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<SEC-DOCUMENT>0001116502-09-000100.txt : 20090129
<SEC-HEADER>0001116502-09-000100.hdr.sgml : 20090129
<ACCEPTANCE-DATETIME>20090129161527
ACCESSION NUMBER:		0001116502-09-000100
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080129
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090129
DATE AS OF CHANGE:		20090129

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COFFEE HOLDING CO INC
		CENTRAL INDEX KEY:			0001007019
		STANDARD INDUSTRIAL CLASSIFICATION:	BEVERAGES [2080]
		IRS NUMBER:				113860760
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32491
		FILM NUMBER:		09554685

	BUSINESS ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232
		BUSINESS PHONE:		7188320800

	MAIL ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRANSPACIFIC INTERNATIONAL GROUP CORP
		DATE OF NAME CHANGE:	19960201
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>coffee8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:4px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:1.333px solid #000000" align=right>&nbsp;</P>
<P style="line-height:16pt; margin:0px; font-size:14pt" align=center><B>UNITED STATES</B></P>
<P style="line-height:16pt; margin:0px; font-size:14pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:9.733px; font-size:12pt" align=center><B>Washington, D.C. 20549</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:18pt; margin-top:21.333px; margin-bottom:0px; font-size:16pt" align=center><B>FORM 8-K</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:14px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin-top:0px; margin-bottom:6.667px" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0px" align=center><B>Pursuant to Section&nbsp;13 or 15(d) of </B></P>
<P style="margin-top:0px; margin-bottom:8.867px" align=center><B>The Securities Exchange Act of 1934</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>Date of Report (Date of earliest event reported): January&nbsp;29, 2009</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:20pt; margin-top:16px; margin-bottom:0px; font-size:18pt" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>(Exact name of registrant as specified in its charter)</I></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=224></TD><TD width=224.067></TD><TD width=223.933></TD></TR>
<TR><TD valign=top width=224><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>Nevada</B></P>
</TD><TD valign=top width=224.067><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>001-32491</B></P>
</TD><TD valign=top width=223.933><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>11-2238111</B></P>
</TD></TR>
<TR><TD valign=top width=224><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; padding-left:13.467px; font-size:8pt" align=center><I>(State or other jurisdiction<BR>
of incorporation)</I></P>
</TD><TD valign=top width=224.067><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(Commission<BR>
File Number)</I></P>
</TD><TD valign=top width=223.933><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(IRS Employer<BR>
Identification No.)</I></P>
</TD></TR>
</TABLE>
<P style="margin-top:13.333px; margin-bottom:0px" align=center><B>4401 First Avenue, Brooklyn, New York 11232-0005</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:10.667px; font-size:8pt" align=center><I>(Address of principal executive offices) (Zip Code)</I></P>
<P style="margin:0px" align=center><B>(718) 832-0800</B></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=center><I>Registrant&#146;s telephone number, including area code</I></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:6.667px; margin-bottom:0px" align=center><B>Not Applicable</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:10.667px; font-size:8pt" align=center><I>(Former name or former address, if changed since last report.)</I></P>
<P style="margin-top:6.667px; margin-bottom:6.667px">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</P>
<P style="margin-top:0px; margin-bottom:7.867px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="margin-top:0px; margin-bottom:7.733px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
<P style="margin-top:0px; margin-bottom:7.733px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
<P style="margin-top:0px; margin-bottom:8.867px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:1.333px solid #000000">&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:4px solid #000000">&nbsp;</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px"><B>Item 2.02</B></P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:72px"><B>Results of Operations and Financial Condition.</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>On January&nbsp;29, 2009, Coffee Holding Co., Inc. issued a press release disclosing certain information regarding its results of operations for the year ended October&nbsp;31, 2008. A copy of the press release is attached as exhibit 99.1.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px" align=justify><B>Item 9.01</B></P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:72px" align=justify><B>Financial Statements and Exhibits.</B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:80px; text-indent:-32px">(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:80px">The following exhibit is furnished with this report:</P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=72></TD><TD width=24.133></TD><TD width=439.867></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=72><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit&nbsp;No.</B></P>
</TD><TD valign=bottom width=24.133><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=439.867><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=bottom width=72><P>&nbsp;</P></TD><TD valign=bottom width=24.133><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=439.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=72><P style="margin:0px" align=center>99.1</P>
</TD><TD valign=bottom width=24.133><P>&nbsp;</P></TD><TD valign=bottom width=439.867><P style="margin:0px">Coffee Holding Co., Inc. press release dated January&nbsp;29, 2009</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:8.867px" align=justify><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:8.667px" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0px; margin-bottom:20px; text-indent:48px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Dated: January&nbsp;29, 2009</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=353.8></TD><TD width=40.2></TD><TD width=230></TD></TR>
<TR><TD valign=top width=353.8><P>&nbsp;</P></TD><TD valign=top width=270.2 colspan=2><P style="margin:0px"><B>COFFEE HOLDING CO., INC.</B></P>
</TD></TR>
<TR><TD valign=top width=353.8><P>&nbsp;</P></TD><TD valign=top width=40.2><P>&nbsp;</P></TD><TD valign=top width=230><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=353.8><P>&nbsp;</P></TD><TD valign=top width=40.2><P>&nbsp;</P></TD><TD valign=top width=230><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=353.8><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=40.2><P style="margin:0px">By:</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=230><P style="line-height:normal; margin:0px">/s/ A<FONT style="font-size:6pt">NDREW</FONT> G<FONT style="font-size:6pt">ORDON</FONT></P>
</TD></TR>
<TR><TD valign=top width=353.8><P>&nbsp;</P></TD><TD valign=top width=40.2><P style="margin:0px">Name: </P>
</TD><TD valign=top width=230><P style="margin:0px">Andrew Gordon </P>
</TD></TR>
<TR><TD valign=top width=353.8><P>&nbsp;</P></TD><TD valign=top width=40.2><P style="margin:0px">Title:</P>
