price toincreases ~~$7,669,000~~on ~~from~~items ~~$8,229,000~~previously ~~for~~sold ~~the comparable~~at ~~period~~cost ~~in 2016, a decrease of $560,000,~~ or ~~7%.~~near ~~As a percentage of sales~~cost, ~~gross margin was 53% for the three months ended April 30, 2017 compared to 49% for the same period~~ a ~~year~~decreased ~~ago.~~focus ~~For~~on ~~the comparable three month periods, water accounted for 46% and 41% of total~~ sales in ~~2017~~this ~~and~~category ~~2016 respectively. Lower margin office product sales for the same periods accounted for 6%~~ and ~~12%~~ availability of ~~total sales in 2017 and 2016 respectively. The improved sales in the higher margin~~ products ~~and~~on the ~~decrease~~internet inthrough ~~lower~~virtual ~~margin office products coupled to improve our gross margin percentages though we realized a decline in gross profit dollars for the second quarter of 2017 as compared to the second quarter 2016~~storefronts.

~~Cost~~Other of– ~~goods~~The ~~sold~~decrease ~~includes~~is ~~all~~attributable ~~costs~~ to ~~bottle~~lower ~~water, costs of~~sales ~~purchasing and receiving products for resale, including freight, as well as costs associated with product quality, warehousing and handling costs, internal transfers, and the repair and service~~ of ~~rental equipment~~coolers, ~~but~~a ~~does~~decrease ~~not include the costs of distributing our product to our customers. We include distribution costs~~ in ~~selling,~~late ~~general,~~payment ~~and~~finance ~~administrative~~charges ~~expense,~~ and ~~the~~a ~~amount~~reduction ~~is reported~~in ~~below.~~fees ~~The reader should be aware~~ that ~~other~~are ~~companies~~charged ~~may~~to ~~include~~offset ~~distribution~~energy costs infor ~~their cost of goods sold, in~~delivery ~~which~~and ~~case~~freight, onraw amaterials ~~comparative~~and ~~basis,~~bottling ~~such other companies may have a lower gross margin as a result~~operations.

~~Operating~~Gross ~~Expenses~~Profit/Cost ~~and~~of ~~Income~~Goods Sold – The decrease in sales for the three months ended July 31, 2017 resulted in a decrease of gross profit to $8,125,000 from ~~Operations~~$8,834,000 for the comparable period in 2016, a decrease of $709,000, or 8%. As a percentage of sales, gross margin was 54% for the three months ended July 31, 2017 and 2016.

~~Total~~Cost ~~operating~~of ~~expenses~~goods ~~decreased~~sold includes all costs to $7bottle water,~~368~~ costs of purchasing and receiving products for resale,~~000~~ inincluding ~~the~~freight, ~~second~~as ~~fiscal~~well as costs associated with product quality, warehousing ~~quarter~~and ofhandling ~~2017~~costs, ~~from~~internal $7transfers,~~436~~ and the repair and service of rental equipment,~~000~~ inbut does not include the ~~comparable~~costs ~~period~~of distributing our product to our customers. We include distribution costs in ~~2016~~selling, ageneral, ~~decrease~~and administrative expense, and the amount is reported below. The reader should be aware that other companies may include distribution costs in their cost of ~~$68~~goods sold,~~000~~ in which case, oron 1%a comparative basis, such other companies may have a lower gross margin as a result.

~~Selling,~~Operating ~~general~~Expenses and ~~administrative~~Income ~~(SG&A) expenses of $7,099,000 in the second fiscal quarter of 2017 decreased $51,000, or 1%,~~ from $7,150,000 in the comparable period in 2016. Of total SG&A expenses, route distribution costs decreased $288,000, or 9%, as a result of lower labor, truck leasing and insurance costs; combined selling and marketing costs remained flat for the second fiscal quarter of 2017 as compared to the same period in 2016; and administration costs increased $237,000, or 8%, as a result of increased spending in the areas of information technology and customer service improvements and provisions for bad debt partially offset by a decrease in overall labor costs.Operations

~~Advertising~~Total operating expenses ~~were~~increased to $997,562,000 in the ~~second~~third fiscal quarter of 2017 ~~compared~~from to $~~116~~7,241,000 in the ~~second~~comparable ~~quarter~~period ofin 2016, aan ~~decrease~~increase of $17321,000, or 154%. ~~The decrease in advertising costs is primarily related to lower utilization of printed advertising materials.~~

~~Amortization~~Selling, ~~decreased~~general toand administrative (SG&A) expenses of $~~170~~7,265,000 in the ~~second~~third fiscal quarter of 2017 increased $332,000, or 5%, from $~~171~~6,933,000 in the comparable ~~quarter~~period in 2016. Of total SG&A expenses, aroute ~~decrease~~distribution ofcosts decreased $172,000, or ~~less than 1~~2%., ~~Amortization~~as isa ~~attributable~~result ~~to intangible~~of ~~assets~~lower ~~that~~labor, ~~were~~truck ~~acquired~~leasing asand ~~part~~insurance ofcosts; ~~acquisitions.~~combined selling Weand ~~had~~marketing nocosts ~~gains~~decreased $9,000, or ~~losses~~1% ~~from~~as ~~the~~a ~~sale~~result of ~~assets~~lower inlabor costs for the ~~second~~third quarter of 2017. Weas ~~recognized~~compared to athe ~~gain~~same ~~from~~period ~~the~~in ~~sale~~2016; ofand ~~assets~~administration ofcosts increased $1413,000, inor ~~the~~15%, ~~second~~as ~~fiscal~~a ~~quarter~~result of ~~2016.~~increased Wespending ~~routinely~~in ~~sell~~the ~~assets~~areas ~~used~~of inliability ~~the~~insurance, ~~normal~~information ~~course~~technology ofand ~~business~~customer asservice ~~they~~improvements ~~are~~and ~~replaced~~provisions ~~with~~for ~~newer~~bad ~~assets~~debt.

