Coffee Holding (JVA) risk factors, FY2025 10-K

Risks Related to our Company

1. 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
2. 02Adverse global conditions, including tariffs and economic uncertainty, may negatively impact our financial results
3. 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
4. 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
5. 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
6. 06Our revenues and profitability could be adversely affected if our joint ventures or acquisitions are not successful
7. 07The loss of any of our key customers, could negatively affect our revenues and decrease our earnings25% rewritten
8. 08If we lose our key personnel, including Andrew Gordon and David Gordon, our revenues and profitability could suffer
9. 09Our indebtedness may adversely affect our ability to obtain additional funds and may increase our vulnerability to economic or business downturns
10. 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
11. 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
12. 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
13. 13If there was a significant interruption in the operation of our Colorado or New York 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
14. 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

1. 15Increases in the cost of high quality Arabica or Robusta coffee beans could reduce our gross margin and profit
2. 16Uncertainty over global tariffs, or the financial impact of tariffs, may negatively affect our resultsNew
3. 17Disruptions 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
4. 18We 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
5. 19Increased severe weather patterns may increase commodity costs, damage our facilities and disrupt our production capabilities and supply chain
6. 20The coffee industry is highly competitive and if we cannot compete successfully, we may lose our customers or experience reduced sales and profitability
7. 21Besides coffee, we face exposure to other commodity cost fluctuations, which could impair our profitability
8. 22Adverse public or medical opinion about caffeine may harm our business

Risks Related to our Common Stock

1. 23Our 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
2. 24The Gordon family has the ability to influence action requiring stockholder approval
3. 25The market price of our common stock has been volatile over the year and may continue to be volatile
4. 26Provisions 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