</TD><TD valign=top width=230><P style="margin:0px">President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px; page-break-before:always" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:20px" align=center><B>EXHIBIT INDEX</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=70.067></TD><TD width=16.667></TD><TD width=440.8></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=70.067><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit&nbsp;No.</B></P>
</TD><TD valign=bottom width=16.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=440.8><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=bottom width=70.067><P>&nbsp;</P></TD><TD valign=bottom width=16.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=440.8><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=70.067><P style="margin:0px" align=center>99.1</P>
</TD><TD valign=bottom width=16.667><P>&nbsp;</P></TD><TD valign=bottom width=440.8><P style="margin:0px">Coffee Holding Co., Inc. press release dated January&nbsp;29, 2009</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:10.667px"><BR></P>
<P style="margin-top:0px; margin-bottom:10.667px"><BR>
<BR></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>coffee991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<A NAME="_Ref3977756"></A><P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; font-size:11pt" align=right><B>EXHIBIT 99.1</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt"><B>FOR IMMEDIATE RELEASE</B></P>
<P style="line-height:13pt; margin:0px; font-size:11pt">Contact: Andrew Gordon, President &amp; CEO</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; font-size:11pt">Telephone: (718) 832-0800</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:10.667px; font-size:12pt" align=center><B>Coffee Holding Co., Inc. Reports Year End Results</B></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">BROOKLYN, New York &#150; January&nbsp;29, 2009. Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the year ended October&nbsp;31, 2008. In this release, the Company:</P>
<A NAME="OLE_LINK1"></A><P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-family:Wingdings; font-size:11pt">&#159;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:72px; font-size:11pt">Reports a net loss of ($2,597,294), or ($0.47) per share (basic and diluted) for the year ended October&nbsp;31, 2008</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-family:Wingdings; font-size:11pt">&#159;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:72px; font-size:11pt">Reports net sales of $71,186,312 for the year ended October&nbsp;31, 2008; and</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-family:Wingdings; font-size:11pt">&#159;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:72px; font-size:11pt">Reports sales growth of 24.1% for the year ended October&nbsp;31, 2008 compared to the year ended October&nbsp;31, 2007.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; text-indent:48px; font-size:11pt">We had a net loss of ($2,597,294), or ($0.47) per share (basic and diluted) for the year ended October&nbsp;31, 2008 compared to net income of $937,316 or $.17 per share (basic and diluted) for the year ended October&nbsp;31, 2007. The decrease in net income primarily reflects hedging losses when the price of coffee surged to a ten year high and subsequently collapsed during February&nbsp;and October&nbsp;2008. </P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; text-indent:48px; font-size:11pt">Net sales totaled $71,186,312 for the year ended October&nbsp;31, 2008, an increase of $13,820,472 or 24.1% from $57,365,840 for the year ended October&nbsp;31, 2007. The increase in net sales reflects a 7.5% increase in coffee pounds sold from 36.5&nbsp;million pounds in 2007 to<B> </B>39.2<B>&nbsp;</B>million pounds in 2008. The increase in pounds of coffee sold is the result of increased sales of our branded, private label and specialty green coffees. Sales of our flagship Hispanic espresso brands, Caf&#233; Caribe and Caf&#233; Supremo, increased once again. Higher coffee prices during 2008 also contributed to the increase in net sales.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; text-indent:48px; font-size:11pt">Cost of sales for the year ended October&nbsp;31, 2008 was $68,762,310 or 96.6% of net sales, as compared to $49,071,384 or 85.5% of net sales for the year ended October&nbsp;31, 2007. 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 in cost of sales reflects higher green coffee prices and losses on options and futures contracts. Green coffee purchases increased $13,740,062 from $43,301,605 to $57,041,667 due to the increase in green coffee prices and private label and green coffee sales volumes. &nbsp;Net losses on options and futures contracts, a component of cost of sales, totaled $3,068,450 for the year ended October&nbsp;31, 2008 compared to net gains of $2,692,020 for the year ended October&nbsp;31, 2007. We believe these losses resulted from a surge in commodities prices due to the U.S. we
aker dollar and a significant increase in market speculation. We do not expect future trading losses going forward. The increase in cost of sales as a&nbsp;percentage of net sales also reflects higher green coffee prices which could not fully be passed along to customers through sales price increases. Gross profit as a&nbsp;percentage of net sales decreased to 3.41% for the year ended October&nbsp;31, 2008 from 14.45% for the year ended October&nbsp;31, 2007. The decrease in our margins is attributable to higher green coffee prices that we were unable to pass on to our customers as well as net losses on options and futures contracts.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; text-indent:48px; font-size:11pt">Total operating expenses decreased $479,828 or 7% to $6,362,534 for the year ended October&nbsp;31, 2008 from $6,842,362 for the fiscal year ended October&nbsp;31, 2007 due to decreases in selling and administrative expenses and a decrease of $192,860 in a write-down in amounts due from our Caf&#233; La Rica joint venture (which was dissolved in October&nbsp;2007 after settlement of the litigation). &nbsp;Selling and administrative expenses decreased $312,329 or 5.2% to $5,714,032 for the year ended October&nbsp;31, 2008 from $6,026,361 for 2007. </P>
<P style="margin-top:0px; margin-bottom:14.667px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>1</P>
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<P style="line-height:normal; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:12pt; page-break-before:always">&#147;<FONT style="font-size:11pt">The global economic crisis which expanded in late 2008 undermined our fiscal results as&nbsp;coffee prices&nbsp;turned sharply lower just prior to the end of our 4th Quarter. The financial crisis&nbsp;heightened the volatility in the futures market to a level which could not have been anticipated&nbsp;and was not&nbsp;experienced in the&nbsp;long history of our company. The end result, due to capital and liquidity issues,&nbsp;was that we were forced to abandon trading positions which in the past would be both protective and profitable for our operating needs,&#148; said Andrew Gordon, President and Chief Executive Officer.</FONT></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:10.667px; text-indent:48px; font-size:11pt">&#147;We believe&nbsp;that, although the worst might not be over for both the economy and the&nbsp;financial markets, in the case of coffee, fundamentals should prevail in 2009. Our overall business remains healthy, our balance sheet remains strong and&nbsp;our revenues continue to grow, even at a time when we have become more selective as to the type of customer&nbsp;with which we wish to do business&nbsp;in this high risk counterparty environment. &nbsp;We believe the worst is now behind us and we look forward to a clean slate in 2009,&#148; Mr.&nbsp;Gordon added.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; font-size:11pt"><I>About Coffee Holding</I></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">Coffee Holding is a leading integrated wholesale coffee roaster and dealer 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. Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company&#146;s private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.</P>