18Advertising expenses were $127,000 in the third fiscal quarter of 2017 compared to $137,000 in the third quarter of 2016, a decrease of $10,000, or 7%. The decrease in advertising costs is primarily related to lower utilization of printed advertising materials.

The income from operations for the three months ended April 30, 2017 was $301,000 compared to $793,000 in the comparable period in 2016, a decline of $492,000. The decline was the result of lower sales and corresponding gross profit combined with higher administrations costs partially offset by lower route distribution costs.18

~~Interest~~Amortization decreased to $170,000 ~~Taxes~~in the third fiscal quarter of 2017 from $171,000 ~~and~~in ~~Other~~the ~~Expenses~~comparable quarter in 2016, a decrease of $1,000, or less than 1%. Amortization is attributable to intangible assets that were acquired as part of acquisitions. We had a gain of $1,000 from the sale of assets in the fiscal third quarter of 2017 compared to no gains or losses in the third quarter of fiscal 2016. We routinely sell assets used in the normal course of business as they are replaced with newer assets.

~~Net~~The ~~interest~~income ~~expense~~from ~~was~~operations ~~$344,000~~ for the three months ended ~~April 30~~July 31, 2017 was $563,000 compared to $~~406~~1,593,000 in the ~~three~~comparable ~~months~~period ~~ended~~in ~~April 30,~~ 2016, a ~~decrease~~decline of $621,030,000. The ~~decrease~~decline iswas ~~attributable~~the to result of lower sales ~~average~~and ~~interest~~corresponding ~~rates~~gross ~~and~~profit combined with higher administrations costs partially offset by lower ~~debt~~route ~~balances~~distribution and sales and marketing costs.

~~The loss before income taxes was $43~~Interest,~~000~~ ~~for the three months ended April 30~~Taxes, ~~2017~~and ~~compared~~Other to income before income taxes of $387,000 in the corresponding period in 2016, a decrease of $430,000. The tax benefit for the second quarter of 2017 was $16,000 compared to tax expense of $148,000 in the corresponding period of 2016.Expenses

Net ~~Loss~~interest expense was $292,000 for the three months ended July 31, 2017 compared to $417,000 in the three months ended July 31, 2016, a decrease of $125,000. The decrease is attributable to lower average interest rates and lower debt balances as a result of paying off subordinated debt that requires interest at 12%.

The ~~net~~income ~~loss~~before income taxes was $271,000 for the three months ended ~~April~~July 3031, 2017 ~~was $27,000~~ compared to aincome ~~net~~before income taxes of $~~239~~1,176,000 in the corresponding period in 2016., a decrease of $905,000. The ~~net~~tax ~~loss~~expense isfor ~~attributable~~the tothird ~~lower~~quarter ~~sales~~of ~~and~~2017 ~~corresponding gross~~was ~~profit~~$100,000 ~~combined~~compared ~~with~~to ~~higher~~tax ~~administration~~expense ~~costs~~of ~~partially~~$447,000 ~~offset~~in bythe ~~lower~~corresponding ~~route~~period ~~distribution~~of ~~costs~~2016.

~~Results~~Net ~~of Operations for the Six Months Ended April 30, 2017 (First Half) Compared to the Six Months Ended April 30, 2016~~Income

~~Sales~~The net income for the three months ended July 31, 2017 was $171,000 compared to a net income of $729,000 in the corresponding period in 2016. The lower net income is attributable to lower sales and corresponding gross profit combined with higher administration costs partially offset by lower route distribution, selling and marketing costs as well as lower interest expense.

~~Sales~~Results of Operations for the ~~six~~Nine ~~months~~Months ~~ended~~Ended ~~April~~July 3031, 2017 ~~were~~Compared ~~$29,125,000 compared~~ to ~~$32,842,000 for~~ the ~~corresponding~~Nine Months ~~period~~Ended inJuly ~~2016~~31, ~~a decrease of $3,717,000, or 11%. The most notable decline was that of office products.~~2016

~~The comparative breakdown of sales of the product lines for the respective six-month periods ended April 30, 2017 and 2016 is as follows:~~Sales

Product Line (000’s $)	2017		2016		Difference			% Diff.
Water	$	13,231	$	13,053	$	178			1	%
Coffee		5,326		5,913		(587	)		(10	%)
Refreshment		4,078		4,876		(798	)		(16	%)
Equipment Rental		3,537		3,535		2			0	%
Office Products		1,991		4,533		(2,542	)		(56	%)
Other		962		932		30			3	%
Total	$	29,125	$	32,842	$	(3,717	)		(11	%)

Sales for the nine months ended July 31, 2017 were $44,069,000 compared to $49,237,000 for the corresponding period in 2016, a decrease of $5,168,000, or 10%. The most notable decline was that of office products.

~~Water~~The –comparative ~~Sales~~breakdown of ~~water~~sales ~~increased~~of 1%the ~~for~~product ~~the~~lines ~~first~~for ~~half~~the ~~2017~~respective asnine-month ~~compared~~periods toended ~~the~~July ~~same~~31, ~~period~~2017 ofand 2016. ~~The increase~~ is ~~attributable~~as ~~to an increase in volume of 2% partially offset by a decrease in average price of 1%.~~follows:

Coffee – The decrease in sales was attributable to a decline in our traditional higher volume lines, bulk and K-cup, while Cool Beans® pods increased 7%. Bulk products sales continued to be negatively influenced by the single serve lines and K-cup sales declined as a result of ongoing commoditization. The increase in pod sales is a result of conversion of the other lines as well as new sales but the volume of the product, to date, has not approached that of the others.

