UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

FOR THE QUARTERLY PERIOD ENDED ~~July~~January 31, ~~2025~~2026

☐ 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: 001-32491

COFFEE HOLDING CO., INC.

(Exact Name of Registrant as Specified in Its Charter)

Nevada

11-2238111

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

3475 Victory Boulevard, Staten Island, New York		10314
(Address of principal executive offices)		(Zip Code)

(718) 832-0800

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		JVA		The Nasdaq Stock Market LLC

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	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 ☒

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

5,708,599 shares of common stock, par value $0.001 per share, are outstanding at ~~September~~March 1011, ~~2025~~2026.

TABLE OF CONTENTS

		PAGE
PART I	~~FINANCIAL INFORMATION~~	~~F-1~~3
ITEM 1.	Financial Statements	F-1
ITEM 1	FINANCIAL STATEMENTS	3
	Unaudited Condensed Consolidated Balance Sheets as of July 31, 2025 and October 31, 2024	F-1
ITEM 2	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	16
	Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended July 31, 2025 and 2024	F-2
ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	20
	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended July 31, 2025 and 2024	F-3
ITEM 4	CONTROLS AND PROCEDURES	20
	Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended July 31, 2025 and 2024	F-4
PART II		21
	Notes to the Unaudited Condensed Consolidated Financial Statements	F-5
ITEM 1	LEGAL PROCEEDINGS	21
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1
ITEM 1A	RISK FACTORS	21
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	6
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	21
ITEM 4.	Controls and Procedures	6
ITEM 3	DEFAULTS UPON SENIOR SECURITIES	21
PART II	OTHER INFORMATION	8
ITEM 4	MINE SAFETY DISCLOSURES	21
ITEM 1.	Legal Proceedings	8
ITEM 5	OTHER INFORMATION	21
ITEM 1A.	Risk Factors	8
ITEM 6	EXHIBITS	21
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	8
ITEM 3.	Defaults Upon Senior Securities	8
ITEM 4.	Mine Safety Disclosures	8
ITEM 5.	Other Information	8
ITEM 6.	Exhibits	9
SIGNATURES		10

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

COFFEE HOLDING CO., INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	July 31, 2025			October 31, 2024
	January 31, 2026			October 31, 2025
	(Unaudited)	~~(Unaudited)~~
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	~~979~~2,~~772~~746,491		$	1701,~~381,023~~872
Accounts receivable, net of allowances for credit losses of $144,000 for 2025 and 2024		10,084,545			9,367,338
Accounts receivable, net of allowances of $313,000 for 2026 and 2025		9,494,976			12,093,251
Inventories		2118,~~685~~988,~~412~~272			1520,~~705~~446,~~984~~481
Due from broker		41,~~444~~824,~~179~~684			1,~~466~~424,~~059~~036
Prepaid expenses and other current assets		~~831~~452,~~640~~629			~~167~~594,~~207~~360
Prepaid and refundable income taxes		—-			~~285~~180,~~439~~916
TOTAL CURRENT ASSETS		3833,~~025~~507,~~548~~052			2835,~~373~~440,~~050~~916
Building, machinery, and equipment, net		3,~~206~~565,~~896~~990			3,~~221~~463,~~865~~072
Customer list and relationships, net of accumulated amortization of $308,625 and $285,750 for 2025 and 2024, respectively		131,375			154,250
Customer list and relationships, net of accumulated amortization of $323,875 and $316,250 for January 31, 2026 and October 31, 2025, respectively		116,125			123,750
Trademarks and tradenames		327,000			327,000
Equity method investments		39,651			39,651
Equity investments		889,651			39,651
Right-of-use asset		2,696,475			1,166,537
Right of use asset		1,917,620			2,084,175
Deferred income tax assets, net		908,107			592,398
Deferred income tax assets - net		400,896			229,899
Deposits and other assets		~~544~~429,~~915~~267			~~135~~339,~~937~~909
TOTAL ASSETS	$	4541,~~879~~153,~~967~~601		$	3442,~~010~~048,~~688~~372
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	86,~~083~~463,~~215~~765		$	5,~~743~~641,~~899~~836
Due to broker		1,910,048			794,804
Line of credit		2,650,000			6,050,000
Line of credit		6,250,000			—
Due to broker		968,123			303,813
Lease liabilities - current portion		~~802~~871,~~756~~265			~~307~~811,~~364~~975
TOTAL CURRENT LIABILITIES		1710,~~046~~953,~~019~~153			612,~~846~~807,~~067~~624
Lease liabilities – long term		1,934,511			865,668
Lease liabilities - long term		1,305,288			1,530,096
Deferred compensation payable		~~129~~133,~~972~~647			~~121~~129,~~386~~646
TOTAL LIABILITIES		1912,~~110~~392,~~502~~088			714,~~833~~467,~~121~~366
Commitments and Contingencies (Note 9)		-			-
STOCKHOLDERS’ EQUITY:
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued		—			—
Coffee Holding Co., Inc. stockholders’ equity:
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,633,930 shares issued for July 31, 2025 and October 31, 2024; 5,708,599 shares outstanding for July 31, 2025 and October 31, 2024		6,634			6,634
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued		-			-
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,633,930 shares issued for January 31, 2026 and October 31, 2025; 5,708,599 shares outstanding for January 31, 2026 and October 31, 2025		6,634			6,634
Additional paid in capital		19,094,618			19,094,618
Retained earnings		1214,~~301~~293,~~773~~821			1113,~~709~~113,~~875~~314
Less: common stock held in treasury, at cost; 925,331 shares for July 31, 2025 and October 31, 2024		(4,633,560	)		(4,633,560	)
Less: common stock held in treasury, at cost; 925,331 shares for January 31, 2026 and October 31, 2025		(4,633,560	)		(4,633,560	)
TOTAL STOCKHOLDERS’ EQUITY		2628,~~769~~761,~~465~~513		$	2627,~~177~~581,~~567~~006
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4541,~~879~~153,~~967~~601		$	3442,~~010~~048,~~688~~372

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

~~F-1~~3

COFFEE HOLDING CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	2025			2024			2025			2024
	2026			2025
	Nine months ended July 31,						Three months ended July 31,
	Three months ended January 31,
	2025			2024			2025			2024
	2026			2025
NET SALES	$	6825,~~535~~565,~~860~~840		$	5721,~~349~~305,~~477~~285		$	~~23,910,514~~		$	~~18,813,162~~
COST OF SALES		5518,~~253~~536,~~979~~823			4615,~~239~~573,~~134~~359			~~20,997,777~~			~~14,887,098~~
GROSS PROFIT		137,~~281~~029,~~881~~017			115,~~110~~731,~~343~~926			~~2,912,737~~			~~3,926,064~~
OPERATING EXPENSES
OPERATING EXPENSES:
Selling and administrative		114,~~259~~443,~~400~~286			93,~~365~~929,~~236~~598			~~3,824,473~~			~~3,045,611~~
Officers’ salaries		~~637~~208,~~986~~989			~~474~~211,~~983~~297			~~183,415~~			~~160,590~~
TOTAL		114,~~897~~652,~~386~~275			94,~~840~~140,~~219~~895			~~4,007,888~~			~~3,206,201~~
INCOME (LOSS) FROM OPERATIONS		1,384,495			1,270,124			(1,095,151	)		719,863
INCOME FROM OPERATIONS	$	2,376,742		$	1,591,031
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE):
Interest income		288			~~34,669~~10			5			~~256~~
Interest expense		(141,905	)		(235,427	)		(92,683	)		(44,641	)
Loss from equity investment		-			(23	)
Gain on extinguishment of lease		—			210,567			—			210,567
Interest expense		(65,740	)		(31,670	)
Other income		29			—			—			—
TOTAL		(65,732	)		(31,683	)
TOTAL		(141,848	)		9,809			(92,678	)		166,182
INCOME BEFORE INCOME TAX	$	2,311,010		$	1,559,348
INCOME (LOSS) BEFORE EXPENSE FOR INCOME TAXES		1,242,647			1,279,933			(1,187,829	)		886,045
Income Tax Provision		662,690			406,092
Expense for income taxes		650,749			323,954			17,584			259,249
NET INCOME		1,648,320			1,153,256
NET INCOME (LOSS)	$	591,898		$	955,979		$	(1,205,413	)	$	626,796
Basic and diluted income per share		0.29			0.20
Basic and diluted earnings (loss) per share	$	0.10		$	0.17		$	(0.21	)	$	0.11
Weighted average common shares outstanding:	$			$
Weighted average common shares outstanding:
Basic and diluted		5,708,599			5,708,599
Basic and diluted		5,708,599			5,708,599			5,708,599			5,708,599

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

~~F-2~~4

COFFEE HOLDING CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

~~FOR THE~~ THREE ~~AND NINE~~ MONTHS ENDED ~~JULY~~JANUARY 31 ~~2025~~, 2026 AND ~~2024~~2025

(UNAUDITED)

	Shares		Amount		Shares		Amount			in Capital		Earnings			~~Interest~~Total			~~Total~~
	Common Stock				Treasury Stock					Additional Paid-in		Retained			~~Non-controlling~~
	Shares		Amount		Shares		Amount			in Capital		Earnings			~~Interest~~Total			~~Total~~
Balance October 31, 2023		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	9,491,861		$	(244,462	)	$	23,715,091
Balance, October 31, 2024		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	11,709,875		$	26,177,567
Net income		—-		—-		—-		—-			—-		~~351~~1,~~024~~153,256			—1,153,256			~~351,024~~
Balance January 31, 2024		5,708,599		6,634		925,331		(4,633,560	)		19,094,618		9,842,885			(244,462	)		24,066,115
Balance, January 31, 2025		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	12,863,131		$	27,330,823
Net loss		—		—		—		—			—		(21,841	)		—			(21,841	)
Balance, October 31, 2025		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	13,113,314		$	27,581,006
Balance, April 30, 2024		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	9,821,044		$	(244,462	)	$	24,044,274
Balance		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	13,113,314		$	27,581,006
Net income		—		—		—		—			—		626,796			—			626,796
Dividend declared at $0.08 per common share outstanding													(467,813	)		(467,813	)
Balance, July 31, 2024		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618		10,447,840		$	(244,462	)	$	24,671,070
Net income		-		-		-		-			-		1,648,320			1,648,320
Balance October 31, 2024		5,708,599		6,634		925,331		(4,633,560	)		19,094,618		11,709,875			—			26,177,567
Balance, January 31, 2026		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	14,293,821		$	28,761,513
Net income		—		—		—		—			—		1,153,256			—			1,153,256
Balance		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	14,293,821		$	28,761,513
Balance, January 31, 2025		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	12,863,131		$	—		$	27,330,823
Net income		—		—		—		—			—	$	644,055			—		$	644,055
Balance, April 30, 2025		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	13,507,186		$	—		$	27,974,878
Balance		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	13,507,186		$	—		$	27,974,878
Net loss		—		—		—		—			—		(1,205,413	)		—			(1,205,413	)
Net income (loss)		—		—		—		—			—		(1,205,413	)		—			(1,205,413	)
Balance, July 31, 2025		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	12,301,773		$	—		$	26,769,465
Balance		5,708,599	$	6,634		925,331	$	(4,633,560	)	$	19,094,618	$	12,301,773		$	—		$	26,769,465