<P style="line-height:13pt; margin:0px; text-indent:48px; font-size:11pt"><I>Any statements that are not historical facts contained in this release are &#147;forward-looking statements&#148; within the meaning of the Private Securities Litigation Reform Act of 1995. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company&#146;s Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking stateme
nt for events or circumstances after the date on which such statement is made.</I></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>2</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; padding-right:-48px; page-break-before:always" align=center><B>COFFEE HOLDING CO., INC. AND SUBSIDIARY</B></P>
<P style="margin:0px" align=center><B>CONSOLIDATED BALANCE SHEETS</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>OCTOBER 31, 2008 AND 2007</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=530.533></TD><TD width=18.467></TD><TD width=7.333></TD><TD width=66.533></TD><TD width=18.4></TD><TD width=7.333></TD><TD width=66.533></TD><TD width=4.867></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=73.867 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>2008</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=73.867 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>2007</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px" align=center><B>- ASSETS -</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>CURRENT ASSETS:</B></P>
</TD><TD valign=bottom width=18.467><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Cash and cash equivalents</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>963,298</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>890,649</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Commodities held at broker</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>342,269</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>3,468,530</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Accounts receivable, net of allowances of $141,915 and $136,781<BR>
for 2008 and 2007, respectively</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>9,067,797</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>7,130,467</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Inventories</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>5,046,554</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>4,472,097</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36.467px; text-indent:-12.467px">Prepaid expenses and other current assets</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>284,900</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>502,240</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36.467px; text-indent:-12.467px">Prepaid and refundable income taxes</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>1,025,935</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>236,406</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36.467px; text-indent:-12.467px">Deferred income tax assets</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>923,877</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>279,000</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin-top:6.667px; margin-bottom:0px">TOTAL CURRENT ASSETS</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right><B>17,654,630</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right>16,979,389</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:17.733px; text-indent:-17.733px">Property and equipment, at cost, net of accumulated depreciation of<BR>
$5,020,573 and $4,542,490 for 2008 and 2007, respectively</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>2,804,053</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>2,651,960</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD><A NAME="OLE_LINK5"></A><A NAME="OLE_LINK6"></A><A NAME="_Hlk219176177"></A></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deposits and other assets</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>542,893</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>766,268</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin-top:6.667px; margin-bottom:0px">TOTAL ASSETS</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin-top:6.667px; margin-bottom:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right><B>21,001,576</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin-top:6.667px; margin-bottom:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right>20,397,617</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px" align=center><B>- LIABILITIES AND STOCKHOLDERS' EQUITY -</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>CURRENT LIABILITIES:</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:24px">Accounts payable and accrued expenses</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>9,120,124</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>6,717,143</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:24.933px">Line of credit borrowings</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>3,522,207</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>897,191</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:24px">Income taxes payable </P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>9,161</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin-top:6.667px; margin-bottom:0px">TOTAL CURRENT LIABILITIES</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right><B>12,642,331</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right>7,623,495</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deferred income tax liabilities</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>86,000</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>145,000</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deferred rent payable</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>69,959</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>74,547</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deferred compensation payable</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>352,637</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>351,332</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin-top:6.667px; margin-bottom:0px">TOTAL LIABILITIES</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right><B>13,150,927</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right>8,194,374</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>3,226</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>900</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>COMMITMENTS AND CONTINGENCIES</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>STOCKHOLDERS' EQUITY: </B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Common stock, par value $.001 per share; 30,000,000 shares authorized,<BR>
5,529,830 shares issued; 5,445,516 shares outstanding for 2008 and<BR>
