Business Segments - Envela Corporation's consumer segment focuses on the recommercialization of luxury hard assets, including diamonds, and operates brands such as Dallas Gold and Silver Exchange and Charleston Gold & Diamond Exchange [113]. - The commercial segment operates brands like Echo and ITAD USA, focusing on recycling electronic components and IT equipment, with an emphasis on compliance and data sanitization services [124]. - On September 12, 2023, Envela purchased all issued and outstanding stock of Kretchmer, which will be incorporated into the consumer segment [123]. - Envela's consumer segment relies on purchasing products from secondary markets, with gross profit dependent on timely sales and market conditions [118]. Financial Performance - Net income for the three months ended September 30, 2023, was $1,707,493, a decrease from $3,317,709 in the same period of 2022, representing a decline of 48.6% [140]. - EBITDA for the three months ended September 30, 2023, was $2,287,902, down from $3,993,572 in 2022, reflecting a decrease of 42.7% [140]. - Consolidated revenue for the three months ended September 30, 2023, was $36,266,271, a decrease of 20% from $45,197,686 in the same period in 2022 [155]. - Gross profit for the consolidated segment decreased to $9,734,282, down 18% from $11,855,657 year-over-year [155]. - Operating income fell to $1,950,189, a decline of 44% compared to $3,458,608 in the prior year [155]. - Net income decreased by 49% to $1,707,493 from $3,317,709 in the same quarter of 2022 [167]. - Earnings per share for the three months ended September 30, 2023, was $0.06, a decrease of 50% compared to $0.12 for the same period in 2022 [170]. Revenue Breakdown - Consolidated resale revenue decreased by $8,893,575, or 22%, to $30,797,325 for the three months ended September 30, 2023, compared to $39,690,900 in 2022 [145]. - Consumer segment resale revenue fell by $4,365,692, or 15%, to $23,807,040, while commercial segment resale revenue dropped by $4,527,883, or 39% [145][146]. - Recycled revenue for the three months ended September 30, 2023, was $5,468,946, a slight decrease of $37,840, or 0.01%, from $5,506,786 in 2022 [147]. - Total consolidated revenue for the nine months ended September 30, 2023, was $134,958,838, a slight decrease of 0.2% from $135,252,502 in 2022 [173]. - Consumer resale revenue increased by 5% to $94,172,640 for the nine months ended September 30, 2023, compared to $90,014,891 in 2022 [174]. - Commercial resale revenue decreased by 23% to $23,114,611 for the nine months ended September 30, 2023, down from $30,200,026 in 2022 [175]. - Recycled revenue increased by 18% to $17,671,587 for the nine months ended September 30, 2023, compared to $15,037,585 in 2022 [176]. Profitability Metrics - Gross profit from resale operations decreased by $2,122,601, or 22%, to $7,593,938 for the three months ended September 30, 2023, compared to $9,716,539 in 2022 [150]. - Consumer gross profit from resale operations decreased by $459,763, or 14%, to $2,791,390, while commercial gross profit decreased by $1,662,838, or 26% [151][152]. - Consolidated gross profit for resale decreased by 8% to $25,103,167 for the nine months ended September 30, 2023, down from $27,320,120 in 2022 [178]. - Consolidated gross profit for recycled increased by 19% to $6,803,064 for the nine months ended September 30, 2023, compared to $5,724,571 in 2022 [181]. Expenses and Income Tax - Selling, general and administrative expenses decreased by 5% to $7,446,380 from $7,862,085 year-over-year [157]. - Selling, general and administrative expenses increased by 9% to $23,714,237 for the nine months ended September 30, 2023, compared to $21,707,789 in 2022 [186]. - Income tax expense rose dramatically by 396% to $317,967 from $64,061 year-over-year [165]. - Income tax expense increased by $1,389,582, or 961%, to $1,534,187 for the nine months ended September 30, 2023, compared to $144,605 in 2022 [193]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities totaled $3,469,991 for the nine months ended September 30, 2023, a decrease of $4,255,149 from $7,725,140 in 2022 [199]. - Cash flows used in investing activities increased by $841,177 to $1,285,362 for the nine months ended September 30, 2023, compared to $444,185 in 2022 [200]. - Cash flows used in financing activities decreased by $401,138 to $2,049,209 for the nine months ended September 30, 2023, compared to $2,450,347 in 2022 [201]. - The company expects capital expenditures to total approximately $4,000,000 over the next 12 months, driven by equipment purchases and potential property acquisitions [202]. - The company has an outstanding capital commitment of $100,000 for the build-out of a consumer building purchased in Phoenix, Arizona [202]. Market Conditions and Strategic Outlook - The company is monitoring economic impacts from inflation and geopolitical conflicts, which have led to fewer customers selling items [130]. - Envela's strategy includes organic growth and strategic acquisitions to enhance its commercial segment, aiming to increase recurring revenues and expand margins [127]. - The company believes it has sufficient capital resources to meet working capital requirements, but may seek additional loans if significant growth in retail and wholesale jewelry sales occurs [204]. - The company has historically funded working capital needs through operations and may adjust inventory levels to meet unforeseen requirements [205]. - There are no off-balance sheet arrangements that materially affect the company's financial condition or operations [207].