Business Context and Reporting Period
Company: Coffee Holding Co., Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: February 4, 2004 (Event Date)
Reporting Period: Immediate event reporting for transactions occurring on February 4, 2004.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial performance. No revenue, profit, cash flow, or margin data is provided in this document.
- Transaction Value: $825,000 cash paid for asset acquisition.
- Liquidity Impact: Funds used were available for general corporate purposes.
- Debt: No new debt incurred; funds were paid directly to secured creditors of the seller.
Material Changes
The company executed a significant expansion of its operational footprint and intellectual property portfolio:
- Asset Acquisition: Acquired equipment, furniture, fixtures, and coffee product labels from Premier Roasters LLC for its La Junta and Rocky Ford locations.
- Facility Expansion: Entered a lease agreement with the City of La Junta, Colorado, to operate the former Premier facility, with operations expected to commence within two weeks of the filing.
- Strategic Goal: Expansion of integrated wholesale coffee roaster and dealer operations into the western United States.
- Intellectual Property: Secured an exclusive licensing agreement with Del Monte Corporation for the "S&W" and "IL CLASSICO" trademarks for retail distribution of roasted coffee in the U.S.
Guidance, Outlook, and Risks
Management Commentary: Management intends to utilize the acquired assets to expand operations into the western U.S. market. The purchase price was determined based on an independent, third-party appraisal.
Risks and Contingencies: The filing does not explicitly list risks, though the success of the expansion depends on the timely commencement of operations at the La Junta facility and the commercial viability of the new trademark licenses.
Unusual Items: None reported beyond the standard asset acquisition and licensing activities.
Investor Verification Checklist
- Verify the operational status and lease terms of the La Junta, Colorado facility.
- Confirm the scope and duration of the exclusive licensing agreement with Del Monte Corporation for the S&W and IL CLASSICO trademarks.
- Review the independent third-party appraisal used to justify the $825,000 purchase price.
- Monitor subsequent filings for the impact of this acquisition on consolidated revenue and operating expenses.