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

~~F-3~~5

COFFEE HOLDING CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	2025			2024
	2026			2025
	Nine Months Ended July 31,
	Three months ended January 31,
	2025			2024
	2026			2025
OPERATING ACTIVITIES:
Net income	$	~~591~~1,~~898~~648,320		$	~~955~~1,~~979~~153,256
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		~~492~~218,~~379~~852			~~458~~159,~~429~~891
Unrealized gain on commodities		(1,862,877	)		(934,974	)
Unrealized and realized loss (income) on commodities - net		(376,338	)		(742,918	)
Amortization of right-of-use asset		583,643			203,268
Loss on equity investments		-			23
Gain on extinguishment of lease liability		—			(210,567	)
Amortization of right-of-use asset		166,555			189,962
Deferred income taxes		(315,709	)		323,954
Bad debt expense		50,000			-
Deferred income taxes		(170,997	)		119,827
Changes in operating assets and liabilities:
Accounts receivable		~~(185~~2,~~622~~548,275	)		~~533~~(1,~~485~~993,162	)
Inventories		(51,~~711~~458,~~012~~209	)		41,~~480~~023,~~524~~657
Prepaid expenses and other current assets		~~(664~~141,~~433~~731	)		~~200~~(128,~~309~~891	)
Prepaid and refundable income taxes		~~285~~180,~~439~~916			54285,~~570~~438
Lease liabilities		(549,346	)		(179,225	)
Deposits and other assets		(89,358	)		(120,291	)
Deposits and other assets		(408,978	)		(12,006	)
Accounts payable and accrued expense		354,116			(194,362	)
Deferred compensation payable		8,586			—
Change in lease liabilities		(165,518	)		(169,532	)
Accounts payable, accrued expenses		2,339,316			(664,511	)
Change in due to/from broker		640,000			-
Net cash (used in) provided by operating activities		(5,396,716	)		5,209,235
Deferred compensation payable		4,001			15,203
Cash flows from investing activities:
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES		6,608,764			(401,899	)
Acquisition of Empire Coffee Company		(800,000	)		—
INVESTING ACTIVITIES:
Cash paid for leasehold improvements		(375,286	)		—
Acquisition of Second Empire		-			(800,000	)
Purchases of machinery and equipment		(79,249	)		(270,680	)
Purchase of investment		(850,000	)		-
Proceeds from sale of investment		—			3,150,000
Cash paid for leasehold improvements		(280,834	)		-
Net cash (used in) provided by investing activities		(1,254,535	)		2,879,320
Purchases of building, machinery and equipment		(33,311	)		(17,906	)
Cash flows from financing activities:
NET CASH USED IN INVESTING ACTIVITIES		(1,164,145	)		(817,906	)
Proceeds from bank line of credit		7,750,000			—
FINANCING ACTIVITIES:
Principal payments under bank line of credit		(1,500,000	)		(7,720,000	)
Proceeds from bank line of credit		-			2,500,000
Principal payments on note payable		—			(4,374	)
Principal payments under bank line of credit		(3,400,000	)		(300,000	)
Net cash provided by (used in) financing activities		6,250,000			(7,724,374	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(3,400,000	)		2,200,000
Net change in cash and cash equivalents		(401,251	)		364,181
NET CHANGE IN CASH AND CASH EQUIVALENTS		2,044,619			980,195
Cash and cash equivalents, beginning of period		1,381,023			2,733,977
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		701,872			1,381,023
Cash and cash equivalents, end of period	$	979,772		$	3,098,158
CASH AND CASH EQUIVALENTS, END OF YEAR	$	2,746,491		$	2,361,218
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid	$	96,761		$	281,841
Cash paid for income taxes	$	-		$	2,833
Income taxes paid	$	—		$	—
Interest paid	$	82,227		$	23,444
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Initial recognition of operating lease	$	2,113,581		$	547,975
Dividend declared	$	467,813			-
Initial recognition of operating lease right-of-use asset	$	-		$	2,113,581
Initial recognition of operating lease liabilities	$	-		$	2,113,581

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

~~F-4~~6

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~Note~~NOTE 1 - ~~Business~~BUSINESS ~~Activities~~ACTIVITIES

Coffee Holding Co., Inc. (the “Company”) conducts wholesale coffee operations, including manufacturing, roasting, packaging, marketing and distributing roasted and blended coffees for private labeled accounts and its own brands, and it sells green coffee. The Company also manufactures and sells coffee roasters. The Company’s core product, coffee, can be summarized and divided into three product categories (“product lines”) as follows:

Wholesale Green Coffee: unroasted raw beans imported from around the world and sold to large and small roasters and coffee shop operators;

Private Label Coffee: coffee roasted, blended, packaged and sold under the specifications and names of others, including supermarkets that want to have their own brand name on coffee to compete with national brands; and,

Branded Coffee: coffee roasted and blended to the Company’s own specifications and packaged and sold under the Company’s eight proprietary and licensed brand names in different segments of the market.

The Company’s private label and branded coffee sales are primarily to customers that are located throughout the United States with limited sales in Canada and certain countries in Asia. Such customers include supermarkets, wholesalers, and individually-owned and multi-unit retailers. The Company’s unprocessed green coffee, which includes over 90 specialty coffee offerings, is sold primarily to specialty gourmet roasters and to coffee shop operators in the United States with limited sales in Australia, ~~Canada, England~~ and ~~China~~Canada.

The Company’s wholesale green, private label, and branded coffee product categories generate revenues and cost of sales individually but incur selling, general and administrative expenses in the aggregate. There are no individual product managers and discrete financial information is not available for any of the product lines. The Company’s product portfolio is used in one business and it operates and competes in one business activity and economic environment. In addition, the three product lines share customers, manufacturing resources, sales channels, and marketing support. Thus, the Company considers the three product lines to be one single reporting segment.

Liquidity

The Company’s line of credit will bebecome due June 28, 2026 (see Note 6). The agreement requires the Company to maintain compliance ~~with~~ with certain financial covenants computed on a quarterly and annual basis. As of ~~July~~January 31, ~~2025~~2026, the Company is in compliance with those financial covenants. The Company ~~has~~is in a net income position for the ~~nine~~three months ended ~~July~~January 31, ~~2025,~~2026 of $~~591~~1,~~898~~648,320 and a net working capital surplus of $2022,~~979~~553,~~529~~899. As a result, the Company does not believe that substantial doubt is raised regarding the Company’s ability to continue as a going concern and the ability to meet its obligations as they become due within twelve months from the date the condensed consolidated financial statements are issued.

~~F-5~~7

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~Note~~NOTE 2 –- ~~Basis~~BASIS ofOF ~~Presentation~~PRESENTATION ~~and~~AND ~~Significant~~SUMMARY ~~Accounting~~OF ~~Policy~~SIGNIFICANT ACCOUNTING POLICIES

~~The~~Basis ~~Company’s fiscal year ends on October 31~~ of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as its annual consolidated financial statements for the fiscal year ended October 31, 2024. In the opinion of the Company’s management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of its financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The October 31, 2024 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended October 31, 2024 and notes thereto included in the Company’s fiscal 2024 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on January 31, 2025 (the “2024 10-K”). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.Presentation

The Company’s fiscal year ends on October 31 of each calendar year. The accompanying interim condensed consolidated financial statements are ~~include~~unaudited and have been prepared on substantially the ~~accounts~~same ofbasis as its annual consolidated financial statements for the ~~Company~~fiscal year ended October 31, 2025. In the opinion of the Company’s ~~subsidiaries~~management, ~~Organic~~these ~~Products~~interim ~~Trading~~condensed consolidated financial statements reflect ~~Company,~~all ~~LLC~~adjustments (~~“OPTCO”~~consisting only of normal recurring adjustments) considered necessary for a fair statement of its financial position, results ~~Sonofresco~~of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The October 31, ~~LLC~~2025 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q does not include all disclosures required by U.S. generally accepted accounting principles (“~~SONO~~U.S. GAAP”), ~~Comfort~~and ~~Foods~~should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended October 31, ~~Inc~~2025 and notes thereto included in the Company’s fiscal 2025 Annual Report on Form 10-K, filed with the Securities and ~~Second~~Exchange ~~Empire~~Commission (“SEC”) on January 28, ~~LLC~~2026 (the “~~Second~~2025 ~~Empire~~Annual Report”). ~~All~~ ~~significant~~The ~~inter-company~~results ~~balances~~of operations and ~~transactions~~cash ~~have~~flows ~~been~~for ~~eliminated~~the interim periods included in ~~consolidation.~~these ~~The~~condensed consolidated financial statements ~~have~~ ~~been~~are ~~prepared~~not innecessarily ~~accordance~~indicative ~~with~~of USthe ~~GAAP~~results ~~and~~to ~~comply~~be ~~with~~expected ~~SEC~~for ~~reporting~~any ~~requirements~~future period or the entire fiscal year.

The condensed consolidated financial statements include the accounts of the Company, the Company’s subsidiaries, Organic Products Trading Company, LLC (“OPTCO”), Sonofresco, LLC (“SONO”), Comfort Foods, Inc., and Second Empire, LLC (“Second Empire”). All significant inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with US GAAP and comply with SEC reporting requirements.

Significant Accounting Policies

The significant accounting policies used in the preparation of these condensed consolidated financial statements are disclosed in the Company’s ~~2024~~2025 ~~10-K~~Annual Report, and there have been no changes to the Company’s significant accounting policies during the ~~nine~~three months ended January ~~July~~ 31, ~~2025~~ 2026.

Revenue Recognition

The Company recognizes revenue in accordance with the five-step model as prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Codification (“ASC”) Topic 606 (“ASC 606”) in which the Company evaluates the transfer of promised goods or services and recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to be entitled to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five 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.

~~The~~Equity ~~following table presents revenues by product line for the nine and three months ended July 31, 2025 and 2024:~~Investments

~~Schedule~~The ofCompany ~~Revenue~~ accounts for its investment in equity securities in accordance with ASC 321, Investments—Equity Securities. The investment represents a noncontrolling ownership interest in a privately held company and does not provide the Company with the ability to exercise significant influence over the investee.

	2025		2024		2025		2024
	Nine Months Ended July 31,				Three Months Ended July 31,
	2025		2024		2025		2024
Green	$	28,731,856	$	25,505,606	$	10,474,908	$	10,795,701
Packaged		39,804,004		31,843,871		13,435,606		8,017,461
Totals	$	68,535,860	$	57,349,477	$	23,910,514	$	18,813,162
Revenues	$	68,535,860	$	57,349,477	$	23,910,514	$	18,813,162

Because the investment does not have a readily determinable fair value, it is accounted for using the measurement alternative, under which the investment is recorded at cost, less impairment, if any, and adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company evaluates the investment for impairment or observable price changes each reporting period. Any impairment losses or adjustments resulting from observable price changes are recognized in earnings.

