Envela (ELA) 10-Q 11 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 11, 2022
Cover [Abstract]
Entity Registrant Name	ENVELA CORPORATION
Entity Central Index Key	0000701719
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		26,924,631
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-11048
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	88-0097334
Entity Address Address Line 1	1901 GATEWAY DRIVE
Entity Address Address Line 2	STE 100
Entity Address City Or Town	IRVING
Entity Address State Or Province	TX
Entity Address Postal Zip Code	75038
Trading Symbol	ELA
Security 12b Title	COMMON STOCK, par value $0.01 per share
City Area Code	972
Local Phone Number	587-4049
Security Exchange Name	NYSEAMER
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Sales	$ 47,415,098	$ 25,490,441
Cost Of Goods Sold	37,704,064	19,186,177
Gross Margin	9,711,034	6,304,264
Expenses:
Selling, General & Administrative Expenses	6,559,755	4,153,229
Depreciation And Amortization	291,947	204,912
Total Operating Expenses	6,851,702	4,358,141
Operating Income	2,859,332	1,946,123
Other Income (expense), Net	(58,576)	271,941
Interest Expense	123,239	179,022
Income Before Income Taxes	2,677,517	2,039,042
Income Tax Expense	30,292	30,770
Net Income	$ 2,647,225	$ 2,008,272
Basic Earnings Per Share:
Net Income Basic	$ 0.10	$ 0.07
Diluted Earnings Per Share:
Net Income Diluted	$ 0.10	$ 0.07
Weighted Average Shares Outstanding:
Basic	26,924,631	26,924,631
Diluted	26,939,631	26,939,631

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash And Cash Equivalents	$ 11,497,259	$ 10,138,148
Trade Receivables, Net Of Allowances	5,357,137	7,166,533
Inventories	14,621,575	14,048,436
Current Right-of-use Assets From Operating Leases	1,609,077	1,604,736
Prepaid Expenses	612,475	439,038
Other Current Assets	1,765,355	969,624
Total Current Assets	35,462,878	34,366,515
Property And Equipment, Net	9,719,499	9,806,188
Goodwill	6,140,465	6,140,465
Intangible Assets, Net	2,912,370	3,024,245
Operating Lease Right-of-use Assets	5,286,770	5,692,141
Other Assets	236,761	237,761
Total Assets	59,758,743	59,267,315
Current Liabilities:
Accounts Payable-trade	2,857,674	2,488,396
Line Of Credit	0	1,700,000
Notes Payable	1,003,592	1,065,794
Current Operating Lease Liabilities	1,584,169	1,573,824
Accrued Expenses	1,501,178	1,789,366
Customer Deposits And Other Liabilities	1,244,193	1,179,224
Total Current Liabilities	8,190,806	9,796,604
Notes Payable, Less Current Portion	15,826,264	15,970,337
Long-term Operating Lease Liabilities, Less Current Portion	5,467,131	5,873,057
Total Liabilities	29,484,201	31,639,998
Commitments And Contingencies
Preferred Stock, $0.01 Par Value; 5,000,000 Shares Authorized; No Shares Issued And Outstanding	0	0
Common Stock, $0.01 Par Value; 60,000,000 Shares Authorized;	269,246	269,246
Additional Paid-in Capital	40,173,000	40,173,000
Accumulated Deficit	10,167,704	12,814,929
Total Stockholders' Equity	30,274,542	27,627,317
Total Liabilities And Stockholders' Equity	$ 59,758,743	$ 59,267,315

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred Stock, Par Value	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	60,000,000	60,000,000
Common Stock, Shares Issued	26,924,631	26,924,631
Common Stock, Shares Outstanding	26,924,631	26,924,631

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operations
Net Income	$ 2,647,225	$ 2,008,272
Adjustments To Reconcile Net Income To Net Cash Provided By (used In) Operations:
Depreciation, Amortization, And Other	291,947	204,912
Bad Debt Expense	0	6,249
Changes In Operating Assets And Liabilities:
Trade Receivables	1,809,397	(344,103)
Inventories	(573,139)	(1,623,485)
Prepaid Expenses	(173,436)	(576,578)
Other Assets	(794,731)	(100,000)
Accounts Payable And Accrued Expenses	81,088	(240,410)
Operating Leases	5,449	19,616
Customer Deposits And Other Liabilities	64,969	260,615
Net Cash Provided By (used In) Operations	3,358,769	(384,912)
Investing
Investment In Note Receivable	0	(123,472)
Purchase Of Property And Equipment	(93,384)	(200,563)
Net Cash Used In Investing	(93,384)	(324,035)
Financing
Payments On Notes Payable, Related Party		(71,853)
Payments On Notes Payable	(206,274)	(40,239)
Payments On Line Of Credit	(1,700,000)	0
Net Cash Used In Financing	(1,906,274)	(112,092)
Net Change In Cash And Cash Equivalents	1,359,111	(821,039)
Cash And Cash Equivalents, Beginning Of Period	10,138,148	9,218,036
Cash And Cash Equivalents, End Of Period	11,497,259	8,396,997
Cash Paid During The Period For:
Interest	129,989	179,082
Income Taxes	$ 0	$ 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Unaudited) - USD ($)	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, Shares at Dec. 31, 2020		26,924,631
Balance, Amount at Dec. 31, 2020	$ 17,578,442	$ 269,246	$ 0	$ 40,173,000	$ (22,863,804)
Net Income	2,008,272	$ 0	0	0	2,008,272
Balance, Shares at Mar. 31, 2021		26,924,631
Balance, Amount at Mar. 31, 2021	19,586,714	$ 269,246	0	40,173,000	(20,855,532)
Balance, Shares at Dec. 31, 2021		26,924,631
Balance, Amount at Dec. 31, 2021	27,627,317	$ 269,246	0	40,173,000	(12,814,929)
Net Income	2,647,225	$ 0	0	0	2,647,225
Balance, Shares at Mar. 31, 2022		26,924,631
Balance, Amount at Mar. 31, 2022	$ 30,274,542	$ 269,246	$ 0	$ 40,173,000	$ (10,167,704)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2022
BASIS OF PRESENTATION
Basis Of Presentation	NOTE 1 — BASIS OF PRESENTATION The interim condensed consolidated financial statements of Envela Corporation, a Nevada corporation, and its subsidiaries (together with its subsidiaries, the “Company” or “Envela”), included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including under the Securities Act of 1933, as amended (the “Securities Act”) and the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The Company suggests that these financial statements be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on March 16, 2022 (the “2021 Annual Report”). In the opinion of the management of the Company, the accompanying unaudited interim financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary to present fairly its results of operations and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. Certain reclassifications were made to the prior year's consolidated financial statements to conform to the current year presentation. The information provided as of March 31, 2022 in these notes to the interim condensed consolidated financial statements is unaudited.

