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Long-Term Debt | 9 Months Ended
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Sep. 30, 2020
Debt Disclosure [Abstract] |
Long-Term Debt |
|  |  | Outstanding Balance |  |  |  |  |  |  |  |
|  |  | September 30, |  |  |  | December 31, |  |  |  | Current |  |  |  |  |
|  |  | 2020 |  |  |  | 2019 |  |  |  | Interest Rate |  |  |  | Maturity |
DGSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, related party (1) |  | $ | 2,885,476 |  |  | $ | 2,949,545 |  |  |  | 6.00 | % |  |  | May 16, 2024 |
Note payable, Truist Bank (2) |  |  | 950,711 |  |  |  | — |  |  |  | 3.65 | % |  |  | July 9, 2030 |
Note payable, Texas Bank & Trust (3) |  |  | 496,000 |  |  |  | — |  |  |  | 3.75 | % |  |  | September 14, 2025 |
|  |  | 4,332,187 |  |  |  | 2,949,545 |  |  |  |  |  |  |  |  |
ECHG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, related party (1) |  |  | 6,545,155 |  |  |  | 6,689,507 |  |  |  | 6.00 | % |  |  | May 16, 2024 |
Envela |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable (4) |  |  | 1,668,200 |  |  |  | — |  |  |  |  |  |  |  |  |
Sub-Total |  |  | 12,545,542 |  |  |  | 9,639,052 |  |  |  |  |  |  |  |  |
Current portion |  |  | 2,021,521 |  |  |  | 1,084,072 |  |  |  |  |  |  |  |  |
|  | $ | 10,524,021 |  |  | $ | 8,554,980 |  |  |  |  |  |  |  |  |
(1) On May 20, 2019, in connection with the acquisition of the Echo Entities (the “Echo Transaction”) the Company entered into two loan agreements with John R. Loftus, the Company’s CEO, President and Chairman of the Board of Directors of the Company (the “Board”). ECHG, LLC executed a 5-year, $6,925,979 note for the Echo Transaction, amortized over 20 years at a 6% annual interest rate. DGSE, LLC executed a 5-year, $3,074,021 note to pay off the accounts payable – related party balance to Elemetal, LLC (“Elemetal”) as of May 20, 2019. That promissory note is also amortized over 20 years at a 6% annual interest rate. On January 1, 2020, revisions were made on the original documents for both DGSE and ECHG notes. Originally, the DGSE note stated that the monthly interest and principal payment due was $41,866 and the ECHG note stated that the monthly interest and principal payment due was $94,327. The revised interest and principal payment due monthly on the note for DGSE is $22,203. The revised interest and principal payment due monthly on the note for ECHG is $49,646. The allocation between short-term and long-term notes payable, related party was revised accordingly starting with the three months ending March 31, 2020. (2) On July 9, 2020, DGSE closed the purchase of a new 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, 10 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 new retail building located at 1106 W. Northwest Highway in Grapevine, Texas for $620,000. The purchase was partly financed through a $496,000, 5 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) The Company applied for and received, on April 20, 2020, approximately $1.67 million, 1% interest, federally backed loan intended to pay employees and cover certain rent and utility-related costs during the COVID-19 pandemic (the “Federal Loan”), with Truist Bank (f/k/a BB&T Bank) as lender. The Federal Loan is forgivable to the extent that certain criteria are met. We will apply for the forgiveness of the Federal Loan during the fourth quarter ending December 31, 2020; therefore, we are classifying the loan as short-term. Future scheduled principal payments of our notes payable and notes payable, related party, as of September 30, 2020 are as follows:
Note payable, related party - DGSE |  |
Year Ending December 31, |  | Amount
| 2020 (excluding the nine months ended September 30, 2020) |  |  | $ | 23,021 |
| 2021 |  |  |  | 95,129 |
| 2022 |  |  |  | 100,996 |
| 2023 |  |  |  | 107,225 |
| 2024 |  |  |  | 2,559,105 |
| Subtotal |  |  |  | 2,885,476 |
Note payable, Truist Bank - DGSE |  |
Year Ending December 31, |  | Amount
| 2020 (excluding the nine months ended September 30, 2020) |  |  |  | 8,285 |
| 2021 |  |  |  | 33,904 |
| 2022 |  |  |  | 35,163 |
| 2023 |  |  |  | 36,468 |
| 2024 |  |  |  | 37,821 |
| Thereafter |  |  |  | 799,070 |
| Subtotal |  |  |  | 950,711 |
Note payable, Texas Bank & Trust - DGSE |  |
Year Ending December 31, |  | Amount
| 2020 (excluding the nine months ended September 30, 2020) |  |  |  | 4,250 |
| 2021 |  |  |  | 17,399 |
| 2022 |  |  |  | 18,053 |
| 2023 |  |  |  | 18,732 |
| 2024 |  |  |  | 19,437 |
| Thereafter |  |  |  | 418,129 |
| Subtotal |  |  |  | 496,000 |
Note payable, related party - ECHG |  |
Year Ending December 31, |  | Amount
| 2020 (excluding the nine months ended September 30, 2020) |  |  |  | 51,284 |
| 2021 |  |  |  | 211,903 |
| 2022 |  |  |  | 224,973 |
| 2023 |  |  |  | 238,849 |
| 2024 |  |  |  | 5,818,146 |
| Subtotal |  |  |  | 6,545,155 |
Note payable - Envela Corporation |  |
Year Ending December 31, |  | Amount
2020 (excluding the nine months ended September 30, 2020) |  |  | 1,668,200 |
Subtotal |  |  | 1,668,200 |
|  | $ | 12,545,542 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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