Product Line (000’s $)	2017		2016		Difference			% Diff.
Water	$	20,658	$	20,579	$	79			0	%
Coffee		7,786		8,505		(719	)		(8	%)
Refreshment		6,293		7,502		(1,209	)		(16	%)
Equipment Rental		5,293		5,289		4			0	%
Office Products		2,668		5,976		(3,308	)		(55	%)
Other		1,371		1,386		(15	)		(1	%)
Total	$	44,069	$	49,237	$	(5,168	)		(10	%)

~~Refreshment~~Water – ~~Complementary~~Sales ~~coffee~~of ~~products,~~water ~~single~~increased less than 1% for the ~~serve~~first ~~drinks,~~nine ~~small~~months ~~package~~of ~~water,~~fiscal ~~and~~2017 ~~cups,~~as ~~all~~compared ~~declined~~to the same period of 2016. The ~~Company~~increase nois ~~longer~~attributable ~~services~~to ~~vending~~an ~~machines~~increase ~~which~~in ~~accounted for~~volume ~~$419,000~~ of ~~the~~2.4% ~~sales~~partially ~~decline~~offset by a decrease in ~~this~~average ~~category~~price of 2.0%.

~~Equipment~~Coffee ~~Rental~~ – The ~~small~~decrease ~~increase~~ in sales was attributable to a ~~result~~decline ofin aour 2traditional higher volume lines, bulk and K-cup, while Cool Beans® pods increased 11%. ~~increase~~Bulk inproducts sales continued to be negatively influenced by the ~~number~~single serve lines and K-cup sales declined as a result of ~~rental~~ongoing ~~units~~commoditization and inavailability of products on the ~~field~~internet ~~partially~~through ~~offset~~virtual bystorefronts. aThe ~~decrease~~increase in ~~the~~pod ~~average~~sales ~~monthly~~is ~~rental~~a result of conversion of ~~revenue~~the ~~per~~other ~~unit~~lines as well as new sales but the volume of the product, to date, has not approached that of the others.

~~Office~~Refreshment ~~Products~~ – ~~The~~Complementary ~~decrease~~coffee inproducts, ~~sales~~single serve ~~was~~drinks, asmall ~~result of~~package ~~implemented~~water, ~~price~~and ~~increases~~cups, onall ~~items~~declined. ~~previously~~The ~~sold~~Company atno ~~cost~~longer orservices ~~near~~vending ~~cost~~machines aswhich ~~well~~accounted asfor $638,000 ~~less~~of ~~focus~~the on sales decline in this category.

~~Other~~Equipment Rental – The small increase isin ~~the~~sales was a result of ana 1.9% increase in the ~~sales~~number of ~~equipment~~rental ~~such~~units asin ~~water~~the ~~coolers~~field partially offset by a decrease of 1.8% in the average monthly rental revenue per unit.

~~Gross~~Office ~~Profit/Cost~~Products ~~of Goods Sold~~ – The decrease in sales ~~for~~was ~~the six months ended April 30, 2017 resulted in~~ a ~~gross profit decrease of $455,000 to $15,363,000 from $15,818,000~~result ~~for the comparable period in 2016. As a percentage~~ of ~~sales,~~implemented ~~gross~~price ~~margin~~increases ~~was~~on ~~53%~~items ~~for~~previously ~~the~~sold ~~six~~at ~~months~~cost ~~ended~~or ~~April~~near 30cost, ~~2017 compared to 48% for the same period~~ a ~~year~~decreased ~~ago.~~focus ~~Due~~on ~~to a changing~~ sales ~~mix~~in ~~with~~this acategory ~~reduction~~and availability of ~~lower~~products ~~margin~~on ~~sales items,~~ the ~~gross~~internet ~~margin percentage~~through ~~increased~~virtual ~~in 2017 as compared to 2016~~storefronts.

~~Cost~~Other of– ~~goods~~The ~~sold~~decrease ~~includes~~is ~~all~~primarily costs to bottle water, costs of purchasing and receiving products for resale, including freight, as well as costs associated with product quality, warehousing and handling costs, internal transfers, and the ~~repair~~result ~~and service~~ of ~~rental~~a ~~equipment, but does not include the costs of distributing~~reduction ~~our product to our customers. We include distribution costs~~ in ~~selling,~~fees ~~general, and administrative expense, and the amount is reported below. The reader should be aware~~ that ~~other~~are ~~companies~~charged ~~may~~to ~~include~~offset ~~distribution~~energy costs infor ~~their~~delivery ~~cost~~and ~~of goods sold~~freight, ~~in which~~raw ~~case,~~materials onand abottling ~~comparative basis, such other companies may have a lower gross margin as a result~~operations.

~~Operating~~Gross ~~Expenses~~Profit/Cost ~~and~~of ~~Income~~Goods Sold – The decrease in sales for the nine months ended July 31, 2017 resulted in a gross profit decrease of $1,165,000 to $23,488,000 from ~~Operations~~$24,653,000 for the comparable period in 2016. As a percentage of sales, gross margin was 53% for the nine months ended July 31, 2017 compared to 50% for the same period a year ago. Due to a changing sales mix with a reduction of lower margin sales items, the gross margin percentage increased in 2017 as compared to 2016.

