LONGTERM DEBT

3 Months Ended

Mar. 31, 2023

LONGTERM DEBT

LONG-TERM DEBT

NOTE 13 — LONG-TERM DEBT

Long-term debt consists of the following:

	Outstanding Balance
	March 31,		December 31,		Current
	2023		2022		Interest Rate		Maturity
Consumer
Note payable, Farmers Bank (1)	$	2,642,199	$	2,668,527		3.10%	November 15, 2026
Note payable, Truist Bank (2)		865,437		874,418		3.65%	July 9, 2030
Note payable, Texas Bank & Trust (3)		451,569		456,187		3.75%	September 14, 2025
Note payable, Texas Bank & Trust (4)		1,675,086		1,691,020		3.25%	July 30, 2031
Consumer Sub-Total		5,634,291		5,690,152
Commercial
Note payable, Farmers Bank (1)		5,994,831		6,054,565		3.10%	November 15, 2026
Line of Credit (5)		-		-		3.10%	November 15, 2024
Avail Transaction note (6)		1,333,333		1,500,000		0.00%	April 1, 2025
Commercial Sub-Total		7,328,164		7,554,565
Corporate
Note payable, Texas Bank & Trust (7)		2,704,143		2,732,688		3.25%	Novemeber 4, 2025
Sub-Total		15,666,598		15,977,405
Current portion		1,246,961		1,250,702
	$	14,419,637	$	14,726,703

(1) On November 23, 2021, Farmers State Bank of Oakley, Kansas (“FSB”) refinanced prior related party notes held by the consumer segment and the commercial segment. The commercial segment 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 consumer segment 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, the consumer segment 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, the consumer segment 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, the consumer segment 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. As of March 31, 2023 and December 31, 2022, the outstanding balance of the line of credit was $0.

(6) On October 29, 2021, the commercial segment 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 notes payable as of March 31, 2023 are as follows:

CONSUMER SEGMENT

Note payable, Farmers State Bank
Year Ending December 31,	Amount
2023 (excluding the three months ended March 31, 2023)	$	79,098
2024		108,743
2025		112,162
2026		2,342,196
Subtotal	$	2,642,199

Note payable, Truist Bank
Year Ending December 31,	Amount
2023 (excluding the three months ended March 31, 2023)	$	27,006
2024		37,342
2025		38,748
2026		40,206
2027		42,081
Thereafter		680,054
Subtotal	$	865,437

Note payable, Texas Bank & Trust
Year Ending December 31,	Amount
2023 (excluding the three months ended March 31, 2023)	$	13,885
2024		19,209
2025		418,475
Subtotal	$	451,569
Note payable, Texas Bank & Trust
Year Ending December 31,		Amount
2023 (excluding the three months ended March 31, 2023)	$	47,852
2024		66,225
2025		75,219
2026		78,741
2027		80,717
Thereafter		1,326,332
Subtotal	$	1,675,086

COMMERCIAL SEGMENT

Note payable, Farmers Bank
Year Ending December 31,	Amount
2023 (excluding the three months ended March 31, 2023)	$	179,463
2024		246,725
2025		254,483
2026		5,314,160
Subtotal	$	5,994,831
Note payable, Avail Transaction
Year Ending December 31,	Amount
2023 (excluding the three months ended March 31, 2023)	$	500,000
2024		666,667
2025		166,666
Subtotal	$	1,333,333

CORPORATE

Note payable, Texas Bank & Trust - Envela
Year Ending December 31,	Amount
2023 (excluding the three months ended March 31, 2023)	$	84,881
2024		116,501
2025		2,502,761
Subtotal		2,704,143
	$	15,666,598

Future scheduled aggregate amount of principal payments and maturities of our notes payable as of March 31, 2023 are as follows:

	Scheduled
	Principal		Loan
Scheduled Principal Payments and Maturities by Year:	Payments		Maturities		Total
2023 (excluding the three months ended March 31, 2023)		932,185		-		932,185
2024		1,261,412		-		1,261,412
2025		772,385		2,796,129		3,568,514
2026		464,900		7,310,403		7,775,303
2027		122,798		-		122,798
Thereafter		428,266		1,578,120		2,006,386
Total	$	3,981,946	$	11,684,652	$	15,666,598