5,514,930 shares outstanding in 2007</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>5,530</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>5,530</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Additional paid-in capital</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>7,327,023</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>7,327,023</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Retained earnings</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>804,605</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>4,946,467</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:36px; text-indent:-12px">Less: Treasury stock, 84,314 and 14,900 common shares, at cost in 2008 and 2007</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>(289,735</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>(76,677</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin-top:6.667px; margin-bottom:0px">TOTAL STOCKHOLDERS' EQUITY </P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right><B>7,847,423</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin-top:6.667px; margin-bottom:0px" align=right>12,202,343</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:67.6px"><B>TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>21,001,576</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin:0px" align=right>20,397,617</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>3</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>COFFEE HOLDING CO., INC. AND SUBSIDIARY</B></P>
<P style="margin:0px" align=center><B>CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>YEARS ENDED OCTOBER 31, 2008 AND 2007</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=503.333></TD><TD width=20.933></TD><TD width=8.333></TD><TD width=77.733></TD><TD width=20.867></TD><TD width=8.333></TD><TD width=75></TD><TD width=5.467></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=86.067 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>2008</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.333 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>2007</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px"><B>NET SALES</B></P>
</TD><TD valign=bottom width=20.933><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=8.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>71,186,312</B></P>
</TD><TD valign=bottom width=20.867><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=8.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=75><P style="margin:0px" align=right>57,365,840</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-right:-7.2px"><B>COST OF SALES</B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>68,762,310</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>49,071,384</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px"><B>GROSS PROFIT</B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>2,424,002</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>8,294,456</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px"><B>OPERATING EXPENSES:</B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:16px">Selling and administrative</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>5,714,032</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>6,026,361</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:16px">Writedown of amount due from dissolved joint venture </P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>192,860</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:16px">Bad debt expense</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>37,575</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>38,990</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:16px">Officers' salaries</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>610,927</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>584,151</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px">TOTALS</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>6,362,534</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>6,842,362</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px"><B>INCOME (LOSS) FROM OPERATIONS</B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>(3,938,532</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>1,452,094</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px"><B>OTHER INCOME (EXPENSE)</B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:12.467px">Interest income</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>46,209</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>131,537</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:12.467px">Other income</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>9,331</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:12.467px">Equity in loss from dissolved joint venture</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>(91,340</P>
</TD><TD valign=bottom width=5.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:12.467px">Management fee income</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>12,026</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:12.467px">Writedown of investment in dissolved joint venture</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>(33,000</P>
</TD><TD valign=bottom width=5.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:12.467px">Interest expense</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>(142,087</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P style="margin:0px; padding-right:-19.667px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>(109,260</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P style="margin:0px; padding-right:-19.667px">)</P>
</TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px">TOTALS</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>(86,547</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>(90,037</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:8px; text-indent:-8px"><B>INCOME (LOSS) BEFORE INCOME TAXES AND<BR>
MINORITY INTEREST IN SUBSIDIARY</B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>(4,025,079</B></P>
</TD><TD valign=bottom width=20.867><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>1,362,057</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:24px; text-indent:-8px">Benefit (provision) for income taxes</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>1,430,110</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>(418,175</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px"><B>INCOME (LOSS) BEFORE MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>(2,594,969</B></P>
</TD><TD valign=bottom width=20.867><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P style="margin:0px" align=right>943,882</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:24px; text-indent:-8px">Minority interest in loss of subsidiary</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>(2,325</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=20.867><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75><P style="margin:0px" align=right>(6,566</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px"><B>NET INCOME (LOSS) </B></P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=77.733><P style="margin:0px" align=right><B>(2,597,294</B></P>
</TD><TD valign=bottom width=20.867><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=8.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=75><P style="margin:0px" align=right>937,316</P>
</TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px">Basic and diluted earnings (loss) per share</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=8.333><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>(.47</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=20.867><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=8.333><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75><P style="margin:0px" align=right>.17</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px">Weighted average common shares outstanding:</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P>&nbsp;</P></TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=77.733><P>&nbsp;</P></TD><TD valign=bottom width=20.867><P>&nbsp;</P></TD><TD valign=bottom width=8.333><P>&nbsp;</P></TD><TD valign=bottom width=75><P>&nbsp;</P></TD><TD valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:24px; text-indent:-8px">Basic</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>5,476,173</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=75><P style="margin:0px" align=right>5,525,408</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=503.333><P style="margin:0px; padding-left:24px; text-indent:-8px">Diluted</P>
</TD><TD valign=bottom width=20.933><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right><B>5,476,173</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=20.867><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=8.333><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=75><P style="margin:0px" align=right>5,595,408</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.467><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>4</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>COFFEE HOLDING CO., INC. AND SUBSIDIARY</B></P>
<P style="margin:0px" align=center><B>CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS&#146; EQUITY</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>YEARS ENDED OCTOBER 31, 2008 AND 2007</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=146.933></TD><TD width=19.467></TD><TD width=3.867></TD><TD width=62.333></TD><TD width=19.467></TD><TD width=3.867></TD><TD width=7.933></TD><TD width=35.933></TD><TD width=23.333></TD><TD width=4.8></TD><TD width=53.2></TD><TD width=3.867></TD><TD width=23.333></TD><TD width=7.8></TD><TD width=56></TD><TD width=5.267></TD><TD width=23.333></TD><TD width=7.8></TD><TD width=62.333></TD><TD width=3.867></TD><TD width=19.467></TD><TD width=7.8></TD><TD width=67.667></TD><TD width=5.267></TD><TD width=19.467></TD><TD width=7.8></TD><TD width=70.133></TD><TD width=5.267></TD></TR>
<TR><TD valign=bottom width=146.933><P style="line-height:10pt; margin:0px; font-size:8pt"><B>&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=133.4 colspan=6><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Common Stock</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=149 colspan=6><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Treasury Stock</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.267><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=70.133 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Additional</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Paid - in</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Capital</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.867><P>&nbsp;</P></TD><TD valign=bottom width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.467 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Retained<BR>
Earnings</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.267><P>&nbsp;</P></TD><TD valign=bottom width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.933 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Total</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.267><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="line-height:10pt; margin:0px; font-size:8pt">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=133.4 colspan=6><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>$.001 Par Value</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=58 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=63.8 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=70.133 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=75.467 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.933 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="line-height:10pt; margin:0px; font-size:8pt">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD><TD valign=bottom width=66.2 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Number of</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=43.867 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=58 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Number of</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=63.8 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=70.133 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=75.467 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.933 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="line-height:10pt; margin:0px; font-size:8pt">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.2 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=43.867 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Amount</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=58 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.8 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Amount</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.267><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=70.133 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=75.467 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.933 colspan=2><P style="margin:0px; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=66.2 colspan=2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=43.867 colspan=2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=58 colspan=2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=63.8 colspan=2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=70.133 colspan=2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=75.467 colspan=2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.933 colspan=2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">Balance, 10/31/06</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>5,529,830</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">$</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>5,530</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=4.8><P>&nbsp;</P></TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">$</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=5.267><P>&nbsp;</P></TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">$</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>7,327,023</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">$</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>4,009,151</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">$</P>
