NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
1 - BUSINESS ACTIVITIES:
Coffee
Holding Co., Inc. (the “Company”) conducts wholesale coffee operations, including manufacturing, roasting, packaging,
marketing and distributing roasted and blended coffees for private labeled accounts and its own brands, and it sells green coffee.
The Company also manufactures and sells coffee roasters. The Company’s core product, coffee, can be summarized and divided
into three product categories (“product lines”) as follows:
Wholesale
Green Coffee: unroasted raw beans imported from around the world and sold to large and small roasters and coffee shop
operators;
Private
Label Coffee: coffee roasted, blended, packaged and sold under the specifications and names of others, including supermarkets
that want to have their own brand name on coffee to compete with national brands; and
Branded
Coffee: coffee roasted and blended to the Company’s own specifications and packaged and sold under the Company’s
eight proprietary and licensed brand names in different segments of the market.
The
Company’s private label and branded coffee sales are primarily to customers that are located throughout the United States
with limited sales in Canada and certain countries in Asia. Such customers include supermarkets, wholesalers, and individually-owned
and multi-unit retailers. The Company’s unprocessed green coffee, which includes over 90 specialty coffee offerings, is
sold primarily to specialty gourmet roasters and to coffee shop operators in the United States with limited sales in Australia,
Canada, England and China.
The
Company’s wholesale green, private label, and branded coffee product categories generate revenues and cost of sales individually
but incur selling, general and administrative expenses in the aggregate. There are no individual product managers and discrete
financial information is not available for any of the product lines. The Company’s product portfolio is used in one business
and it operates and competes in one business activity and economic environment. In addition, the three product lines share customers,
manufacturing resources, sales channels, and marketing support. Thus, the Company considers the three product lines to be one
single reporting segment.
COVID-19
The
global outbreak of COVID-19 was declared a pandemic by the World Health Organization and a national emergency by the U.S. government
in March 2020 and has negatively affected the U.S. and global economies, disrupted global supply chains, resulted in significant
travel and transport restrictions, mandated closures and stay-at-home orders, and created significant disruption of the financial
markets.
The
continuing impact on the Company’s business, including the decrease in our sales, the length and impact of stay-at-home
orders and/or regional quarantines, labor shortages and employment trends, disruptions to supply chains, including its ability
to obtain products from global suppliers, higher operating costs, the form and impact of economic stimulus and general overall
economic instability, has contributed to and may continue to have a material adverse effect on the Company’s business, results
of operations, financial condition and cash flows. At this time the full impact could not be determined.
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY:
The
following (a) condensed consolidated balance sheet as of January 31, 2021, which has been derived from audited financial statements,
and (b) the unaudited interim condensed financial statements have been prepared by the Company pursuant to the rules and regulations
of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted accounting principles (“U.S. GAAP”) have been
condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate
to make the information not misleading. It is suggested that these condensed consolidated financial statements be read in conjunction
with the consolidated financial statements and the notes thereto included in the Company’s latest shareholders’ annual
report on Form 10-K filed with the SEC on February 16, 2021 for the fiscal year ended October 31, 2020 (“Form 10-K”).
In
the opinion of management, all adjustments (which include normal and recurring nature adjustments) necessary to present a fair
statement of the Company’s financial position as of January 31, 2021, and results of operations for the three ended January
31, 2021 and the cash flows for the three months ended January 31, 2021 as applicable, have been made.
The
results of operations for the three months ended January 31, 2021 are not necessarily indicative of the operating results for
the full fiscal year or any future periods.
The
condensed consolidated financial statements include the accounts of the Company, the Company’s subsidiaries, Organic Products
Trading Company, LLC (“OPTCO”), Sonofresco, LLC (“SONO”), Comfort Foods, Inc. (“CFI”) and
Generations Coffee Company, LLC (“GCC”), the entity formed as a result of the Company’s joint venture with Caruso’s
Coffee, Inc. The Company owns a 60% equity interest in GCC. All significant inter-company transactions and balances have been
eliminated in consolidation.
Significant
Accounting Policy
Revenue
Recognition
The
Company recognizes revenue in accordance with the five-step model as prescribed by ASU 606 in which the Company evaluates the
transfer of promised goods or services and recognizes revenue when its customer obtains control of promised goods or services
in an amount that reflects the consideration which the Company expects to be entitled to receive in exchange for those goods or
services. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASU 606, the
Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations
in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the
contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 9 for revenue disaggregated
by product line.
