fee (JVA) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended April 30, 2025, totaled $23,320,061, an increase of $4,324,148, or 23%, from $18,995,913 for the same period in 2024[91] - Gross profit for the three months ended April 30, 2025, amounted to $4,418,872, or 18.9% of net sales, compared to $3,703,980, or 19.5% of net sales for the same period in 2024[93] - Net income for the three months ended April 30, 2025, was $644,055, or $0.11 per share, compared to a net loss of $21,841, or $0.00 per share for the same period in 2024[97] - Net sales for the six months ended April 30, 2025, totaled $44,625,346, an increase of $6,089,031, or 16%, from $38,536,315 for the same period in 2024[98] - Gross profit for the six months ended April 30, 2025, amounted to $10,150,798, or 22.8% of net sales, compared to $7,184,279, or 18.6% of net sales for the same period in 2024[100] Expenses and Costs - Cost of sales for the three months ended April 30, 2025, was $18,901,189, or 81.1% of net sales, compared to $15,291,933, or 80.5% of net sales for the same period in 2024[92] - Total operating expenses for the six months ended April 30, 2025, increased by $1,037,134 to $7,671,152 from $6,634,018 for the same period in 2024[101] - The acquisition of Second Empire added approximately $1.3 million to operating expenses for the six months ended April 30, 2025[101] - Non-cash charges for the six months ended April 30, 2025 amounted to $603,581, compared to $24,165 for the same period in 2024[114] Cash Flow and Financing - For the six months ended April 30, 2025, operating activities used cash of $1,555,954, a decrease from cash provided of $3,390,694 for the same period in 2024[114] - Investing activities used cash of $992,907 for the six months ended April 30, 2025, compared to net cash provided of $2,925,927 for the same period in 2024[115] - Financing activities provided net cash of $3,000,000 for the six months ended April 30, 2025, a significant change from net cash used of $6,622,909 for the same period in 2024[116] - The company expects to fund operations and meet liabilities through cash provided by operating activities and the use of the credit facility for at least the next twelve months[117] Working Capital and Debt - Working capital as of April 30, 2025, was $25,831,578, a $965,841 increase from $21,526,983 as of October 31, 2024[105] - As of April 30, 2025, the outstanding balance on the line of credit was $3,000,000, compared to $0 as of October 31, 2024[113] - The A&R Loan Agreement was modified to include a new loan maturity date of June 29, 2025, and an applicable margin requirement of 2.25%[111] - The maximum facility amount under the A&R Loan Agreement is set at $10,000,000[111] - The company was not in compliance with certain financial covenants as of October 31, 2023, but received a waiver from the lender on May 24, 2024[110] Risk Management - The company plans to continue using hedging strategies in a limited capacity to manage coffee price volatility[86] - The company has no off-balance sheet arrangements that materially affect its financial condition[118]