</TD><TD valign=bottom width=70.133><P style="margin:0px" align=right>11,341,704</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P>&nbsp;</P></TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">Treasury stock at cost</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>(14,900</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">)</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>14,900</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>(76,677</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">)</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P style="margin:0px" align=right>(76,677</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P>&nbsp;</P></TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">Net income</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=62.333><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=35.933><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=53.2><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=56><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=62.333><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.667><P style="margin:0px" align=right>937,316</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=70.133><P style="margin:0px" align=right>937,316</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P>&nbsp;</P></TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">Balance, 10/31/07</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>5,514,930</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>5,530</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>14,900</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>(76,677</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">)</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>7,327,023</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>4,946,467</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P style="margin:0px" align=right>12,202,343</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P>&nbsp;</P></TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px"><B>Treasury stock at cost</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right><B>(69,414</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right><B>69,414</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right><B>(213,058</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=70.133><P style="margin:0px" align=right><B>(213,058</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>)</B></P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P>&nbsp;</P></TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px"><B>Dividend</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right><B>(1,544,568</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=70.133><P style="margin:0px" align=right><B>(1,544,568</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>)</B></P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P>&nbsp;</P></TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px"><B>Net loss</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=62.333><P style="margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=35.933><P style="margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=4.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=53.2><P style="margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=56><P style="margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=62.333><P style="margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.667><P style="margin:0px" align=right><B>(2,597,294</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.267><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=70.133><P style="margin:0px" align=right><B>(2,597,294</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.267><P style="margin:0px"><B>)</B></P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=35.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=53.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=56><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=23.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=62.333><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=3.867><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=67.667><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=19.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.8><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=70.133><P>&nbsp;</P></TD><TD valign=bottom width=5.267><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=146.933><P style="margin:0px"><B>Balance, 10/31/08</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=62.333><P style="margin:0px" align=right><B>5,445,516</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.933><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=35.933><P style="margin:0px" align=right><B>5,530</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=4.8><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=53.2><P style="margin:0px" align=right><B>84,314</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.8><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=56><P style="margin:0px" align=right><B>(289,735</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.267><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=23.333><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.8><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=62.333><P style="margin:0px" align=right><B>7,327,023</B></P>
</TD><TD valign=bottom width=3.867><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.8><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.667><P style="margin:0px" align=right><B>804,605</B></P>
</TD><TD valign=bottom width=5.267><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=19.467><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.8><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=70.133><P style="margin:0px" align=right><B>7,847,423</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.267><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:8.867px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>5</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; font-family:Times New Roman Bold; page-break-before:always" align=center><B>COFFEE HOLDING CO., INC. AND SUBSIDIARY</B></P>
<P style="margin:0px; font-family:Times New Roman Bold" align=center><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>
<P style="line-height:normal; margin-top:0px; margin-bottom:14.667px; font-family:Times New Roman Bold" align=center><B>YEARS ENDED OCTOBER 31, 2008 AND 2007</B><FONT style="font-family:Times New Roman; font-size:11pt"><B> </B></FONT></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=498.8></TD><TD width=20></TD><TD width=7.933></TD><TD width=77.333></TD><TD width=5.333></TD><TD width=20></TD><TD width=7.933></TD><TD width=77.333></TD><TD width=5.333></TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=85.267 colspan=2><P style="line-height:11.5pt; margin:0px" align=center><B>2008</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=85.267 colspan=2><P style="line-height:11.5pt; margin:0px" align=center><B>2007</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px"><B>OPERATING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=85.267 colspan=2><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=85.267 colspan=2><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Net income (loss)</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(2,597,294</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">$</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>937,316</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Adjustments to reconcile net income to net cash provided by&nbsp;(used in)<BR>
