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LONG TERM DEBT | 6 Months Ended
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Jun. 30, 2023
LONG TERM DEBT |
LONG-TERM DEBT | NOTE 13 — LONG-TERM DEBT Long-term debt consists of the following:
|  | Outstanding Balance |  |  |  |  |  |  |
|  | June 30, |  |  | December 31, |  |  | Current |  |  |  |
|  | 2023 |  |  | 2022 |  |  | Interest Rate |  |  | Maturity |
Consumer |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Farmers Bank (1) |  | $ | 2,616,114 |  |  | $ | 2,668,527 |  |  |  | 3.10 | % |  | November 15, 2026 |
Note payable, Truist Bank (2) |  |  | 856,547 |  |  |  | 874,418 |  |  |  | 3.65 | % |  | July 9, 2030 |
Note payable, Texas Bank & Trust (3) |  |  | 447,000 |  |  |  | 456,187 |  |  |  | 3.75 | % |  | September 14, 2025 |
Note payable, Texas Bank & Trust (4) |  |  | 1,659,344 |  |  |  | 1,691,020 |  |  |  | 3.75 | % |  | July 30, 2031 |
Consumer Sub-Total |  |  | 5,579,005 |  |  |  | 5,690,152 |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Farmers Bank (1) |  |  | 5,935,648 |  |  |  | 6,054,565 |  |  |  | 3.10 | % |  | November 15, 2026 |
Line of Credit (5) |  |  | - |  |  |  | - |  |  |  | 3.10 | % |  | November 15, 2024 |
Avail Transaction note (6) |  |  | 1,166,667 |  |  |  | 1,500,000 |  |  |  | 0.00 | % |  | April 1, 2025 |
Commercial Sub-Total |  |  | 7,102,315 |  |  |  | 7,554,565 |  |  |  |  |  |  |  |
Corporate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, Texas Bank & Trust (7) |  |  | 2,675,844 |  |  |  | 2,732,688 |  |  |  | 3.25 | % |  | Novemeber 4, 2025 |
Sub-Total |  |  | 15,357,164 |  |  |  | 15,977,405 |  |  |  |  |  |  |  |
Current portion |  |  | 1,251,747 |  |  |  | 1,250,702 |  |  |  |  |  |  |  |
|  | $ | 14,105,417 |  |  | $ | 14,726,703 |  |  |  |  |  |  |  |
(1) On November 23, 2021, Farmers State Bank of Oakley, Kansas (“FSB”) refinanced prior related party notes held by the consumer segment and the commercial segment. The commercial segment note was refinanced with a remaining and outstanding balance of $6,309,962, is a five-year promissory note amortized over 20 years at 3.1% annual interest rate. The note has monthly principal and interest payments of $35,292. The consumer segment note was refinanced with a remaining and outstanding balance of $2,781,087, is a five-year promissory note amortized over 20 years at 3.1% annual interest rate. The note has monthly principal and interest payments of $15,555. (2) On July 9, 2020, the consumer segment closed the purchase of a 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, ten-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, the consumer segment 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, 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) On July 30, 2021, the consumer segment 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 FSB for $3,500,000 at 3.1% annual interest rate. As of June 30, 2023 and December 31, 2022, the outstanding balance of the line of credit was $0. (6) On October 29, 2021, the commercial segment 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 Envela Corporation, closed on the purchase of its corporate office building located at 1901 Gateway Drive, Irving, Texas for $3.521 million. The building was partially financed through a $2.96 million, five-year loan, bearing an interest rate of 3.25%, amortized over 20 years, payable to Texas Bank & Trust. The note has monthly interest and principal payments of $16,792. Future scheduled principal payments of our notes payable as of June 30, 2023 are as follows:
CONSUMER SEGMENT |
Note payable, Farmers State Bank |  |  |
Year Ending December 31, |  | Amount |
2023 (excluding the six months ended June 30, 2023) |  | $ | 53,010 |
2024 |  |  | 108,743 |
2025 |  |  | 112,162 |
2026 |  |  | 2,342,199 |
Subtotal |  | $ | 2,616,114 |
Note payable, Truist Bank |  |  |
Year Ending December 31, |  | Amount |
2023 (excluding the six months ended June 30, 2023) |  | $ | 18,116 |
2024 |  |  | 37,342 |
2025 |  |  | 38,748 |
2026 |  |  | 40,206 |
2027 |  |  | 42,081 |
Thereafter |  |  | 680,054 |
Subtotal |  | $ | 856,547 |
Note payable, Texas Bank & Trust |  |  |
Year Ending December 31, |  | Amount |
2023 (excluding the six months ended June 30, 2023) |  | $ | 9,315 |
2024 |  |  | 19,209 |
2025 |  |  | 418,476 |
Subtotal |  | $ | 447,000 |
Note payable, Texas Bank & Trust |  |  |
Year Ending December 31, |  | Amount |
2023 (excluding the six months ended June 30, 2023) |  | $ | 31,934 |
2024 |  |  | 66,218 |
2025 |  |  | 75,213 |
2026 |  |  | 78,734 |
2027 |  |  | 80,711 |
Thereafter |  |  | 1,326,534 |
Subtotal |  | $ | 1,659,344 |
COMMERCIAL SEGMENT |
Note payable, Farmers Bank |  |  |
Year Ending December 31, |  | Amount |
2023 (excluding the six months ended June 30, 2023) |  | $ | 120,274 |
2024 |  |  | 246,725 |
2025 |  |  | 254,483 |
2026 |  |  | 5,314,166 |
Subtotal |  | $ | 5,935,648 |
Note payable, Avail Transaction |  |  |
Year Ending December 31, |  | Amount |
2023 (excluding the six months ended June 30, 2023) |  | $ | 333,334 |
2024 |  |  | 666,667 |
2025 |  |  | 166,666 |
Subtotal |  | $ | 1,166,667 |
CORPORATE |
| Note payable, Texas Bank & Trust - Envela |
Year Ending December 31, |  | Amount |
2023 (excluding the six months ended June 30, 2023) |  | $ | 56,825 |
2024 |  |  | 116,509 |
2025 |  |  | 2,502,510 |
Subtotal |  |  | 2,675,844 |
|  | $ | 15,357,164 |
Future scheduled aggregate amount of principal payments and maturities of our notes payable as of June 30, 2023 are as follows:
|  | Scheduled |  |  |  |  |  |  |
|  | Principal |  |  | Loan |  |  |  |
Scheduled Principal Payments and Maturities by Year: |  | Payments |  |  | Maturities |  |  | Total |
2023 (excluding the six months ended June 30, 2023) |  |  | 622,808 |  |  |  | - |  |  |  | 622,808 |
2024 |  |  | 1,261,413 |  |  |  | - |  |  |  | 1,261,413 |
2025 |  |  | 772,387 |  |  |  | 2,795,871 |  |  |  | 3,568,258 |
2026 |  |  | 464,893 |  |  |  | 7,310,412 |  |  |  | 7,775,305 |
2027 |  |  | 122,792 |  |  |  | - |  |  |  | 122,792 |
Thereafter |  |  | 428,239 |  |  |  | 1,578,349 |  |  |  | 2,006,588 |
Total |  | $ | 3,672,532 |  |  | $ | 11,684,632 |  |  | $ | 15,357,164 |

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