PRINCIPLES OF CONSOLIDATION AND

PRINCIPLES OF CONSOLIDATION AND NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2022
PRINCIPLES OF CONSOLIDATION AND NATURE OF OPERATIONS
Principles Of Consolidation And Nature Of Operations	NOTE 2 — PRINCIPLES OF CONSOLIDATION AND NATURE OF OPERATIONS Envela and its subsidiaries engage in diverse business activities within the recommerce sector. These activities include being one of the nation's premier authenticated recommerce retailers of luxury hard assets; providing end-of-life asset recycling and resale to businesses, organization and retail consumers; offering data destruction and IT asset management; and providing products, services and solutions to industrial and commercial companies. Envela operates primarily via two operating and reportable segments. Through DGSE, LLC (“DGSE”), it operates Dallas Gold & Silver Exchange, Charleston Gold & Diamond Exchange, and Bullion Express brands. Through ECHG, LLC (“ECHG”), it operates Echo Environmental Holdings, LLC (“Echo”), ITAD USA Holdings, LLC (“ITAD USA”), Teladvance, LLC (“Teladvance”), CEX Holdings, LLC (“CEX”) and Avail Recovery Solutions, LLC (“Avail”). Envela is a Nevada corporation, headquartered in Irving, Texas. DGSE primarily buys and resells or recycles luxury hard assets like jewelry, diamonds, gemstones, fine watches, rare coins and related collectibles, precious-metal bullion products, gold, silver and other precious-metals. DGSE operates seven jewelry stores at both the retail and wholesale levels throughout the United States via its facilities in Texas and South Carolina. Buying and selling items for their precious-metals content is a major method by which DGSE markets itself. DGSE also offers jewelry repair services, custom-made jewelry and consignment items, and maintains relationships with refiners for precious-metal items that are not appropriate for resale. The Company also maintains a presence in the retail market through its websites, www.dgse.com and www.cgdeinc.com. ECHG, through its subsidiaries, primarily buys electronic components from business and other organizations, such as school districts, for end-of-life recycling and resale, or to add life to electronic devices by data destruction and refurbishment for reuse. ECHG also conducts such recycling and resale at the retail level. Echo focuses on end-of-life electronics recycling and sustainability and ITAD USA provides IT equipment disposition, including compliance and data sanitization services. Teladvance, CEX and Avail operate as value-added resellers by providing offerings and services to companies looking either to upgrade capabilities or dispose of equipment. Like DGSE, ECHG also maintains relationships with refiners or recyclers to which it sells valuable materials it extracts from electronics and IT equipment that are not appropriate for resale or reuse. ECHG’s customers are companies and organizations that are based domestically and internationally. For additional information on the businesses of both DGSE and ECHG, see “Item 1. Business – Operating Segments” in the Company’s 2021 Annual Report. The escalating war between Russia and Ukraine presents instability and volatility in global markets. Although there has been, and will be volatility, management feels the impact has been minimal to our operations to this point. The U.S. government has imposed sanctions and export controls against Russia and Russian interests and threatened additional sanctions and controls. The impact of these sanctions are difficult to measure concerning DGSE and ECHG. The price and supply of precious metals along with supply-chain issues will undoubtedly cause the Company concern if the war broadens beyond the borders of Ukraine. The interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its subsidiaries. All material intercompany transactions and balances have been eliminated.

ACCOUNTING POLICIES AND ESTIMAT

ACCOUNTING POLICIES AND ESTIMATES	3 Months Ended
	Mar. 31, 2022
ACCOUNTING POLICIES AND ESTIMATES
Accounting Policies And Estimates	NOTE 3 — ACCOUNTING POLICIES AND ESTIMATES Financial Instruments The carrying amounts reported in the condensed consolidated balance sheets for cash equivalents, trade receivables, prepaid expenses, other current assets, accounts payable, accrued expenses, customer deposits and other liabilities approximate fair value because of the immediate or short-term nature of these financial instruments. Notes payable and line of credit approximate fair value due to the market interest rate charged. Earnings Per Share Basic earnings per share of our common stock, par value $0.01 per share (our “Common Stock”), is computed by dividing net earnings available to holders of the Company’s Common Stock by the weighted average number of shares of Common Stock outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts requiring the Company to issue Common Stock were exercised or converted into Common Stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and warrants outstanding determined using the treasury stock method. Goodwill Goodwill is not amortized but evaluated for impairment on an annual basis during the fourth quarter of our fiscal year, or earlier if events or circumstances indicate the carrying value may be impaired. The Company’s goodwill is related to ECHG only and not the entire Company. ECHG has its own, separate financial information to perform goodwill impairment testing at least annually or if events indicate that those assets may be impaired. As a result of the current market and economic conditions related to the coronavirus pandemic (“COVID-19”) and the war between Ukraine and Russia, in accordance with step 1 of the guidelines set forth in ASC 350-20-35-3A, the Company concluded there were no impairments of goodwill that resulted from triggering events due to COVID-19 and the war between Ukraine and Russia as of March 31, 2022. The Company will continue to evaluate goodwill for the ECHG segment. For tax purposes, goodwill is amortized and deductible over fifteen years. ECHG goodwill was allocated in connection with three acquisitions of the assets now held by Echo on May 20, 2019 (the “Echo Transaction”), of the assets now held by Teladvance on June 9, 2021 (the “CExchange Transaction”) and of the assets now held by Avail on October 29, 2021 (the “Avail Transaction”). There was a preliminary addition to goodwill with the Avail Transaction of $3,491,285. There has been no other adjustments or impairment charges to goodwill. As of March 31, 2022 and December 31 2021, goodwill was $6,140,465. Recent Accounting Pronouncements In June 2016, the FASB issued a new credit loss accounting standard ASU 2016-13. The new accounting standard introduces the current expected credit losses methodology for estimating allowances for credit losses which will be based on expected losses rather than incurred losses. We will be required to use a forward-looking expected credit loss methodology for accounts receivable, loans and other financial instruments. The standard will be adopted upon the effective date for us beginning January 1, 2023 by using a modified retrospective transition approach to align our credit loss methodology with the new standard. The Company is evaluating the financial statement implications of ASU 2016-13.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2022
INVENTORIES
Inventories	NOTE 4 — INVENTORIES A summary of inventories is as follows: March 31, December 31, 2022 2021 DGSE Resale $ 12,282,472 $ 10,422,072 Recycle 30,071 11,995 Subtotal 12,312,543 10,434,067 ECHG Resale 2,044,911 3,350,159 Recycle 264,121 264,210 Subtotal 2,309,032 3,614,369 $ 14,621,575 $ 14,048,436

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2022
ACQUISITIONS
Acquisitions	NOTE 5 — ACQUISITION On October 29, 2021, ECHG entered into the Avail Transaction to purchase all of the assets, liabilities and rights and interests for $4,500,000 of Avail Recovery Solutions, an Arizona company. The purchase was facilitated by an initial payment of $2,500,000 at closing, and the remaining $2,000,000 to be paid out by 12 quarterly payments starting April 1, 2022, of $166,667 each. See Note 14 to our consolidated financial statements for more information on this loan. The installment note payable for the Avail Transaction imputed at 3.1% interest. As part of the Avail Transaction, goodwill was preliminarily recorded as $3,491,284, which is the purchase price less the approximate fair value of the net assets and liabilities purchased, as shown in the purchase price allocation in the following table. The Company’s goodwill is related to the ECHG segment. ECHG has its own separate financial information to perform goodwill impairment testing. The Company will evaluate goodwill based on cash flows for the ECHG segment. For tax purposes, goodwill is amortized and deductible over 15 years. The purchase price allocation listed below is considered to be a preliminary allocation and is subject to change. The preliminary purchase price for the Avail Transaction is allocated as follows: Description Amount Assets Cash $ 988,870 Account receivables 395,144 Inventories 486,736 Prepaid expenses 93,727 Fixed assets - net 247,038 Right-of-use assets 609,511 Other assets 13,268 Liabilities Account payables (562,778 ) Accrued liabilities (653,289 ) Operating lease liabilities (609,511 ) Net assets 1,008,716 Goodwill 3,491,284 Total Purchase Price $ 4,500,000 The following table compares the results of Avail as part of the Company’s financial results for the three months ended March 31, 2022, and the Company’s results of operations as if they were combined for the three months ended March 31, 2021: Consolidated Statement of Income Proforma Combined For the Three Months Ended For the Three Months Ended March 31, 2022 March 31, 2021 (unaudited) (unaudited) Revenue $ 47,415,098 $ 27,110,216 Income from continuing operations $ 2,647,225 $ 2,354,895 Net income $ 2,647,225 $ 2,354,895 Basic net income per common share $ 0.10 $ 0.09 Diluted net income per common share $ 0.10 $ 0.09

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2022
GOODWILL
Goodwill	NOTE 6 — GOODWILL The change in goodwill is as follows: March 31, December 31, 2022 2021 Opening balance $ 6,140,465 $ 1,367,109 Additions (1) - 4,773,356 Goodwill $ 6,140,465 $ 6,140,465 (1) Addition is in connection with the CExchange Transaction on June 9, 2021 of $1,282,072 and the preliminary purchase price allocation of the Avail Transaction of $3,491,284.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2022
PROPERTY AND EQUIPMENT
Property And Equipment	NOTE 7 — PROPERTY AND EQUIPMENT March 31, December 31, 2022 2021 DGSE Land $ 1,640,220 $ 1,640,220 Building and improvements 2,781,903 2,764,529 Leasehold improvements 1,450,695 1,450,695 Machinery and equipment 1,056,315 1,056,315 Furniture and fixtures 554,881 526,250 Vehicles 22,859 22,859 7,506,873 7,460,868 Less: accumulated depreciation (2,422,573 ) (2,343,923 ) Sub-Total 5,084,300 5,116,945 ECHG Building and improvements 135,491 135,491 Machinery and equipment 1,145,832 1,109,306 Furniture and fixtures 145,950 145,950 1,427,273 1,390,747 Less: accumulated depreciation (289,945 ) (212,147 ) Sub-Total 1,137,328 1,178,600 Envela Land 1,106,664 1,106,664 Building and improvements 2,456,324 2,456,324 Machinery and equipment 34,528 23,676 3,597,516 3,586,664 Less: accumulated depreciation (99,645 ) (76,021 ) Sub-Total 3,497,871 3,510,643 $ 9,719,499 $ 9,806,188