~~Total operating expenses increased to $14,829,000 in the first half of 2017 from $14,676,000 in the comparable period in 2016, an increase of $153,000, or 1%.~~20

~~Selling,~~Cost ~~general~~of ~~and~~goods ~~administrative~~sold ~~(SG&A)~~includes ~~expenses~~all ofcosts ~~$14,271,000 in~~to ~~the~~bottle ~~first~~water, ~~half~~costs of purchasing ~~2017~~and ~~increased~~receiving ~~$172,000,~~products orfor 1%resale, ~~from~~including ~~$14~~freight,~~099,000~~ inas ~~the~~well ~~comparable~~as ~~period~~costs inassociated ~~2016.~~with Ofproduct ~~total SG&A expenses~~quality, warehousing ~~route~~and ~~distribution~~handling costs, ~~decreased~~internal ~~$451~~transfers,~~000,~~ orand ~~7%,~~the asrepair aand ~~result~~service of ~~lower~~rental ~~labor~~equipment, ~~truck~~but ~~leasing~~does ~~and~~not ~~insurance~~include the costs; ~~combined~~of ~~selling~~distributing ~~and~~our ~~marketing~~product to our customers. We include distribution costs ~~increased~~in ~~$199~~selling,~~000,~~ ~~or 11%~~general, asand aadministrative ~~result~~expense, ofand anthe ~~increase~~amount inis reported ~~staffing;~~below. ~~and~~The ~~administration~~reader ~~costs~~should ~~increased~~be ~~$424,000, or~~aware ~~8%,~~that asother acompanies ~~result~~may ofinclude ~~increased~~distribution ~~spending~~costs in ~~the~~their ~~areas~~cost of ~~information~~goods ~~technology~~sold, ~~and~~in which ~~customer~~case, ~~service~~on ~~improvements~~a ~~and~~comparative ~~provisions for~~basis, ~~bad~~such ~~debt~~other ~~partially~~companies ~~offset~~may byhave a ~~decrease~~lower ingross ~~overall~~margin ~~labor~~as ~~costs~~a result.

20Operating Expenses and Income from Operations

~~Advertising~~Total operating expenses ~~were~~increased to $~~218~~22,391,000 in the first ~~half~~nine months of 2017 ~~compared to~~from $~~251~~21,918,000 in the ~~first~~comparable ~~half~~period ofin 2016, aan ~~decrease~~increase of $33473,000, or 132%. ~~The decrease in advertising costs is primarily related to a reduction in printed sales materials.~~

~~Amortization~~Selling, ~~increased~~general toand administrative (SG&A) expenses of $~~340~~21,536,000 in the first ~~half~~nine months of 2017 increased $504,000, or 2%, from $~~330~~21,032,000 in the comparable ~~quarter~~period in 2016. Of total SG&A expenses, anroute ~~increase~~distribution ofcosts decreased $10523,000, or 35%., ~~Amortization~~as isa ~~attributable~~result toof ~~intangible~~lower ~~assets~~labor, ~~that were~~truck ~~acquired~~leasing asand ~~part~~insurance ofcosts; ~~acquisitions.~~combined selling Weand ~~had~~marketing nocosts ~~gains~~increased $189,000, or ~~losses~~7%, ~~from~~as ~~the~~a ~~sale~~result of ~~assets~~an increase in ~~the~~staffing; ~~first~~and ~~half~~administration ofcosts ~~2017. We recognized~~increased a$838,000, ~~gain~~or ~~from~~10%, ~~the~~as ~~sale~~a ofresult ~~assets~~ of ~~$4,000~~increased spending in the ~~first~~areas ~~half~~ of ~~2016.~~information Wetechnology ~~routinely~~and ~~sell~~customer ~~assets~~service ~~used~~improvements inand provisions ~~the~~for ~~normal~~bad ~~course~~debt ofpartially ~~business as~~offset ~~they~~by ~~are~~a ~~replaced~~decrease ~~with~~in ~~newer~~overall ~~assets~~labor costs.

~~The~~Advertising ~~income~~expenses ~~from~~were ~~operations~~$345,000 ~~for~~in the ~~six~~first nine months ~~ended~~of ~~April 30,~~ 2017 ~~was $533,000~~ compared to $1389,~~142,~~000 in the ~~comparable~~first ~~period~~nine inmonths of 2016, a decrease of $~~609~~44,000, or 11%. The ~~decline~~decrease ~~was~~in ~~the~~advertising ~~result~~costs ofis ~~lower~~primarily ~~sales~~related ~~and~~to ~~corresponding~~a ~~gross~~reduction ~~profit~~in ~~combined~~printed ~~with~~sales ~~higher selling and administration costs partially offset by lower route distribution costs~~materials.

~~Interest~~Amortization increased to $511,000 ~~Taxes~~in the first nine months of 2017 from $501,000 ~~and~~in ~~Other~~the ~~Expenses~~comparable period of 2016, an increase of $10,000, or 2%. Amortization is attributable to intangible assets that were acquired as part of acquisitions. We had a gain of $1,000 from the sale of assets in the first nine months of 2017 compared to a gain from the sale of assets of $4,000 in the first nine months of 2016. We routinely sell assets used in the normal course of business as they are replaced with newer assets.

~~Interest~~The ~~expense~~income ~~was~~from ~~$695,000~~operations for the ~~six~~nine months ended ~~April~~July 3031, 2017 was $1,097,000 compared to $~~804~~2,735,000 in the ~~six~~comparable ~~months~~period ~~ended~~in ~~April 30,~~ 2016, a decrease of $~~109~~1,638,000. The ~~decrease~~decline iswas ~~attributable~~the toresult ~~lower~~of ~~average~~lower ~~interest~~sales ~~rates~~and corresponding gross profit combined with higher selling and administration costs partially offset by lower ~~debt~~route distribution ~~balances~~costs.

