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LONGTERM DEBT

12 Months Ended

Dec. 31, 2022

NOTE 9 — LONG-TERM DEBT

Long-term debt consists of the following:

	Outstanding Balance
	December 31,		December 31,		Current
	2022		2021		Interest Rate			Maturity
DGSE
Note payable, FSB (1)	$	2,668,527	$	2,770,729		3.10	%	November 15, 2026
Note payable, Truist Bank (2)		874,418		909,073		3.65	%	July 9, 2030
Note payable, Texas Bank & Trust (3)		456,187		474,009		3.75	%	September 14, 2025
Note payable, Texas Bank & Trust (4)		1,691,020		1,752,446		3.75	%	July 30, 2031

DGSE Sub-Total		5,690,152		5,906,257

ECHG
Note payable, FSB (1)		6,054,565		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)		1,500,000		2,000,000		0.00	%	April 1, 2025

ECHG Sub-Total		7,554,565		9,986,459

Envela
Note payable, Texas Bank & Trust (7)		2,732,688		2,843,415		3.25	%	November 4, 2025

Sub-Total		15,977,405		18,736,131

Current portion		1,250,702		2,765,794
	$	14,726,703	$	15,970,337

(1) On November 23, 2021, FSB refinanced prior related party notes held by DGSE and ECHG. The ECHG note was refinanced with a remaining and outstanding balance of $6,309,962, is a five-year promissory note amortized over 20 years at 3.1% annual interest rate. The note has monthly principal and interest payments of $35,292. The DGSE note was refinanced with a remaining and outstanding balance of $2,781,087, is a five-year promissory note amortized over 20 years at 3.1% annual interest rate. The note has monthly principal and interest payments of $15,555.

(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 million. The purchase was partly financed through a $956,000, ten-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 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, 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 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, 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 FSB for $3,500,000 at 3.1% annual interest rate. A line of credit of up to $3,500,000 with Texas Bank and Trust was immediately closed with a $0 outstanding balance.

(6) On October 29, 2021, ECHG entered into the Avail Transaction to purchase all of the assets, liabilities and rights and interests of Avail AZ, for $4.5 million. The purchase was facilitated by an initial payment of $2.5 million at closing, and the remaining $2.0 million to be paid out by 12 quarterly payments starting April 1, 2022, of $166,667 each. The Installment note payable for the Avail Transaction imputed at 3.1%

(7) On November 4, 2020, 1901 Gateway Holdings, LLC, a wholly owned subsidiary of Envela Corporation, closed on the purchase of its new corporate office building located at 1901 Gateway Drive, Irving, Texas for $3.521 million. The building was partially financed through a $2.96 million, five-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.

Future scheduled principal payments of our note payables and note payables, related party, as of December 31, 2022 are as follows:

Note payable, Farmers State Bank - DGSE

Year Ending December 31,	Amount

2023	$	105,428
2024		108,743
2025		112,162
2026		2,342,194
Subtotal	$	2,668,527

Note payable, Truist Bank - DGSE

Year Ending December 31,	Amount

2023	$	35,988
2024		37,342
2025		38,748
2026		40,206
2027		42,081
Thereafter		680,053
Subtotal	$	874,418

Note payable, Texas Bank & Trust - DGSE

Year Ending December 31,	Amount

2023	$	18,503
2024		19,209
2025		418,475
Subtotal	$	456,187

Note payable, Texas Bank & Trust - DGSE

Year Ending December 31,	Amount

2023	$	72,226
2024		74,608
2025		77,070
2026		79,360
2027		81,366
Thereafter		1,306,390
Subtotal	$	1,691,020

Note payable, Farmers Bank - ECHG

Year Ending December 31,	Amount

2023	$	239,204
2024		246,725
2025		254,483
2026		5,314,153
Subtotal	$	6,054,565

Note payable - Justin and Tami Tinkle

Year Ending December 31,	Amount

2023	$	666,667
2024		666,667
2025		166,666
Subtotal	$	1,500,000

Note payable, Texas Bank & Trust - Envela

Year Ending December 31,	Amount

2023	$	112,686
2024		116,476
2025		2,503,526
Subtotal	$	2,732,688
	$	15,977,405

Future scheduled aggregate amount of principal payments and maturities of our notes payable as of December 31, 2022 are as follows:

	Scheduled
	Principal		Loan
Scheduled Principal Payments and Maturities by Year:	Payments		Maturities		Total
2023	$	1,250,702	$	-	$	1,250,702
2024		1,269,770		-		1,269,770
2025		482,463		3,088,668		3,571,131
2026		119,566		7,656,346		7,775,912
2027		123,447		-		123,447
2028 and thereafter		430,774		1,555,669		1,986,443
Total	$	3,676,722	$	12,300,683	$	15,977,405