Envela Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Envela Corp filed its 2023 10-K, detailing financial performance and business operations.</b>

AI Summary

Envela Corp (ELA) filed a Annual Report (10-K) with the SEC on March 21, 2024. Envela Corp reported its fiscal year 2023 results, ending December 31, 2023. The company's SIC code is 5944, indicating its primary business is in Jewelry Stores. Envela Corp was formerly known as DGSE Companies Inc, with a name change in 2003. The filing includes detailed asset information as of December 31, 2023, such as Machinery and Equipment, Furniture and Fixtures, and Building Improvements. Key dates related to acquisitions and debt are noted, including Gateway Holdings in November 2020 and Note Payable Farmers State Bank in November 2021.

Why It Matters

For investors and stakeholders tracking Envela Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Envela Corp's financial health and strategic positioning for the fiscal year 2023, crucial for investors assessing its current value and future prospects. Understanding the company's historical name changes and business classification (Jewelry Stores) offers context for its market niche and potential growth strategies within the retail sector.

Risk Assessment

Risk Level: medium — Envela Corp shows moderate risk based on this filing. The filing is a 10-K, which is a comprehensive annual report, but lacks specific financial performance metrics like revenue or net income in the provided snippet, making a definitive sentiment difficult to ascertain.

Analyst Insight

Investors should review the full 10-K filing to analyze Envela Corp's revenue, profitability, and debt levels for a complete understanding of its financial health.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-21 — Filed As Of Date (FILED AS OF DATE)
• 5944 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 001-11048 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• Envela Corp (company) — COMPANY CONFORMED NAME
• DGSE COMPANIES INC (company) — FORMER COMPANY
• DALLAS GOLD & SILVER EXCHANGE INC /NV/ (company) — FORMER COMPANY
• AMERICAN PACIFIC MINT INC (company) — FORMER COMPANY
• NV (company) — STATE OF INCORPORATION
• TX (company) — STATE OF INCORPORATION
• Farmers State Bank (company) — NotePayableFarmersStateBankMember

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-21: Filing Date — Date the 10-K was officially filed with the SEC.
• 2003-07-03: Name Change — Date Envela Corp changed its name from DGSE Companies Inc.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and business overview for Envela Corp.)

SIC Code

Standard Industrial Classification code used to classify industries. (Indicates Envela Corp's primary business is in Jewelry Stores (5944).)

Key Financial Figures

• $0.01 — ich registered COMMON STOCK, par value $0.01 per share ELA NYSE American Secur

Filing Documents

• ela_10k.htm (10-K) — 1762KB
• ela_ex231.htm (EX-23.1) — 2KB
• ela_ex311.htm (EX-31.1) — 6KB
• ela_ex312.htm (EX-31.2) — 8KB
• ela_ex321.htm (EX-32.1) — 3KB
• ela_ex322.htm (EX-32.2) — 3KB
• ela_ex971.htm (EX-97.1) — 2KB
• ela_ex991.htm (EX-99.1) — 3KB
• ela_ex991img7.jpg (GRAPHIC) — 188KB
• ela_ex991img6.jpg (GRAPHIC) — 207KB
• ela_ex991img5.jpg (GRAPHIC) — 174KB
• ela_ex991img4.jpg (GRAPHIC) — 221KB
• ela_10kimg44.jpg (GRAPHIC) — 4KB
• ela_ex971img3.jpg (GRAPHIC) — 219KB
• ela_ex971img2.jpg (GRAPHIC) — 219KB
• ela_ex971img1.jpg (GRAPHIC) — 212KB
• 0001654954-24-003505.txt (&nbsp;) — 9873KB
• ela-20231231.xsd (EX-101.SCH) — 50KB
• ela-20231231_lab.xml (EX-101.LAB) — 337KB
• ela-20231231_cal.xml (EX-101.CAL) — 53KB
• ela-20231231_pre.xml (EX-101.PRE) — 303KB
• ela-20231231_def.xml (EX-101.DEF) — 170KB
• ela_10k_htm.xml (XML) — 1692KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 15 Item 1C Cybersecurity 15 Item 2.

Properties

Properties 15 Item 3.

Legal Proceedings

Legal Proceedings 16 Item 4. Mine Safety Disclosures 16 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 17 Item 6. [Reserved] 17 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 29 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 30 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 55 Item 9A.

Controls and Procedures

Controls and Procedures 55 Item 9B. Other Information 55 Item 9C Disclosure Regarding Foreign Jurisdiction That Prevent Inspections 55 PART III Item 10. Directors, Executive Officers and Corporate Governance 57 Item 11.