The loss before income taxes was $161,000 for the six months ended April 30, 2017 compared to income before income taxes of $338,000 in the corresponding period in 2016, a decline of $499,000. The tax benefit for the first six months of 2017 was $60,000 compared to a tax expense of $129,000 in 2016.21

~~Net~~Interest, ~~Loss~~Taxes, and Other Expenses

~~The~~Interest ~~net~~expense ~~loss~~was $987,000 for the ~~six~~nine months ended ~~April~~July 3031, 2017 ~~was $102,000~~ compared to ~~a net income of~~ $~~210~~1,220,000 in the ~~corresponding~~nine ~~period~~months inended July 31, 2016, a decrease of $233,000. The ~~net~~decrease ~~loss~~ is attributable to lower average ~~sales~~interest rates and ~~corresponding gross~~lower ~~profit~~debt ~~combined~~balances ~~with~~as ~~higher~~a ~~administration~~result ~~costs~~of ~~partially~~paying ~~offset~~off bysubordinated ~~lower~~debt ~~route~~that ~~distribution~~requires ~~costs~~interest at 12%.

~~Liquidity~~The ~~and~~income ~~Capital~~before ~~Resources~~income taxes was $110,000 for the nine months ended July 31, 2017 compared to income before income taxes of $1,514,000 in the corresponding period in 2016, a decline of $1,404,000. The tax expense for the first nine months of 2017 was $41,000 compared to a tax expense of $575,000 in 2016.

AsNet of April 30, 2017, we had working capital of $2,868,000 compared to $7,911,000 as of October 31, 2016, a decrease of $5,043,000. Of the decrease, $4,500,000 is attributable to the reclassification of non-current subordinated debt to current liabilities as we anticipate to pay down the subordinated debt as allowed by the Third Amendment to the Credit Agreement with Bank of America. Cash provided from operations during the six months ended April 30, 2017 was $66,000.Income

21The net income for the nine months ended July 31, 2017 was $69,000 compared to a net income of $939,000 in the corresponding period in 2016. The reduction in net income is attributable to lower sales and corresponding gross profit combined with higher selling and administration costs partially offset by lower route distribution costs.

~~Our~~Liquidity ~~Credit Agreement with Bank of America (the “Bank”) provides a senior financing facility consisting of term debt~~ and aCapital revolving line of credit. As of April 30, 2017 we had $8,933,000 outstanding on our term loan. We have no funds borrowed from our line of credit with the Bank. We have a letter of credit of $1,327,000 secured by our line of credit resulting in $3,673,000 available to borrow on the line of credit as of April 30, 2017.Resources

~~Our~~As ~~term~~of ~~debt~~July ~~amortizes~~31, ~~over~~2017, awe ~~five~~had ~~year~~working ~~period~~capital ~~with~~of 59$3,117,000 ~~equal monthly~~compared ~~installments~~to $7,911,000 as of ~~$133~~October 31,~~333~~ ~~and~~2016, a ~~final~~decrease ~~payment~~ of $4,~~133~~794,~~333 due in May 2020~~000. ~~The~~As ~~revolving~~permitted ~~line~~in ofthe ~~credit~~“Third ~~matures~~Amendment”, inwe ~~May~~made ~~2018.~~a ~~There~~$4,500,000 ~~are~~prepayment ~~various~~on ~~restrictive~~our ~~covenants~~subordinated ~~under~~debt. ~~the~~We ~~Credit~~paid ~~Agreement~~$2,500,000 ~~and~~in ~~the~~cash ~~Company~~and isused ~~prohibited~~proceeds from ~~entering~~the ~~into~~revolving ~~other~~line ~~debt~~of ~~agreements without~~credit for the ~~bank’s consent~~remaining $2,000,000. ~~The~~Cash ~~Credit~~provided ~~Agreement~~from ~~also~~operations ~~prohibits~~during the ~~Company~~nine ~~from~~months ~~paying~~ended ~~dividends~~July ~~without~~31, ~~the~~2017 ~~prior~~was ~~consent of the bank~~$578,000.

~~Effective~~Our ~~September 12, 2016, the Company amended its~~ Credit Agreement with Bank of America (the “~~Second Amendment~~Bank”). provides ~~Under~~a ~~the~~senior ~~Second~~financing ~~Amendment,~~facility ~~interest~~consisting ~~is paid at a rate~~ of ~~one-month~~term ~~LIBOR~~debt ~~plus~~and a ~~margin~~revolving ~~based~~line ~~on the achievement~~ of ~~a specified leverage ratio~~credit. As of ~~April~~July 3031, 2017, ~~the~~we ~~margin~~had ~~was 2.50%~~$8,533,000 ~~for~~outstanding ~~the~~on our term ~~note and 2~~loan.~~25%~~ ~~for~~At ~~the~~July ~~revolving~~31, ~~line~~2017, ofthere ~~credit.~~was ~~The~~a ~~Company~~balance ~~fixed~~of ~~the~~$2,000,000 ~~interest~~outstanding ~~rate~~ on athe ~~portion~~line of ~~its~~credit ~~term~~and ~~debt by~~a ~~entering into an interest rate swap. As~~ letter of ~~April~~credit ~~30,~~issued ~~2017,~~for ~~the Company had~~ $41,~~466~~327,000 ofto collateralize the ~~term~~Company’s ~~debt~~liability ~~subject~~insurance toprogram ~~variable~~as ~~interest rates.~~of ~~The~~that ~~one-month LIBOR was 0~~date.~~99%~~ onConsequently, as ~~April~~of 30July 31, 2017, ~~resulting~~there inwas ~~total variable interest rates of 3.49% and 3.24%~~$2,673,000 ~~for~~available ~~the~~to ~~term note~~borrow ~~and~~from the revolving line of credit,. ~~respectively,~~The asline of ~~April~~credit ~~30,~~matures ~~2017~~in May 2018.

