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DEBT

9 Months Ended

Sep. 30, 2024

NOTE 14 — DEBT

The following table summarizes the details of the Company’s long-term debt obligations:


	Outstanding Balance
	September 30,		December 31,
	2024		2023
Consumer
Note payable, FSB ⁽¹⁾	$	2,483,853	$	2,563,108
Note payable, Truist Bank ⁽³⁾		810,659		838,430
Notes payable, TBT ^(4,5)		2,001,435		2,064,928
Note payable, Kretchmer Transaction ⁽⁶⁾		50,000		200,000

Sub-total		5,345,947		5,666,466

Commercial
Note payable, FSB ⁽²⁾		5,632,161		5,815,381
Note payable, Avail Transaction ⁽⁷⁾		333,333		833,333

Sub-total		5,965,494		6,648,714

Corporate
Line of credit, FSB ⁽⁸⁾		—		—
Note payable, TBT ⁽⁹⁾		2,530,344		2,618,311

Sub-total		2,530,344		2,618,311

Total		13,841,785		14,933,491

Less: current portion		(971,603)		(1,361,443)

	$	12,870,182	$	13,572,048

The following table depicts the Company’s future principal payments on long-term debt obligations as of September 30, 2024:


	2024		2025		2026		2027		2028		Thereafter
Consumer
Note payable, FSB ⁽¹⁾		29,235		112,154		2,342,464		—		—		—
Note payable, Truist Bank ⁽³⁾		9,485		38,745		40,203		41,716		43,216		637,294
Notes payable, TBT ^(4,5)		21,705		487,261		71,359		74,081		76,767		1,270,262
Note payable, Kretchmer Transaction ⁽⁶⁾		6,250		25,000		18,750		—		—		—

Sub-total		66,675		663,160		2,472,776		115,797		119,983		1,907,556

Commercial
Note payable, FSB ⁽²⁾		62,990		254,466		5,314,705		—		—		—
Note payable, Avail Transaction ⁽⁷⁾		166,666		166,667		—		—		—		—

Sub-total		229,656		421,133		5,314,705		—		—		—

Corporate
Line of Credit, FSB ⁽⁸⁾		—		—		—		—		—		—
Note payable, TBT ⁽⁹⁾		29,953		2,500,391		—		—		—		—

Sub-total		29,953		2,500,391		—		—		—		—

	$	326,284	$	3,584,684	$	7,787,481	$	115,797	$	119,983	$	1,907,556

(1)	On November 23, 2021, the consumer segment entered into a $2.781 million secured amortizing note payable with Farmer’s State Bank of Oakley, Kansas (“FSB”). The note payable bears interest at 3.10% and matures on November 15, 2026.

(2)	On November 23, 2021, the commercial segment entered into a $6.309 million secured amortizing note payable with FSB. The note payable bears interest at 3.10% and matures on November 15, 2026.

(3)	On July 9, 2020, the consumer segment entered into a $956 thousand secured amortizing note payable with Truist Bank. The note payable bears interest at 3.65% and matures on July 9, 2030.

(4)	On September 14, 2020, the consumer segment entered into a $496 thousand secured amortizing note payable with Texas Bank & Trust (“TBT”). The note payable bears interest at 3.75% and matures on September 14, 2025.

(5)	On July 30, 2021, the consumer segment entered into a $1.772 million secured amortizing note payable with TBT. The note payable bears interest at 3.75% and matures on July 30, 2031.

(6)

On September 12, 2024, the consumer segment entered into a $50 thousand secured amortizing note payable in relation to the Kretchmer Transaction. The repayment of the note payable shall begin upon the fulfillment of certain terms and conditions under the new asset purchase agreement entered into on September 12, 2024. The note payable’s imputed interest is 3.10% and matures on September 30, 2026.

(7)	On October 29, 2021, the consumer segment entered into a $2.000 million secured amortizing note payable in relation to the acquisition of Avail Recovery Solutions, LLC on October 29, 2021 (“Avail Transaction”). The note payable’s imputed interest is 3.10% and matures on January 1, 2025.

(8)

On November 23, 2021, the Company entered into a $3.500 million secured line of credit with FSB. The line of credit bears interest at 3.10% and matures on November 23, 2024. This note was previously presented within our commercial segment and is now presented within corporate as the line of credit provides borrowing capacity for all segments. See Note 18 – Subsequent Events for further details.

(9)	On November 4, 2020, a wholly owned subsidiary of Envela entered into a $2.960 million secured amortizing note payable with TBT. The note payable bears interest at 3.25% and matures on November 3, 2025.

The Company was in compliance with all of its debt obligation covenants for the three and nine months ended September 30, 2024 and 2023.

The following table depicts the Company’s future scheduled aggregate principal payments and maturities as of September 30, 2024:


	Scheduled
	Principal		Loan
Scheduled Principal Payments and Maturities by Year	Payments		Maturities		Total

2024		326,284		—		326,284
2025		792,282		2,792,402		3,584,684
2026		476,241		7,311,240		7,787,481
2027		115,797		—		115,797
2028		119,983		—		119,983
Thereafter		297,332		1,610,224		1,907,556

	$	2,127,919	$	11,713,866	$	13,841,785