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LONG-TERM DEBT

9 Months Ended

Sep. 30, 2022

NOTE 14 — LONG-TERM DEBT

Long-term debt consists of the following:

	Outstanding Balance
	September 30,		December 31,		Current
	2022		2021		Interest Rate			Maturity
DGSE
Note payable, Farmers Bank (1)	$	2,694,427	$	2,770,729		3.10	%	November 15, 2026
Note payable, Truist Bank (2)		883,231		909,073		3.65	%	July 9, 2030
Note payable, Texas Bank & Trust (3)		460,717		474,009		3.75	%	September 14, 2025
Note payable, Texas Bank & Trust (4)		1,706,637		1,752,446		3.75	%	July 30, 2031

DGSE Sub-Total		5,745,012		5,906,257

ECHG
Note payable, Farmers Bank (1)		6,113,338		6,286,459		3.10	%	November 15, 2026
Line of Credit (5)		-		1,700,000		3.10	%	November 15, 2024
Avail Transaction note payable (6)		1,666,667		2,000,000		0.00	%	April 1, 2025

ECHG Sub-Total		7,780,005		9,986,459

Envela
Note payable, Texas Bank & Trust (7)		2,760,766		2,843,415		3.25	%	November 4, 2025

Sub-Total		16,285,783		18,736,131

Current portion		1,246,083		2,765,794

	$	15,039,700	$	15,970,337

(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 Company’s Board of Directors (the “Board”). ECHG executed a five-year, $6,925,979 note for the Echo Transaction, amortized over 20 years at a 6% annual interest rate. The interest and principal payment due monthly was $49,646. DGSE executed a five-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 was also amortized over 20 years at a 6% annual interest rate. The interest and principal payment due monthly on the note for DGSE was $22,203. On November 23, 2021, the ECHG and DGSE notes, with remaining principal balances of $6,309,962 and $2,781,087, respectively, were refinanced by Farmers State Bank of Oakley, Kansas with annual interest rates of 3.1%. (the “FSB ECHG Loan” and “FSB DGSE Loan”, respectively). The FSB ECHG Loan and FSB DGSE Loan have monthly interest and principal payments of $35,292 and $15,555, respectively.

(2) On July 9, 2020, DGSE closed the purchase of a retail building located at 610 E. Round Grove Road in Lewisville, Texas for $1,195,000. 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 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 (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 July 30, 2021, 9166 Gaylord Holdings, LLC, a wholly owned subsidiary of DGSE, closed the purchase of a retail building located at 9166 Gaylord Parkway in Frisco, Texas for $2,215,500. The purchase was partly financed through a $1,772,000, five-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.

(5) On November 23, 2021, the Company secured a 36-month line of credit from Farmers State Bank of Oakley, Kansas (“FSB Facility”) for $3,500,000 at a 3.1% annual interest rate.

(6) On October 29, 2021, ECHG entered into the Avail Transaction to purchase all of the assets, liabilities and rights and interests of Avail for $4,500,000. The purchase was facilitated by an initial payment of $2,500,000 at closing, and the remaining $2,000,000 represented by the Avail Installment Note to be paid out by 12 quarterly payments starting April 1, 2022, of $166,667 each. The Avail Installment Note for the Avail Transaction does not bear interest but the purchase price imputed at an annual 3.1% interest.

(7) On November 4, 2020, 1901 Gateway Holdings, LLC, a wholly owned subsidiary of the Company, closed on the purchase of an office building located at 1901 Gateway Drive, Irving, Texas for $3.521 million. The building was partially financed through a $2,960,000, 5-year loan (the “TB&T Irving Loan”), bearing an annual 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.

Future scheduled principal payments of our notes payable and notes payable, related party, as of September 30, 2022 are as follows:

Note payable, Farmers State Bank - DGSE

Year Ending December 31,	Amount

2022 (excluding the nine months ended September 30, 2022)	$	25,908
2023		105,428
2024		108,743
2025		112,162
2026		2,342,186
Subtotal	$	2,694,427

Note payable, Truist Bank - DGSE

Year Ending December 31,	Amount

2022 (excluding the nine months ended September 30, 2022)	$	8,813
2023		35,988
2024		37,342
2025		38,748
2026		40,206
Thereafter		722,134
Subtotal	$	883,231

Note payable, Texas Bank & Trust - DGSE

Year Ending December 31,	Amount

2022 (excluding the nine months ended September 30, 2022)	$	4,531
2023		18,503
2024		19,209
2025		418,474
Subtotal	$	460,717

Note payable, Texas Bank & Trust - DGSE

Year Ending December 31,	Amount

2022 (excluding the nine months ended September 30, 2022)	$	17,595
2023		72,291
2024		74,676
2025		77,139
2026		79,432
Thereafter		1,385,504
Subtotal	$	1,706,637

Note payable, Farmers Bank - ECHG

Year Ending December 31,	Amount

2022 (excluding the nine months ended September 30, 2022)	$	58,779
2023		239,204
2024		246,725
2025		254,484
2026		5,314,146
Subtotal	$	6,113,338

Note payable - Avail Transaction

Year Ending December 31,	Amount

2022 (excluding the nine months ended September 30, 2022)	$	166,667
2023		666,668
2024		666,668
2025		166,664
Subtotal	$	1,666,667

Note payable, Texas Bank & Trust - Envela

Year Ending December 31,	Amount

2022 (excluding the nine months ended September 30, 2022)	$	27,589
2023		112,670
2024		116,459
2025		2,504,048
Subtotal	$	2,760,766
	$	16,285,783

Future scheduled aggregate amount of principal payments and maturities of our notes payable as of September 30, 2022 are as follows:

	Scheduled
	Principal		Loan
Scheduled Principal Payments and Maturities by Year:	Payments		Maturities		Total
2022 (excluding the nine months ended September 30, 2022)	$	309,882	$	-	$	309,882
2023		1,250,752		-		1,250,752
2024		1,269,822		-		1,269,822
2025		595,237		2,976,482		3,571,719
2026		434,080		7,341,890		7,775,970
2027 and Thereafter		560,656		1,546,982		2,107,638
Total	$	4,420,429	$	11,865,354	$	16,285,783