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COMMODITIES HELD BY BROKER

6 Months Ended

Apr. 30, 2023

Broker-Dealer [Abstract]

COMMODITIES HELD BY BROKER

NOTE 4 - COMMODITIES HELD BY BROKER:

The Company has used, and intends to continue to use in a limited capacity, short term coffee futures and options contracts primarily for the purpose of partially hedging and minimizing the effects of changing green coffee prices and to reduce cost of sales. The commodities held by broker represent the market value of the Company’s trading account, which consists of options and futures contracts for coffee held with a brokerage firm. The Company uses options and futures contracts, which are not designated or qualifying as hedging instruments, to partially hedge the effects of fluctuations in the price of green coffee beans. Options and futures contracts are recognized at fair value in the condensed consolidated financial statements with current recognition of gains and losses on such positions. The Company’s accounting for options and futures contracts may increase earnings volatility in any particular period. We record all open contract positions on our consolidated balance sheets at fair value in the due from and due to broker line items and typically do not offset these assets and liabilities.

The Company classifies its options and future contracts as trading securities and accordingly, unrealized holding gains and losses are included in earnings and not reflected as a net amount as a separate component of stockholders’ equity.

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

 SCHEDULE OF REALIZED AND UNREALIZED GAINS AND LOSSES ON CONTRACTS

		2023				2022
		Three Months Ended April 30,
		2023				2022
Gross realized gains		$	247,983			$	1,000,908
Gross realized losses			(626,311	)			(878,440	)
Unrealized gain			164,455				179,213
Total		$	(213,873	)		$	301,681
Gain (Loss) on Investments		$	(213,873	)		$	301,681

		2023				2022
		Six Months Ended April 30,
		2023				2022
Gross realized gains		$	376,908			$	1,323,048
Gross realized losses			(1,292,361	)			(1,257,359	)
Unrealized gain			936,476				112,446
Total		$	21,023			$	178,135
Gain (Loss) on Investments		$	21,023			$	178,135

COFFEE HOLDING CO., INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2023

(UNAUDITED)

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- References

No definition available.

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- Definition

The entire disclosure for financial services, specifically for brokers and dealers, for the accounting period and at the balance sheet date. Disclosure may include amounts receivable from and payable to broker-dealers and clearing organizations, including securities failed to receive, deposits received for securities loaned, amounts payable to clearing organizations related to open transactions, floor brokerage payables and payables for commodities futures accounts liquidating to an equity balance on a broker-dealer's records. May also include disclosure on company's consolidation policy and a note indicating the amount of the broker-dealer's actual net capital and the amount of required net capital.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 940
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//940/tableOfContent

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