~~F-6~~8

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~Recent~~The ~~Accounting~~following ~~Pronouncements~~table –presents ~~Adopted~~revenues by product line for the three months ended January 31, 2026 and 2025:

~~The Company~~ SCHEDULE ~~follows~~OF the FASB Accounting Standard Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” This guidance requires entities to use a current expected credit loss impairment model rather than incurred losses. The Company considers factors such as credit quality, age of balances, historical experience and current and future economic conditions that may affect the Company’s expectation of collectability in determining the allowance for credit losses. The standard became effective for the Company on November 1, 2023. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.REVENUE

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting – Improving Reportable Segment Disclosures (Topic 280).” The standard is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The standard requires disclosure to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The standard also requires all annual disclosures currently required by ASC Topic 280 to be included in interim periods. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements, however; it did result in enhanced disclosures.

	2026		2025
	Three Months Ended January 31,
	2026		2025
Green	$	8,834,994	$	8,893,954
Packed		16,730,846		12,411,331
Totals	$	25,565,840	$	21,305,285
Revenues	$	25,565,840	$	21,305,285

Recent Accounting Pronouncements –- ~~Not Yet~~ Adopted

In ~~October~~December 2023, the FASB issued ASU 2023-0609, ~~“Disclosure~~Income Taxes (Topic 740): Improvements –to ~~Codification~~Income ~~Amendments~~Tax inDisclosures. ~~Response~~ASU to2023-09 ~~the~~is ~~SEC’s~~intended ~~Disclosure~~to ~~Update~~improve ~~and~~income ~~Simplification~~tax ~~Initiative.”~~disclosure ~~This~~requirements ~~standard~~by ~~affects~~requiring a(1) ~~wide~~consistent ~~variety~~categories and greater disaggregation of ~~Topics~~information in the rate ~~Codification.~~reconciliation ~~The~~and ~~effective date~~(2) ~~for~~the ~~each~~disaggregation ~~amendment~~of ~~will~~income betaxes ~~the~~paid ~~date~~by onjurisdiction. ~~which~~The ~~the~~guidance ~~SEC’s~~in ~~removal~~ASU of2023-09 ~~that~~is ~~related~~effective ~~disclosure~~for ~~from~~annual reporting ~~Regulation~~periods ~~S-X~~in orfiscal ~~Regulation S-K~~years ~~becomes~~beginning ~~effective.~~after ~~Early~~December ~~adoption~~15, ~~is prohibited~~2024. The Company ~~does~~adopted ~~not~~ASU ~~expect~~2023-09 ~~the~~on ~~adoption~~November 1, 2025. The adoption of ~~this~~ASU ~~standard~~2023-09 todid not have a material impact on the Company’s condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” a final standard on improvements to income tax disclosures, The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted and should be applied prospectively. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.9

~~F-7~~COFFEE HOLDING CO., INC.

InNOTES ~~November~~TO ~~2024,~~CONDENSED ~~the~~CONSOLIDATED ~~FASB~~FINANCIAL issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of these standards will have on it financial statements. STATEMENTS

~~Note 3 – Business Combination~~(UNAUDITED)

NOTE 3 - BUSINESS COMBINATION

On November 6, 2024, the Company (through its wholly-owned subsidiary, Second Empire) purchased the remaining assets of Empire Coffee Company for $800,000 in a Uniform Commercial Code (“UCC”) Chapter 9 sale (the “Second Empire Acquisition”). Operations of Second Empire will include roasting and packing for current Company’s customers as well as customers of Empire Coffee. The results of Second Empire are included in the Company’s condensed consolidated financial statements from the date of acquisition.

The Company has accounted for the Second Empire Acquisition as a business combination using the acquisition method of accounting, whereby the total purchase price was allocated to the acquired identifiable net assets purchased in the Second Empire Acquisition based on assessments of their respective fair values. The ~~fair value estimates of the~~ assets ~~acquired are subject to subsequent adjustments as additional information is obtained during the applicable measurement period. The assets~~ purchased consisted of equipment, accounts receivable and inventories. The Company has determined that no portion of the purchase price is allocated to intangible assets as there were no acquired intangibles that are considered identifiable under ASC 805. Based on a fair value assessment, all value has been attributed to tangible assets. Second Empire will operate as a 100% wholly owned subsidiary of the Company. The following tables summarize the fair values of consideration transferred and the fair values of identified assets acquired at the date of acquisition:

~~Schedule of~~SCHEDULE ~~Business~~OF ~~Combination~~ BUSINESS COMBINATION


Accounts Receivable	$	531,585
Inventory		268,415
Total purchase price	$	800,000

The acquired business contributed revenues of $3,238,704 and a loss of $694,130 to the Company for the period from November 6, 2024, to July 31, 2025. There were no acquisition costs incurred.

In connection with this transaction, the Company entered into a 4 four-year lease with 21 Grace Church Street Realty LLC for the existing property at 21 Grace Church Street, Port Chester, NY 10573 where Empire Coffee Company had its offices and production facility.

~~Note~~NOTE 4 - ~~Inventories~~INVENTORIES

Inventories at ~~July~~January 31, ~~2025~~2026 and October 31, ~~2024~~2025 consisted of the following:

~~Schedule~~SCHEDULE ofOF ~~Inventories~~INVENTORIES

	July 31, 2025		October 31, 2024
	January 31, 2026		October 31, 2025
Packed coffee	$	32,~~851~~831,~~853~~656	$	21,~~025~~767,~~335~~614
Green coffee		1514,~~674~~021,~~822~~632		1116,~~525~~551,~~118~~660
Roaster parts		432,756		469,849
Roasters and parts		402,679		429,466
Packaging supplies		1,~~725~~732,~~981~~305		1,~~685~~697,~~682~~741
Totals	$	2118,~~685~~988,~~412~~272	$	1520,~~705~~446,~~984~~481
Inventories	$	2118,~~685~~988,~~412~~272	$	1520,~~705~~446,~~984~~481

~~F-8~~10

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~Note~~NOTE 5 -– ~~Commodities~~COMMODITIES ~~Held~~HELD byBY ~~Broker~~BROKER

The Company has used, and intends to continue to use in a limited capacity, short term coffee futures and options contracts primarily for the purpose of partially hedging and minimizing the effects of changing green coffee prices and to reduce cost of sales.

The commodities held by broker represent the market value of the Company’s trading account, which consists of options and futures contracts for coffee held with a brokerage firm. The Company uses options and futures contracts, which are not designated or qualifying as hedging instruments, to partially hedge the effects of fluctuations in the price of green coffee beans. Options and futures contracts are level 1 investments recognized at fair value in the condensed consolidated financial statements with current recognition of gains and losses on such positions. The Company’s accounting for options and futures contracts may impact earnings volatility in any particular period. The Company records all open contract positions on the condensed consolidated balance sheets at fair value in the due from and due to broker line items and typically do not offset these assets and liabilities.

The Company classifies its options and future contracts as trading securities and accordingly, realized and unrealized holding gains and losses are included in the condensed consolidated statements of operations as a component of cost of sales.

The Company recorded realized and unrealized gains and losses respectively, on these contracts as follows:

	2025			2024
	2026			2025
	Three Months Ended July 31,
	Three Months Ended January 31,
	2025			2024
	2026			2025
Gross realized gains	$	1,~~660~~040,~~346~~648		$	~~405~~994,~~608~~001
Gross realized losses		(373,788	)		(133,392	)
Unrealized (losses) gains, net		(664,310	)		742,918
Unrealized (losses) gains		(2,056,404	)		464,272
Totals	$	376,338		$	1,736,919
Total	$	(769,846	)	$	736,488

	2025			2024
	Nine Months Ended July 31,
	2025			2024
Gross realized gains	$	3,773,790		$	1,187,382
Gross realized losses		(608,780	)		(903,162	)
Unrealized (losses) gains		(2,478,142	)		934,974
Total	$	686,868		$	1,219,194

NOTE 6 - LINE OF CREDIT

~~Note~~On 6June -27, ~~Line~~2024, the Organic Trading Products Trading Company, LLC (“OPTCO” and together with us, collectively referred to herein as the “Borrowers”) entered into the Tenth Loan Modification Agreement with Webster Financial Corp. (“Webster”) which amended the Amended and Restated Loan and Security Agreement (“A&R Loan Agreement”) to, among other things: (i) provide for a new loan maturity date of ~~Credit~~ June 29, 2025, (ii) provide that the applicable margin requirement for any revolving loan outstanding under the A&R Loan Agreement to 2.25%, (iii) provide that the maximum facility amount shall be $10,000,000 and (iv) to adjust certain definitions and terms related to the borrowing base and leverage ratios applicable to the A&R Loan Agreement. The average interest for the three months ended January 31, 2026 was 6.04%.

On June 27, 2024, the Organic Trading Products Trading Company, LLC (“OPTCO” and together with us, collectively referred to herein as the “Borrowers”) entered into the Tenth Loan Modification Agreement with Webster Financial Corp. (“Webster”) which amended the Amended and Restated Loan and Security Agreement (“A&R Loan Agreement”) to, among other things: (i) provide for a new loan maturity date of June 29, 2025, (ii) provide that the applicable margin requirement for any revolving loan outstanding under the A&R Loan Agreement to 2.25%, (iii) provide that the maximum facility amount shall be $10,000,000 and (iv) to adjust certain definitions and terms related to the borrowing base and leverage ratios applicable to the A&R Loan Agreement. The average interest for the nine months ended July 31, 2025 was 6.74%.

On April 17, 2025, the Borrowers entered into the Eleventh Loan Modification Agreement with Webster which, among other things, amended the A&R Loan Agreement to provide for a new loan maturity date of June 28, 2026.

~~F-9~~On March 4, 2026, the Borrowers entered into a Twelfth Loan Modification Agreement with Webster, which amended the A&R Loan Agreement to extend the maturity date to December 28, 2026. All other terms of the Loan Agreement remain unchanged and in full force and effect.

Each of the A&R Loan Facility and A&R Loan Agreement contains covenants, subject to certain exceptions, that place annual restrictions on the Borrowers’ operations, including covenants relating to debt restrictions, capital expenditures, indebtedness, minimum deposit restrictions, tangible net worth, net profit, leverage, employee loan restrictions, dividend and repurchase restrictions (common stock and preferred stock), and restrictions on intercompany transactions. The outstanding balance on the Company’s line of credit was $2,650,000 and $6,050,000 as of January 31, 2026, and October 31, 2025, respectively.

NOTE 7 - INCOME TAXES

The Company accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for net operating loss carryforwards and temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The income tax provision or benefit is the tax incurred for the period plus or minus the change during the period in deferred tax assets and liabilities.