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2022
GOODWILL
Intangible Assets	NOTE 8 — INTANGIBLE ASSETS Intangible assets consist of the following: March 31, December 31, 2022 2021 DGSE Domain names $ 41,352 $ 41,352 Point of sale system 330,000 330,000 371,352 371,352 Less: accumulated amortization (286,002 ) (269,502 ) Subtotal 85,350 101,850 ECHG Trademarks (1) 1,483,000 1,483,000 Customer Contracts (1) 1,873,000 1,873,000 Trademarks/Tradenames (2) 114,000 114,000 Customer Relationships (2) 345,000 345,000 3,815,000 3,815,000 Less: accumulated amortization (987,980 ) (892,605 ) Subtotal 2,827,020 2,922,395 $ 2,912,370 $ 3,024,245 (1) Intangibles relate to the Echo Transaction on May 20, 2019. (2) Intangibles relate to the CExchange Transaction on June 9, 2021. The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2022: DGSE ECHG Total 2022 (excluding the three months ending March 31, 2022) 49,500 286,125 335,625 2023 30,350 381,500 411,850 2024 5,500 381,500 387,000 2025 - 381,500 381,500 2026 - 381,500 381,500 Thereafter - 1,014,895 1,014,895 $ 85,350 $ 2,827,020 $ 2,912,370

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2022
ACCRUED EXPENSES
Accrued Expenses	NOTE 9— ACCRUED EXPENSES Accrued expenses consist of the following: March 31, December 31, 2022 2021 DGSE Accrued interest $ 12,793 $ 12,627 Payroll 157,349 131,325 Property taxes 61,014 88,046 Sales tax 70,006 150,070 Other administrative expenss 3,449 - Subtotal 304,611 382,068 ECHG Accrued interest 8,464 14,547 Payroll 192,625 334,431 Unvouchered payables - inventory 480,866 461,481 Material & shipping costs (COGS) 118,445 78,647 Other accrued expenses - 51,506 Subtotal 800,400 940,612 Envela Accrued interest 7,522 8,355 Payroll 11,128 25,175 Professional fees 203,743 220,101 Property Tax 21,300 84,920 Other administrative expenses 12,500 18,453 State income tax 139,974 109,682 Subtotal 396,167 466,686 $ 1,501,178 $ 1,789,366

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2022
SEGMENT INFORMATION
Segment Information	NOTE 10 — SEGMENT INFORMATION We determine our business segments based upon an internal reporting structure. Our financial performance is based on the following segments: DGSE and ECHG. The DGSE segment includes Dallas Gold & Silver Exchange, which has six retail stores in the Dallas/Fort Worth Metroplex, and Charleston Gold & Diamond Exchange, which has one retail store in Mt. Pleasant, South Carolina. The ECHG segment includes Echo, ITAD USA, Teladvance, CEX and Avail. These five companies are involved in recycling and the reuse of electronic components. We allocate a portion of certain corporate costs and expenses, including information technology as well as rental income and expenses relating to our corporate headquarters, to our business segments. These income and expenses are included in selling, general and administrative (“SG&A”) expenses, depreciation and amortization, other income, interest expense and income tax expense. Our management team evaluates each segment and makes decisions about the allocation of resources according to each segment’s profit. Allocation amounts are generally agreed upon by management and may differ from arms-length allocations. The following separates DGSE and ECHG’s financial results of operations for the three months ended March 31, 2022 and 2021: For The Three Months Ended March 31, 2022 2021 DGSE ECHG Consolidated DGSE ECHG Consolidated Revenue: Sales $ 35,782,872 $ 11,632,226 $ 47,415,098 $ 18,914,501 $ 6,575,940 $ 25,490,441 Cost of goods sold 31,559,410 6,144,654 37,704,064 16,106,866 3,079,311 19,186,177 Gross profit 4,223,462 5,487,572 9,711,034 2,807,635 3,496,629 6,304,264 Expenses: Selling, general and administrative expenses 2,137,949 4,421,806 6,559,755 1,782,437 2,370,792 4,153,229 Depreciation and amortization 106,963 184,984 291,947 96,822 108,090 204,912 2,244,912 4,606,790 6,851,702 1,879,259 2,478,882 4,358,141 Operating income 1,978,550 880,782 2,859,332 928,376 1,017,747 1,946,123 Other income/expense: Other income (expense) (27,992 ) (30,584 ) (58,576 ) 111,731 160,210 271,941 Interest expense 61,241 61,998 123,239 68,485 110,537 179,022 Income before income taxes 1,889,317 788,200 2,677,517 971,622 1,067,420 2,039,042 Income tax expense 13,177 17,115 30,292 13,705 17,065 30,770 Net income $ 1,876,140 $ 771,085 $ 2,647,225 $ 957,917 $ 1,050,355 $ 2,008,272

