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LONG-TERM DEBT | 6 Months Ended
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Jun. 30, 2022
LONG-TERM DEBT |
NOTE 14 - LONG-TERM DEBT | NOTE 14 — LONG-TERM DEBT Long-term debt consists of the following:
|  | Outstanding Balance |  |  |  |  |  |  |
|  | June 30, |  |  | December 31, |  |  | Current |  |  |  |
|  | 2022 |  |  | 2021 |  |  | Interest Rate |  |  | Maturity |
DGSE |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Farmers Bank (1) |  | $ | 2,719,906 |  |  | $ | 2,770,729 |  |  |  | 3.10 | % |  | November 15, 2026 |
Note payable, Truist Bank (2) |  |  | 891,874 |  |  |  | 909,073 |  |  |  | 3.65 | % |  | July 9, 2030 |
Note payable, Texas Bank & Trust (3) |  |  | 465,157 |  |  |  | 474,009 |  |  |  | 3.75 | % |  | September 14, 2025 |
Note payable, Texas Bank & Trust (4) |  |  | 1,721,937 |  |  |  | 1,752,446 |  |  |  | 3.25 | % |  | July 30, 2031 |
DGSE Sub-Total |  |  | 5,798,874 |  |  |  | 5,906,257 |  |  |  |  |  |  |  |
ECHG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Farmers Bank (1) |  |  | 6,171,150 |  |  |  | 6,286,459 |  |  |  | 3.10 | % |  | November 15, 2026 |
Line of Credit (5) |  |  | - |  |  |  | 1,700,000 |  |  |  | 3.10 | % |  | November 15, 2024 |
Avail Transaction note (6) |  |  | 1,833,333 |  |  |  | 2,000,000 |  |  |  | 0.00 | % |  | April 1, 2025 |
ECHG Sub-Total |  |  | 8,004,483 |  |  |  | 9,986,459 |  |  |  |  |  |  |  |
Envela |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Texas Bank & Trust (7) |  |  | 2,788,377 |  |  |  | 2,843,415 |  |  |  | 3.25 | % |  | November 4, 2025 |
Sub-Total |  |  | 16,591,734 |  |  |  | 18,736,131 |  |  |  |  |  |  |  |
Current portion |  |  | 1,241,480 |  |  |  | 2,765,794 |  |  |  |  |  |  |  |
|  | $ | 15,350,254 |  |  | $ | 15,970,337 |  |  |  |  |  |  |  |
(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, the ECHG and DGSE notes, with remaining principal balances of $6,309,962 and $2,781,087, respectively, were refinanced by Farmers State Bank of Oakley, Kansas with annual interest rates of 3.1%. The ECHG and DGSE notes have monthly interest and principal payments of $35,292 and $15,555, respectively. (2) On July 9, 2020, DGSE closed the purchase of a 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 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 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 an 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 and notes payable, related party, as of June 30, 2022 are as follows:
Note payable, Farmers State Bank - DGSE |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the six months ended June 30, 2022) |  | $ | 51,387 |
2023 |  |  | 105,428 |
2024 |  |  | 108,743 |
2025 |  |  | 112,163 |
2026 |  |  | 2,342,185 |
Subtotal |  | $ | 2,719,906 |
Note payable, Truist Bank - DGSE |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the six months ended June 30, 2022) |  | $ | 17,456 |
2023 |  |  | 35,988 |
2024 |  |  | 37,342 |
2025 |  |  | 38,748 |
2026 |  |  | 40,206 |
Thereafter |  |  | 722,134 |
Subtotal |  | $ | 891,874 |
Note payable, Texas Bank & Trust - DGSE |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the six months ended June 30, 2022) |  | $ | 8,971 |
2023 |  |  | 18,503 |
2024 |  |  | 19,209 |
2025 |  |  | 418,474 |
Subtotal |  | $ | 465,157 |
Note payable, Texas Bank & Trust - DGSE |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the six months ended June 30, 2022) |  | $ | 35,079 |
2023 |  |  | 72,363 |
2024 |  |  | 74,750 |
2025 |  |  | 77,216 |
2026 |  |  | 79,512 |
Thereafter |  |  | 1,383,017 |
Subtotal |  | $ | 1,721,937 |
Note payable, Farmers Bank - ECHG |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the six months ended June 30, 2022) |  | $ | 116,590 |
2023 |  |  | 239,204 |
2024 |  |  | 246,725 |
2025 |  |  | 254,484 |
2026 |  |  | 5,314,147 |
Subtotal |  | $ | 6,171,150 |
Note payable - Avail Transaction |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the six months ended June 30, 2022) |  | $ | 333,334 |
2023 |  |  | 666,668 |
2024 |  |  | 666,668 |
2025 |  |  | 166,663 |
Subtotal |  | $ | 1,833,333 |
Note payable, Texas Bank & Trust - Envela |  |  |  |
Year Ending December 31, |  | Amount |
2022 (excluding the six months ended June 30, 2022) |  | $ | 54,948 |
2023 |  |  | 112,661 |
2024 |  |  | 116,450 |
2025 |  |  | 2,504,318 |
Subtotal |  | $ | 2,788,377 |
|  | $ | 16,591,734 |
Future scheduled aggregate amount of principal payments and maturities of our notes payable as of June 30, 2022 are as follows:
|  | Scheduled |  |  |  |  |  |  |
|  | Principal |  |  | Loan |  |  |  |
Scheduled Principal Payments and Maturities by Year: |  | Payments |  |  | Maturities |  |  | Total |
2022 (excluding the six months ended June 30, 2022) |  | $ | 617,765 |  |  | $ | - |  |  | $ | 617,765 |
2023 |  |  | 1,250,815 |  |  |  | - |  |  |  | 1,250,815 |
2024 |  |  | 1,269,887 |  |  |  | - |  |  |  | 1,269,887 |
2025 |  |  | 595,584 |  |  |  | 2,976,482 |  |  |  | 3,572,066 |
2026 |  |  | 434,160 |  |  |  | 7,341,891 |  |  |  | 7,776,051 |
2027 and Thereafter |  |  | 558,168 |  |  |  | 1,546,982 |  |  |  | 2,105,150 |
Total |  | $ | 4,726,379 |  |  | $ | 11,865,355 |  |  | $ | 16,591,734 |

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