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Long-Term Debt
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Long-Term Debt

NOTE 9 — LONG-TERM DEBT

 

Long-term debt consists of the following:

 

    Outstanding Balance              
    December 31,     December 31,     Current        
    2019     2018     Interest Rate     Maturity  
DGSE                                
Note payable, related party (1)   $ 2,949,545     $           -       6.00 %      May 16, 2024  
                                 
Echo Entities                                
Note payable, related party (1)     6,689,507       -       6.00 %      May 16, 2024  
                                 
Sub-Total     9,639,052       -                  
                                 
Current portion     1,084,072       -                  
                                 
    $ 8,554,980     $ -                  

 

(1) On May 20, 2019, the Company entered into two 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, is a 5-year promissory note amortized over 20 years at 6% annual interest rate. The second note of $3,074,021 paid off the accounts payable – related party balance to Elemetal, LLC as of May 20, 2019. The promissory note is a 5-year note amortized over 20 years at 6% annual interest rate.

 

Future scheduled principal payments of our note payables, related party, as of December 31, 2019 are as follows:

 

Note payable, related party - DGSE      
       
Year Ending December 31,   Amount  
       
2020     516,516  
2021     548,366  
2022     582,188  
2023     618,096  
2024     684,379  
         
Subtotal     2,949,545  

 

       
Note payable, related party - Echo Entities      
       
Year Ending December 31,   Amount  
         
2020     749,990  
2021     797,393  
2022     846,574  
2023     898,789  
2024     3,396,761  
         
Subtotal     6,689,507  
         
Total     9,639,052