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2022
REVENUE RECOGNITION
Revenue Recognition	NOTE 11 — REVENUE RECOGNITION ASC 606 provides guidance to identify performance obligations for revenue-generating transactions. The initial step is to identify the contract with a customer created with the sales invoice or a repair ticket. Secondly, we identify the performance obligations in the contract, as we promise to deliver the purchased item or promised repairs in return for payment or future payment as a receivable. The third step is determining the transaction price of the contract obligation, as in the full ticket price, negotiated price or a repair price. The next step is to allocate the transaction price to the performance obligations, as we designate a separate price for each item. The final step in the guidance is to recognize revenue as each performance obligation is satisfied. The following disaggregation of total revenue is listed by sales category and segment for the three months ended March 31, 2022 and 2021: CONSOLIDATED Three Months Ended March 31, 2022 2021 Revenues Gross Profit Margin Revenues Gross Profit Margin DGSE Resale $ 33,677,133 $ 3,742,852 11.1 % $ 17,320,641 $ 2,457,144 14.2 % Recycled 2,105,739 480,610 22.8 % 1,593,860 350,491 22.0 % Subtotal 35,782,872 4,223,462 11.8 % 18,914,501 2,807,635 14.8 % ECHG Resale 9,579,857 4,574,268 47.7 % 4,740,992 2,612,184 55.1 % Recycled 2,052,369 913,304 44.5 % 1,834,948 884,445 48.2 % Subtotal 11,632,226 5,487,572 47.2 % 6,575,940 3,496,629 53.2 % $ 47,415,098 $ 9,711,034 20.5 % $ 25,490,441 $ 6,304,264 24.7 % DGSE’s over-the-counter sales with the retail public and wholesale dealers are recognized when merchandise is delivered, and payment has been made either by immediate payment or through a receivable obligation at one of our retail locations. We also recognize revenue upon the shipment of goods when retail and wholesale customers have fulfilled their obligation to pay, or promise to pay through e-commerce or phone sales. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods. Crafted-precious-metal items at the end of their useful lives are sold to a refiner. Since the local refiner is located in the Dallas/Fort Worth area, we deliver the metal to the refiner. The metal is melted and assayed, price is determined from the assay and payment is made usually in a day or two. Revenue is recognized from the sale once payment is received. DGSE also offers a structured layaway plan. When a retail customer utilizes the layaway plan, we collect a minimum payment of 25% of the sales price, establish a payment schedule for the remaining balance and hold the merchandise as collateral as security against the customer’s deposit until all amounts due are paid in full. Revenue for layaway sales is recognized when the merchandise is paid in full and delivered to the retail customer. Layaway revenue is also recognized when a customer fails to pay in accordance with the sales contract and the sales item is returned to inventory with the forfeit of deposited funds, typically after 90 days. In limited circumstances, we exchange merchandise for similar merchandise and/or monetary consideration with both dealers and retail customers, for which we recognize revenue in accordance with ASC 845, Nonmonetary Transactions. When we exchange merchandise for similar merchandise and there is no monetary component to the exchange, we do not recognize any revenue. Instead, the basis of the merchandise relinquished becomes the basis of the merchandise received, less any indicated impairment of value of the merchandise relinquished. When we exchange merchandise for similar merchandise and there is a monetary component to the exchange, we recognize revenue to the extent of the monetary assets received and determines the cost of sale based on the ratio of monetary assets received to monetary and non-monetary assets received multiplied by the cost of the assets surrendered. The Company offers the option of third-party financing to customers wishing to borrow money for the purchase. The customer applies on-line with the financing company and upon going through the credit check will be approved or denied. If accepted, the customer is allowed to purchase according to the limits set by the financing company. Once the customer does purchase merchandise, based on their financing agreement, we record and recognize the sale at that point, based on the promise to pay by the finance company up to the customer’s approved limit. We have a return policy (money-back guarantee). The policy covers retail transactions involving jewelry, graded rare coins and currency only. Customers may return jewelry, graded rare coins and currency purchased within 30 days of the receipt of the items for a full refund as long as the items are returned in exactly the same condition as they were delivered. In the case of jewelry, graded rare coins and currency sales on account, customers may cancel the sale within 30 days of making a commitment to purchase the items. The receipt of a deposit and a signed purchase order evidences the commitment. Any customer may return a jewelry item or graded rare coins and currency if they can demonstrate that the item is not authentic, or there was an error in the description of a graded coin or currency piece. Returns are accounted for as a reversal of the original transaction, with the effect of reducing revenues and cost of sales, and returning the merchandise to inventory. We have established an allowance for estimated returns related to sales based on historical returns and reduced our reported revenues and cost of sales accordingly. Our return allowance as of March 31, 2022 and December 31, 2021 remained the same for both periods, at approximately $28,000. ECHG has several revenue streams and recognize revenue according to ASC 606 at an amount that reflects the consideration to which the entities expect to be entitled in exchange for transferring goods or services to the customer. The revenue streams are as follows. · Outright sales are recorded when product is shipped. Once the price is established and the terms are agreed to and the product is shipped, the revenue is recognized. The Echo Entities have fulfilled their performance obligation with an agreed upon transaction price, payment terms and shipping the product. · Echo recognizes refining revenue when our inventory arrives at the destination port and the performance obligation is satisfied by transferring the control of the promised goods that are identified in the customer contract. Ninety percent (90%) of our refining revenue is generated from one refining partner that has an international refining facility. This refining partner pays us sixty percent (60%) of an Invoice within five working days upon the receipt of the Ocean Bill of Lading issued by the Ocean Carrier. Our initial Invoice is recognized in full when our performance obligation is satisfied, as stated in the first sentence. Under the guidance of ASC 606, an estimate of the variable consideration that we expect to be entitled is included in the transaction price stated at the current precious metal spot price and weight of the precious metal. An adjustment to revenue is made in the period once the underlying weight and any precious metal spot price movement is resolved, which is usually around six weeks. Any adjustment from the resolution of the underlying uncertainty is netted with the remaining forty percent (40%) due from the original contract. · Hard drive sales by the Echo Entities are limited to customers who are required to prepay shipments. Once the commodity price is established and agreed upon by both parties, customers send payment in advance. The Company releases the shipment on the same day when payment receipt is confirmed, and revenue is recognized on day of shipment. If payment is received on the last day of the month and shipment goes out the following day the payment received is deferred revenue and recognized the following month when the shipment is made. · Echo also provides recycling services according to a Scope of Work and services are recognized when promised services are rendered. We have recycling services conducted at the Echo facility and another type of service is conducted at the client’s facility. The Scope of Work will determine the charges and whether it is completed on campus or off campus. Payment terms are also dictated in the Scope of Work. Accounts Receivable: We record trade receivables when revenue is recognized. When appropriate, we will record an allowance for doubtful accounts, which is primarily determined by an analysis of our trade receivables aging. The allowance is determined based on historical experience of collecting past due amounts, based on the degree of their aging. In addition, specific accounts that are doubtful of collection are included in the allowance. These provisions are reviewed to determine the adequacy of the allowance for doubtful accounts. Trade receivables are charged off when there is certainty as to their being uncollectible. Trade receivables are considered delinquent when payment has not been made within contract terms. DGSE had no allowance for doubtful accounts balance as of March 31, 2022 and December 31, 2021. Some of ECHG’s customers are on payment terms, and although low risk, occasionally the need arises to record an allowance for receivables that are deemed high risk to collect. We established an allowance for estimated uncollectable receivables related to sales based on historical collections. Our allowance as of March 31, 2022 and December 31, 2021 was $1,582. Income Taxes We account for our position in tax uncertainties in accordance with ASC 740, Income Taxes. The guidance establishes standards for accounting for uncertainty in income taxes. The guidance provides several clarifications related to uncertain tax positions. Most notably, a “more likely-than-not” standard for initial recognition of tax positions, a presumption of audit detection and a measurement of recognized tax benefits based on the largest amount that has a greater than 50 percent likelihood of realization. The guidance applies a two-step process to determine the amount of tax benefit to be recognized in the financial statements. First, we must determine whether any amount of the tax benefit may be recognized. Second, we determine how much of the tax benefit should be recognized (this would only apply to tax positions that qualify for recognition.) No additional liabilities have been recognized as a result of the implementation. We have not taken a tax position that, if challenged, would have a material effect on the financial statements or the effective tax rate for the three months ended March 31, 2022 and 2021.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2022
LEASES
Leases	NOTE 12 — LEASES In determining our right-of-use assets and lease liabilities, we apply a discount rate to the minimum lease payments within each lease agreement. ASC 842 requires us to use the interest rate that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. If we cannot readily determine the discount rate implicit in lease agreements, we utilize our incremental borrowing rate. The Company has seven operating leases as of March 31, 2022—five in the Dallas/Fort Worth Metroplex, one in Charleston, South Carolina and one in Chandler, Arizona. The lease for DGSE’s flagship store located at 13022 Preston Road, Dallas, Texas expires on January 31, 2027, with an option to extend the lease for an additional five years, at market rate as determined by the prevailing market rate for comparable space in comparable buildings in the vicinity. The lease for DGSE’s Grand Prairie, Texas location expires June 30, 2022, and has no current renewal options. The lease for DGSE’s Mt Pleasant, South Carolina location expires April 30, 2025, with no additional renewal options. The lease for DGSE’s Euless, Texas location expires June 30, 2025, with an option for an additional five years. The lease for ECHG’s Echo location on W. Belt Line Road, in Carrollton, Texas, expires January 31, 2026. The lease for ECHG’s Teladvance location, which also houses ITAD USA, on Realty Road in Carrollton, Texas expires January 31, 2027. The lease for ECHG’s Avail location in Chandler, Arizona expires May 31, 2025. All of the Company’s seven leases as of March 31, 2022 are triple net, for which it pays its proportionate share of common area maintenance, property taxes and property insurance. Leasing costs for the three months ended March 31, 2022 and 2021 was $622,863 and $449,486, respectively, comprised of a combination of minimum lease payments and variable lease costs. As of March 31, 2022, the weighted average remaining lease term and weighted average discount rate for operating leases was 3.3 years and 4.4%, respectively. For the three months ended March 31, 2022 and 2021, the Company’s cash paid for operating lease liabilities was $616,097 and $501,907 respectively. Future annual minimum lease payments as of March 31, 2022: Operating Leases DGSE 2022 (excluding the three months ending March 31, 2022) $ 381,790 2023 499,984 2024 507,414 2025 364,269 2026 and thereafter 333,114 Total minimum lease payments 2,086,571 Less imputed interest (178,906 ) DGSE Sub-Total 1,907,665 ECHG 2022 (excluding the three months ending March 31, 2022) 991,870 2023 1,357,381 2024 1,396,129 2025 1,321,297 2026 and thereafter 507,780 Total minimum lease payments 5,574,457 Less imputed interest (430,822 ) ECHG Sub-Total 5,143,635 Total 7,051,300 Current portion 1,584,169 $ 5,467,131

BASIC AND DILUTED AVERAGE SHARE

BASIC AND DILUTED AVERAGE SHARES	3 Months Ended
	Mar. 31, 2022
BASIC AND DILUTED AVERAGE SHARES
Basic And Diluted Average Shares	NOTE 13 — BASIC AND DILUTED AVERAGE SHARES A reconciliation of basic and diluted weighted average common shares for the three months ended March 31, 2022 and 2021 is as follows: For the Three Months Ended March 31, 2022 2021 Basic weighted average shares 26,924,631 26,924,631 Effect of potential dilutive securities 15,000 15,000 Diluted weighted average shares 26,939,631 26,939,631 For the three months ended March 31, 2022 and 2021, there was a total of 15,000 common stock options, warrants, and Restricted Stock Units (RSUs) unexercised, respectively. For the three months ended March 31, 2022 and 2021, there were no anti-dilutive shares.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	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

