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DEBT | 3 Months Ended
--- | ---
Mar. 31, 2024
DEBT |
DEBT | NOTE 13 — DEBT The following table summarizes the details of the Company’s long-term debt obligations:
|  | Outstanding Balance |
|  | March 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
Consumer |  |  |  |  |  |
Note payable, FSB (1) |  | $ | 2,537,700 |  |  | $ | 2,563,108 |
Note payable, Truist Bank (3) |  |  | 829,204 |  |  |  | 838,430 |
Notes payable, TBT (4,5) |  |  | 2,043,823 |  |  |  | 2,064,928 |
Note payable, Kretchmer Transaction (6) |  |  | 200,000 |  |  |  | 200,000 |
Sub-total |  |  | 5,610,727 |  |  |  | 5,666,466 |
Commercial |  |  |  |  |  |  |  |
Note payable, FSB (2) |  |  | 5,754,790 |  |  |  | 5,815,381 |
Note payable, Avail Transaction (7) |  |  | 666,667 |  |  |  | 833,333 |
Sub-total |  |  | 6,421,457 |  |  |  | 6,648,714 |
Corporate |  |  |  |  |  |  |  |
Line of credit, FSB (8) |  |  | - |  |  |  | - |
Note payable, TBT (9) |  |  | 2,589,538 |  |  |  | 2,618,311 |
Sub-total |  |  | 2,589,538 |  |  |  | 2,618,311 |
Sub-total |  |  | 14,621,722 |  |  |  | 14,933,491 |
Current portion |  |  | (1,475,625 | ) |  |  | (1,361,443 | )
|  | $ | 13,146,097 |  |  | $ | 13,572,048 |
The following table depicts the Company’s future principal payments on long-term debt obligations as of March 31, 2024:
|  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |  |  | Thereafter |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, FSB (1) |  |  | 81,564 |  |  |  | 112,106 |  |  |  | 2,344,030 |  |  |  | - |  |  |  | - |  |  |  | - |
Note payable, Truist Bank (3) |  |  | 28,029 |  |  |  | 38,745 |  |  |  | 40,203 |  |  |  | 42,077 |  |  |  | 43,639 |  |  |  | 636,511 |
Notes payable, TBT (4,5) |  |  | 70,158 |  |  |  | 495,231 |  |  |  | 78,985 |  |  |  | 80,973 |  |  |  | 83,696 |  |  |  | 1,234,780 |
Note payable, Kretchmer Transaction (6) |  |  | 200,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Sub-total |  |  | 379,751 |  |  |  | 646,082 |  |  |  | 2,463,218 |  |  |  | 123,050 |  |  |  | 127,335 |  |  |  | 1,871,291 |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Note payable, FSB (2) |  |  | 186,131 |  |  |  | 254,483 |  |  |  | 5,314,176 |  |  |  | - |  |  |  | - |  |  |  | - |
Note payable, Avail Transaction (7) |  |  | 500,000 |  |  |  | 166,667 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Sub-total |  |  | 686,131 |  |  |  | 421,150 |  |  |  | 5,314,176 |  |  |  | - |  |  |  | - |  |  |  | - |
Corporate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Line of Credit, FSB (8) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Note payable, TBT (9) |  |  | 87,761 |  |  |  | 2,501,777 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Sub-total |  |  | 87,761 |  |  |  | 2,501,777 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
|  | $ | 1,153,643 |  |  | $ | 3,569,009 |  |  | $ | 7,777,394 |  |  | $ | 123,050 |  |  | $ | 127,335 |  |  | $ | 1,871,291 |
(1) On November 23, 2021, the consumer segment entered into a $2.781 million secured amortizing note payable with Farmer’s State Bank of Oakley, Kansas (“FSB”). The note payable bears interest at 3.10% and matures on November 15, 2026. (2) On November 23, 2021, the commercial segment entered into a $6.309 million secured amortizing note payable with FSB. The note payable bears interest at 3.10% and matures on November 15, 2026. (3) On July 9, 2020, the consumer segment entered into a $1.195 million secured amortizing note payable with Truist Bank. The note payable bears interest at 3.65% and matures on July 9, 2030. (4) On September 14, 2020, the consumer segment entered into a $620 thousand secured amortizing note payable with Texas Bank & Trust (“TBT”). The note payable bears interest at 3.75% and matures on September 14, 2025. (5) On July 30, 2021, the consumer segment entered into a $2.215 million secured amortizing note payable with TBT. The note payable bears interest at 3.75% and matures on July 30, 2031. (6) On September 12, 2023, the consumer segment entered into a $300 thousand secured amortizing note payable in relation to the Kretchmer Transaction. The note payable’s imputed interest is 3.10% and matures on October 1, 2025. The consumer segment is restructuring the Kretchmer Transaction and the aforementioned terms and conditions and as such is electing to record the note payable in current liabilities. (7) On October 29, 2021, the consumer segment entered into a $4.500 million secured amortizing note payable in relation to the acquisition of Avail Recovery Solutions, LLC on October 29, 2021 (“Avail Transaction"). The note payable’s imputed interest is 3.10% and matures on April 1, 2025. (8) On November 23, 2021, the Company entered into a $3.500 million secured line of credit with FSB. The line of credit bears interest at 3.10% and matures on November 15, 2024. This note was previously presented within our commercial segment and is now presented within corporate as the line of credit provides borrowing capacity for all segments. (9) On November 4, 2020, a wholly owned subsidiary of Envela entered into a $2.960 million secured amortizing note payable with TBT. The note payable bears interest at 3.25% and matures on November 4, 2025. The Company was in compliance with all of its debt obligation covenants for the periods ended March 31, 2024 and March 31, 2023. The following table depicts the Company’s future scheduled aggregate principal payments and maturities as of March 31, 2024:
|  | Scheduled |  |  |  |  |  |  |
|  | Principal |  |  | Loan |  |  |  |
Scheduled Principal Payments and Maturities by Year: |  | Payments |  |  | Maturities |  |  | Total |
2024 |  |  | 953,643 |  |  |  | 200,000 |  |  |  | 1,153,643 |
2025 |  |  | 773,845 |  |  |  | 2,795,164 |  |  |  | 3,569,009 |
2026 |  |  | 465,087 |  |  |  | 7,312,307 |  |  |  | 7,777,394 |
2027 |  |  | 123,050 |  |  |  | - |  |  |  | 123,050 |
2028 |  |  | 127,335 |  |  |  | - |  |  |  | 127,335 |
Thereafter |  |  | 301,908 |  |  |  | 1,569,383 |  |  |  | 1,871,291 |
Total |  | $ | 2,744,868 |  |  | $ | 11,876,854 |  |  | $ | 14,621,722 |

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