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~Each~~As of ~~the~~January ~~A&R~~31, ~~Loan~~2026 ~~Facility~~ and ~~A&R~~October ~~Loan~~31, ~~Agreement~~2025, ~~contains~~the ~~covenants,~~Company ~~subject~~did tonot ~~certain~~have ~~exceptions,~~any ~~that~~unrecognized ~~place~~tax ~~annual~~benefits ~~restrictions on~~or ~~the~~open ~~Borrowers’~~tax ~~operations,~~positions. ~~including~~The ~~covenants~~Company’s practice ~~relating~~is to ~~debt~~recognize ~~restrictions,~~interest ~~capital~~and/or ~~expenditures,~~penalties ~~indebtedness,~~related ~~minimum~~to ~~deposit restrictions,~~income ~~tangible~~tax ~~net~~matters ~~worth,~~in ~~net~~income ~~profit,~~tax ~~leverage,~~expense. ~~employee~~As ~~loan~~of ~~restrictions~~January 31, ~~dividend~~2026 and ~~repurchase restrictions (common stock~~October ~~and~~31, ~~preferred stock)~~2025, ~~and~~the ~~restrictions~~Company onhad ~~intercompany~~no ~~transactions.~~accrued ~~The~~interest ~~outstanding~~or ~~balance~~penalties onrelated ~~the~~to ~~Company’s~~income ~~line~~taxes. ofThe ~~credit~~Company ~~was $6,250,000~~currently ~~and~~has $0no asfederal ofor ~~July~~state ~~31,~~tax examinations ~~2025,~~in ~~and October 31, 2024, respectively~~progress.

Note 7 – Income Taxes

As of July 31, 2025 and October 31, 2024, the Company did not have any unrecognized tax benefits or open tax positions. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of July 31, 2025 and October 31, 2024, the Company had no accrued interest or penalties related to income taxes. The Company currently has no federal or state tax examinations in progress.

The Company files a U.S. federal income tax return and California, Colorado, Connecticut, Florida, Idaho, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Montana, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Virginia state tax returns.

For the three months ended ~~July~~January 31, ~~2025~~2026 and ~~2024~~2025, the Company recorded income tax expense of $17662,~~584~~690 and $~~259~~406,~~249~~092, respectively. ~~For the~~The ~~nine~~increase ~~months~~in ~~ended July 31, 2025 and 2024, the Company recorded~~ income tax expense ~~of $650,749 and $323,954, respectively. The Company recorded income tax expense~~ for the 3three months ~~ending~~ended ~~July~~January 31, ~~2025,~~2026 ~~principally~~compared ~~due~~ to the ~~tax~~prior ~~impact~~year ofperiod ~~the~~was ~~unrealized~~primarily ~~losses~~driven by ~~from~~an ~~coffee~~increase ~~futures and options contracts, which are recorded~~ in ~~cost~~pre-tax ~~of sales (see note 5)~~income.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions, including immediate expensing for domestic research expenditures. Additionally, the OBBBA allows accelerated tax deductions for qualified property. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing the impact of the OBBBA on its ~~consolidated~~condensed consolidated financial statements.

Note 8 –- ~~Earnings~~EARNINGS ~~(Loss)~~PER ~~Per Share~~SHARE

The Company presents “basic” and “diluted” earnings per common share pursuant to the provisions included in ASC Topic 260, “Earnings (loss) per Share,” and certain other financial accounting pronouncements. Basic earnings per common share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding. Diluted earnings per common share is computed by dividing the net income by the weighted-average number of common shares outstanding plus the dilutive effect of common shares issuable upon exercise of potential sources of dilution.

The weighted average common shares outstanding used in the computation of basic and diluted earnings per share were 5,708,599 for the three- ~~and nine-~~months ending ~~July~~January 31, ~~2025,~~2026 and ~~2024~~2025. The Company has 921,000 outstanding stock options which have not been included in the calculation of diluted earnings per share because they are antidilutive.

~~Note~~NOTE 9 - ~~Commitments~~COMMITMENTS ~~and~~AND ~~Contingencies~~CONTINGENCIES

Legal Proceedings

The Company and its subsidiaries are not involved in any pending proceedings other than ordinary routine litigation incidental to their business. Management believes none of these proceedings, if determined adversely, would have a material effect on the business or financial condition of the Company or its subsidiaries.

~~F-10~~12

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~Note~~NOTE 10 –- ~~Leases~~LEASES

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

~~Schedule of~~SCHEDULE ~~Operating~~OF ~~Leases~~OPERATING LEASES

	July 31, 2025		October 31, 2024
	January 31, 2026		October 31, 2025
Assets
Right-of-use operating lease assets	$	1,917,620	$	2,084,175
Right-of-use operating lease assets	$	2,696,475	$	1,166,537
Current lease liability		871,265		811,975
Total lease assets	$	2,696,475	$	1,166,537
Non-current lease liability		1,305,288		1,530,096
Total lease liability	$	2,176,553	$	2,342,071

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

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

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

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

~~Variable~~Maturities ~~lease~~of ~~payments were $102,000 and $38,090 during the three months ended July 31, 2025, and 2024, respectively. Variable~~ lease ~~payments~~ ~~were~~liabilities ~~$372,724~~by ~~and~~year ~~$100,389~~for ~~during~~our ~~the~~operating ~~nine~~leases ~~months~~are ~~ended~~as ~~July 31, 2025, and 2024, respectively.~~follows:

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

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


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

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

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

~~Maturities~~Variable of lease ~~liabilities~~payments bywere ~~fiscal~~$74,102 ~~year~~and $6,658 during the three months ended January 31, 2026 and 2025, respectively. Operating lease costs were $245,600 for each of the ~~Company’s~~three ~~operating~~months ~~leases~~ended ~~are~~January as31, ~~follows:~~2026 and 2025.

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

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

F-11

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

In ~~May~~October ~~2024~~2025, the Company ~~modified~~ceased ~~its~~operations ~~existing~~of ~~lease~~its ~~agreement~~Comfort ~~pertaining~~Foods tomanufacturing asubsidiary ~~portion~~and ofexited ~~its~~the ~~office~~leased facility. ~~The~~located ~~Company~~in ~~wrote off $1,848,032~~North inAndover, ~~right-of-use~~Massachusetts. ~~assets~~The ~~and $2,058,599~~ lease ~~liability~~for ~~associated with~~ this ~~agreement,~~facility ~~resulting~~was inscheduled ato ~~gain~~expire on ~~extinguishment~~May ~~of lease of $210~~31,~~567~~ 2028. OnUpon ~~May~~the 1,closure ~~2024~~of Comfort Foods, the Company ~~entered~~determined ~~into~~that anthe ~~amended~~right-of-use ~~lease~~asset ~~agreement~~associated ~~for~~with the ~~remaining~~lease ~~portion of its office facility in~~was ~~Staten~~fully ~~Island~~impaired, ~~NY,~~as ~~which~~the ~~changed~~facility ~~the~~would ~~lease~~no ~~modification~~longer ~~date~~be toutilized ~~April~~in ~~30,~~the ~~2029~~Company’s operations. The ~~amended~~impairment ~~lease~~was ~~commenced~~recognized onin ~~May~~a 1,prior reporting ~~2024~~period. ~~The~~Based ~~Company recognized~~on aongoing ~~right-of-use~~legal ~~asset~~discussions ~~and lease liability associated~~ with ~~this~~the ~~modified~~landlord ~~agreement~~and ofmanagement’s ~~$547,975.~~estimate ~~As a result~~ of the ~~modification~~expected settlement amount, the Company ~~decreased~~estimates ~~its~~that ~~right-of-use~~the ~~asset~~remaining bylease ~~$1,300,057~~liability ~~and~~associated ~~lease~~with ~~liability~~this byfacility is approximately $1200,~~510,624~~000 as of ~~July~~January 31, ~~2024~~2026, representing management’s current estimate of the expected settlement obligation.

InNOTE ~~November~~11 ~~2024, the Company entered into a new lease in connection with the Second Empire Acquisition. As a result, the Company recognized a right~~-~~of-use~~ ~~asset~~RELATED ~~and~~PARTY ~~lease liability of $2,113,581 in connection with such new lease.~~TRANSACTIONS

~~Note~~In 11January –2005, ~~Related~~the ~~Party~~Company ~~Transactions~~established the “Coffee Holding Co., Inc. Non-Qualified Deferred Compensation Plan.” Currently, there is only one participant in the plan: the Company’s Chief Executive Officer. Within the plan guidelines, this employee is deferring a portion of his current salary and bonus. The assets are held in a separate trust. The deferred compensation payable represents the liability due to the Chief Executive Officer of the Company. The assets were $133,647 and $129,646 as of January 31, 2026, and October 31, 2025, respectively, and are included in Deposits and other assets in the accompanying balance sheets. The deferred compensation liability at January 31, 2026 and October 31, 2025 was $133,647 and $129,646, respectively.

InNOTE ~~January~~12 ~~2005, the Company established the “Coffee Holding Co., Inc. Non~~-~~Qualified~~ ~~Deferred Compensation Plan.” Currently, there is only one participant in the plan: the Company~~STOCKHOLDERS’s Chief Executive Officer. Within the plan guidelines, this employee is deferring a portion of his current salary and bonus. The assets are held in a separate trust. The deferred compensation payable represents the liability due to the Chief Executive Officer of the Company. The assets were $129,972 and $121,386 as of July 31, 2025, and October 31, 2024, respectively, and are included in Deposits and other assets in the accompanying balance sheets. The deferred compensation liability at July 31, 2025 and October 31, 2024 was $129,972 and $121,386, respectively.EQUITY

~~Note~~a. 12Treasury Stock. The Company utilizes the cost method of accounting for treasury stock. The cost of reissued shares is determined under the last-in, ~~Stockholders’~~first-out ~~Equity~~method. The Company did not purchase any shares during the three months ended January 31, 2026 and the year ended October 31, 2025.

~~Treasury~~b. Stock Options. The Company has an incentive stock plan, the 2013 Equity Compensation Plan (the “2013 Plan”), and on April 19, 2019, has granted 1,000,000 stock options to employees, officers and non-employee directors from the 2013 Plan each with an exercise price of $5.43. Options granted under the 2013 Plan may be Incentive Stock Options or Nonqualified Stock Options, as determined by the Administrator at the time of grant. During the year ended October 31, 2025 and the three months ended January 31, 2026, no stock options were granted, forfeited, or expired. As of January 31, 2026 and October 31, 2025, 921,000 options were exercisable.

The Company ~~utilizes~~recorded ~~the~~no ~~cost~~stock-based ~~method~~compensation ofexpense ~~accounting~~ for ~~treasury~~the ~~stock.~~three ~~The~~months ~~cost~~ended ofJanuary ~~reissued~~31, ~~shares~~2026 isand ~~determined under the last-in~~2025, ~~first-out method.~~as ~~The~~all ~~Company~~stock ~~did~~option ~~not~~awards were ~~purchase~~fully ~~any~~vested ~~shares~~as ~~during~~of the ~~three~~beginning ~~and~~of ~~nine months ended July 31, 2025 and~~ the ~~year~~reporting ~~ended October 31, 2024~~period.

~~Stock~~On ~~Options~~January 28, 2026, the Company’s Board of Directors approved a cash dividend of $0.08 per share, representing one-third of net income. The dividend was payable on or about February 26, 2026, to shareholders of record as of February 10, 2026.