operating activities:</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Depreciation</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>541,204</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>383,216</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Writeoff of leasehold improvements</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>38,918</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Bad debt expense</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>37,575</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>38,990</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Deferred rent</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(4,588</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(4,588</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Deferred income taxes</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(703,877</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>74,700</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Loss from dissolved joint venture</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>91,340</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Writedown of investment in dissolved joint venture</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>33,000</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Writedown of amount due from dissolved joint venture</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>192,860</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Minority interest</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>2,326</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>6,566</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Changes in operating assets and liabilities:</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Commodities held at broker</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>3,126,261</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>861,959</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Accounts receivable</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(1,974,905</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(634,609</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Inventories</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(574,457</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(1,572,554</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Prepaid expenses and other current assets</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>239,144</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(173,696</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Prepaid and refundable income taxes</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(789,529</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>65,597</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Due from dissolved joint venture</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(110,505</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Deposits, other assets and other</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(138,939</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(45,027</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Accounts payable and accrued expenses</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>2,402,981</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>1,967,589</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:40px; text-indent:-8px">Income tax payable</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(9,161</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>9,161</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px; padding-left:73.333px"><B>Net cash provided by (used in) operating activities</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(443,259</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>2,160,233</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px; padding-left:13.333px; text-indent:-13.333px"><B>INVESTING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Purchases of property and equipment including equipment deposit</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(341,982</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(659,382</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Security deposits</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(9,500</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&#150;&#150;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px; padding-left:73.333px"><B>Net cash used in investing activities</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(351,482</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(659,382</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px"><B>FINANCING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances under bank line of credit</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>60,576,960</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>49,127,817</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Principal payments under bank line of credit</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(57,951,944</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(50,773,507</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Payment of dividend</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(1,544,568</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>&#150;&#150;</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Purchase of treasury stock</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>(213,058</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(76,677</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px; padding-left:68px"><B>Net cash provided by (used in) financing activities</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>867,390</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(1,722,367</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px"><B>NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>72,649</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>(221,516</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P>&nbsp;</P></TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px; padding-left:16px">Cash and cash equivalents, beginning of year</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>890,649</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>1,112,165</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P>&nbsp;</P></TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px"><B>CASH AND CASH EQUIVALENTS, END OF YEAR</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>963,298</B></P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>890,649</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P>&nbsp;</P></TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px"><B>SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px; padding-left:24px; text-indent:-8px">Interest paid</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>127,082</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>117,758</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="line-height:11.5pt; margin:0px; padding-left:24px; text-indent:-8px">Income taxes paid</P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right><B>33,477</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=20><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.933><P style="line-height:11.5pt; margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.333><P style="line-height:11.5pt; margin:0px" align=right>287,480</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.333><P style="line-height:11.5pt; margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=498.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:24px; text-indent:-8px"><B>NONCASH INVESTING AND FINANCING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD><TD valign=bottom width=20><P>&nbsp;</P></TD><TD valign=bottom width=7.933><P>&nbsp;</P></TD><TD valign=bottom width=77.333><P>&nbsp;</P></TD><TD valign=bottom width=5.333><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=720 colspan=9><P style="margin:0px; padding-left:40px; text-indent:-8px">During 2007, the Company received equipment valued at $275,761 originally contributed to the now dissolved joint venture.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>6</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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