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY (cont’d):
Share-Based
Payment
The
Company accounts for share-based payments using the fair value method. For employees and directors, the fair value of the award
is measured, as discussed below, on the grant date. The Company has granted stock options at an exercise price equal to the closing
price of the Company’s common stock as reported by Nasdaq. Upon exercise of an option, the Company issues new shares of
common stock out of its authorized shares.
The
fair value of options has been estimated on the grant date using the Black-Scholes pricing model. The fair value
of each instrument is estimated on the grant date utilizing certain assumptions for a risk-free interest rate, volatility and
expected remaining lives of the awards. The risk-free interest rate used is the United States Treasury rate for the day of the
grant having a term equal to the life of the equity instrument. Beginning with the current year quarter, the fair value of stock-based
payment awards issued was estimated using a volatility derived from comparable companies share price. The assumptions used in
calculating the fair value of share-based payment awards represents management’s best estimates, but these estimates involve
inherent uncertainties and the application of management judgement. As a result, if factors change and the Company uses different
assumptions, the Company’s stock-based compensation expense could be materially different in the future.
The
Black Scholes assumptions are as follows:
Expected Life
|
|
10 years
|
|
Risk free interest rate
|
|
2.42% ˗ 2.57
|
%
|
Expected volatility
|
|
43.0% ˗ 64.2
|
%
|
Expected dividend yield
|
|
0
|
%
|
Forfeiture rate
|
|
0
|
%
|
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
3 - ACCOUNTS RECEIVABLE:
Trade
accounts receivable are stated at the amount the Company expects to collect. The Company maintains allowances for doubtful accounts
for estimated losses resulting from the inability of its customers to make required payments. Management considers the following
factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history
with the customer, current economic industry trends, and changes in customer payment terms. Past due balances over 60 days and
other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers
were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s
assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation
allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a
charge to the valuation allowance and a credit to accounts receivable.
The
reserve for sales discounts represents the estimated discount that customers will take upon payment. The reserve for other allowances
represents the estimated amount of returns, slotting fees and volume based discounts estimated to be incurred by the Company from
its customers. The allowances are summarized as follows:
|
|
January 31, 2021
|
|
|
October 31, 2020
|
|
Allowance for doubtful accounts
|
|
$
|
65,000
|
|
|
$
|
65,000
|
|
Reserve for other allowances
|
|
|
35,000
|
|
|
|
35,000
|
|
Reserve for sales discounts
|
|
|
44,000
|
|
|
|
44,000
|
|
Totals
|
|
$
|
144,000
|
|
|
$
|
144,000
|
|
NOTE
4 - INVENTORIES:
Inventories
at January 31, 2021 and October 31, 2020 consisted of the following:
|
|
January 31, 2021
|
|
|
October 31, 2020
|
|
Packed coffee
|
|
$
|
3,407,110
|
|
|
$
|
3,590,709
|
|
Green coffee
|
|
|
10,099,679
|
|
|
|
11,390,668
|
|
Roasters and parts
|
|
|
413,419
|
|
|
|
381,617
|
|
Packaging supplies
|
|
|
1,779,091
|
|
|
|
1,739,999
|
|
Totals
|
|
$
|
15,699,299
|
|
|
$
|
17,102,993
|
|
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
5 - 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 our cost of sales.
The commodities held at broker represent the market value of the Company’s trading account, which consists of options and
future 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.
The
Company has open position contracts held by the broker, which are summarized as follows:
|
|
January 31, 2021
|
|
|
October 31, 2020
|
|
Option Contracts
|
|
$
|
(4,444
|
)
|
|
$
|
(164,475
|
)
|
Future Contracts
|
|
|
(32,806
|
)
|
|
|
(287,850
|
)
|
Total Commodities
|
|
$
|
(37,250
|
)
|
|
$
|
(452,325
|
)
|
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.
At
January 31, 2021, the Company held 16 futures contracts (generally with terms of three to four months) for the purchase of 600,000
pounds of green coffee at a weighted average price of $1.235. The fair market value of coffee applicable to such contracts was
$1.23 per pound at that date. The Company also held 10 options covering an aggregate of 375,000 pounds of green coffee beans.
The fair market value of these options, which was obtained from observable market data of similar instruments was $16,650.
