LONGTERM DEBT

12 Months Ended

Dec. 31, 2023

LONGTERM DEBT

LONG-TERM DEBT

NOTE 9 — LONG-TERM DEBT

Long-term debt consists of the following:

	Outstanding Balance
	December 31,		December 31,		Current
	2023		2022		Interest Rate			Maturity
DGSE
Note payable, FSB (1)	$	2,563,108	$	2,668,527		3.10	%	November 15, 2026
Note payable, Trust Bank (2)		838,430		874,418		3.65	%	July 9, 2030
Note payable, Texas Bank & Trust (3)		437,686		456,187		3.75	%	September 14, 2025
Note payable, Texas Bank & Trust (4)		1,627,242		1,691,020		3.75	%	July 30, 2031
Kretchmer Transaction note payable (5)		200,000		-		0.00	%	October 1, 2025
DGSE Sub-Total		5,666,466		5,690,152
ECHG
Note payable, FSB (1)		5,815,381		6,054,565		3.10	%	November 15, 2026
Line of Credit (6)		-		-		3.10	%	November 15, 2024
Avail Transaction note payable (7)		833,333		1,500,000		0.00	%	April 1, 2025
ECHG Sub-Total		6,648,714		7,554,565
Envela
Note payable, Texas Bank & Trust (8)		2,618,311		2,732,688		3.25	%	November 4, 2025
Sub-Total		14,933,491		15,977,405
Current portion		1,361,443		1,250,702
	$	13,572,048	$	14,726,703

(1)	On November 23, 2021, FSB refinanced prior related party notes held by both Company segments. The commercial segment note was refinanced with a remaining and outstanding balance of $6,309,962, is a five-year promissory note amortized over 20 years at 3.1% annual interest rate. The note has monthly principal and interest payments of $35,292. The consumer segment note was refinanced with a remaining and outstanding balance of $2,781,087, is a five-year promissory note at 3.1% annual interest rate. The note has monthly principal and interest payments of $15,555.
(2)	On July 9, 2020, the consumer segment closed the purchase of a retail building located at 610 E. Round Grove Road in Lewisville, Texas for $1.195 million. The purchase was partly financed through a $956,000, ten-year loan, bearing an annual interest rate of 3.65%, payable to Truist Bank (f/k/a BB&T Bank). The note has monthly interest and principal payments of $5,645.
(3)	On September 14, 2020, the consumer segment closed on the purchase of a retail building located at 1106 W. Northwest Highway in Grapevine, Texas for $620,000. The purchase was partly financed through a $496,000, five-year loan, bearing an annual interest rate of 3.75%, payable to Texas Bank & Trust. The note has monthly interest and principal payments of $2,941.
(4)	On July 30, 2021, the consumer segment closed the purchase of a new retail building located at 9166 Gaylord Parkway in Frisco, Texas for $2,215,500. The purchase was partly financed through a $1,772,000, ten-year loan (the “TB&T Frisco Loan”), bearing an annual interest rate of 3.75%, payable to Texas Bank and Trust. The note has monthly interest and principal payments of $10,509.
(5)	On September 12, 2023, the consumer segment entered into the Kretchmer Transaction to purchase all of the issued and outstanding common stock for $300,000. The purchase was facilitated by an initial payment of $100,000 at closing, and the remaining $200,000 to be paid out by eight quarterly payments starting January 1, 2024, of $25,000 each. The installment note payable for the Kretchmer Transaction is imputed at 3.1%.
(6)	On November 23, 2021, the Company secured a 36-month line of credit from FSB for $3,500,000 at 3.1% annual interest rate.

(7)

On October 29, 2021, the commercial segment entered into the Avail Transaction to purchase all of the assets, liabilities and rights and interests of Avail AZ, for $4,500,000. The purchase was facilitated by an initial payment of $2,500,000 at closing, and the remaining $2,000,000 to be paid out by 12 quarterly payments starting April 1, 2022, of $166,667 each. The installment note payable for the Avail Transaction is imputed at 3.1%

(8)

On November 4, 2020, 1901 Gateway Holdings, LLC, a wholly owned subsidiary of Envela Corporation, closed on the purchase of its corporate office building located at 1901 Gateway Drive, Irving, Texas for approximately $3,521,000 million. The building was partially financed through a $2,960,000, five-year loan, bearing an interest rate of 3.25%, payable to Texas Bank & Trust. The note has monthly interest and principal payments of $16,792.

Future scheduled principal payments of our note payables as of December 31, 2023 are as follows:

Note payable, Farmers State Bank  -  DGSE  

Year Ending December 31,	Amount
2024		108,743
2025		112,162
2026		2,342,203
Subtotal	$	2,563,108

Note payable, Truist Bank - DGSE  

Year Ending December 31,	Amount
2024		37,342
2025		38,748
2026		40,206
2027		42,081
2028		43,643
Thereafter		636,410
Subtotal	$	838,430

Note payable, Texas Bank & Trust - DGSE  

Year Ending December 31,	Amount
2024		19,209
2025		418,477
Subtotal	$	437,686

Note payable, Texas Bank & Trust - DGSE  

Year Ending December 31,	Amount
2024		66,225
2025		75,218
2026		78,740
2027		80,717
2028		83,432
Thereafter		1,242,910
Subtotal	$	1,627,242

Note payable, Farmers Bank  -  ECHG  

Year Ending December 31,	Amount
2024		246,724
2025		254,483
2026		5,314,174
Subtotal	$	5,815,381

Note payable - Justin and Tami Tinkle  

Year Ending December 31,	Amount
2024		666,667
2025		166,666
Subtotal	$	833,333

Note payable - Kretchmer         

Year Ending December 31,	Amount
2024		100,000
2025		100,000
Subtotal	$	200,000

Note payable, Texas Bank & Trust - Envela         

Year Ending December 31,	Amount
2024		116,533
2025		2,501,778
Subtotal	$	2,618,311
	$	14,933,491

Future scheduled aggregate amount of principal payments and maturities of our notes payable as of December 31, 2023 are as follows:

	Scheduled
	Principal		Loan
Scheduled Principal Payments and Maturities by Year:	Payments		Maturities		Total
2024		1,361,443		-		1,361,443
2025		872,415		2,795,117		3,667,532
2026		464,898		7,310,425		7,775,323
2027		122,798		-		122,798
2028		127,075		-		127,075
2029 and thereafter		301,189		1,578,131		1,879,320
Total	$	3,249,818	$	11,683,673	$	14,933,491