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LONGTERM DEBT

9 Months Ended

Sep. 30, 2021

NOTE 15 — LONG-TERM DEBT

Long-term debt consists of the following:

	Outstanding Balance
	September 30,		December 31,		Current
	2021		2020		Interest Rate			Maturity
DGSE
Note payable, related party (1)	$	2,796,449	$	2,863,715		6.00	%	May 16, 2024
Note payable, Truist Bank (2)		917,595		942,652		3.65	%	July 9, 2030
Note payable, Texas Bank & Trust (3)		478,668		491,852		3.75	%	September 14, 2025
Note payable, Texas Bank & Trust (6)		1,766,225		-		3.75	%	July 31, 2026

DGSE Sub-Total		5,958,937		4,298,219

ECHG
Note payable, related party (1)		6,344,572		6,496,127		6.00	%	May 16, 2024

Envela
Note payable, Texas Bank & Trust (4)		2,872,044		2,951,379		3.25	%	Novemeber 4, 2025
Note payable (5)		-		1,668,200

Envela Sub-Total		2,872,044		4,619,579

Sub-Total		15,175,553		15,413,925

Current portion		550,256		2,120,457

	$	14,625,297	$	13,293,468

(1) On May 20, 2019, in connection with the Echo Transaction, the Company entered into two loan agreements with John R. Loftus, the Company’s CEO, President and Chairman of the Board of Directors of the Company (the “Board”), pursuant to which Mr. Loftus made two loans (the “Related Party Loans”) to the Company. ECHG executed a 5-year, $6,925,979 note for the Echo Transaction, amortized over 20 years at a 6% annual interest rate. DGSE executed a 5-year, $3,074,021 note to pay off the accounts payable – related party balance to a related person to the Company, as that term is defined in the instructions to item 404(a) of Regulation S-K, promulgated under the Securities Act (each such person, a “Related Party”). Such person was no longer a Related Party as of May 20, 2019. That promissory note is also amortized over 20 years at a 6% annual interest rate. On January 1, 2020, revisions were made on the original documents for both DGSE and ECHG notes. Originally, the DGSE note stated that the monthly interest and principal payment due was $41,866 and the ECHG note stated that the monthly interest and principal payment due was $94,327. The revised interest and principal payment due monthly on the note for DGSE is $22,203. The revised interest and principal payment due monthly on the note for ECHG is $49,646. The allocation between short-term and long-term notes payable, related party was revised accordingly starting with the three months ended March 31, 2020.

(2) On July 9, 2020, DGSE closed the purchase of a new 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, 10 year loan (the “Truist Lewisville Loan”), bearing an annual interest rate of 3.65%, amortized over 20 years, 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, 1106 NWH Holdings, LLC, a wholly owned subsidiary of DGSE, closed on the purchase of a new retail building located at 1106 W. Northwest Highway in Grapevine, Texas for $620,000. The purchase was partly financed through a $496,000, 5 year loan (the “TB&T Grapevine Loan”), bearing an annual interest rate of 3.75%, amortized over 20 years, payable to Texas Bank and Trust. The note has monthly interest and principal payments of $2,941.

(4) On November 4, 2020, 1901 Gateway Holdings, LLC, a wholly owned subsidiary of the Company, closed on the purchase of a new office building located at 1901 Gateway Drive, Irving, Texas for $3.521 million. The building was partially financed through a $2.96 million, 5 year loan (the “TB&T Irving Loan”), bearing an interest rate of 3.25%, amortized over 20 years, payable to Texas Bank and Trust. The note has monthly interest and principal payments of $16,792.

(5) The Company applied for and received, on April 20, 2020, approximately $1.67 million, 1% interest, federally backed loan intended to pay employees and cover certain rent and utility-related costs during the COVID-19 pandemic (the “Federal Loan”), with Truist Bank (f/k/a BB&T Bank) as lender. The Federal Loan was forgivable to the extent that certain criteria are met. We applied to the Small Business Administration for the forgiveness of the Federal Loan during the fourth quarter ended December 31, 2020. The Federal Loan was forgiven effective April 1, 2021 but notification was not sent to the Company until the third quarter of 2021.

(6) On July 30, 2021, 9166 Gaylord Holdings, LLC, a wholly owned subsidiary of DGSE, 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, 5 year loan (the “TB&T Frisco Loan”), bearing an annual interest rate of 3.75%, amortized over 20 years, payable to Texas Bank and Trust. The note has monthly interest and principal payments of $10,509.

Future scheduled principal payments of our notes payable and notes payable, related party, as of September 30, 2021 are as follows:

Note payable, related party - DGSE

Year Ending December 31,	Amount

2021 (excluding the nine months ended September 30, 2021)	$	24,359
2022		100,702
2023		106,913
2024		2,564,475

Subtotal	$	2,796,449

Note payable, Truist Bank - DGSE

Year Ending December 31,	Amount

2021 (excluding the nine months ended September 30, 2021)	$	8,495
2022		34,682
2023		35,988
2024		37,342
2025		38,748
Thereafter		762,340

Subtotal	$	917,595

Note payable, Texas Bank & Trust - DGSE

Year Ending December 31,	Amount

2021 (excluding the nine months ended September 30, 2021)	$	4,362
2022		17,812
2023		18,492
2024		19,197
2025		418,805

Subtotal	$	478,668

Note payable, Texas Bank & Trust - DGSE

Year Ending December 31,	Amount

2021 (excluding the nine months ended September 30, 2021)	$	17,263
2022		70,314
2023		72,634
2024		75,030
2025		77,505
Thereafter		1,453,479

Subtotal	$	1,766,225

Note payable, related party - ECHG

Year Ending December 31,	Amount

2021 (excluding the nine months ended September 30, 2021)	$	54,300
2022		224,460
2023		238,305
2024		5,827,507

Subtotal	$	6,344,572

Note payable, Texas Bank & Trust - Envela

Year Ending December 31,	Amount

2021 (excluding the nine months ended September 30, 2021)	$	26,666
2022		108,896
2023		112,558
2024		116,344
2025		2,507,580

Subtotal	$	2,872,044

	$	15,175,553