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LONG-TERM DEBT | 3 Months Ended
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Mar. 31, 2022
LONG-TERM DEBT |
Long-term Debt | NOTE 14 — LONG-TERM DEBT Long-term debt consists of the following:
|  | Outstanding Balance |  |  |  |  |  |  |
|  | March 31, |  |  | December 31, |  |  | Current |  |  |  |
|  | 2022 |  |  | 2021 |  |  | Interest Rate |  |  | Maturity |
DGSE |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Farmers Bank (1) |  | $ | 2,745,186 |  |  | $ | 2,770,729 |  |  |  | 3.10 | % |  | November 15, 2026 |
Note payable, Truist Bank (2) |  |  | 900,436 |  |  |  | 909,073 |  |  |  | 3.65 | % |  | July 9, 2030 |
Note payable, Texas Bank & Trust (3) |  |  | 469,556 |  |  |  | 474,009 |  |  |  | 3.75 | % |  | September 14, 2025 |
Note payable, Texas Bank & Trust (4) |  |  | 1,737,081 |  |  |  | 1,752,446 |  |  |  | 3.25 | % |  | July 30, 2031 |
DGSE Sub-Total |  |  | 5,852,259 |  |  |  | 5,906,257 |  |  |  |  |  |  |  |
ECHG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Farmers Bank (1) |  |  | 6,228,505 |  |  |  | 6,286,459 |  |  |  | 3.10 | % |  | November 15, 2026 |
Line of Credit (5) |  |  | - |  |  |  | 1,700,000 |  |  |  | 3.10 | % |  | November 15, 2024 |
Avail Transaction note (6) |  |  | 1,933,333 |  |  |  | 2,000,000 |  |  |  | 0.00 | % |  | April 1, 2025 |
ECHG Sub-Total |  |  | 8,161,838 |  |  |  | 9,986,459 |  |  |  |  |  |  |  |
Envela |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Texas Bank & Trust (7) |  |  | 2,815,759 |  |  |  | 2,843,415 |  |  |  | 3.25 | % |  | November 4, 2025 |
Sub-Total |  |  | 16,829,856 |  |  |  | 18,736,131 |  |  |  |  |  |  |  |
Current portion |  |  | 1,003,592 |  |  |  | 2,120,457 |  |  |  |  |  |  |  |
|  | $ | 15,826,264 |  |  | $ | 16,615,674 |  |  |  |  |  |  |  |
(1) On May 20, 2019, in connection with the Echo Transaction, the Company entered into two loan agreements with John R. Loftus, the Company’s CEO, President and Chairman of the Board. ECHG, LLC executed a five-year, $6,925,979 note for the Echo Transaction, amortized over 20 years at a 6% annual interest rate. The interest and principal payment due monthly was $49,646. DGSE executed a five-year, $3,074,021 note to pay off the accounts payable – related party balance to a former Related Party as of May 20, 2019. That promissory note was also amortized over 20 years at a 6% annual interest rate. The interest and principal payment due monthly on the note for DGSE was $22,203. On November 23, 2021, both notes were refinanced by Farmers State Bank of Oakley Kansas. (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 $1,195,000. The purchase was partly financed through a $956,000, 10 year loan (the “Truist Lewisville 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, five-year loan (the “TB&T Grapevine Loan”), bearing an annual interest rate of 3.75%, amortized over 20 years, payable to Texas Bank and Trust. The note has monthly interest and principal payments of $2,941. (4) On July 30, 2021, 9166 Gaylord Holdings, LLC, a wholly owned subsidiary of DGSE, closed the purchase of a new retail building located at 9166 Gaylord Parkway in Frisco, Texas for $2,215,500. The purchase was partly financed through a $1,772,000, five-year loan (the “TB&T Frisco Loan”), bearing an annual interest rate of 3.75%, amortized over 20 years, payable to Texas Bank and Trust. The note has monthly interest and principal payments of $10,509. (5) On November 23, 2021, the Company secured a 36-month line of credit from Farmers State Bank of Oakley Kansas (“FSB Facility”) for $3,500,000 at a 3.1% annual interest rate. (6) On October 29, 2021, ECHG entered into the Avail