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DEBT
 3 Months Ended
Mar. 31, 2024
DEBT  
DEBT

NOTE 13 — DEBT

 

The following table summarizes the details of the Company’s long-term debt obligations:

 

 

 

Outstanding Balance

 

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Consumer

 

 

 

 

 

 

Note payable, FSB (1)

 

$2,537,700

 

 

$2,563,108

 

Note payable, Truist Bank (3)

 

 

829,204

 

 

 

838,430

 

Notes payable, TBT (4,5)

 

 

2,043,823

 

 

 

2,064,928

 

Note payable, Kretchmer Transaction (6)

 

 

200,000

 

 

 

200,000

 

 

 

 

 

 

 

 

 

 

Sub-total

 

 

5,610,727

 

 

 

5,666,466

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

Note payable, FSB (2)

 

 

5,754,790

 

 

 

5,815,381

 

Note payable, Avail Transaction (7)

 

 

666,667

 

 

 

833,333

 

 

 

 

 

 

 

 

 

 

Sub-total

 

 

6,421,457

 

 

 

6,648,714

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

Line of credit, FSB (8)

 

 

-

 

 

 

-

 

Note payable, TBT (9)

 

 

2,589,538

 

 

 

2,618,311

 

 

 

 

 

 

 

 

 

 

Sub-total

 

 

2,589,538

 

 

 

2,618,311

 

 

 

 

 

 

 

 

 

 

Sub-total

 

 

14,621,722

 

 

 

14,933,491

 

 

 

 

 

 

 

 

 

 

Current portion

 

 

(1,475,625)

 

 

(1,361,443)

 

 

 

 

 

 

 

 

 

 

 

$13,146,097

 

 

$13,572,048

 

 

The following table depicts the Company’s future principal payments on long-term debt obligations as of March 31, 2024:

 

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note payable, FSB (1)

 

 

81,564

 

 

 

112,106

 

 

 

2,344,030

 

 

 

-

 

 

 

-

 

 

 

-

 

Note payable, Truist Bank (3)

 

 

28,029

 

 

 

38,745

 

 

 

40,203

 

 

 

42,077

 

 

 

43,639

 

 

 

636,511

 

Notes payable, TBT (4,5)

 

 

70,158

 

 

 

495,231

 

 

 

78,985

 

 

 

80,973

 

 

 

83,696

 

 

 

1,234,780

 

Note payable, Kretchmer Transaction (6)

 

 

200,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total

 

 

379,751

 

 

 

646,082

 

 

 

2,463,218

 

 

 

123,050

 

 

 

127,335

 

 

 

1,871,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note payable, FSB (2)

 

 

186,131

 

 

 

254,483

 

 

 

5,314,176

 

 

 

-

 

 

 

-

 

 

 

-

 

Note payable, Avail Transaction (7)

 

 

500,000

 

 

 

166,667

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total

 

 

686,131

 

 

 

421,150

 

 

 

5,314,176

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line of Credit, FSB (8)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Note payable, TBT (9)

 

 

87,761

 

 

 

2,501,777

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total

 

 

87,761

 

 

 

2,501,777

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1,153,643

 

 

$3,569,009

 

 

$7,777,394

 

 

$123,050

 

 

$127,335

 

 

$1,871,291

 

 

(1) On November 23, 2021, the consumer segment entered into a $2.781 million secured amortizing note payable with Farmer’s State Bank of Oakley, Kansas (“FSB”). The note payable bears interest at 3.10% and matures on November 15, 2026. 

 

(2) On November 23, 2021, the commercial segment entered into a $6.309 million secured amortizing note payable with FSB. The note payable bears interest at 3.10% and matures on November 15, 2026. 

 

(3) On July 9, 2020, the consumer segment entered into a $1.195 million secured amortizing note payable with Truist Bank. The note payable bears interest at 3.65% and matures on July 9, 2030. 

 

(4) On September 14, 2020, the consumer segment entered into a $620 thousand secured amortizing note payable with Texas Bank & Trust (“TBT”). The note payable bears interest at 3.75% and matures on September 14, 2025. 

 

(5) On July 30, 2021, the consumer segment entered into a $2.215 million secured amortizing note payable with TBT. The note payable bears interest at 3.75% and matures on July 30, 2031. 

 

(6) On September 12, 2023, the consumer segment entered into a $300 thousand secured amortizing note payable in relation to the Kretchmer Transaction. The note payable’s imputed interest is 3.10% and matures on October 1, 2025. The consumer segment is restructuring the Kretchmer Transaction and the aforementioned terms and conditions and as such is electing to record the note payable in current liabilities. 

 

(7) On October 29, 2021, the consumer segment entered into a $4.500 million secured amortizing note payable in relation to the acquisition of Avail Recovery Solutions, LLC on October 29, 2021 (“Avail Transaction"). The note payable’s imputed interest is 3.10% and matures on April 1, 2025. 

 

(8) On November 23, 2021, the Company entered into a $3.500 million secured line of credit with FSB. The line of credit bears interest at 3.10% and matures on November 15, 2024. This note was previously presented within our commercial segment and is now presented within corporate as the line of credit provides borrowing capacity for all segments. 

 

(9) On November 4, 2020, a wholly owned subsidiary of Envela entered into a $2.960 million secured amortizing note payable with TBT. The note payable bears interest at 3.25% and matures on November 4, 2025. 

The Company was in compliance with all of its debt obligation covenants for the periods ended March 31, 2024 and March 31, 2023.

 

The following table depicts the Company’s future scheduled aggregate principal payments and maturities as of March 31, 2024:

 

 

 

Scheduled

 

 

 

 

 

 

 

 

 

Principal

 

 

Loan

 

 

 

 

Scheduled Principal Payments and Maturities by Year:

 

Payments

 

 

Maturities

 

 

Total

 

2024

 

 

953,643

 

 

 

200,000

 

 

 

1,153,643

 

2025

 

 

773,845

 

 

 

2,795,164

 

 

 

3,569,009

 

2026

 

 

465,087

 

 

 

7,312,307

 

 

 

7,777,394

 

2027

 

 

123,050

 

 

 

-

 

 

 

123,050

 

2028

 

 

127,335

 

 

 

-

 

 

 

127,335

 

Thereafter

 

 

301,908

 

 

 

1,569,383

 

 

 

1,871,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$2,744,868

 

 

$11,876,854

 

 

$14,621,722