~~The Company~~NOTE ~~has~~13 an– ~~incentive~~EQUITY stock plan, the 2013 Equity Compensation Plan (the “2013 Plan”), and has granted stock options for an aggregate of 1,000,000 shares to employees, officers and non-employee directors from the 2013 Plan with an exercise price of $5.43. Options granted under the 2013 Plan may be incentive stock options or nonqualified stock options, as determined by the administrator at the time of grant. No options were granted, forfeited or expired during the three and nine months ended July 31, 2025. No options were granted or expired during the year ended October 31, 2024. As of July 31, 2025, and October 31, 2024, 921,000 options were exercisable.INVESTMENT

~~The~~In December 2025, the Company invested $850,000 in The Ryl Company ~~recorded~~LLC nopursuant ~~stock-based~~to ~~compensation~~a ~~expense~~subscription agreement in exchange for ~~the~~a ~~three~~non-controlling minority interest. The investment is passive in nature, and ~~nine~~the ~~months~~Company ~~ended~~does ~~July~~not 31participate in the management or operations of The Ryl Company LLC. Accordingly, ~~2025~~the Company does not have the ability to exercise significant influence over the investee and ~~2024,~~accounts asfor ~~all~~the ~~stock~~investment ~~option~~under ASC 321, Investments—Equity ~~awards~~Securities. ~~were~~The ~~fully~~carrying ~~vested~~amount of this investment as ofpresented on the ~~beginning~~consolidated ofbalance ~~the~~sheet ~~reporting~~at ~~period~~January 31, 2026 was $850,000.

~~Note~~NOTE 1314 – ~~Segment~~SEGMENT ~~Information~~INFORMATION

ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

~~F-12~~14

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The Company’s chief operating decision maker (“CODM”) is Andrew Gordon, President, Chief Executive Officer, Chief Financial Officer, and Director. The Company has one reportable segment: coffee. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis.

The coffee segment derives revenue from the sale of wholesale green coffee, private label coffee and branded coffee. Revenue for these product lines is recognized upon shipment to the customer. The CODM assesses performance for the coffee segment and decides how to allocate resources based on operating income ~~(loss)~~ that also is reported on statement of operations as consolidated income ~~(loss)~~ from operations. The measure of segment assets is reported on the ~~condensed~~ consolidated balance sheet as total consolidated assets.

When evaluating the Company’s performance and making key decisions regarding resource allocation the CODM reviews the ~~following~~Trading ~~key~~Profit ~~metrics~~and Operating Income table below:

~~Schedule of~~ SCHEDULE ~~Segment~~OF ~~Information~~ SEGMENT INFORMATION

	January 31, 2026			January 31, 2025
	Statement of operations For the three months ended
	July 31, 2025			July 31, 2024
	January 31, 2026			January 31, 2025
Net sales	$	2325,~~910~~565,~~514~~840		$	1821,~~813~~305,~~162~~285
Cost of Goods Sold (1)		~~(20~~18,~~227~~913,~~932~~161	)		~~(15~~17,~~623~~310,~~586~~278	)
Gross Profit		36,~~682~~652,~~582~~679			3,~~189~~995,~~576~~007
Trading Profit (Loss) (1)		(769,845	)		736,488
Trading Profit (1)		376,338			1,736,919
Overhead (2)		(4,~~007~~652,~~888~~275	)		(34,~~206~~140,~~201~~895	)
Operating (loss) income	$	(1,095,151	)	$	719,863
Operating income	$	2,376,742		$	1,591,031

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

(1)

Trading profit is included in cost of goods sold in the condensed consolidated statement of operations.

	(1)	Trading profit is included in cost of goods sold in the consolidated statement of operations.
	(2)	Overhead includes officers’ salaries and selling and administrative expenses included in the consolidated statement of operations.

(2)

Overhead includes officers’ salaries and selling and administrative expenses included in the condensed consolidated statement of operations.

The CODM uses operating income ~~(loss)~~ to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest ~~profits~~ profits into the coffee segment or into other parts of the entity such as for acquisitions or to pay dividends. Intra-entity sales and cash transfers are eliminated in operating income ~~(loss)~~ used by the CODM.

~~Note~~NOTE 1415 -– ~~Subsequent~~SUBSEQUENT ~~Events~~EVENTS

~~The~~On February 26, 2026, with approval of the Company’s ~~has~~board ~~evaluated~~of ~~all~~directors, ~~subsequent~~Coffee ~~events~~Holding ~~through~~Co., ~~the~~Inc. ~~date~~entered oninto ~~which~~an amendment to the Amended ~~condensed~~and ~~consolidated~~Restated ~~financial~~Employment ~~statements~~Agreement, ~~were~~dated ~~available for~~April ~~use~~11, ~~and~~2008, ~~has~~with ~~determined~~Andrew ~~that~~Gordon, nothe ~~events~~Company’s ~~need~~President, toChief beExecutive ~~reported~~Officer, Chief Financial Officer and Treasurer.

~~F-13~~Pursuant to the amendment, Mr. Gordon agreed to reduce his base salary from $325,000 to $80,000 per year, was granted the right to receive a $1.6 million incentive bonus if he remains employed through January 1, 2030 (payable by March 16, 2030), and will be required to execute a general release to receive severance benefits.

On January 28th, 2026, the Company’s Board of Directors approved a cash dividend of $0.08 per share, representing one-third of net income. The dividend was paid on or about February 26, 2026, to shareholders of record as of February 10, 2026.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Note on Forward-Looking Statements

Some of the matters discussed under the caption “Management’s Discussion and Analysis of Financial Condition and Results of ~~Operations~~Operation,” “Business,” “Risk Factors” and elsewhere in this quarterly report include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements upon information available to management as of the date of this ~~Form~~quarterly ~~10-Q~~report and management’s expectations and projections about future events, including, among other things:

● our dependency on a single commodity could affect our revenues and profitability; ● our success in expanding our market presence in new geographic regions; ● the effectiveness of our hedging policy may impact our profitability; ● our success in implementing our business strategy or introducing new products; ● our ability to attract and retain customers; ● our ability to obtain additional financing; ● our ability to comply with the restrictive covenants we are subject to under our current financing; ● the effects of competition from other coffee manufacturers and other beverage alternatives; ● the impact to the operations of our Colorado facility; ● general economic conditions and conditions which affect the market for coffee; ● ~~our expectations regarding, and~~ the ~~stability of, our supply chain, including potential shortages or interruptions in the supply or delivery of green coffee; ● the~~ macro global economic environment; ● ~~the imposition of tariffs; ●~~ our ability to maintain and develop our brand recognition; ● the impact of rapid or persistent fluctuations in the price of coffee beans; ● fluctuations in the supply of coffee beans; ● the volatility of our common stock; and ● other risks which we identify in future filings with the Securities and Exchange Commission (the “SEC”).

In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate” and similar expressions (or the negative of such expressions). Any or all of our forward-looking statements in this quarterly report and in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. In addition, we undertake no responsibility to update any forward-looking statement to reflect events or circumstances, that occur after the date of this quarterly report.

Overview

We are an integrated wholesale coffee roaster and dealer primarily in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. As a result, we believe that we are well-positioned to increase our profitability and endure potential coffee price volatility throughout varying cycles of the coffee market and economic conditions.

Our operations have primarily focused on the following areas of the coffee industry:

	●	the sale of wholesale specialty green coffee;
	●	the roasting, blending, packaging and sale of private label coffee;
	●	the roasting, blending, packaging and sale of our eight brands of coffee; and
	●	sales of our tabletop coffee roasting equipment.

Our operating results are affected by a number of factors including:

	●	the level of marketing and pricing competition from existing or new competitors in the coffee industry;
	●	our ability to retain existing customers and attract new customers;
	●	our hedging policy;
	●	fluctuations in purchase prices and supply of green coffee and in the selling prices of our products; and
	●	our ability to manage inventory and fulfillment operations and maintain gross margins.

Our net sales are driven primarily by the success of our sales and marketing efforts and our ability to retain existing customers and attract new customers. For this reason, we have made, and will continue to evaluate, strategic decisions to acquire and invest in measures that are expected to increase net sales.16

Our net sales are ~~affected~~driven primarily by the ~~price~~success of ~~green~~our ~~coffee.~~sales Weand ~~purchase~~marketing ~~our~~efforts ~~green~~and ~~coffee~~our ~~from~~ability ~~dealers~~to ~~located~~retain ~~primarily~~existing ~~within~~customers ~~the~~and ~~United~~attract new ~~States~~customers. ~~The~~ ~~dealers~~For ~~supply~~this usreason, ~~with~~we ~~coffee~~have ~~beans~~made, ~~from~~and ~~many~~will ~~countries,~~continue ~~including~~to ~~Colombia~~evaluate, ~~Mexico,~~strategic ~~Kenya,~~decisions ~~Indonesia,~~to ~~Brazil~~invest ~~and~~in ~~Uganda.~~measures ~~The~~that ~~supply~~are expected ~~and~~to ~~price~~increase ofnet ~~coffee~~sales. ~~beans~~These ~~are~~transactions ~~subject~~include toour ~~volatility~~acquisition ~~and~~of ~~are~~Premier ~~influenced~~Roasters, byLLC, ~~numerous~~including ~~factors~~equipment ~~which~~and ~~are~~a ~~beyond~~roasting ~~our~~facility in ~~control.~~La ~~For example~~Junta, in ~~Brazil~~Colorado, ~~which~~the ~~produces~~addition ~~approximately~~of ~~40%~~a ofwest ~~the~~coast ~~world’s~~sales ~~green~~manager ~~coffee,~~to ~~the~~increase ~~coffee~~sales ~~crops~~of ~~are~~our ~~historically~~private ~~susceptible~~label toand ~~frost in~~branded ~~June~~coffees ~~and~~to ~~July~~new customers and ~~drought~~the intransaction ~~September,~~with ~~October~~OPTCO. ~~and~~On ~~November.~~June ~~However~~29, ~~because~~2016, we ~~purchase~~purchased ~~coffee~~substantially ~~from~~all athe ~~number~~assets, ofincluding ~~countries~~equipment, ~~and~~inventory, ~~are~~customer ~~able~~lists toand ~~freely~~relationships ~~substitute~~of ~~one~~Coffee ~~country’s~~Kinetics, ~~coffee for another in our products~~LLC., ~~price~~a ~~fluctuations~~Washington inlimited ~~one~~liability ~~country~~company. ~~generally~~On ~~have~~February ~~not had~~24, a2017, ~~material~~we ~~impact~~acquired on100% of the capital ~~price~~stock weof ~~pay~~Comfort ~~for~~Foods, ~~coffee~~Inc. ~~Accordingly~~(“CFI”), ~~price~~a ~~fluctuations~~Massachusetts inbased ~~one~~medium ~~country~~sized ~~generally~~coffee ~~have~~roaster, ~~not~~manufacturing ~~had~~both ~~a material~~branded ~~effect~~and onprivate ~~our~~label ~~results~~coffee offor ~~operations,~~retail ~~liquidity~~ and ~~capital~~foodservice ~~resources~~customers. ~~Historically~~On November 11, ~~because~~2024, we ~~generally~~acquired ~~have~~substantially ~~been~~all ~~able~~of tothe ~~pass~~assets ~~green~~of Empire ~~coffee~~Coffee ~~price increases through to customers~~Company, ~~increased~~a ~~prices~~New ofYork-based ~~green~~long-running ~~coffee~~private-label ~~generally result in increased net sales, irrespective of sales volume~~roaster.