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2022
STOCK-BASED COMPENSATION
Stock-based Compensation	NOTE 15 — STOCK-BASED COMPENSATION The Company accounts for share-based compensation by measuring the cost of employee services received in exchange for an award of equity instruments, including grants of stock options, based on the fair value of the award at the date of grant. In addition, to the extent that the Company receives an excess tax benefit upon exercise of an award, such benefit is reflected as cash flow from financing activities in the consolidated statement of cash flows. There was no stock-based compensation expense for the three months ended March 31, 2022 and 2021.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2022
RELATED PARTY TRANSACTIONS
Related Party Transactions	NOTE 16 — RELATED PARTY TRANSACTIONS The Company has a corporate policy governing the identification, review, consideration and approval or ratification of transactions with related persons, as that term is defined in the Instructions to Item 404(a) of Regulation S-K, promulgated under the Securities Act (each such person a Related Party”). Under this policy, all Related Party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with the Company’s best interests and the best interests of its stockholders. Among other factors, the Company’s Board considers the size and duration of the transaction, the nature and interest of the of the Related Party in the transaction, whether the transaction may involve a conflict of interest, and if the transaction is on terms that are at least as favorable to the Company as would be available in a comparable transaction with an unaffiliated third party. The Company’s Board reviews all Related Party transactions at least annually to determine if it is in the best interest of the Company and the Company’s stockholders to continue, modify, or terminate any of the Related Party transactions. Envela’s Related Person Transaction Policy is available for review in its entirety under the “Investors” menu of the Company’s corporate relations website at www.envela.com. 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. Both notes were being serviced by operational cash flow. On November 23, 2021, both notes were refinanced by Farmers State Bank of Oakley Kansas. For the three months ended March 31, 2022 and 2021, the Company paid Mr. Loftus $0 and $143,189, respectively, in interest on the Company’s notes payable, related party.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2022
SUBSEQUENT EVENTS
Subsequent Events	NOTE 17 — SUBSEQUENT EVENTS The COVID-19 pandemic has adversely affected global economic business conditions. Future sales on products like ours could decline or fluctuate due to increased or fluctuating commodities prices, particularly gold. Although we are continuing to monitor and assess the effects of the COVID-19 pandemic, the ultimate impact is highly uncertain and subject to change. The duration of any such impact cannot be predicted, nor can the timing of the development, distribution and acceptance of effective vaccines, booster shots or other treatments for potential COVID-19 divergent strains, including the Delta variant. In addition, the effects of the COVID-19 pandemic are subject to, among other things, the effect of government responses to the pandemic on our operations, including vaccine mandates, impacts of the pandemic on global and domestic economic conditions, including with respect to commercial activity, our customers and business partners, as well as consumer preferences and demand.

ACCOUNTING POLICIES AND ESTIM_2

ACCOUNTING POLICIES AND ESTIMATES (Policies)	3 Months Ended
	Mar. 31, 2022
ACCOUNTING POLICIES AND ESTIMATES
Financial Instruments	The carrying amounts reported in the condensed consolidated balance sheets for cash equivalents, trade receivables, prepaid expenses, other current assets, accounts payable, accrued expenses, customer deposits and other liabilities approximate fair value because of the immediate or short-term nature of these financial instruments. Notes payable and line of credit approximate fair value due to the market interest rate charged.
Earnings Per Share	Basic earnings per share of our common stock, par value $0.01 per share (our “Common Stock”), is computed by dividing net earnings available to holders of the Company’s Common Stock by the weighted average number of shares of Common Stock outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts requiring the Company to issue Common Stock were exercised or converted into Common Stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and warrants outstanding determined using the treasury stock method.
Goodwill	Goodwill is not amortized but evaluated for impairment on an annual basis during the fourth quarter of our fiscal year, or earlier if events or circumstances indicate the carrying value may be impaired. The Company’s goodwill is related to ECHG only and not the entire Company. ECHG has its own, separate financial information to perform goodwill impairment testing at least annually or if events indicate that those assets may be impaired. As a result of the current market and economic conditions related to the coronavirus pandemic (“COVID-19”) and the war between Ukraine and Russia, in accordance with step 1 of the guidelines set forth in ASC 350-20-35-3A, the Company concluded there were no impairments of goodwill that resulted from triggering events due to COVID-19 and the war between Ukraine and Russia as of March 31, 2022. The Company will continue to evaluate goodwill for the ECHG segment. For tax purposes, goodwill is amortized and deductible over fifteen years. ECHG goodwill was allocated in connection with three acquisitions of the assets now held by Echo on May 20, 2019 (the “Echo Transaction”), of the assets now held by Teladvance on June 9, 2021 (the “CExchange Transaction”) and of the assets now held by Avail on October 29, 2021 (the “Avail Transaction”). There was a preliminary addition to goodwill with the Avail Transaction of $3,491,285. There has been no other adjustments or impairment charges to goodwill. As of March 31, 2022 and December 31 2021, goodwill was $6,140,465.
Recent Accounting Pronouncements	In June 2016, the FASB issued a new credit loss accounting standard ASU 2016-13. The new accounting standard introduces the current expected credit losses methodology for estimating allowances for credit losses which will be based on expected losses rather than incurred losses. We will be required to use a forward-looking expected credit loss methodology for accounts receivable, loans and other financial instruments. The standard will be adopted upon the effective date for us beginning January 1, 2023 by using a modified retrospective transition approach to align our credit loss methodology with the new standard. The Company is evaluating the financial statement implications of ASU 2016-13.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2022
INVENTORIES
Schedule Of Inventories	March 31, December 31, 2022 2021 DGSE Resale $ 12,282,472 $ 10,422,072 Recycle 30,071 11,995 Subtotal 12,312,543 10,434,067 ECHG Resale 2,044,911 3,350,159 Recycle 264,121 264,210 Subtotal 2,309,032 3,614,369 $ 14,621,575 $ 14,048,436

ACQUISITION (Tables)

ACQUISITION (Tables)	3 Months Ended
	Mar. 31, 2022
ACQUISITIONS
Schedule Of Assets Acquired Of Purchase Price	Description Amount Assets Cash $ 988,870 Account receivables 395,144 Inventories 486,736 Prepaid expenses 93,727 Fixed assets - net 247,038 Right-of-use assets 609,511 Other assets 13,268 Liabilities Account payables (562,778 ) Accrued liabilities (653,289 ) Operating lease liabilities (609,511 ) Net assets 1,008,716 Goodwill 3,491,284 Total Purchase Price $ 4,500,000
Schedule Of Consolidated Statement Of Income	Consolidated Statement of Income Proforma Combined For the Three Months Ended For the Three Months Ended March 31, 2022 March 31, 2021 (unaudited) (unaudited) Revenue $ 47,415,098 $ 27,110,216 Income from continuing operations $ 2,647,225 $ 2,354,895 Net income $ 2,647,225 $ 2,354,895 Basic net income per common share $ 0.10 $ 0.09 Diluted net income per common share $ 0.10 $ 0.09

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2022
GOODWILL
Schedule Of Goodwill	March 31, December 31, 2022 2021 Opening balance $ 6,140,465 $ 1,367,109 Additions (1) - 4,773,356 Goodwill $ 6,140,465 $ 6,140,465

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2022
PROPERTY AND EQUIPMENT
Schedule Of Property And Equipment	March 31, December 31, 2022 2021 DGSE Land $ 1,640,220 $ 1,640,220 Building and improvements 2,781,903 2,764,529 Leasehold improvements 1,450,695 1,450,695 Machinery and equipment 1,056,315 1,056,315 Furniture and fixtures 554,881 526,250 Vehicles 22,859 22,859 7,506,873 7,460,868 Less: accumulated depreciation (2,422,573 ) (2,343,923 ) Sub-Total 5,084,300 5,116,945 ECHG Building and improvements 135,491 135,491 Machinery and equipment 1,145,832 1,109,306 Furniture and fixtures 145,950 145,950 1,427,273 1,390,747 Less: accumulated depreciation (289,945 ) (212,147 ) Sub-Total 1,137,328 1,178,600 Envela Land 1,106,664 1,106,664 Building and improvements 2,456,324 2,456,324 Machinery and equipment 34,528 23,676 3,597,516 3,586,664 Less: accumulated depreciation (99,645 ) (76,021 ) Sub-Total 3,497,871 3,510,643 $ 9,719,499 $ 9,806,188