~~The~~Our ~~following~~term ~~information~~debt ~~pertains~~amortizes toover ~~the~~a ~~Company's~~five ~~outstanding~~year ~~interest~~period ~~rate~~with ~~swap~~59 atequal monthly ~~April~~installments 30of $133,333 ~~2017~~and a final payment of $4,133,333 due in May 2020. ~~The~~ ~~pay~~There ~~rate~~are isvarious ~~fixed~~restrictive ~~and~~covenants under the ~~receive~~Credit Agreement, ~~rate~~and the Company is ~~one~~prohibited ~~month~~from ~~LIBOR~~entering into other debt agreements without the bank’s consent. The Credit Agreement also prohibits the Company from paying dividends without the prior consent of the Bank.

Instrument	Notional Amount	Pay Rate	Receive Rate
Interest rate swap	$4,466,668	1.25%	0.99%

Effective September 12, 2016, the Company further amended its Credit Agreement with the Bank (the “Second Amendment”). Under the Second Amendment, interest is paid at a rate of one-month LIBOR plus a margin based on the achievement of a specified leverage ratio. As of July 31, 2017, the margin was 2.50% for the term note and 2.25% for the revolving line of credit. The Company fixed the interest rate on a portion of its term debt by entering into an interest rate swap. As of July 31, 2017, the Company had $4,266,000 of the term debt subject to variable interest rates. The one-month LIBOR was 1.22% on July 31, 2017 resulting in total variable interest rates of 3.72% and 3.47%, for the term note and the revolving line of credit, respectively, as of July 31, 2017.

The ~~Second~~following ~~Amendment~~information ~~requires~~pertains to the Company's tooutstanding beinterest inrate ~~compliance~~swap ~~with~~at ~~certain~~July ~~financial covenants as follows: (i) a maximum annual limit for capital expenditures of $4~~31,~~000,000~~ ~~each fiscal year, (ii) consolidated adjusted operating cash flows to consolidated total debt service ratio, as defined, to be no less than 1~~2017.5 The topay 1rate ~~for any~~is ~~reference~~fixed ~~period ending on or after October 31, 2016~~ and ~~(iii) senior funded debt to consolidated adjusted EBITDA, as defined, to be no greater than 2.5 to 1 as of~~ the ~~end~~receive ofrate ~~any~~is ~~fiscal~~one ~~quarter~~month ~~ending on or after October 31, 2016~~LIBOR. ~~As of April 30, 2017, the Company was in compliance with these financial covenants.~~

In addition to the senior debt, as of April 30, 2017, the Company has subordinated debt owed to Henry, Peter and John Baker in the aggregate principal amount of $9,000,000 that is due November 20, 2020. On June 13, 2017, the Company made principal payments of $4,500,000 in the aggregate to the subordinated debt holders as allowed by the Third Amendment to the Credit Agreement with Bank of America. The interest rate on each of these notes is 12% per annum.

Instrument	Notional Amount	Pay Rate	Receive Rate
Interest rate swap	$4,266,668	1.25%	1.22%

InThe ~~addition~~Second Amendment requires the Company to ~~our~~be ~~senior~~in ~~and~~compliance ~~subordinated~~with certain ~~debt~~financial ~~commitments~~covenants as follows: (i) a maximum annual limit for capital expenditures of $4,000,000 weeach ~~have~~fiscal ~~significant~~year, ~~future~~(ii) consolidated adjusted operating cash ~~commitments~~flows to consolidated total debt service ratio, ~~primarily~~as indefined, ~~the~~to ~~form~~be ofno ~~operating~~less ~~leases~~than ~~that~~1.5 ~~are~~to ~~not~~1 ~~reported~~for any reference period ending on ~~the~~or after October 31, 2016 and (iii) senior funded debt to consolidated ~~balance~~adjusted ~~sheet.~~EBITDA, ~~The~~as ~~following~~defined, ~~table~~to ~~sets~~be ~~forth~~no ~~our~~greater ~~contractual~~than ~~commitments~~2.5 into ~~the~~1 ~~remainder~~as of the ~~current~~end ~~year~~of ~~and~~any ~~future~~ fiscal ~~years~~quarter asending on or after October 31, 2016. As of ~~April~~July 3031, 2017:, the Company was in compliance with these financial covenants.

	Payment due by Period
Contractual Obligations	Total		Remainder of 2017		2018-2019		2020-2021		After 2021
Debt (1)	$	17,933,000	$	5,300,000	$	3,200,000	$	9,433,000	$	-
Interest on Debt (2)		2,726,000		514,000		1,553,000		659,000		-
Operating Leases		8,858,000		1,452,000		4,685,000		2,592,000		129,000
Total	$	29,517,000	$	7,266,000	$	9,438,000	$	12,684,000	$	129,000

On June 13, 2017, the Company entered into a Third Amendment (the “Third Amendment”) to the Agreement with the Bank. The Third Amendment increases the aggregate principal amount available under the revolving line of credit from $5,000,000 to $6,000,000. The Third Amendment allows the Company to use proceeds from the revolving line of credit to make payments on the Subordinated Debt in an amount not to exceed $2,000,000. The Third Amendment also allows for total prepayments on Subordinated Debt up to $4,500,000 in the aggregate. There were no other changes to the existing term facility, applicable margins for outstanding balances of term debt, or outstanding line of credit amounts. Subsequent to the execution of the Third Amendment, the Company paid an aggregate of $4,500,000 of subordinated debt principal payments to Peter and Jack Baker and the Estate of Henry Baker.

~~(1)~~In ~~Debt~~addition ~~payments~~to inthe ~~2017~~senior ~~include~~debt, ~~payments~~as of July 31, 2017, the Company has subordinated debt owed to Peter and John Baker in the aggregate principal amount of $4,500,000 that is due November 20, 2020. The interest rate on each of these notes is 12% per annum.