~~The~~Our ~~supply~~net ~~and~~sales ~~price~~are ofaffected ~~coffee~~by ~~beans~~the ~~are~~price ~~subject~~of togreen ~~volatility~~coffee. ~~and~~We ~~are~~purchase ~~influenced~~our bygreen ~~numerous~~coffee ~~factors~~from ~~which~~dealers ~~are~~located ~~beyond~~primarily ~~our~~within ~~control.~~the ~~Historically,~~United States. weThe ~~have~~dealers ~~used,~~supply ~~and~~us ~~intend~~with tocoffee ~~continue~~beans tofrom ~~use~~many incountries, aincluding ~~limited~~Colombia, ~~capacity~~Mexico, ~~short-term~~Kenya, ~~coffee~~Indonesia, ~~futures~~Brazil and ~~options~~Uganda. ~~contracts~~The ~~primarily for the~~supply ~~purpose~~and ofprice ~~partially hedging the effects~~ of ~~changing green~~ coffee ~~prices.~~beans Inare ~~addition,~~subject weto ~~acquired,~~volatility and ~~expect~~are toinfluenced ~~continue~~by tonumerous ~~acquire, futures~~factors ~~contracts~~which ~~with~~are ~~longer~~beyond ~~terms,~~our ~~generally~~control. ~~three~~For toexample, in ~~four months~~Brazil, ~~primarily~~which ~~for~~produces ~~the~~approximately ~~purpose~~40% of ~~guaranteeing~~the anworld’s ~~adequate supply of~~ green coffee., ~~Realized~~the ~~and~~coffee ~~unrealized~~crops ~~gains~~are orhistorically ~~losses~~susceptible onto ~~options~~frost in June and ~~futures~~July ~~contracts~~and ~~are~~drought ~~reflected~~ in ~~our~~September, ~~cost~~October ofand ~~sales~~November. ~~Gains~~However, onbecause ~~options and~~we ~~futures~~purchase ~~contracts~~coffee ~~reduce~~from ~~our~~a ~~cost~~number of ~~sales~~countries and ~~losses~~are able onto ~~options~~freely ~~and~~substitute ~~futures~~one ~~contracts~~country’s ~~increase~~coffee ~~our~~for ~~cost~~another ofin ~~sales.~~our ~~The~~products, ~~use~~price offluctuations ~~these derivative~~in ~~financial~~one ~~instruments~~country ~~has~~ generally ~~enabled~~have usnot had toa ~~mitigate~~material impact on the ~~effect~~price ofwe ~~changing~~pay ~~prices~~for coffee. WeAccordingly, ~~believe~~price ~~that,~~fluctuations in ~~normal~~one ~~economic times,~~country ~~our~~generally ~~hedging~~have ~~policies~~not ~~remain~~had a ~~vital~~material effect ~~element~~on to our ~~business~~results ~~model~~of ~~not~~operations, ~~only~~liquidity inand ~~controlling~~capital ~~our~~resources. ~~cost of sales~~Historically, ~~but~~because ~~also~~we ~~giving~~generally ~~us the~~have ~~flexibility~~been able to ~~obtain~~pass ~~the~~green coffee ~~inventory~~price ~~necessary~~increases through to ~~continue~~customers, toincreased ~~grow~~prices ~~our~~of ~~sales~~green ~~while~~coffee ~~trying~~generally toresult ~~minimize~~in ~~margin~~increased ~~compression~~net ~~during~~sales, ~~a time~~irrespective of sales ~~historically high coffee prices~~volume.

~~However~~The supply and price of coffee beans are subject to volatility and are influenced by numerous factors which are beyond our control. Historically, we have used, and intend to continue to use in a limited capacity, short-term coffee futures and options contracts primarily for the purpose of partially hedging the effects of changing green coffee prices, as further explained in Note 2 of the Notes to the condensed consolidated financial statements in this quarterly report. In addition, we acquired, and expect to continue to acquire, futures contracts with longer terms, generally three to four months, primarily for the purpose of guaranteeing an adequate supply of green coffee. Realized and unrealized gains or losses on options and futures contracts are reflected in our cost of sales. Gains on options and futures contracts reduce our cost of sales and losses on options and futures contracts increase our cost of sales. The use of these derivative financial instruments has generally enabled us to mitigate the effect of changing prices. We believe that, in normal economic times, our hedging policies remain a vital element to our business model not only in controlling our cost of sales, but also giving us the flexibility to obtain the inventory necessary to continue to grow our sales while trying to minimize margin compression during a time of historically high coffee prices. However, no strategy can entirely eliminate pricing risks and we generally remain exposed to losses on futures contracts when prices decline significantly in a short period of time, and we would generally remain exposed to supply risk in the event of non-performance by the counterparties to any of our futures contracts. Although we have had net gains on options and futures contracts in the past, we have incurred significant losses on options and futures contracts during some recent reporting periods. In these cases, our cost of sales has increased, resulting in a decrease in our profitability or increase our losses. Such losses have and could in the future materially increase our cost of sales and materially decrease our profitability and adversely affect our stock price. See “Part II. Item 1A – Risk Factors - If our hedging policy is not effective, we may not be able to control our coffee costs, we may be forced to pay greater than market value for green coffee and our profitability may be reduced. ” Failure to properly design and implement an effective hedging strategy may materially adversely affect our business and operating results. If the hedges that we enter do not adequately offset the risks of coffee bean price volatility or our hedges result in losses, our cost of sales may increase, resulting in a decrease in profitability or increased losses. As previously announced, as a result of the volatile nature of the commodities markets, we have and are continuing to scale back our use of hedging and short-term trading of coffee futures and options contracts, and intend to continue to use these practices in a limited capacity going forward.

On November 6, 2024, Second Empire, a wholly owned subsidiary of the Company, entered into a Secured Creditor Sale Agreement with Bridge Business Credit, LLC (“Seller”). The sale was a Uniform Commercial Code (“UCC”) Chapter 9 sale to purchase equipment, accounts receivable and inventory of Empire Coffee Company, Inc. (“Empire Coffee Company”).17

Critical Accounting Policies and Estimates

There have been no changes to our critical accounting policies during the three ~~and nine~~ months ended ~~July~~January 31, ~~2025~~2026. Critical accounting policies and the significant estimates in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under “Critical Accounting Policies and Estimates” in “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as in our consolidated financial statements and notes thereto, each in our ~~2024~~2025 10-K.

2RESULTS OF OPERATIONS

Three Months Ended ~~July~~January 31, ~~2025~~2026 Compared to the Three Months Ended ~~July~~January 31, ~~2024~~2025

Net Sales. Net sales totaled $2325,~~910~~565,~~514~~840 for the three months ended ~~July~~January 31, ~~2025~~2026, an increase of $54,~~097~~260,~~352~~555, or 2720%, from $1821,~~813~~305,~~162~~285 for the three months ended ~~July~~January 31, ~~2024~~2025. The increase in net sales was ~~due~~driven toby ~~increased~~higher sales ofto ~~our~~legacy ~~private label~~customers, ~~Cafe~~incremental ~~Caribe, Cafe~~sales ~~Supremo~~to ~~brands~~new customers, and ~~green~~a ~~coffee~~full ~~beans~~quarter toof ~~our~~Second ~~wholesale~~Empire ~~and~~customer ~~retail~~sales ~~customers~~in the current period, partially offset by the loss of Comfort Foods customer sales.

Cost of Sales. Cost of sales for the three months ended ~~July~~January 31, ~~2025~~2026, was $2018,~~997~~536,~~777~~823, or ~~87.8~~73% of net sales, as compared to $1415,~~887~~573,~~098~~359, or ~~79.1~~73% of net sales, for the three months ended ~~July~~January 31, ~~2024, an increase of $6,110,679~~2025. Cost of sales consists primarily of the cost of green coffee and packaging materials. ~~The~~and ~~increase~~realized inand ~~cost~~unrealized ofgains ~~sales~~or ~~was~~losses ~~driven~~on byhedging ~~higher~~activity. ~~tariffs~~For onthe ~~imported~~three ~~coffee~~months asended ~~well~~January as31, a2026, the net ~~trading~~ ~~loss~~ result of ~~approximately~~our ~~$770,000~~hedging oractivities 14resulted ~~cents~~in a ~~share~~gain of approximately $376,338, ~~related~~compared to ~~coffee~~the ~~futures~~three ~~and~~months ~~options~~ended ~~contracts~~January 31, ~~which~~2025, ~~are recorded~~ in ~~cost~~which ofthe ~~sales~~net inresult ~~accordance~~of ~~with~~ our ~~accounting~~hedging ~~policy~~activities ~~for~~resulted ~~commodities~~in ~~held~~a bygain ~~broker~~of ~~(see~~approximately ~~Note~~$1.7 5)million. InThe ~~addition, the~~ increase ~~reflects~~in ~~higher net~~cost of sales ofwas ~~our~~due ~~private~~to ~~label~~higher sales volume, ~~branded~~increased ~~products~~salaries, and ~~green~~higher ~~wholesale~~packaging ~~coffee~~material ~~across both wholesale and retail channels~~costs.

Gross Profit. Gross profit for the three months ended ~~July~~January 31, ~~2025~~2026, ~~amounted~~was to $27,~~912~~029,~~737~~017, oran ~~12.2%~~increase of ~~net sales~~$1,297,091 asfrom ~~compared to~~ $35,~~926~~731,~~064 or~~926 ~~20.9% of net sales,~~ for the three months ended ~~July~~January 31, ~~2024~~2025. ~~The~~Gross ~~decrease~~profit inas ~~gross profits on~~ a percentage ~~and~~of ~~dollar~~net ~~basis~~sales was ~~attributable to~~27% ~~the~~for ~~factors~~both ~~listed above~~periods.

Operating Expenses. Total operating expenses increased by $~~801~~511,~~687~~380 to $4,~~007~~652,~~888~~275 for the three months ended ~~July~~January 31, ~~2025~~2026, from $34,~~206~~140,~~201~~895 for the three months ended ~~July~~January 31, ~~2024~~2025. ~~The~~Selling ~~increase in selling~~ and administrative expenses ~~was~~increased ~~primarily~~from ~~due~~$3,929,598 for the three months ended January 31, 2025, to $4,443,286 for the ~~acquisition~~three ofmonths ended January 31, 2026. Overall, operating expenses remained relatively consistent ~~Empire~~year ~~Coffee~~over ~~Company~~year, with the increase primarily reflecting timing and normal fluctuations in operating activities.

Other Income (Expense). Other expense for the three months ended ~~July~~January 31, ~~2025~~2026 was $9265,~~683~~732, aan ~~decrease~~increase of $~~258~~34,~~865~~049 from other income of $~~166~~31,~~182~~683 for the three months ended ~~July~~January 31, ~~2024~~2025. The ~~change~~increase in expense was ~~mainly~~primarily attributable to ahigher ~~decrease~~interest inexpense related ~~gain~~to onincreased ~~extinguishment~~borrowings ofoutstanding ~~lease~~ under the Company’s line of ~~$210,567~~credit during the current period.