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From _____________ to _____________ Commission File Number 001-11048 ENVELA CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Nevada 88-0097334 (STATE OF INCO ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to ENVELA CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) __________________________ Nevada 88-0097334 (STATE OF INCORPORATION) (I.R.S. EMPLOYER IDENT ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Envela operates as a re-commerce company through Commercial Services (ECHG) and Direct-to-Consumer (DGSE) segments, extending product lifecycles - Envela's mission is to empower buyers and sellers to extend the useful lives of manufactured goods through re-commerce, contributing to a circular economy by reselling, reusing components, or recycling materials[19](index=19&type=chunk)[20](index=20&type=chunk) - The company operates through two segments: Commercial Services (ECHG, LLC) for asset disposition solutions to businesses and government agencies, and Direct-to-Consumer (DGSE, LLC) for buying and reselling luxury hard assets like jewelry, precious metals, and rare coins[21](index=21&type=chunk)[22](index=22&type=chunk)[33](index=33&type=chunk) - Envela's commercial services include IT equipment disposition, repair, refurbishment, and recycling, offering custom ITAD programs with secure logistics and data sanitization, experiencing seasonal fluctuations based on new device releases and promotional programs[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - The direct-to-consumer segment, DGSE, has over 50 years of experience in luxury goods, providing a marketplace for jewelry, diamonds, fine watches, rare coins, and precious metals, observing supply and demand seasonality with increased supply in Q3/Q4 and increased demand in Q4, leading to higher operating expenses in the last four months of the year[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk) - Envela incorporated in 1965 and underwent significant transformation under new management starting in 2016, achieving **six consecutive years of profitability** and rebranding to Envela Corporation in 2019 to reflect its diversified re-commerce portfolio[40](index=40&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - The company emphasizes its commitment to sustainability by promoting recirculation and reuse of goods and fostering a diverse and inclusive workforce of **257 full-time equivalent employees** as of December 31, 2022[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Item 1A. Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) Envela faces risks from shareholder control, key personnel, acquisitions, liquidity, interest rates, deferred tax assets, regulatory compliance, cybersecurity, market competition, economic conditions, and precious metals volatility - The Company's voting power is substantially controlled by a small number of shareholders, with CEO John R. Loftus controlling **47.6%** through N10TR, LLC and **23.6%** through Eduro Holdings, LLC, allowing significant influence over shareholder votes and potential control changes[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - Acquisitions pose risks such as integration difficulties, unanticipated costs, failure to realize anticipated financial benefits, diversion of management attention, negative effects on existing relationships, and potential loss of key employees[67](index=67&type=chunk)[71](index=71&type=chunk) - The Company's financial condition is sensitive to liquidity and capital requirements, with potential adverse effects from reduced cash flows or credit availability, and interest rate fluctuations, particularly the significant rises in 2022, could increase borrowing costs and hinder financing[68](index=68&type=chunk)[72](index=72&type=chunk) - Realization of deferred tax assets, approximately **$1.5 million** as of December 31, 2022, depends on generating future taxable income before carryovers expire, and changes in corporate tax rates could materially affect their value[69](index=69&type=chunk)[70](index=70&type=chunk) - The market for precious metals is inherently unpredictable, with prices influenced by global supply/demand, U.S. Federal Reserve policies, inflation, and economic uncertainty, where misjudging these markets or significant price fluctuations (especially downward) can negatively impact profitability and the ability to purchase inventory[94](index=94&type=chunk)[95](index=95&type=chunk)[99](index=99&type=chunk) - Adverse economic conditions, including declines in consumer confidence and spending due to factors like employment levels, inflation, and global events (e.g., COVID-19, geopolitical conflicts), could materially affect the Company's operating results, particularly for discretionary items like jewelry[91](index=91&type=chunk)[92](index=92&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) [Item 1B. Unresolved Staff Comments](index=13&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved staff comments were reported - No unresolved staff comments were reported[106](index=106&type=chunk) [Item 2. Properties](index=13&type=section&id=Item%202.