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2022
GOODWILL
Schedule Of Intangible Assets	March 31, December 31, 2022 2021 DGSE Domain names $ 41,352 $ 41,352 Point of sale system 330,000 330,000 371,352 371,352 Less: accumulated amortization (286,002 ) (269,502 ) Subtotal 85,350 101,850 ECHG Trademarks (1) 1,483,000 1,483,000 Customer Contracts (1) 1,873,000 1,873,000 Trademarks/Tradenames (2) 114,000 114,000 Customer Relationships (2) 345,000 345,000 3,815,000 3,815,000 Less: accumulated amortization (987,980 ) (892,605 ) Subtotal 2,827,020 2,922,395 $ 2,912,370 $ 3,024,245
Schedule Of Estimated Amortization Expense	DGSE ECHG Total 2022 (excluding the three months ending March 31, 2022) 49,500 286,125 335,625 2023 30,350 381,500 411,850 2024 5,500 381,500 387,000 2025 - 381,500 381,500 2026 - 381,500 381,500 Thereafter - 1,014,895 1,014,895 $ 85,350 $ 2,827,020 $ 2,912,370

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2022
ACCRUED EXPENSES
Schedule Of Accrued Expenses	March 31, December 31, 2022 2021 DGSE Accrued interest $ 12,793 $ 12,627 Payroll 157,349 131,325 Property taxes 61,014 88,046 Sales tax 70,006 150,070 Other administrative expenss 3,449 - Subtotal 304,611 382,068 ECHG Accrued interest 8,464 14,547 Payroll 192,625 334,431 Unvouchered payables - inventory 480,866 461,481 Material & shipping costs (COGS) 118,445 78,647 Other accrued expenses - 51,506 Subtotal 800,400 940,612 Envela Accrued interest 7,522 8,355 Payroll 11,128 25,175 Professional fees 203,743 220,101 Property Tax 21,300 84,920 Other administrative expenses 12,500 18,453 State income tax 139,974 109,682 Subtotal 396,167 466,686 $ 1,501,178 $ 1,789,366

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2022
SEGMENT INFORMATION
Schedule Of Segment Reporting	For The Three Months Ended March 31, 2022 2021 DGSE ECHG Consolidated DGSE ECHG Consolidated Revenue: Sales $ 35,782,872 $ 11,632,226 $ 47,415,098 $ 18,914,501 $ 6,575,940 $ 25,490,441 Cost of goods sold 31,559,410 6,144,654 37,704,064 16,106,866 3,079,311 19,186,177 Gross profit 4,223,462 5,487,572 9,711,034 2,807,635 3,496,629 6,304,264 Expenses: Selling, general and administrative expenses 2,137,949 4,421,806 6,559,755 1,782,437 2,370,792 4,153,229 Depreciation and amortization 106,963 184,984 291,947 96,822 108,090 204,912 2,244,912 4,606,790 6,851,702 1,879,259 2,478,882 4,358,141 Operating income 1,978,550 880,782 2,859,332 928,376 1,017,747 1,946,123 Other income/expense: Other income (expense) (27,992 ) (30,584 ) (58,576 ) 111,731 160,210 271,941 Interest expense 61,241 61,998 123,239 68,485 110,537 179,022 Income before income taxes 1,889,317 788,200 2,677,517 971,622 1,067,420 2,039,042 Income tax expense 13,177 17,115 30,292 13,705 17,065 30,770 Net income $ 1,876,140 $ 771,085 $ 2,647,225 $ 957,917 $ 1,050,355 $ 2,008,272

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2022
REVENUE RECOGNITION
Schedule Of Disaggregation Of Revenue Listed By Sales Category And Segment	CONSOLIDATED Three Months Ended March 31, 2022 2021 Revenues Gross Profit Margin Revenues Gross Profit Margin DGSE Resale $ 33,677,133 $ 3,742,852 11.1 % $ 17,320,641 $ 2,457,144 14.2 % Recycled 2,105,739 480,610 22.8 % 1,593,860 350,491 22.0 % Subtotal 35,782,872 4,223,462 11.8 % 18,914,501 2,807,635 14.8 % ECHG Resale 9,579,857 4,574,268 47.7 % 4,740,992 2,612,184 55.1 % Recycled 2,052,369 913,304 44.5 % 1,834,948 884,445 48.2 % Subtotal 11,632,226 5,487,572 47.2 % 6,575,940 3,496,629 53.2 % $ 47,415,098 $ 9,711,034 20.5 % $ 25,490,441 $ 6,304,264 24.7 %

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2022
LEASES
Schedule Of Future Annual Minimum Lease Payments	Operating Leases DGSE 2022 (excluding the three months ending March 31, 2022) $ 381,790 2023 499,984 2024 507,414 2025 364,269 2026 and thereafter 333,114 Total minimum lease payments 2,086,571 Less imputed interest (178,906 ) DGSE Sub-Total 1,907,665 ECHG 2022 (excluding the three months ending March 31, 2022) 991,870 2023 1,357,381 2024 1,396,129 2025 1,321,297 2026 and thereafter 507,780 Total minimum lease payments 5,574,457 Less imputed interest (430,822 ) ECHG Sub-Total 5,143,635 Total 7,051,300 Current portion 1,584,169 $ 5,467,131

BASIC AND DILUTED AVERAGE SHA_2

BASIC AND DILUTED AVERAGE SHARES (Tables)	3 Months Ended
	Mar. 31, 2022
BASIC AND DILUTED AVERAGE SHARES
Schedule Of Reconciliation Of Basic And Diluted Weighted Average Common Shares	For the Three Months Ended March 31, 2022 2021 Basic weighted average shares 26,924,631 26,924,631 Effect of potential dilutive securities 15,000 15,000 Diluted weighted average shares 26,939,631 26,939,631

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2022
LONG-TERM DEBT
Schedule Of Long-term Debt	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
Schedule Of Long-term Debt Maturities Of Principal Payments	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 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

ACCOUNTING POLICIES AND ESTIM_3

ACCOUNTING POLICIES AND ESTIMATES (Details Narrative) - USD ($)	Jun. 09, 2021	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
ACCOUNTING POLICIES AND ESTIMATES
Goodwill		$ 6,140,465	$ 6,140,465	$ 1,367,109
Basic Earnings Per Share Of Common Stock, Par Value		$ 0.01	$ 0.01
Exchange Transaction Of Goodwill	$ 3,491,285

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Inventories	$ 14,621,575	$ 14,048,436
DGSE [Member] | Note Payable Farmers State Bank
Inventories	12,312,543	10,434,067
ECHG [Member] | Note Payable Farmers State Banks [Member]
Inventories	2,309,032	3,614,369
Resale | DGSE [Member]
Inventories	12,282,472	10,422,072
Resale | ECHG [Member]
Inventories	2,044,911	3,350,159
Recycled | DGSE [Member]
Inventories	30,071	11,995
Recycles | ECHG [Member]
Inventories	$ 264,121	$ 264,210

ACQUISITION (Details)

ACQUISITION (Details) - USD ($)	Jul. 09, 2021	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill		$ 6,140,465	$ 6,140,465	$ 1,367,109
Total Purchase Price	$ 1,282,072	3,491,284
Avail Transaction [Member]
Cash		988,870
Account Receivables		395,144
Inventory		486,736
Prepaid Expenses		93,727
Fixed Assets - Net		247,038
Right-of-use Assets		609,511
Other Assets		13,268
Account Payables		(562,778)
Accrued Liabilities		(653,289)
Operating Lease Liabilities		609,511
Net Assets		1,008,716
Goodwill		3,491,284
Total Purchase Price		$ 4,500,000

ACQUISITION (Details 1)

ACQUISITION (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
ACQUISITION (Details)
Revenue	$ 47,415,098	$ 27,110,216
Income (loss) From Continuing Operations	2,647,225	2,354,895
Net Income	$ 2,647,225	$ 2,354,895
Basic Net Income Per Common Share	$ 0.10	$ 0.09
Diluted Net Income Per Common Share	$ 0.10	$ 0.09

ACQUISITION (Details Narrative)