At
October 31, 2020, the Company held 48 futures contracts (generally with terms of three to four months) for the purchase of 1,800,000
pounds of green coffee at a weighted average price of $1.158 per pound. The fair market value of coffee applicable to such contracts
was $1.044 per pound at that date.
The
Company recorded realized and unrealized gains and losses respectively, on these contracts as follows:
|
|
Three Months Ended January 31,
|
|
|
|
2021
|
|
|
2020
|
|
Gross realized gains
|
|
$
|
261,987
|
|
|
$
|
356,559
|
|
Gross realized losses
|
|
|
(76
|
)
|
|
|
(126,811
|
)
|
Unrealized gain (loss)
|
|
|
415,075
|
|
|
|
(985,837
|
)
|
Total
|
|
$
|
676,986
|
|
|
$
|
(756,089
|
)
|
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
6 - LINE OF CREDIT:
On
April 25, 2017 the Company and OPTCO (together with the Company, collectively referred to herein as the “Borrowers”)
entered into an Amended and Restated Loan and Security Agreement (the “A&R Loan Agreement”) and Amended and Restated
Loan Facility (the “A&R Loan Facility”) with Sterling National Bank (“Sterling”), which consolidated
(i) the financing agreement between the Company and Sterling, dated February 17, 2009, as modified, (the “Company Financing
Agreement”) and (ii) the financing agreement between Company, as guarantor, OPTCO and Sterling, dated March 10, 2015 (the
“OPTCO Financing Agreement”), amongst other things.
On
March 13, 2020, the Company reached an agreement for a new loan modification agreement and credit facility with Sterling. The
terms of the new agreement, among other things: (i) provides for a new maturity date of March 31, 2022 and (ii) decreases the
interest rate per annum to LIBOR plus 1.75% (with such interest rate not to be lower than 3.50%). All other terms of the A&R
Loan Agreement and A&R Loan Facility remain the same.
Each
of the A&R Loan Facility and A&R Loan Agreement contains covenants, subject to certain exceptions, that place annual restrictions
on the Borrowers’ operations, including covenants relating to debt restrictions, capital expenditures, indebtedness, minimum
deposit restrictions, tangible net worth, net profit, leverage, employee loan restrictions, dividend and repurchase restrictions
(common stock and preferred stock), and restrictions on intercompany transactions. The Company was in compliance with all covenants
as of January 31, 2021 and October 31, 2020.
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
7 - INCOME TAXES:
The
Company accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities
to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result
in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences
are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the
amount expected to be realized. The income tax provision or benefit is the tax incurred for the period plus or minus the change
during the period in deferred tax assets and liabilities.
As
of January 31, 2021 and October 31, 2020, the Company did not have any unrecognized tax benefits or open tax positions. The Company’s
practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of January 31, 2021
and October 31, 2020, the Company had no accrued interest or penalties related to income taxes. The Company currently has no federal
or state tax examinations in progress.
The
Company files a U.S. federal income tax return and California, Colorado, Connecticut, Idaho, Kansas, Louisiana, Montana, Massachusetts,
Michigan, New Jersey, New York, New York City, Oregon, Rhode Island, South Carolina, Tennessee, Virginia, and Texas state tax
returns. The Company’s federal income tax return is no longer subject to examination by the federal taxing authority for
the years before fiscal 2017. The Company’s California, Colorado and New Jersey income tax returns are no longer subject
to examination by their respective taxing authorities for the years before fiscal 2016. The Company’s Oregon and New York
income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2017.
NOTE
8 - EARNINGS PER SHARE:
The
Company presents “basic” and “diluted” earnings per common share pursuant to the provisions included in
the authoritative guidance issued by FASB, “Earnings per Share,” and certain other financial accounting pronouncements.
Basic earnings per common share were computed by dividing net income by the sum of the weighted-average number of common shares
outstanding. Diluted earnings per common share is computed by dividing the net income by the weighted-average number of common
shares outstanding plus the dilutive effect of common shares issuable upon exercise of potential sources of dilution.
The
weighted average common shares outstanding used in the computation of basic and diluted earnings per share were 5,708,599 and
5,569,349 for the three months ended January 31, 2021 and 2020, respectively. The Company has granted 1,000,000 options which
have not been included in the calculation of diluted earnings per share due to their anti-dilutive nature.
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
9 – COMMITMENTS AND CONTINGENCIES:
CLASS
ACTION COMPLAINT
The
Company was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Northern
District of Illinois on or about December 21, 2020. The plaintiffs, Eileen Brodsky and Rhonda Diamond, purporting to represent
a class of individuals who purchased coffee products at Aldi, Inc. (“Aldi”), a supermarket chain, generally allege
that Aldi sold private label coffee products manufactured by us and by Pan American Coffee Co., LLC (“Pan American”),
which falsely described the number of cups of coffee that could be made from the amount of product purchased. Aldi and Pan American
are also named as defendants in the action. The complaint asserts a variety of claims under New York and California consumer protection
laws, and seeks unspecified monetary damages, including disgorgement and restitution, as well as other forms of relief including
class certification, declaratory and injunctive relief, attorneys’ fees, and interest. The Company believes the allegations
in the complaint are wholly without merit and that the claims asserted are legally deficient, and the company intends to vigorously
defend the action. As of the filing of this Form 10-Q, the Company has not been served with the complaint. Therefore, the Company
is unable to predict the ultimate outcome of this lawsuit.
A
significant customer of the Company was named as a defendant in a putative class action lawsuit filed in the United States District
Court for the District of Massachusetts on or about February 2, 2021, concerning the labeling on private label coffee productions
we sold to the customer. The plaintiff, David Cohen, purporting to represent a class of individuals who purchased coffee products
from our customer, generally allege that the customer sold private label coffee products manufactured by the Company which falsely
described the number of cups of coffee that could be made from the amount of product purchased. The Company is not named as a
defendant in the action, but has agreed to indemnify the customer for the costs and expenses incurred in defending the lawsuit
and for any liability the customer may suffer as a result. The complaint asserts a variety of claims under Massachusetts consumer
protection laws, and seeks unspecified monetary damages as well as other forms of relief including class certification, declaratory
and injunctive relief, attorneys’ fees, and interest. The Company believes the allegations in the complaint are wholly without
merit and that the claims asserted are legally deficient, and intends to vigorously support the customer in defending the action.
As of the filing of this Form 10-Q, the Company is unable to predict the ultimate outcome of this lawsuit.
The
following summarizes the Company’s operating leases:
|
|
January 31, 2021
|
|
|
|
|
|
Right-of-use operating lease assets
|
|
$
|
2,004,641
|
|
Current lease liability
|
|
$
|
360,119
|
|
Non-current lease liability
|
|
$
|
1,780,306
|
|
|
|
January 31, 2021
|
|
|
|
|
|
Average remaining lease term
|
|
|
3.1
|
|
Discount rate
|
|
|
4.75
|
%
|
Maturities
of lease liabilities by year for our operating leases are as follows:
2021
|
|
$
|
456,558
|
|
2022
|
|
|
535,920
|
|
2023
|
|
|
531,807
|
|
2024
|
|
|
316,477
|
|
2025
|
|
|
168,288
|
|
Thereafter
|
|
|
434,744
|
|
Total lease payments
|
|
$
|
2,443,794
|
|
Less: imputed interest
|
|
|
(303,369
|
)
|
Present value of operating lease liabilities
|
|
$
|
2,140,425
|
|
The
aggregate cash payments under these leasing agreements was $150,153 for the three months ended January 31, 2021.
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
10 - ECONOMIC DEPENDENCY:
Approximately
26% of the Company’s sales were derived from six customers during the three months ended January 31, 2021. These customers
also accounted for approximately $2,404,000 of the Company’s accounts receivable balance at January 31, 2021. Approximately
24% of the Company’s sales were derived from six customers during the three months ended January 31, 2020. These customers
also accounted for approximately $2,651,000 of the Company’s accounts receivable balance at January 31, 2020. Concentration
of credit risk with respect to other trade receivables is limited due to the short payment terms generally extended by the Company,
by ongoing credit evaluations of customers, and by maintaining an allowance for doubtful accounts that management believes will
adequately provide for credit losses.
For
the three months ended January 31, 2021, approximately 29% of the Company’s purchases were from five vendors (of which
one vendor was at 10%). These vendors accounted for approximately $748,000 of the Company’s accounts payable at January
31, 2021. For the three months ended January 31, 2020, approximately 28% of the Company’s purchases were from six vendors.
These vendors accounted for approximately $633,000 of the Company’s accounts payable at January 31, 2020. Management does
not believe the loss of any one vendor would have a material adverse effect of the Company’s operations due to the availability
of many alternate suppliers.
The
following table presents revenues by product line in the three months ended January 31, 2021 and 2020
|
|
January
31, 2020
|
|
|
January
31, 2020
|
|
Green
|
|
$
|
6,603,875
|
|
|
$
|
6,785,576
|
|
Packaged
|
|
$
|
11,529,962
|
|
|
$
|
12,499,925
|
|
Totals
|
|
$
|
18,133,837
|
|
|
$
|
19,285,501
|
|
NOTE
11 - RELATED PARTY TRANSACTIONS:
The
Company has engaged its 40% partner in GCC as an outside contractor (the “Partner”). Included in contract labor expense
are expenses incurred from the Partner during the three months ended January 31, 2021 and 2020 of $74,693 and $102,771, respectively,
for the processing of finished goods.
An
employee of one of the top five vendors is a director of the Company. Purchases from that vendor totaled approximately $734,000
and $1,333,000 for the three months ended January 31, 2021 and 2020 respectively. The corresponding accounts payable balance to
this vendor was approximately $199,000 and $285,000 at January 31, 2021 and 2020, respectively.
In
January 2005, the Company established the “Coffee Holding Co., Inc. Non-Qualified Deferred Compensation Plan.” Currently,
there is only one participant in the plan: the Company’s Chief Executive Officer. Within the plan guidelines, this employee
is deferring a portion of his current salary and bonus. The assets are held in a separate trust. The deferred compensation payable
represents the liability due to an officer of the Company. The assets are included in the Deposits and other assets in the accompanying
balance sheets. The deferred compensation asset and liability at January 31, 2021 and October 31, 2020 were $266,097 and $276,548,
respectively.
COFFEE
HOLDING CO., INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY
31, 2021
(UNAUDITED)
NOTE
12 - STOCKHOLDERS’ EQUITY:
|
a.
|
Treasury
Stock. The Company utilizes the cost method of accounting for treasury stock. The cost of reissued shares is determined
under the last-in, first-out method. The Company did not purchase any shares during the three months ended January 31, 2021
and the year ended October 31, 2020.
|
|
|
|
|
b.
|
Stock
Options. The Company has an incentive stock plan, the 2013 Equity Compensation Plan (the “2013 Plan”), and on
April 19, 2019, has granted stock options to employees, officers and non-employee directors from the 2013 Plan. Options granted
under the 2013 Plan may be Incentive Stock Options or Nonqualified Stock Options, as determined by the Administrator at the
time of grant. As of January 31, 2021, the Board of Directors approved 1,000,000 options.
|
|
|
|
|
|
During
the year ended October 31, 2019, the Company granted stock option awards to five board members to purchase an aggregate 59,000
shares of the Company’s common stock at $5.43 per share.
|
|
|
|
|
|
The
stock options have an expected term of six years and will vest over a twelve month service period.
|
|
|
|
|
|
The
stock options have an aggregate grant date fair value of approximately $233,050. The Company also granted stock option awards
to certain officers and employees to purchase an aggregate of 941,000 shares of the Company’s common stock at an exercise
price of $5.43 per share. The stock options have an expected term of six years and will vest over a three year service period.
These stock options have an aggregate grant date fair value of approximately $2,277,220.
|
|
|
|
|
|
The
following table represents stock option activity for the three months ended January 31, 2021:
|
|
|
Stock
Options
|
|
|
Exercise
Price
|
|
|
Contractual
Life
|
|
|
Aggregate
Intrinsic
|
|
|
|
Outstanding
|
|
|
Exercisable
|
|
|
Outstanding
|
|
|
Exercisable
|
|
|
(Years)
|
|
|
Value
|
|
Balance October 31, 2020
|
|
|
1,000,000
|
|
|
|
-
|
|
|
$
|
5.43
|
|
|
|
-
|
|
|
|
10
|
|
|
|
-
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Cancelled
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Balance January 31, 2021
|
|
|
1,000,000
|
|
|
|
-
|
|
|
$
|
5.43
|
|
|
|
-
|
|
|
|
10
|
|
|
|
-
|
|
The
Company recorded $189,768 and $868,477 of stock-based compensation in the three months ended January 31, 2021 and the year ended
October 31, 2020, respectively.
The
outstanding stock compensation expense as of January 31, 2021 was approximately $975,126.
NOTE
13 - SUBSEQUENT EVENTS:
The
Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based
upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required
further adjustment or disclosure in the condensed consolidated financial statements.