Income Before Provision For Income Taxes. ~~Our~~We ~~expense~~had ~~for~~income of $2,311,010 before income taxes for the three months ended ~~July~~January 31, ~~2025 was $17~~2026,~~584~~ compared to ~~our~~income ~~expense~~ of $~~259~~1,~~249~~ 559,348 for the three months ended ~~July~~January 31, ~~2024.~~2025, ~~The~~resulting ~~change~~in ~~was~~a ~~primarily~~net ~~attributable~~change toof ~~the~~$751,662 ~~difference in the income~~ for the ~~quarter~~three ~~ended~~months ~~July~~ended January 31, ~~2024,~~2026. ~~versus~~The ~~the~~increase ~~loss~~was inprimarily ~~the~~attributable ~~quarter~~to ~~ended~~improved ~~July~~gross ~~31,~~margins ~~2025~~and higher operating efficiencies during the current period.

~~Net~~ Income ~~(Loss)~~ Taxes. WeOur ~~had~~expense ~~net~~for ~~loss~~income oftaxes ~~$1,205,413, or ($0.21) per share basic and diluted,~~ for the three months ended ~~July~~January 31, ~~2025, compared~~2026 tototaled ~~a net income of~~ $~~626~~662,~~796~~690, orcompared ~~$0.11~~to ~~per~~an ~~share~~expense ~~basic~~of ~~and diluted~~$406, 092 for the three months ended ~~July~~January 31, ~~2024~~2025. The ~~decrease~~change ~~in profitability~~ was ~~primarily~~attributable ~~due~~ to ~~higher~~the ~~cost~~difference ofin ~~sales,~~the ~~which~~income ~~included~~for the ~~impact~~three ofmonths ~~tariffs~~ended ~~on imported coffee and a net trading loss~~January on31, ~~coffee-related~~2026 ~~futures~~versus ~~and~~the ~~options~~three ~~contracts~~months ~~(see~~ended ~~Note~~January 5)31, ~~as well as increased operating expenses~~2025.

3Net Income. We had net income of $1,648,320 or $0.29 per share basic and diluted, for the three months ended January 31, 2026 compared to net income of $1,153,256, or $0.20 per share basic and diluted, for the three months ended January 31, 2025. The change in net income was due to our results of operations as described above.

~~Nine Months Ended July 31, 2025, Compared to the Nine Months Ended July 31, 2024~~18

~~Net~~Liquidity Sales. Net sales totaled $68,535,860 for the nine months ended July 31, 2025, an increase of $11,186,383, or 20%, from $57,349,477 for the nine months ended July 31, 2024. The increase in net sales compared to the prior period was primarily attributable to higher sales of our private-label brands, Café Caribe and ~~Café~~Capital ~~Supremo,~~Resources ~~as well as increased sales of green coffee beans to both wholesale~~ and ~~retail~~Going ~~customers.~~Concern

~~Cost~~As of ~~Sales.~~January ~~Cost of sales for the nine months ended July~~ 31, ~~2025~~2026, ~~was~~we ~~$55,253,979,~~had orworking ~~80.6%~~capital of ~~net sales, as compared to~~ $4622,~~239~~553,~~134~~899, or ~~80.6%~~which ofrepresented ~~net~~a ~~sales~~$79,393 ~~for~~decrease ~~the~~from ~~nine~~our ~~months~~working ~~ended~~capital ~~July 31, 2024. Cost~~ of ~~sales consists primarily of the cost of green coffee and packaging materials and realized and unrealized gains or losses on hedging activity. The increase of~~ $922,~~014~~633,~~845 was primarily attributable to higher~~292 ~~sales volumes of our private label and branded products,~~ as ~~well as the impact~~ of ~~tariffs~~October on imported coffee. In addition, cost of sales reflects the effect of our futures and options trading activity, which resulted in a net gain of approximately $687,000 for the nine-month period ended July 31, 2025,. ~~that~~Our ~~was~~working ~~recognized~~capital inremained ~~cost~~relatively ofconsistent ~~sales~~during inthe ~~accordance with our accounting policy for commodities held by broker (see Note 5)~~period.

~~Gross Profit.~~On ~~Gross~~April ~~profit~~25, ~~for~~2017, ~~the~~we ~~nine~~and ~~months~~OPTCO ~~ended~~(together ~~July~~with 31us, ~~2025~~collectively ~~amounted~~referred to ~~$13,281,881~~herein oras ~~19.4%~~the of“Borrowers”) ~~net~~entered ~~sales,~~into asan ~~compared to $11,110,343~~Amended orand ~~19.4%~~Restated ofLoan ~~net~~and ~~sales,~~Security ~~for~~Agreement (the ~~nine~~“A&R ~~months~~Loan ~~ended~~Agreement”) ~~July~~and ~~31,~~Amended ~~2024.~~and ~~The~~Restated ~~increase~~Loan inFacility ~~gross~~(the ~~profit was primarily attributable to higher sales~~“A&R ~~volumes~~Loan ofFacility”) ~~our~~with ~~private-label~~Sterling ~~and~~National ~~branded~~Bank ~~products~~(“Sterling”), aswhich ~~well~~was aslater ~~green~~acquired ~~coffee beans, partially offset~~ by ~~the~~Webster ~~impact~~Financial ofCorp. ~~tariffs on imported~~(“Webster”), ~~coffee.~~which ~~Gross~~consolidated ~~profit~~(i) ~~also reflects~~ the ~~effect~~financing ofagreement ~~our~~between ~~coffee~~us ~~futures~~ and ~~options trading activity~~Sterling, ~~which~~dated ~~resulted~~February in17, a2009, ~~net~~as ~~gain~~modified, of(the ~~approximately~~“Company Financing ~~$687,000~~Agreement”) ~~for~~and (ii) the ~~nine-month~~financing ~~period~~agreement ~~ended~~between ~~July 31~~us, ~~2025~~as ~~that~~guarantor, ~~was~~OPTCO ~~recognized~~and inSterling, ~~cost~~dated ofMarch ~~sales~~10, 2015 (~~see~~the ~~Note~~“OPTCO Financing 5Agreement”), amongst other things.

~~Operating~~On ~~Expenses.~~June ~~Total~~27, ~~operating~~2024, ~~expenses~~we ~~increased~~reached byan ~~$2,057,167~~agreement tofor ~~$11,897,386~~a new loan modification agreement with Webster which (i) provided for ~~the~~a ~~nine~~new ~~months~~loan ~~ended~~maturity date ~~July~~of 31June 29, 2025, ~~from~~(ii) ~~$9,840,219 for~~provided that the ~~nine~~applicable ~~months~~margin ~~ended~~requirement ~~July~~for ~~31,~~any ~~2024.~~revolving ~~The~~loan ~~year-over-year~~outstanding ~~increase~~under ~~reflects~~ the ~~impact~~A&R ofLoan Agreement be 2.25%, (iii) provided that the ~~Second~~maximum ~~Empire~~facility ~~Acquisition,~~amount ~~which~~shall ~~added approximately~~be $~~2.2~~10,000,000 ~~million~~and (iv) adjusted certain definitions and terms related to ~~operating~~the ~~expenses~~borrowing ~~during~~base and leverage ratios applicable to the ~~nine-month~~A&R ~~period~~Loan Agreement.

Other Income (Expense). Other expense for the nine months ended July 31, 2025 was $141,848, a decrease of $151,657 from other income of $9,809 for the nine months ended July 31, 2024. The decrease was mainly attributable to a decrease in gain on extinguishment of lease of $210,538 and offset by decrease in our interest expense of $93,522, during the nine months ended July 31, 2024.

Income Taxes. Our expense for income taxes for the nine months ended July 31, 2025 totaled $650,749 compared to an expense of $323,954 for the nine months ended July 31, 2024. The change was primarily attributable to the difference in the income for the nine months ended July 31, 2025 versus the income in the nine months ended July 31, 2024.

Net (Loss) Income. We had net income of $591,898 or $0.10 per share basic and diluted, for the nine months ended July 31, 2025 compared to net income of $955,979, or $0.17 per share basic and diluted for the nine months ended July 31, 2024. The decrease in net income was primarily due to higher operating expenses associated with the Second Empire Acquisition, the impact of tariffs on imported coffee, and unrealized trading losses during the third quarter (see Note 5).

Liquidity, Capital Resources and Going Concern

As of July 31, 2025, we had working capital of $20,979,529, a decrease of $547,454 compared to $21,526,983 as of October 31, 2024. The decrease in working capital was primarily attributable to a $2,339,316 increase in accounts payable and accrued expenses, a $6,250,000 increase in borrowings under our line of credit, and a $1,115,244 increase in due to broker. The decrease was partially offset by a $5,979,428 increase in inventory, a $2,978,120 increase in due from broker, and a $717,207 increase in accounts receivable.

On June 27, 2024, the Borrowers entered into the Tenth Loan Modification Agreement with Webster which amended the A&R Loan Agreement to, among other things: (i) provide for a new loan maturity date of June 29, 2025, (ii) provide that the applicable margin requirement for any revolving loan outstanding under the A&R Loan Agreement to 2.25%, (iii) provide that the maximum facility amount shall be $10,000,000 and (iv) to adjust certain definitions and terms related to the borrowing base and leverage ratios applicable to the A&R Loan Agreement.

On April 17, 2025, the Borrowers entered into the Eleventh Loan Modification Agreement with Webster which (i) amended the A&R Loan Agreement to provide for a new loan maturity date of June 28, 2026 and (ii) provided limited consent for the Company to declare dividends to shareholders for its fiscal year ending October 31, 2025.

~~Each of~~On ~~the~~March ~~A&R Loan Facility and A&R Loan Agreement contains covenants~~4, ~~subject to certain exceptions~~2026, ~~that place annual restrictions on~~ the Borrowers’ ~~operations,~~entered into ~~including~~a ~~covenants~~Twelfth ~~relating~~Loan toModification ~~debt~~Agreement ~~restrictions,~~with ~~capital expenditures~~Webster, ~~indebtedness,~~which ~~minimum~~amended ~~deposit restrictions,~~the ~~tangible~~A&R ~~net~~Loan ~~worth,~~Agreement ~~net~~to ~~profit,~~extend ~~leverage,~~the ~~employee~~maturity ~~loan~~date ~~restrictions,~~to ~~dividend and repurchase restrictions (common stock~~December ~~and preferred stock)~~28, ~~and restrictions on intercompany transactions~~2026. ~~The~~All ~~outstanding~~other ~~balance~~terms onof ~~our~~the ~~line~~Loan ofAgreement ~~credit~~remain ~~was~~unchanged ~~$6,250,000~~ and $0 asin offull ~~July~~force ~~31, 2025~~ and ~~October 31, 2024, respectively~~effect.

