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Subsequent Events
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Subsequent Events

NOTE 18  SUBSEQUENT EVENTS

 

ECHG, LLC, wholly owned by the Company, entered into an agreement with CExchange, LLC on February 15, 2020, to lend $1,500,000 at eight and one-half percent (8.5%) interest only payments due quarterly. The loan matures on February 20, 2023. The parties also agreed to warrant and call-option agreements to acquire all of CExchange’s equity interests. CExchange is the leader in retail trade-in services, providing in-store and online solutions for most of the major consumer electronics retailers in the United States. CExchange helps retailers provide in-store trade in programs designed to allow customers to turn their old technology into new money at their retail stores in just a couple of minutes. This fits into the core business of the Echo Entities to refurbish and reuse cell phones. There is no assurance that the Company will exercise its warrant or call option.

 

The outbreak of COVID-19, coronavirus pandemic has already adversely affected global economic business conditions. Future sales on products like ours could decline due to increased commodities prices, particularly gold. Although we are continuing to monitor and assess the effects of the coronavirus pandemic, the ultimate impact is highly uncertain and subject to change. The duration of any such impact cannot be predicted.

 

On February 18, 2020, the Company signed an agreement for the purchase of a retail building for its next Dallas Gold & Silver Exchange store, in Lewisville, Texas for $1.4 million. We expect to obtain a ten year, approximate three percent (3%) mortgage of eighty percent loan to value. There are provisional dates for inspections and there is no assurance that the Company will close the purchase of the building.