~~(2)~~In ~~Interest~~addition ~~based~~to onour ~~50%~~senior ofand ~~outstanding~~subordinated ~~senior~~ debt atcommitments, ~~the~~we ~~hedged~~have ~~interest~~significant ~~rate~~future cash ~~discussed above~~commitments, ~~50%~~primarily in the form of ~~outstanding~~operating ~~senior~~leases ~~debt~~that atare anot ~~variable~~reported ~~rate~~on ofthe 3consolidated balance sheet.~~49%,~~ ~~line~~The offollowing table ~~credit~~sets atforth aour ~~rate~~contractual commitments in the remainder of ~~3.24%,~~the ~~and~~current ~~subordinated~~year ~~debt~~and atfuture afiscal ~~rate~~years as of ~~12%.~~July 31, 2017:

(3) Customer deposits have been excluded from the table. Deposit balances vary from period to period with water sales but future increases and decreases in the balances are not accurately predictable. Deposits are excluded because, net of periodic additions and reductions, it is probable that a customer deposit balance will always be outstanding as long as the business operates.

	Payment due by Period
Contractual Obligations			Remainder
	Total		of 2017		2018-2019		2020-2021		After 2021
Debt (1)	$	15,033,000	$	400,000	$	5,200,000	$	9,433,000	$	-
Interest on Debt (2)		2,547,000		282,000		1,603,000		662,000		-
Operating Leases		8,074,000		704,000		4,725,000		2,587,000		58,000
Total	$	25,654,000	$	1,386,000	$	11,528,000	$	12,682,000	$	58,000

~~Effective~~(1) ~~June~~Debt 13, 2017, the Company entered into a Third Amendment to its Credit Agreement with Bank of America. The Third Amendment increases the aggregate principal amount available under the revolving credit line from $5,000,000 to $6,000,000. In addition the Third Amendment allows the Company to use proceeds of the revolving credit line to make payments ~~on the Subordinated Debt~~ in an2018 ~~amount~~include ~~not~~repayments toof ~~exceed~~ $2,000,000. ~~The Third~~outstanding ~~Amendment~~under ~~also~~our ~~permits~~line ~~prepayment~~ of ~~up to $4,500,000 in the aggregate of Subordinated Debt~~credit.

We(2) ~~have~~Interest nobased ~~other~~on ~~material~~50% ~~contractual~~of ~~obligations~~outstanding orsenior ~~commitments~~debt at the hedged interest rate discussed above, 50% of outstanding senior debt at a variable rate of 3.72%, line of credit at a rate of 3.47%, and subordinated debt at a rate of 12%.

23(3) Customer deposits have been excluded from the table. Deposit balances vary from period to period with water sales but future increases and decreases in the balances are not accurately predictable. Deposits are excluded because, net of periodic additions and reductions, it is probable that a customer deposit balance will always be outstanding as long as the business operates.

~~Item~~We 3.have ~~Quantitative~~no ~~and~~other ~~Qualitative~~material ~~Disclosures~~contractual ~~about~~obligations ~~Market~~or ~~Risks~~commitments.

~~Pursuant to Regulation S-K, Item 305(e), smaller reporting companies are not required to provide this information.~~23

Item 43. ~~Controls~~Quantitative and ~~Procedures~~Qualitative Disclosures about Market Risks.

~~Our~~Pursuant ~~Chief Executive Officer and our Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules~~to ~~13a~~Regulation S-~~15(e)~~K, ~~and~~Item ~~15d-15~~305(e)~~). Based on such evaluation~~, ~~our~~smaller ~~Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and~~reporting ~~procedures,~~companies asare ofnot ~~the~~required ~~end of the period covered by this report, were adequate and effective~~ to provide ~~reasonable~~this ~~assurance that~~ information required to be disclosed by us, including our consolidated subsidiary, in reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that information we are required to disclose in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive and Chief Financial officers, as appropriate to allow timely decisions regarding required disclosure.

~~The~~Item effectiveness of a system of disclosure controls and procedures is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of internal controls, and fraud4. ~~Due~~Controls ~~to such inherent limitations, there can be no assurance that any system of disclosure controls~~ and ~~procedures will be successful in preventing all errors or fraud, or in making all material information known in a timely manner to the appropriate levels of management~~Procedures.

~~Changes~~Our Chief Executive Officer and our Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in ~~Internal~~Exchange ~~Control~~Act ~~over~~Rules 13a-15(e) and 15d-15(e)). Based on such evaluation, our Chief Executive Officer and Chief Financial ~~Reporting~~Officer have concluded that our disclosure controls and procedures, as of the end of the period covered by this report, were adequate and effective to provide reasonable assurance that information required to be disclosed by us, including our consolidated subsidiary, in reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that information we are required to disclose in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive and Chief Financial officers, as appropriate to allow timely decisions regarding required disclosure.

NoThe ~~change~~effectiveness inof ~~our~~a ~~internal~~system ~~control~~of ~~over~~disclosure ~~financial~~controls ~~reporting~~and ~~occurred~~procedures ~~during~~is ~~the~~subject ~~six~~to ~~month~~various ~~period~~inherent ~~ended~~limitations, ~~April~~including 30cost limitations, ~~2017~~judgments ~~that~~used ~~has~~in ~~materially~~decision ~~affected~~making, orassumptions isabout ~~reasonably~~the likelihood ~~likely~~of future events, the soundness of internal controls, and fraud. Due to ~~materially~~such ~~affect~~inherent limitations, ~~our~~there can be no assurance ~~internal~~that ~~control~~any ~~over~~system ~~financial~~of ~~reporting~~disclosure controls and procedures will be successful in preventing all errors or fraud, or in making all material information known in a timely manner to the appropriate levels of management.

24Changes in Internal Control over Financial Reporting.

