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Segment Information | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Segment Information | During the first quarter of fiscal 2020, Envela revised the way it views and reports its financial information to align more closely with the Company’s strategy to engage in diverse recommerce activities through two principle business units—DGSE and ECHG. DGSE buys hard assets, and ECHG buys consumer electronics and IT equipment, in each case for either resale or recycling. Envela continues to report its revenue and operating expenses based on its DGSE and ECHG operating segments, and as in the first three quarters of fiscal year 2020, disaggregated its revenue, within the operating segments, based on its resale and recycle presentation basis. The Company’s historical disaggregation of revenue has been recast to conform to our current presentation. The DGSE segment includes Dallas Gold and Silver Exchange, having three locations throughout the Dallas/Fort Worth Metroplex, with two new locations expected to open during the fourth quarter of 2020, Charleston Gold and Diamond Exchange, with one location in Charleston, South Carolina and Bullion Express. The ECHG segment includes Echo, ITAD and Teladvance. These three companies focus on reusing and recycling electronics. Echo and ITAD were acquired by the Company on May 20, 2019, and Teladvance was acquired on August 2, 2019, and therefore the results of operations may not be comparable for the three and nine months ending September 30, 2019 and September 30, 2020. We allocate a portion of certain corporate costs and expenses, including information technology, to our business segments that is included in Selling, General and Administrative (“SG&A”) expenses. Our management team evaluates each segment’s operating performance and allocates resources based on each segment’s profits. Allocation amounts are generally agreed upon by management, and may differ from arms-length allocations. The following separates DGSE and ECHG’s financial results of operations for the three months ending September 30, 2020:
|  | For The Three Months Ended
|  | September 30, 2020
|  | DGSE |  | ECHG |  | Consolidated
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Sales |  | $ | 28,137,174 |  |  | $ | 10,673,710 |  |  | $ | 38,810,884 |
Cost of goods sold |  |  | 24,704,214 |  |  |  | 6,943,273 |  |  |  | 31,647,487 |
Gross profit |  |  | 3,432,960 |  |  |  | 3,730,437 |  |  |  | 7,163,397 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses |  |  | 1,703,394 |  |  |  | 2,166,279 |  |  |  | 3,869,673 |
Depreciation and amortization |  |  | 79,190 |  |  |  | 100,592 |  |  |  | 179,782 |
|  |  | 1,782,584 |  |  |  | 2,266,871 |  |  |  | 4,049,455 |
Operating income (loss) |  |  | 1,650,376 |  |  |  | 1,463,566 |  |  |  | 3,113,942 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |
Other income, net |  |  | (1,208 | ) |  |  | (25,746 | ) |  |  | (26,954 | )
Interest expense |  |  | 53,931 |  |  |  | 101,868 |  |  |  | 155,799 |
Income (loss) before income taxes |  |  | 1,597,653 |  |  |  | 1,387,444 |  |  |  | 2,985,097 |
Income tax expense |  |  | 167 |  |  |  | 106 |  |  |  | 273 |
Net income (loss) |  | $ | 1,597,486 |  |  | $ | 1,387,338 |  |  | $ | 2,984,824 |
The following separates DGSE and ECHG’s financial results of operations for the nine months ended September 30, 2020:
|  | For The Nine Months Ended
|  | September 30, 2020
|  | DGSE |  | ECHG |  | Consolidated
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Sales |  | $ | 62,849,787 |  |  | $ | 22,335,847 |  |  | $ | 85,185,634 |
Cost of goods sold |  |  | 55,437,880 |  |  |  | 12,811,819 |  |  |  | 68,249,699 |
Gross profit |  |  | 7,411,907 |  |  |  | 9,524,028 |  |  |  | 16,935,935 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses |  |  | 5,121,568 |  |  |  | 6,189,975 |  |  |  | 11,311,543 |
Depreciation and amortization |  |  | 235,471 |  |  |  | 303,746 |  |  |  | 539,217 |
|  |  | 5,357,039 |  |  |  | 6,493,721 |  |  |  | 11,850,760 |
Operating income |  |  | 2,054,868 |  |  |  | 3,030,307 |  |  |  | 5,085,175 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |
Other income, net |  |  | (37,654 | ) |  |  | (82,856 | ) |  |  | (120,510 | )
Interest expense |  |  | 142,824 |  |  |  | 302,587 |  |  |  | 445,411 |
Income before income taxes |  |  | 1,949,698 |  |  |  | 2,810,576 |  |  |  | 4,760,274 |
Income tax expense |  |  | 12,714 |  |  |  | 22,413 |  |  |  | 35,127 |
Net income |  | $ | 1,936,984 |  |  | $ | 2,788,163 |  |  | $ | 4,725,147 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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