Executive Compensation

Executive Compensation 57 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57 Item 13. Certain Relationships and Related Transactions, and Director Independence 57 Item 14. Principal Accounting Fees and Services 57 PART IV Item 15. Exhibit and Financial Statement Schedules 58 Item 16. Form 10-K Summary 59 2 Table of Contents Unless the context indicates otherwise for one of our specific operating segments, references to "we," "us," "our," the "Company", "Envela" refer to the consolidated business operations of Envela Corporation, the parent, and all of its direct and indirect subsidiaries. Note About Forward-Looking Statements This annual report on Form 10-K for the fiscal year ended December 31, 2023 (this "Form 10-K"), including but not limited to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" below, information concerning our business prospects or future financial performance, anticipated revenues, expenses, profitability or other financial items, and our strategies, plans and objectives, together with other statements that are not historical facts, includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "would," "expect," "intend," "could," "estimate," "should," "anticipate," "typical," "projection," "plan," "target," "mission," "intend," "believe" or similar words. We intend that all forward-looking statements be subject to the safe harbors created by these laws. All statements other than statements of historical information provided herein are forward-looking and may contain information about financial results, economic conditions, trends, and known uncertainties. All

BUSINESS

ITEM 1. BUSINESS OVERVIEW Envela's mission is to empower buyers and sellers to extend the useful lives of manufactured goods by reselling previously owned, new or used goods, or recycling goods' materials, elements or components for sale and reuse. This process is called "re-commerce". A circular economy is a sustainable economic system that aims to increase the lifespan of manufactured goods and thereby reducing waste and pollution for a cleaner environment. Re-commerce is an integral part of circular economies, and it's a business model that's sustainable to its core. Envela helps expand circular consumption through product reuse, refurbishment, repair, and related strategies to extend the useful lives of manufactured goods and reduce their negative impact on our planet. Envela focuses its re-commerce business on two areas: direct-to-consumer and commercial services. Our direct-to-consumer portfolio operates multiple brick-and-mortar and online marketplaces. Our commercial-services portfolio offers custom re-commerce solutions to meet the needs of diverse clients, including Fortune 500 companies. HOW WE ORGANIZE OUR BUSINESS Envela is a diverse re-commerce company that manages its business through two operating segments. Its commercial-services segment, and its consumer segment. Envela reports its revenue and operating expenses based on these two operating segments. We also include segment information in the notes too our financial statements. COMMERCIAL SERVICES SEGMENT Re-commerce through Intelligent Reuse & Responsible Recycling Envela's commercial services portfolio provides asset- disposition solutions to government agencies, middle-market firms, major corporations, and other organizations. Through a deep understanding of our clients' business goals, we're able to exceed their evolving needs and maintain a differentiated position in this marketplace. When clients upgrade their IT equipment, our commercial services division purchases the replac

RISK FACTORS

ITEM 1A. RISK FACTORS Our operations and financial results are subject to various risks and uncertainties, including those described below, that could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of shares of our common stock, par value $0.01 per share (our "Common Stock"). You should carefully review and consider the risks described below and the forward-looking statements contained in this Form 10-K before evaluating our business or making an investment decision. Our business, financial condition or results of operations could be materially adversely affected by these risks. The trading price of the Company's Common Stock could decline due to any of these risks, and you may lose all or part of your investment. You should also refer to the other information included or incorporated by reference in this report, including the Company's consolidated financial statements and the related notes thereto. These risks and uncertainties could cause actual results and events to differ materially from those anticipated. Additional risks which the Company does not presently consider material, or of which management is not currently aware, may also have an adverse impact on the Company's business. Please also see the section of this Form 10-K entitled "Note About Forward-Looking Statements" on page 2. The voting power in the Company is substantially controlled by a small number of shareholders, which may, among other things, delay or frustrate the removal of incumbent directors or a takeover attempt, even if such events may be beneficial to shareholders. N10TR, LLC ("N10TR") is the Company's largest shareholder, owning 12,814,727 shares of Common Stock, representing 48.3% of the total outstanding shares of Common Stock, as of December 31, 2023. Eduro Holdings, LLC ("Eduro") owns 6,365,460 shares of Common Stock, representing 24.0% of the total outstanding shares of Common Stock, as of December 31, 2023. Both N

View Full Filing

View this 10-K filing on SEC EDGAR