ACQUISITION (Details Narrative) - Avail Recovery Solutions [Member] - USD ($)	Jun. 09, 2021	Dec. 31, 2021	Oct. 29, 2021
Accrued And Unpaid Interest			$ 2,000,000
Liabilities And Rights And Interests			4,500,000
Initial Payment			2,500,000
Payments			$ 166,667
Imputed Interest Rate			3.10%
Goodwill		$ 3,491,284
Useful Life	15 years

GOODWILL (Details)

GOODWILL (Details) - USD ($)	Jul. 09, 2021	Mar. 31, 2022	Dec. 31, 2021
GOODWILL
Opening Balance		$ 6,140,465	$ 1,367,109
Additions		0	4,773,356
Ending Balance		6,140,465	$ 6,140,465
Purchase Price Allocation	$ 1,282,072	$ 3,491,284

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Property And Equipment, Net	$ 9,719,499	$ 9,806,188
DGSE [Member]
Property And Equipment, Net	5,084,300	5,116,945
Property And Equipment, Gross	7,506,873	7,460,868
Less: Accumulated Depreciation	(2,422,573)	(2,343,923)
DGSE [Member] | Buildings and Improvements
Property And Equipment, Gross	2,781,903	2,764,529
DGSE [Member] | Leasehold Improvements
Property And Equipment, Gross	1,450,695	1,450,695
DGSE [Member] | Machinery and Equipment
Property And Equipment, Gross	1,056,315	1,056,315
DGSE [Member] | Furniture and Fixtures
Property And Equipment, Gross	554,881	526,250
DGSE [Member] | Vehicles
Property And Equipment, Gross	22,859	22,859
DGSE [Member] | Land [Member]
Property And Equipment, Gross	1,640,220	1,640,220
ECHG [Member]
Property And Equipment, Net	1,137,328	1,178,600
Property And Equipment, Gross	1,427,273	1,390,747
Less: Accumulated Depreciation	(289,945)	(212,147)
ECHG [Member] | Buildings and Improvements
Property And Equipment, Gross	135,491	135,491
ECHG [Member] | Machinery and Equipment
Property And Equipment, Gross	1,145,832	1,109,306
ECHG [Member] | Furniture and Fixtures
Property And Equipment, Gross	145,950	145,950
Envela
Property And Equipment, Net	3,497,871	3,510,643
Property And Equipment, Gross	3,597,516	3,586,664
Less: Accumulated Depreciation	(99,645)	(76,021)
Envela | Buildings and Improvements
Property And Equipment, Gross	2,456,324	2,456,324
Envela | Machinery and Equipment
Property And Equipment, Gross	34,528	23,676
Envela | Land [Member]
Property And Equipment, Gross	$ 1,106,664	$ 1,106,664

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Total Intangibles	$ 2,912,370	$ 3,024,245
Point of Sale System | DGSE
Intangible Assets, Gross	330,000	330,000
DGSE [Member]
Total Intangibles	85,350	101,850
Intangible Assets, Gross	371,352	371,352
Less: Accumulated Amortization	286,002	269,502
DGSE [Member] | Domain Names
Intangible Assets, Gross	41,352	41,352
ECHG [Member]
Total Intangibles	2,827,020	2,922,395
Intangible Assets, Gross	3,815,000	3,815,000
Less: Accumulated Amortization	987,980	892,605
ECHG [Member] | Trademarks
Intangible Assets, Gross	1,483,000	1,483,000
ECHG [Member] | Trademarks/Tradename [Member]
Intangible Assets, Gross	114,000	114,000
ECHG [Member] | Customer Contracts
Intangible Assets, Gross	1,873,000	1,873,000
ECHG [Member] | Customer Relationships [Member]
Intangible Assets, Gross	$ 345,000	$ 345,000

INTANGIBLE ASSETS (Details 1)

INTANGIBLE ASSETS (Details 1) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
2022	$ 335,625
2023	411,850
2024	387,000
2025	381,500
2026	381,500
Thereafter	1,014,895
Total	2,912,370	$ 3,024,245
DGSE [Member]
2022	49,500
2023	30,350
2024	5,500
2025	0
Thereafter	0
Total	85,350	101,850
2026	0
ECHG [Member]
2022	286,125
2023	381,500
2024	381,500
2025	381,500
2026	381,500
Thereafter	1,014,895
Total	$ 2,827,020	$ 2,922,395

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Accrued Expenses	$ 1,501,178	$ 1,789,366
DGSE [Member]
Accrued Expenses	304,611	382,068
Accrued Interest	12,793	12,627
Payroll	157,349	131,325
Property Tax	61,014	88,046
Sales Tax	70,006	150,070
Other Administrative Expense	3,449	0
ECHG [Member]
Accrued Expenses	800,400	940,612
Accrued Interest	8,464	14,547
Payroll	192,625	334,431
Unvouchered Payables - Inventory	480,866	461,481
Material & Shipping Costs (cogs)	118,445	78,647
Other Accrued Expenses	0	51,506
Envela
Accrued Expenses	396,167	466,686
Accrued Interest	7,522	8,355
Payroll	11,128	25,175
Property Tax	21,300	84,920
Other Administrative Expense	12,500	18,453
Professional Fees	203,743	220,101
State Income Tax	$ 139,974	$ 109,682

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Sales	$ 47,415,098	$ 25,490,441
Cost Of Goods Sold	37,704,064	19,186,177
Gross Profit	9,711,034	6,304,264
Selling, General And Administrative Expenses	6,559,755	4,153,229
Depreciation And Amortization	291,947	204,912
Operating Income	2,859,332	1,946,123
Total Operating Expenses	6,851,702	4,358,141
Other Income (expense)	(58,576)	271,941
Interest Expense	123,239	179,022
Income Before Income Taxes	2,677,517	2,039,042
Income Tax Expense	30,292	30,770
Net Income	2,647,225	2,008,272
DGSE [Member]
Sales	35,782,872	18,914,501
Cost Of Goods Sold	31,559,410	16,106,866
Gross Profit	4,223,462	2,807,635
Selling, General And Administrative Expenses	2,137,949	1,782,437
Depreciation And Amortization	106,963	96,822
Operating Income	1,978,550	928,376
Total Operating Expenses	2,244,912	1,879,259
Other Income (expense)	(27,992)	111,731
Interest Expense	61,241	68,485
Income Before Income Taxes	1,889,317	971,622
Income Tax Expense	13,177	13,705
Net Income	1,876,140	957,917
ECHG [Member]
Sales	11,632,226	6,575,940
Cost Of Goods Sold	6,144,654	3,079,311
Gross Profit	5,487,572	3,496,629
Selling, General And Administrative Expenses	4,421,806	2,370,792
Depreciation And Amortization	184,984	108,090
Operating Income	880,782	1,017,747
Total Operating Expenses	4,606,790	2,478,882
Other Income (expense)	(30,584)	160,210
Interest Expense	61,998	110,537
Income Before Income Taxes	788,200	1,067,420
Income Tax Expense	17,115	17,065
Net Income	$ 771,085	$ 1,050,355

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues	$ 47,415,098	$ 25,490,441
Gross Margin	$ 9,711,034	$ 6,304,264
Margin	20.50%	24.70%
DGSE [Member]
Revenues	$ 35,782,872	$ 18,914,501
Gross Margin	$ 4,223,462	$ 2,807,635
Margin	11.80%	14.80%
DGSE [Member] | Resale
Revenues	$ 33,677,133	$ 17,320,641
Gross Margin	$ 3,742,852	$ 2,457,144
Margin	11.10%	14.20%
DGSE [Member] | Recycled
Revenues	$ 2,105,739	$ 1,593,860
Gross Margin	$ 480,610	$ 350,491
Margin	22.80%	22.00%
ECHG [Member]
Revenues	$ 11,632,226	$ 6,575,940
Gross Margin	$ 5,487,572	$ 3,496,629
Margin	47.20%	53.20%
ECHG [Member] | Resale
Revenues	$ 9,579,857	$ 4,740,992
Gross Margin	$ 4,574,268	$ 2,612,184
Margin	47.70%	55.10%
ECHG [Member] | Recycled
Revenues	$ 2,052,369	$ 1,834,948
Gross Margin	$ 913,304	$ 884,445
Margin	44.50%	48.20%

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Return Allowance	$ 28,000	$ 28,000
Description Of Sales	minimum payment of 25% of the sales price
ECHG [Member]
Return Allowance	$ 1,582	$ 1,582

