RELATED PARTY TRANSACTIONS	12 Months Ended
Dec. 31, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 17 — RELATED-PARTY TRANSACTIONS The Company has a corporate policy governing the identification, review, consideration and approval or ratification of transactions with related persons, as that term is defined in the Instructions to Item 404(a) of Regulation S-K, promulgated under the Securities Act (“Related Party”). Under this policy, all Related Party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with the Company’s best interests and the best interests of its stockholders. Among other factors, the Company’s Board considers the size and duration of the transaction, the nature and interest of the of the Related Party in the transaction, whether the transaction may involve a conflict of interest and if the transaction is on terms that are at least as favorable to the Company as would be available in a comparable transaction with an unaffiliated third party. Envela’s Board reviews all Related Party transactions at least annually to determine if it is in the Board’s best interests and the best interests of the Company’s stockholders to continue, modify, or terminate any of the Related Party transactions. Envela’s Related Person Transaction Policy is available for review in its entirety under the “Investors” menu of the Company’s corporate relations website at www.envela.com. On May 24, 2019, Company entered into two (2) loan agreements with John R. Loftus, the Company’s CEO, President and Chairman of the Board. The first note of $6,925,979, pursuant to the Echo Entities purchase agreement, was a five-year promissory note amortized over 20 years at 6% annual interest rate. As of December 31, 2021 and 2020, ECHG was obligated to pay $0 and $6,496,127, respectively, to Mr. Loftus as a note payable, related party. The second note of $3,074,021 paid off the accounts payable – related party balance to Elemetal as of May 20, 2019. The promissory note was a five-year note amortized over 20 years at 6% annual interest rate. As of December 31, 2021 and 2020, DGSE was obligated to pay $0 and $2,863,715, respectively, to Mr. Loftus as a note payable, related party. On November 23, 2021, both notes were refinanced by Farmers State Bank of Oakley Kansas. The ECHG note was refinanced for the remaining and outstanding balance of $6,309,962. The DGSE note was refinanced for the remaining and outstanding balance of $2,781,087. For the year ended December 31, 2021 and 2020, the Company paid Mr. Loftus $519,713 and $580,957, respectively, in interest on the Company’s outstanding note payables, related party.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2021

NOTE 17 — RELATED-PARTY TRANSACTIONS

The Company has a corporate policy governing the identification, review, consideration and approval or ratification of transactions with related persons, as that term is defined in the Instructions to Item 404(a) of Regulation S-K, promulgated under the Securities Act (“Related Party”). Under this policy, all Related Party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with the Company’s best interests and the best interests of its stockholders. Among other factors, the Company’s Board considers the size and duration of the transaction, the nature and interest of the of the Related Party in the transaction, whether the transaction may involve a conflict of interest and if the transaction is on terms that are at least as favorable to the Company as would be available in a comparable transaction with an unaffiliated third party. Envela’s Board reviews all Related Party transactions at least annually to determine if it is in the Board’s best interests and the best interests of the Company’s stockholders to continue, modify, or terminate any of the Related Party transactions. Envela’s Related Person Transaction Policy is available for review in its entirety under the “Investors” menu of the Company’s corporate relations website at www.envela.com.

On May 24, 2019, Company entered into two (2) loan agreements with John R. Loftus, the Company’s CEO, President and Chairman of the Board. The first note of $6,925,979, pursuant to the Echo Entities purchase agreement, was a five-year promissory note amortized over 20 years at 6% annual interest rate. As of December 31, 2021 and 2020, ECHG was obligated to pay $0 and $6,496,127, respectively, to Mr. Loftus as a note payable, related party. The second note of $3,074,021 paid off the accounts payable – related party balance to Elemetal as of May 20, 2019. The promissory note was a five-year note amortized over 20 years at 6% annual interest rate. As of December 31, 2021 and 2020, DGSE was obligated to pay $0 and $2,863,715, respectively, to Mr. Loftus as a note payable, related party. On November 23, 2021, both notes were refinanced by Farmers State Bank of Oakley Kansas. The ECHG note was refinanced for the remaining and outstanding balance of $6,309,962. The DGSE note was refinanced for the remaining and outstanding balance of $2,781,087. For the year ended December 31, 2021 and 2020, the Company paid Mr. Loftus $519,713 and $580,957, respectively, in interest on the Company’s outstanding note payables, related party.