Transaction to purchase all of the assets, liabilities and rights and interests of Avail AZ, for $4.5 million. The purchase was facilitated by an initial payment of $2.5 million at closing, and the remaining $2.0 million to be paid out by 12 quarterly payments starting April 1, 2022, of $166,667 each. The Installment note payable for the Avail Transaction imputed at 3.1% (7) On November 4, 2020, 1901 Gateway Holdings, LLC, a wholly owned subsidiary of the Company, closed on the purchase of a new office building located at 1901 Gateway Drive, Irving, Texas for $3.521 million. The building was partially financed through a $2,960,000, 5-year loan (the “TB&T Irving Loan”), bearing an interest rate of 3.25%, amortized over 20 years, payable to Texas Bank and Trust. The note has monthly interest and principal payments of $16,792. Future scheduled principal payments of our notes payable as of March 31, 2022 are as follows:
Note payable, Farmers State Bank - DGSE |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the three months ended March 31, 2022) |  | $ | 76,667 |
2023 |  |  | 105,428 |
2024 |  |  | 108,743 |
2025 |  |  | 112,163 |
2026 |  |  | 2,342,185 |
Subtotal |  | $ | 2,745,186 |
Note payable, Truist Bank - DGSE |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the three months ended March 31, 2022) |  | $ | 26,018 |
2023 |  |  | 35,988 |
2024 |  |  | 37,342 |
2025 |  |  | 38,748 |
2026 |  |  | 40,206 |
Thereafter |  |  | 722,134 |
Subtotal |  | $ | 900,436 |
Note payable, Texas Bank & Trust - DGSE |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the three months ended March 31, 2022) |  | $ | 13,370 |
2023 |  |  | 18,503 |
2024 |  |  | 19,209 |
2025 |  |  | 418,474 |
Subtotal |  | $ | 469,556 |
Note payable, Texas Bank & Trust - DGSE |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the three months ended March 31, 2022) |  | $ | 52,616 |
2023 |  |  | 72,442 |
2024 |  |  | 74,832 |
2025 |  |  | 77,300 |
2026 |  |  | 79,600 |
Thereafter |  |  | 1,380,291 |
Subtotal |  | $ | 1,737,081 |
Note payable, Farmers Bank - ECHG |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the three months ended March 31, 2022) |  | $ | 173,949 |
2023 |  |  | 239,204 |
2024 |  |  | 246,725 |
2025 |  |  | 254,484 |
2026 |  |  | 5,314,143 |
Subtotal |  | $ | 6,228,505 |
Note payable - Avail Transaction |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the three months ended March 31, 2022) |  | $ | 433,333 |
2023 |  |  | 666,667 |
2024 |  |  | 666,667 |
2025 |  |  | 166,666 |
Subtotal |  | $ | 1,933,333 |
Note payable, Texas Bank & Trust - Envela |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the three months ended March 31, 2022) |  | $ | 82,078 |
2023 |  |  | 112,653 |
2024 |  |  | 116,441 |
2025 |  |  | 2,504,587 |
Subtotal |  | $ | 2,815,759 |
|  | $ | 16,829,856 |
Future scheduled aggregate amount of principal payments and maturities of our notes payable as of March 31, 2022 are as follows:
|  | Scheduled |  |  |  |  |  |  |
|  | Principal |  |  | Loan |  |  |  |
Scheduled Principal Payments and Maturities by Year: |  | Payments |  |  | Maturities |  |  | Total |
2022 (excluding the three months ended March 31, 2022) |  | $ | 858,031 |  |  | $ | - |  |  | $ | 858,031 |
2023 |  |  | 1,250,885 |  |  |  | - |  |  |  | 1,250,885 |
2024 |  |  | 1,269,959 |  |  |  | - |  |  |  | 1,269,959 |
2025 |  |  | 595,940 |  |  |  | 2,976,482 |  |  |  | 3,572,422 |
2026 |  |  | 434,243 |  |  |  | 7,341,891 |  |  |  | 7,776,134 |
2027 and Thereafter |  |  | 555,443 |  |  |  | 1,546,982 |  |  |  | 2,102,425 |
Total |  | $ | 4,964,501 |  |  | $ | 11,865,355 |  |  | $ | 16,829,856 |

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