LEASES (Details)

LEASES (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Less Current Portion	$ (1,584,169)	$ (1,573,824)
Long Term Operating Lease Liability	7,051,300
Total	5,467,131
DGSE [Member]
Operating Lease Liability	1,907,665
2022 (excluding The Three Months Ending March 31, 2022)	381,790
2023	499,984
2024	507,414
2025	364,269
2026 And Thereafter	333,114
Total Minimum Lease Payments	2,086,571
Less Imputed Interest	(178,906)
ECHG [Member]
Operating Lease Liability	5,143,635
2022 (excluding The Three Months Ending March 31, 2022)	991,870
2023	1,357,381
2024	1,396,129
2025	1,321,297
2026 And Thereafter	507,780
Total Minimum Lease Payments	5,574,457
Less Imputed Interest	$ (430,822)

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
LEASES
Leasing Costs	$ 622,863	$ 449,486
Weighted Average Remaining Lease Term	3 years 3 months 18 days
Weighted Average Discount Rate	4.40%
Cash Paid For Operating Lease Liabilities	$ 616,097	$ 501,907

BASIC AND DILUTED AVERAGE SHA_3

BASIC AND DILUTED AVERAGE SHARES (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
BASIC AND DILUTED AVERAGE SHARES
Basic Weighted Average Shares	26,924,631	26,924,631
Effect Of Potential Dilutive Securities	15,000	15,000
Diluted Weighted Average Shares	26,939,631	26,939,631

BASIC AND DILUTED AVERAGE SHA_4

BASIC AND DILUTED AVERAGE SHARES (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
BASIC AND DILUTED AVERAGE SHARES
Effect Of Potential Dilutive Securities	15,000	15,000

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Subtotal	$ 16,829,856	$ 18,736,131
Current Portion	1,003,592	2,120,457
Noncurrent Portion	15,826,264	16,615,674
Avail Transaction Note
Note Payable, Related Party	$ 1,933,333	2,000,000
Interest Rate	0.00%
Maturity	Apr. 1, 2025
DGSE [Member]
Subtotal	$ 5,852,259	5,906,257
ECHG [Member]
Subtotal	8,161,838	9,986,459
Note Payable Farmers State Bank | DGSE [Member]
Subtotal	2,745,186
Note Payable, Related Party	$ 2,745,186	2,770,729
Interest Rate	3.10%
Maturity	Nov. 15, 2026
Note Payable Farmers State Bank | ECHG [Member]
Subtotal	$ 6,228,505
Note Payable, Related Party	$ 6,228,505	6,286,459
Interest Rate	3.10%
Maturity	Nov. 15, 2026
Note Payable Texas Bank And Trust | DGSE [Member]
Subtotal	$ 469,556
Note Payable, Related Party	$ 469,556	474,009
Interest Rate	3.75%
Maturity	Sep. 14, 2025
Note Payable Texas Bank And Trust | Envela
Subtotal	$ 2,815,759
Note Payable, Related Party	$ 2,815,759	2,843,415
Interest Rate	3.25%
Maturity	Nov. 4, 2025
Note Payable Texas Bank And Trust 1 | DGSE [Member]
Subtotal	$ 1,737,081
Note Payable, Related Party	$ 1,737,081	1,752,446
Interest Rate	3.25%
Maturity	Jul. 30, 2031
Note Payable Truist Bank | DGSE [Member]
Subtotal	$ 900,436
Note Payable, Related Party	$ 900,436	909,073
Interest Rate	3.65%
Maturity	Jul. 9, 2030
Revolving Line Of Credit
Note Payable, Related Party	$ 0	$ 1,700,000
Interest Rate	3.10%
Maturity	Nov. 15, 2024

LONG-TERM DEBT (Details 1)

LONG-TERM DEBT (Details 1) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
2022 (excluding The Three Months Ended March 31, 2022)	$ 858,031
2023	1,250,885
2024	1,269,959
2025	3,572,422
2026	7,776,134
Subtotal	16,829,856	$ 18,736,131
Thereafter	2,102,425
DGSE [Member]
Subtotal	5,852,259	5,906,257
ECHG [Member]
Subtotal	8,161,838	$ 9,986,459
Note Payable Farmers State Bank | DGSE [Member]
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 Farmers State Bank | ECHG [Member]
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 Texas Bank And Trust | DGSE [Member]
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 And Trust | Envela
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
Note Payable Texas Bank And Trust 1 | DGSE [Member]
2022 (excluding The Three Months Ended March 31, 2022)	52,616
2023	72,442
2024	74,832
2025	77,300
2026	79,600
Subtotal	1,737,081
Thereafter	1,380,291
Note Payable Truist Bank | DGSE [Member]
2022 (excluding The Three Months Ended March 31, 2022)	26,018
2023	35,988
2024	37,342
2025	38,748
2026	40,206
Subtotal	900,436
Thereafter	722,134
Note payable - Avail Transaction
2022 (excluding The Three Months Ended March 31, 2022)	433,333
2023	666,667
2024	666,667
2025	166,666
Subtotal	$ 1,933,333

LONG-TERM DEBT (Details 2)

LONG-TERM DEBT (Details 2) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
2022 (excluding The Three Months Ended March 31, 2022)	$ 858,031
2023	1,250,885
2024	1,269,959
2025	3,572,422
2026	7,776,134
Thereafter	2,102,425
Subtotal	16,829,856	$ 18,736,131
Scheduled Principal payment
2022 (excluding The Three Months Ended March 31, 2022)	858,031
2023	1,250,885
2024	1,269,959
2025	595,940
2026	434,243
Thereafter	555,443
Subtotal	4,964,501
Loan Maturities
2022 (excluding The Three Months Ended March 31, 2022)	0
2023	0
2024	0
2025	2,976,482
2026	7,341,891
Thereafter	1,546,982
Subtotal	$ 11,865,355

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	Nov. 04, 2020	Sep. 14, 2020	Jul. 09, 2020	Nov. 23, 2021	Oct. 29, 2021	Jul. 30, 2021	May 20, 2019	Mar. 31, 2022	Dec. 31, 2021
Purchase Partly Financed			$ 956,000
New Retail Building			$ 1,195,000
Annual Interest Rate			3.65%
Monthly Interest Payments			$ 5,645
Loan Period			10 years
Amortized Period			20 years
Line Of Credit								$ 0	$ 1,700,000
Note Payable Farmers State Bank
Line Of Credit				$ 3,500,000
Line Of Credit Interest Rate				3.10%
DGSE [Member]
Annual Interest Rate							6.00%
Monthly Interest Payments							$ 49,646
Loan Period							5 years
Amortized Period							20 years
Purchase New Retail Building						$ 2,215,500
Accounts Payable - Related Party Balance							$ 3,074,021
Revised Monthly Interest Payment Due							$ 22,203
ECHG [Member]
Annual Interest Rate							6.00%
Loan Period							5 years
Amortized Period							20 years
Accounts Payable - Related Party Balance							$ 6,925,979
Purchased Assets And Liabilities					$ 4,500,000
Asset Purchase Agreement Description					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%
NWH Holdings LLC [Member]
Purchase Partly Financed		$ 496,000
Annual Interest Rate		3.75%
Monthly Interest Payments		$ 2,941
Loan Period		5 years
Amortized Period		20 years
Purchase New Retail Building		$ 620,000
Gateway Holdings [Member]
Purchase Partly Financed	$ 2,960,000					$ 1,772,000,000,000
Annual Interest Rate	3.25%					3.75%
Monthly Interest Payments	$ 16,792					$ 10,509
Loan Period	5 years					5 years
Amortized Period	20 years					20 years
Purchase New Retail Building	$ 3,521,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative1) - USD ($)	1 Months Ended	3 Months Ended
	May 20, 2019	Mar. 31, 2022	Mar. 31, 2021
Outstanding Note Payable		$ 206,274	$ 40,239
John Loftus
Outstanding Note Payable		0	$ 143,189
John Loftus | ECHG [Member]
Accounts Payable Related Party		6,925,979
Promissory Note	$ 6,925,979
Promissory Note Amortization Term	20 years
Interest Rate	6.00%
Due To Related Party		49,646
John Loftus | DGSE [Member]
Accounts Payable Related Party		3,074,021
Promissory Note Amortization Term	20 years
Interest Rate	6.00%
Due To Related Party		$ 22,203