Business Context and Reporting Period
Company: Coffee Holding Co., Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 14, 2012
Event Date: December 10, 2012
The Company reported the termination of its membership in Global Mark LLC ("Global Mark"), a joint venture in which Coffee Holding Co. acquired a 40% interest in November 2011.
Key Financial Metrics
This filing does not provide comprehensive financial statements, revenue, profit, or debt metrics for the Company. The only specific financial figure disclosed relates to the asset recovery from the terminated joint venture:
- Assets Received: Approximately $1.7 million (comprised of cash, receivables, and inventory).
Material Changes
The Company withdrew from Global Mark LLC following a mutual agreement with other members. The primary driver for this change was Global Mark's inability to develop a significant customer base other than the Company itself, alongside the Company's evaluation of the long-term prospects of the relationship.
Outlook, Risks, and Management Commentary
Management determined that terminating the relationship was in the best interests of all parties involved. The withdrawal resulted in the Company receiving specific assets rather than continuing to hold an equity interest in the underperforming venture. No forward-looking guidance or new risk factors were disclosed in this specific report.
Investor Verification Checklist
- Verify the accounting treatment of the $1.7 million in assets received (cash, receivables, inventory) in the Company's next quarterly or annual report.
- Confirm the valuation of the 40% interest in Global Mark prior to withdrawal to assess potential impairment losses or gains on the transaction.
- Review subsequent filings to determine if the receivables portion of the returned assets were successfully collected.