Coffee Holding's biggest risks in the FY2024 10-K
- Coffee Holding Co.'s risk profile is heavily dominated by commodity price volatility for Arabica and Robusta green coffee beans.
- Operations depend heavily on key executives Andrew and David Gordon and a single major customer exceeding 10% of sales.
- Facilities in Colorado and Massachusetts represent critical single points of failure for roasting and distribution.
The risks most specific to Coffee Holding
Because our business is highly dependent upon a single commodity, coffee, any decrease in demand for coffee could materially adversely affect our revenues and profitability
Our business is entirely dependent on a single commodity, coffee, making us vulnerable to any decrease in demand.
If our hedging policy is not effective, we may not be able to control our coffee costs, we may be forced to pay greater than market value for green coffee and our profitability may be reduced
Our hedging policy using short-term futures and options may fail to control green coffee costs.
The loss of any of our key customers, could negatively affect our revenues and decrease our earnings
We had one customer account for greater than 10% of net sales in fiscal 2024 without a long-term contract.
If we lose our key personnel, including Andrew Gordon and David Gordon, our revenues and profitability could suffer
We depend heavily on key personnel Andrew Gordon and David Gordon, and we lack employment contracts for our coffee roasters.
Our indebtedness may adversely affect our ability to obtain additional funds and may increase our vulnerability to economic or business downturns
All amounts under our credit facility become due on June 30, 2025, and there is no assurance of renewal.
Our roasting methods are not proprietary, so competitors may be able to duplicate them, which could harm our competitive position. If our competitive position is weakened, our revenues and profitability could be materially adversely affected
Our roasting methods are not patented, allowing competitors to potentially duplicate them and harm our competitive position.
If there was a significant interruption in the operation of our Colorado or Massachusetts facilities, we may not have the capacity to service all of our customers and we may not be able to service our customers in a timely manner, thereby reducing our revenues and earnings
We depend on the continued operations of our roasting and distribution facilities in Colorado and Massachusetts.
- Risks related to the Coffee Industry
Increases in the cost of high quality Arabica or Robusta coffee beans could reduce our gross margin and profit
Increases in the cost of high quality Arabica or Robusta coffee beans directly reduce our gross margin and profit.
- Risks Related to our Common Stock
The Gordon family has the ability to influence action requiring stockholder approval
Members of the Gordon family own approximately 23.1% of our common stock and can influence stockholder approvals.
- Risks Related to our Common Stock
The market price of our common stock has been volatile over the year and may continue to be volatile
Our common stock traded as low as $0.68 and as high as $3.88 per share over the past fiscal year.
All 25 risk factors
Headings as the filing states them, in filing order.
Other
- 01Because our business is highly dependent upon a single commodity, coffee, any decrease in demand for coffee could materially adversely affect our revenues and profitability
- 02Adverse global conditions, including economic uncertainty, may negatively impact our financial results
- 03If we are unable to geographically expand our branded and private label products, our growth will be impeded which could result in reduced sales and profitability
- 04If our hedging policy is not effective, we may not be able to control our coffee costs, we may be forced to pay greater than market value for green coffee and our profitability may be reduced
- 05Any inability to successfully implement our strategy of growth through selective acquisitions, licensing arrangements and other strategic alliances, including joint ventures, could materially affect our revenues and profitability
- 06Our revenues and profitability could be adversely affected if our joint ventures or acquisitions are not successful
- 07The loss of any of our key customers, could negatively affect our revenues and decrease our earnings
- 08If we lose our key personnel, including Andrew Gordon and David Gordon, our revenues and profitability could suffer
- 09Our indebtedness may adversely affect our ability to obtain additional funds and may increase our vulnerability to economic or business downturns
- 10If we fail to promote, enhance and maintain our brands, the value of our brands could decrease and our revenues and profitability could be adversely affected
- 11Our roasting methods are not proprietary, so competitors may be able to duplicate them, which could harm our competitive position. If our competitive position is weakened, our revenues and profitability could be materially adversely affected
- 12Since we rely heavily on common carriers to ship our coffee on a daily basis, any disruption in their services or increase in shipping costs could adversely affect our relationship with our customers, which could result in reduced revenues, increased operating expenses, a loss of customers or reduced profitability
- 13If there was a significant interruption in the operation of our Colorado or Massachusetts facilities, we may not have the capacity to service all of our customers and we may not be able to service our customers in a timely manner, thereby reducing our revenues and earnings
- 14There may be limitations on the effectiveness of our internal controls, and a failure of our control systems to prevent error or fraud may materially harm our company
Risks related to the Coffee Industry
- 15Increases in the cost of high quality Arabica or Robusta coffee beans could reduce our gross margin and profit
- 16Disruptions in the supply of green coffee could result in a deterioration of our relationship with our customers, decreased revenues or could impair our ability to grow our business
- 17We may experience supply delays and shortages due to a variety of macroeconomic factors, including disruptions on the global supply chain. We have been able to make alternative delivery arrangements for limited quantities of goods, at increased cost
- 18Increased severe weather patterns may increase commodity costs, damage our facilities and disrupt our production capabilities and supply chain
- 19The coffee industry is highly competitive and if we cannot compete successfully, we may lose our customers or experience reduced sales and profitability
- 20Besides coffee, we face exposure to other commodity cost fluctuations, which could impair our profitability
- 21Adverse public or medical opinion about caffeine may harm our business
Risks Related to our Common Stock
- 22Our operating results may fluctuate significantly, which makes our results of operations difficult to predict and could cause our results of operations to fall short of expectations
- 23The Gordon family has the ability to influence action requiring stockholder approval
- 24The market price of our common stock has been volatile over the year and may continue to be volatile
- 25Provisions in our articles of incorporation, bylaws and of Nevada law have anti-takeover effects that could prevent a change in control that could be beneficial to our stockholders, which could depress the market price of shares of our common stock
Other Coffee Holding 10-Ks
- FY2025 10-K risk factors26 risks1 new1 reworded
Global tariffs and trade tensions now directly threaten supply chain costs and operating results in risk 15.
Filed Jan 28, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.