~~PART~~No IIchange –in ~~OTHER~~our ~~INFORMATION~~internal control over financial reporting occurred during the nine month period ended July 31, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

~~Item 1. Legal Proceedings.~~24

~~None.~~PART II – OTHER INFORMATION

Item 1A1. ~~Risk~~Legal ~~Factors~~Proceedings.

~~There was no change in the six months ended April 30, 2017 from the Risk Factors reported in our Annual Report on Form 10-K for the year ended October 31, 2016~~None.

Item 21A. ~~Unregistered~~Risk ~~Sales of Equity Securities and Use of Proceeds~~Factors.

~~None~~There was no change in the nine months ended July 31, 2017 from the Risk Factors reported in our Annual Report on Form 10-K for the year ended October 31, 2016.

Item 32. ~~Defaults~~Unregistered ~~Upon~~Sales ~~Senior~~of Equity Securities and Use of Proceeds.

None.

Item 43. ~~Mine~~Defaults ~~Safety~~Upon ~~Disclosures~~Senior Securities.

None.

Item 54. ~~Other~~Mine ~~Information~~Safety Disclosures.

None.

Item 65. ~~Exhibits~~Other Information.

	Exhibit Number	Description
	3.1	Certificate of Incorporation (Incorporated by reference to Exhibit B to Appendix A to our registration statement on Form S-4, File No. 333-45226, filed with the SEC on September 6, 2000)
	3.2	Certificate of Amendment of Certificate of Incorporation (Incorporated by reference to Exhibit 4.2 of our current report on Form 8-K, filed with the SEC on October 19, 2000)
	3.3	Certificate of Ownership and Merger of Crystal Rock Holdings, Inc. with and into Vermont Pure Holdings, Ltd. (Incorporated by reference to Exhibit 3.1 to our current report on Form 8-K, filed with the SEC on May 6, 2010)

None.

	3.4	By-laws, as amended (Incorporated by reference to Exhibit 3.2 to our report on Form 8-K, filed with the SEC on April 2, 2010)
	31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	101	Interactive Data Files regarding (a) our Consolidated Balance Sheets as of April 30, 2017 and October 31, 2016, (b) our Consolidated Statements of Operations for the Three and Six Months Ended April 30, 2017 and 2016, (c) our Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended April 30, 2017 and 2016, (d) our Consolidated Statements of Cash Flows for the Six Months Ended April 30, 2017 and 2016, and (e) the Notes to such Consolidated Financial Statements.

Item 6. Exhibits.

26Exhibit Number Description

~~SIGNATURE~~3.1 Certificate of Incorporation (Incorporated by reference to Exhibit B to Appendix A to our registration statement on Form S-4, File No. 333-45226, filed with the SEC on September 6, 2000)

~~Pursuant~~3.2 toCertificate ~~the~~of ~~requirements~~Amendment of ~~the~~Certificate ~~Securities Exchange Act~~ of ~~1934, the~~Incorporation ~~registrant~~(Incorporated ~~has~~by ~~duly~~reference ~~caused~~to ~~this~~Exhibit ~~report~~4.2 toof beour ~~signed~~current report on ~~its~~Form ~~behalf~~8-K, byfiled with the ~~undersigned,~~SEC ~~thereunto~~on ~~duly~~October ~~authorized.~~19, 2000)

~~Dated:~~3.3 ~~June~~Certificate 14of Ownership and Merger of Crystal Rock Holdings, ~~2017~~Inc. with and into Vermont Pure Holdings, Ltd. (Incorporated by reference to Exhibit 3.1 to our current report on Form 8-K, filed with the SEC on May 6, 2010)

~~CRYSTAL~~3.4 ~~ROCK HOLDINGS~~By-laws, ~~INC.~~as ~~By:~~amended ~~/s/~~(Incorporated ~~David~~by ~~Jurasek~~reference ~~David~~to ~~Jurasek~~Exhibit ~~Chief~~3.2 ~~Financial~~to ~~Officer/Treasurer~~our ~~(Principal~~report ~~Accounting~~on ~~Officer~~Form ~~and~~8-K, ~~Principal~~filed ~~Financial~~with ~~Officer~~the SEC on April 2, 2010)

2710.1 Third Amendment Agreement with Bank of America dated June 13, 2017 (Incorporated by reference to Exhibit 10.1 to our report on Form 8-k, filed with the SEC on June 13, 2017)

~~Exhibits~~31.1 ~~Filed~~Certification ~~Herewith~~of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	Exhibit Number	Description
	31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley act of 2002.
	31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley act of 2002.
	32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	101	Interactive Data Files regarding (a) our Consolidated Balance Sheets as of April 30, 2017 and October 31, 2016, (b) our Consolidated Statements of Operations for the Three and Six Months Ended April 30, 2017 and 2016, (c) our Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended April 30, 2017 and 2016, (d) our Consolidated Statements of Cash Flows for the Six Months Ended April 30, 2017 and 2016, and (e) the Notes to such Consolidated Financial Statements.

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

2832.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101

Interactive Data Files regarding (a) our Consolidated Balance Sheets as of July 31, 2017 and October 31, 2016, (b) our Consolidated Statements of Operations for the Three and Nine Months Ended July 31, 2017 and 2016, (c) our Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended July 31, 2017 and 2016, (d) our Consolidated Statements of Cash Flows for the Nine Months Ended July 31, 2017 and 2016, and (e) the Notes to such Consolidated Financial Statements.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: September 14, 2017

	CRYSTAL ROCK HOLDINGS, INC.


	By:	/s/ David Jurasek
		David Jurasek
		Chief Financial Officer/Treasurer
		(Principal Accounting Officer and Principal Financial Officer)
		Exhibits Filed Herewith

Exhibits Filed Herewith

	Exhibit
	Number	Description


	31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley act of 2002.

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley act of 2002.

32.1

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101

Filing Compare · Crystal Rock Holdings, Inc.