~~For~~Each of the ~~nine~~A&R ~~months~~Loan ~~ended~~Facility ~~July~~and ~~31,~~A&R ~~2025,~~Loan ~~operating~~Agreement ~~activities~~contains ~~used cash of $5~~covenants,~~396,716,~~ ~~compared~~subject to ~~cash~~certain ~~provided~~exceptions, bythat ~~operating~~place ~~activities~~annual restrictions ofon ~~$5,209,235 for~~ the ~~nine~~Borrowers’ ~~months ended July 31~~operations, ~~2024.~~including ~~The~~covenants ~~decrease~~relating into ~~operating~~debt ~~cash~~restrictions, ~~flow~~capital ~~was~~expenditures, ~~primarily~~indebtedness, ~~attributable~~minimum ~~to an increase~~deposit inrestrictions, ~~inventory~~tangible ~~between~~net ~~October 31~~worth, ~~2024~~net ~~and~~profit, ~~July 31~~leverage, ~~2025.~~employee ~~The~~loan ~~increase~~restrictions, individend ~~inventory~~and ~~was~~repurchase ~~primarily~~restrictions ~~due~~(common ~~to higher purchasing activity to~~stock ~~support~~and ~~our~~preferred ~~anticipated sales growth. Non-cash charges~~stock), ~~including~~and ~~depreciation~~restrictions ~~and~~on ~~amortization,~~intercompany ~~unrealized~~transactions. ~~gains~~The ~~and~~outstanding ~~losses~~balance on ~~commodities, amortization~~the ofCompany’s ~~right-~~line of~~-use~~ ~~assets~~credit was $2,650,000 and ~~deferred income taxes, resulted in cash used of~~ $16,~~102~~050,~~564~~000 inas ~~the~~of ~~nine~~January ~~months ended July~~ 31, ~~2025~~ 2026, ~~compared~~and toOctober ~~cash~~31, ~~used of $159~~2025,~~890~~ ~~in the prior-year period~~respectively.

For the ~~nine~~three months ended ~~July~~January 31, ~~2025~~2026, ~~investing~~our operating activities ~~used~~provided net cash of $16,~~254~~608,~~535,~~764 as compared to ~~cash provided of $2,879,320 in~~ the ~~nine~~ three months ended January ~~July~~ 31, ~~2024.~~2025, ~~The~~when ~~year-over-year~~operating ~~change~~activities ~~primarily~~used ~~reflects~~net ~~proceeds~~cash of $3401,~~150,000~~899. ~~from~~The ~~the~~increase ~~sale~~primarily ofrelates anto ~~investment~~decreases into ~~the prior-year~~inventory ~~period,~~and ~~which did not recur in fiscal 2025~~accounts receivable.

For the ~~nine~~three months ended ~~July~~January 31, ~~2025~~2026, ~~financing~~our investing activities ~~provided~~used net cash of $61,~~250~~164,~~000,~~145 as compared to ~~net~~the ~~cash~~three ~~used~~months ofended $7January 31,~~724~~ 2025,~~374~~ ~~in the~~when ~~nine~~net ~~months~~cash ~~ended~~used ~~July~~in ~~31,~~investing ~~2024~~activities was $817,906. The change ~~was~~is primarily ~~due~~attributable to ~~increased~~capital ~~borrowings~~expenditures ~~under~~related to ~~our~~leasehold ~~line~~improvements ofat ~~credit~~the inSecond Empire location, as well as the ~~current~~purchase ~~year~~of an investment during the quarter.

WeFor ~~expect~~the tothree ~~fund~~months ~~our~~ended ~~operations,~~January ~~including working capital needs~~31, ~~capital expenditures~~2026, ~~and~~our ~~required~~financing ~~debt~~activities ~~service,~~had ~~for~~net atcash ~~least~~used ~~the~~of ~~next twelve months from the date these condensed consolidated financial statements are issued~~$3,400,000 ~~through~~compared ato ~~combination~~net of cash provided by ~~operating~~financing activities ~~and~~of ~~availability~~$2,200,000 ~~under~~for ~~our~~the ~~credit~~three ~~facility.~~months Inended ~~addition~~January 31, an2025. ~~increase~~The inyear-over-year ~~eligible~~change ~~accounts~~in ~~receivable~~cash ~~and~~flows ~~inventory~~from ~~would~~financing ~~permit~~activities uswas toprimarily ~~make~~attributable ~~additional~~to ~~borrowings~~activity ~~under~~on ~~our~~the Company’s line of credit.

We expect to fund our operations, including paying our liabilities, funding capital expenditures and making required payments on our indebtedness, through at least the next twelve months from the date these condensed consolidated financial statements are issued, with cash provided by operating activities and the use of our credit facility. In addition, an increase in eligible accounts receivable and inventory would permit us to make additional borrowings under our line of credit.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

519

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management, which includes our President, Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based upon that evaluation, our President, Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective due to the existence of material weaknesses in our internal control over financial reporting.

Material Weakness Over Financial Reporting

We determined that our controls were inadequate to prevent and detect misstatements of quantities of inventory at one of our subsidiaries. Accordingly, management has determined that this control deficiency constituted a material weakness.

We determined that there were inappropriate system access controls over the financial reporting system. These controls were not designed to prevent or detect unauthorized changes to source information or implement an appropriate level of segregation of duties. Accordingly, management has determined that this control deficiency constituted a material weakness.

We ~~determined~~also concluded that we lacked adequate controls with respect to ~~identifying~~recording ~~and~~year ~~accounting~~end ~~for~~accruals ~~material contracts. This was evidenced by our failure to properly identify and account~~ for avendor ~~material lease amendment~~liabilities. Accordingly, management has determined that this ~~was a~~ control deficiency ~~that~~ constituted a material weakness.

WeNotwithstanding ~~determined~~such ~~that~~material weaknesses, we ~~lacked~~believe ~~adequate~~the ~~controls~~financial ~~with~~information ~~respect~~presented toherein ~~physical~~is ~~custody~~materially ofcorrect ~~certain hardware, electronic~~ and ~~hard~~fairly ~~copy~~presents ~~records~~the offinancial ~~Generations~~position ~~Coffee~~ and ~~its~~operating ~~component~~results ~~operation~~for ~~known as Steep and Brew following~~ the ~~Company~~three ~~relocation~~months orended ~~vacating~~January of31, ~~certain~~2026 ~~premises used~~ in ~~the~~conformity ~~operations~~with ~~of that business unit~~U.S. ~~Accordingly,~~GAAP ~~management~~for ~~has~~interim ~~determined~~financial ~~that~~information and ~~this~~in isaccordance awith ~~control~~the ~~deficiency~~rules ~~that~~and ~~constituted a~~regulations ~~material~~of ~~weakness~~the SEC.

We concluded that we lacked adequate controls with respect to the preparation and review of journal entries and account reconciliations during the year-end financial statement closing process. Accordingly, management has determined that this control deficiency constituted a material weakness.

We concluded, after discussion with management, that our financial statements inaccurately accounted for certain intercompany eliminations in our consolidated statements of operations for the fiscal year ended October 31, 2020. As a result, we determined that there was an overstatement of net sales and cost of sales in the consolidated statement of operations of approximately $8.3 million in our financial statements during the fiscal year ended October 31, 2020, which required a restatement of the previously issued financial statements for the fiscal year ended October 31, 2020. This was due to inadequate design and implementation of controls to evaluate and monitor the presentation and compliance with accounting principles generally accepted in the United States of America related to the statement of operations. Accordingly, management has determined that this control deficiency constituted a material weakness.

We concluded that we lacked adequate controls with respect to recording year end accruals for vendor liabilities and properly calculating required loan covenants. Accordingly, management has determined that this control deficiency constituted a material weakness.

Notwithstanding such material weaknesses, we believe the financial information presented herein is materially correct and fairly presents the financial position and operating results for the three and nine months ended July 31, 2025 in conformity with U.S. GAAP for interim financial information and in accordance with the rules and regulations of the SEC.

Remediation Plan for the Material Weaknesses

As previously disclosed in Item 9A of our ~~2024~~2025 ~~10-K,~~Annual ~~management has identified material weaknesses as of that date. A “material weakness” is a deficiency~~Report, orto combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. To remediate the material weaknesses identified above, we ~~have hired third-party consultants to assist with financial reporting and~~ are initiating controls and procedures in order to:

● ~~educate~~Enhance ~~control~~system ~~owners concerning the principles and requirements of each control, with a focus on those related to user~~ access ~~to our financial reporting systems impacting financial reporting; ● develop and maintain documentation to promote knowledge transfer upon personnel and function changes; ● develop enhanced~~ controls and ~~reviews~~segregation ~~related~~of toduties ~~our~~through ~~financial reporting systems; ● perform an in~~role-~~depth~~based ~~analysis of who should have~~ access torestrictions ~~perform key functions within our financial reporting system that impact financial reporting~~ and ~~redesign~~periodic ~~aspects~~user ~~of the system to better allow the~~ access ~~rights~~reviews. ~~to be implemented;~~ ● ~~perform~~Strengthen ~~a cross~~year-~~reference~~end ~~analysis~~financial onclose ~~a quarterly basis;~~ and ~~● implement additional levels of internal~~ review ofprocedures, ~~financial~~including ~~statements~~formalized ~~and~~controls ~~any~~over ~~adjustments~~vendor ~~made thereto~~accruals.

The material weaknesses identified above will not be considered remediated until our remediation efforts have been fully implemented and we have concluded that these controls are operating effectively.

Management does not expect that our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control systems are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of internal control over financial reporting can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been or will be detected.

Management will seek to remediate such deficiencies over the coming quarters.

Changes in Internal Control over Financial Reporting

Other than the changes intended to remediate the material weaknesses as discussed above, there was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended ~~July~~January 31, ~~2025~~2026 that ~~has~~ has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

720

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Our operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, “Risk Factors” in our ~~2024 10-K and in Item 1A. “Risk Factors” in our Report on Form 10-Q for the quarter ending April 30,~~ 2025, ~~filed~~Annual ~~on June 13, 2025 (the “Second Quarter 10-Q”)~~Report. There have been no material changes to our risk factors since the ~~Second~~2025 ~~Quarter~~Annual ~~10-Q~~Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) None.

(b) None.

(c) During the fiscal quarter ended ~~July~~January 31, ~~2025~~2026, no director or “officer” (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as such terms are defined in Item 408(a)(1)(i) and Item 408(c), respectively, of Regulation S-K.

ITEM 6. EXHIBITS

Exhibit Number		Description
10.1		Amendment No. 1 to Amended and Restated Employment Agreement, dated as of February 26, 2026, by and between Andrew Gordon and Coffee Holding Co., Inc. (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 27, 2026).
10.2		Twelfth Loan Modification Agreement, dated as of March 4, 2026, by and among Coffee Holding Co., Inc., Organic Products Trading Company LLC and Webster Bank (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 10, 2026).
31.1		Principal Executive Officer and Principal Financial Officer’s Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1		Principal Executive Officer and Principal Financial Officer’s Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101.INS		Inline XBRL Instance Document *
101.SCH		Inline XBRL Taxonomy Extension Schema Document *
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document *
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document *
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document *
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

* Filed herewith

** Furnished herewith

921

SIGNATURES

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

	Coffee Holding Co., Inc.
Date: September 12, 2025	By:	/s/ Andrew Gordon
Date: March 16, 2026	By:	/s/ Andrew Gordon
	Name:	Andrew Gordon
	Title:	President, Chief Executive Officer and Chief Financial Officer

1022

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