XML 29 R16.htm IDEA: XBRL DOCUMENT

Long-Term Debt

12 Months Ended

Dec. 31, 2020

Long-term debt consists of the following:

	Outstanding Balance
	December 31,		December 31,		Current
	2020		2019		Interest Rate			Maturity
DGSE
Note payable, related party (1)	$	2,863,715	$	2,949,545		6.00	%
Note payable, Truist Bank (2)		942,652		-		3.65	%		July 9, 2030
Note payable, Texas Bank & Trust (3)		491,852		-		3.75	%		September 14, 2025

DGSE Sub-Total		4,298,219		2,949,545

ECHG
Note payable, related party (1)		6,496,127		6,689,507		6.00	%		May 16, 2024

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

Envela Sub-Total		4,619,579		-

Sub-Total		15,413,925		9,639,052

Current portion		2,120,457		1,084,072

	$	13,293,468	$	8,554,980

(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. ECHG, LLC executed a 5-year, $6,925,979 note for the Echo Transaction, amortized over 20 years at a 6% annual interest rate. DGSE, LLC executed a 5-year, $3,074,021 note to pay off the accounts payable – related party balance to a former 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 ending 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, 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, bearing an annual interest rate of 3.75%, amortized over 20 years, payable to Texas Bank & 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 Envela Corporation, 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, bearing an interest rate of 3.25%, amortized over 20 years, payable to Texas Bank & 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 is forgivable to the extent that certain criteria are met. We have applied for the forgiveness of the Federal Loan during the fourth quarter ending December 31, 2020; therefore, we are classifying the loan as short-term.

Future scheduled principal payments of our note payables and note payables, related party, as of December 31, 2020 are as follows:

Note payable, related party - DGSE

Year Ending December 31,	Amount

2021	$	95,129
2022		100,996
2023		107,225
2024		2,560,365

Subtotal	$	2,863,715

Note payable, Truist Bank - DGSE

Year Ending December 31,	Amount

2021	$	33,904
2022		35,163
2023		36,468
2024		37,821
2025		39,216
Thereafter		760,080

Subtotal	$	942,652

Note payable, Texas Bank & Trust - DGSE

Year Ending December 31,	Amount

2021	$	17,399
2022		18,053
2023		18,732
2024		19,437
2025		418,231

Subtotal	$	491,852

Note payable, related party - ECHG

Year Ending December 31,	Amount

2021	$	211,903
2022		224,973
2023		238,849
2024		5,820,402

Subtotal	$	6,496,127

Note payable, Texas Bank & Trust - Envela

Year Ending December 31,	Amount

2021	$	93,922
2022		97,455
2023		101,122
2024		104,926
2025		2,553,954

Subtotal	$	2,951,379

Note payable - Envela Corporation
Year Ending December 31,	Amount

2021	$	1,668,200

Subtotal	$	1,668,200

	$	15,413,925