%20Properties) Envela operates various leased and owned properties across three markets, continuously evaluating them for profitability and long-term sustainability - The Company operates **nine leased and owned properties** across three markets: DFW (9), Mount Pleasant, SC (1), and Chandler, AZ (1)[108](index=108&type=chunk) - DGSE owns **three retail locations** in DFW and leases **four others** with expiration dates from 2025 to 2027, with renewal rights for three properties[108](index=108&type=chunk) - ECHG leases all **three of its locations** (two in DFW, one in Chandler, AZ) with leases expiring from 2025 to 2027, with one renewal right[108](index=108&type=chunk) - The principal corporate office building is owned by the Company and located at 1901 Gateway Drive, Irving, Texas[108](index=108&type=chunk) [Item 3. Legal Proceedings](index=14&type=section&id=Item%203.%20Legal%20Proceedings) Management believes the ultimate resolution of current legal proceedings will not materially affect the Company's financial condition, results of operations, or cash flows - Management believes that the ultimate resolution of current legal proceedings will not have a material effect on the Company's financial condition, results of operations, or cash flows[111](index=111&type=chunk) [Item 4. Mine Safety Disclosures](index=14&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable[113](index=113&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=14&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Envela's Common Stock trades on the NYSE American under "ELA," with 268 record holders as of March 10, 2023, and the company retains earnings for future growth without declaring dividends - Envela's Common Stock is traded on the NYSE American under the symbol "**ELA**"[3](index=3&type=chunk) - As of March 10, 2023, there were **268 record holders** of Common Stock[116](index=116&type=chunk) - The Company has not declared dividends on Common Stock and intends to retain all current earnings to finance future growth[118](index=118&type=chunk) - No purchases of equity securities were made by the issuer or affiliated purchasers during the years ended December 31, 2022, and December 31, 2021[123](index=123&type=chunk) Equity Compensation Plan Information as of December 31, 2022 | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 15,000 | $2.17 | 1,100,000 | | Equity compensation plans not approved by security holders | N/A | N/A | N/A | | Total | 15,000 | $2.17 | 1,100,000 | [Item 6. [Reserved]](index=15&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information - Item 6 is reserved[124](index=124&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Envela's financial condition and operational results for the fiscal year ended December 31, 2022, compared to 2021, highlighting revenue growth, expense changes, liquidity, and critical accounting policies [Cautionary Statement Regarding Risks and Uncertainties](index=15&type=section&id=Cautionary%20Statement%20Regarding%20Risks%20and%20Uncertainties) The discussion contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially - The discussion contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[126](index=126&type=chunk) - Readers should review 'Item 1A. Risk Factors' for important risk factors[126](index=126&type=chunk) [Overview](index=15&type=section&id=Overview) Envela is

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated Filer ☒ Smaller reporting company ☒ Emerging growth company ☐ FORM 10-Q _____________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period Fr ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-Q ________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From ___________ to ____________ Commission File Number 001-11048 ________________________ ENVELA CORPORATION (EXACT NAME OF ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From _______________ to _______________ Commission File Number 001-11048 ENVELA CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Nevada 88-0097334 (STATE OF ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-K ________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From __________ to __________ Commission File Number 001-11048 ________________________ ENVELA CORPORATION (EXACT NAME OF REGISTR ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ COMMON STOCK, par value $0.01 per share ELA NYSE American Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ FORM 10-Q _________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Title of each class Trading Symbol Name of exchange on which registered COMMON STOCK, par value $0.01 per share ELA NYSE American Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTIO ...