2021 Q4 Form 10-Q Financial Statement

#000156827621002015 Filed on November 04, 2021

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2020 Q4
Revenue $44.07M $37.68M $28.74M
YoY Change 53.36% -2.91% 29.41%
Cost Of Revenue $34.39M $29.57M $22.60M
YoY Change 52.15% -6.56% 35.18%
Gross Profit $9.679M $8.110M $6.133M
YoY Change 57.82% 13.22% 11.8%
Gross Profit Margin 21.96% 21.52% 21.34%
Selling, General & Admin $6.583M $5.230M $4.242M
YoY Change 55.2% 35.17% 1.4%
% of Gross Profit 68.02% 64.49% 69.16%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $288.8K $216.2K $189.4K
YoY Change 52.47% 20.24% -35.3%
% of Gross Profit 2.98% 2.67% 3.09%
Operating Expenses $6.872M $5.447M $4.431M
YoY Change 55.08% 34.5% -1.0%
Operating Profit $2.807M $2.663M $1.702M
YoY Change 64.93% -14.47% 68.58%
Interest Expense -$158.5K $188.9K -$175.1K
YoY Change -9.49% 21.22% 0.52%
% of Operating Profit -5.65% 7.09% -10.29%
Other Income/Expense, Net $94.17K -$60.78K $186.5K
YoY Change -49.5% -325.53% -4216.78%
Pretax Income $2.804M $3.133M $1.713M
YoY Change 63.66% 4.95% 106.21%
Income Tax $22.90K $26.46K $54.49K
% Of Pretax Income 0.82% 0.84% 3.18%
Net Earnings $2.781M $3.106M $1.659M
YoY Change 67.66% 4.07% 107.07%
Net Earnings / Revenue 6.31% 8.24% 5.77%
Basic Earnings Per Share $0.12
Diluted Earnings Per Share $103.2K $0.12 $61.61K
COMMON SHARES
Basic Shares Outstanding 26.92M shares 26.92M shares
Diluted Shares Outstanding 26.94M shares

Balance Sheet

Concept 2021 Q4 2021 Q3 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.14M $8.323M $9.218M
YoY Change 9.98% 14.5% 104.36%
Cash & Equivalents $10.14M $8.323M $9.218M
Short-Term Investments
Other Short-Term Assets $969.6K $2.275M $0.00
YoY Change 51.49% -100.0%
Inventory $14.05M $12.65M $10.01M
Prepaid Expenses $439.0K $1.171M $281.7K
Receivables $7.167M $5.678M $2.847M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $34.37M $28.93M $23.51M
YoY Change 46.18% 20.31% 28.11%
LONG-TERM ASSETS
Property, Plant & Equipment $9.806M $9.647M $6.889M
YoY Change 42.35% 41.59% 86.88%
Goodwill $6.140M $3.259M $1.367M
YoY Change 349.16% 138.36% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $237.8K $615.0K $197.6K
YoY Change 20.3% 105.26% -3.49%
Total Long-Term Assets $24.90M $20.30M $17.07M
YoY Change 45.89% 55.28% 97.28%
TOTAL ASSETS
Total Short-Term Assets $34.37M $28.93M $23.51M
Total Long-Term Assets $24.90M $20.30M $17.07M
Total Assets $59.27M $49.23M $40.58M
YoY Change 46.05% 32.62% 50.27%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.488M $1.683M $1.511M
YoY Change 64.72% -34.07% 2.92%
Accrued Expenses $1.789M $1.249M $844.3K
YoY Change 111.93% -36.62% -59.63%
Deferred Revenue
YoY Change
Short-Term Debt $1.700M $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $2.766M $550.3K $2.120M
YoY Change 30.43% -72.78%
Total Short-Term Liabilities $9.797M $5.516M $6.053M
YoY Change 61.85% -18.09% 25.86%
LONG-TERM LIABILITIES
Long-Term Debt $15.97M $14.63M $13.29M
YoY Change 20.14% 38.97% 55.39%
Other Long-Term Liabilities $5.873M $4.240M $3.654M
YoY Change 60.71% 7.58% 49.45%
Total Long-Term Liabilities $15.97M $14.63M $13.29M
YoY Change 20.14% 1.11% 20.85%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.797M $5.516M $6.053M
Total Long-Term Liabilities $15.97M $14.63M $13.29M
Total Liabilities $31.64M $24.38M $23.00M
YoY Change 37.56% 15.01% 45.49%
SHAREHOLDERS EQUITY
Retained Earnings -$12.81M -$15.60M -$22.86M
YoY Change -43.95%
Common Stock $40.44M $40.44M $40.44M
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $27.63M $24.85M $17.58M
YoY Change
Total Liabilities & Shareholders Equity $59.27M $49.23M $40.58M
YoY Change 46.05% 32.62% 50.27%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2020 Q4
OPERATING ACTIVITIES
Net Income $2.781M $3.106M $1.659M
YoY Change 67.66% 4.07% 107.07%
Depreciation, Depletion And Amortization $288.8K $216.2K $189.4K
YoY Change 52.47% 20.24% -35.3%
Cash From Operating Activities $1.779M $762.8K $3.662M
YoY Change -51.44% -71.68% 67.26%
INVESTING ACTIVITIES
Capital Expenditures -$74.44K -$2.580M -$3.982M
YoY Change -98.13% 39.18% 26446.67%
Acquisitions
YoY Change
Other Investing Activities -$1.450M $355.0K -$600.0K
YoY Change 141.63%
Cash From Investing Activities -$1.524M -$2.225M -$4.582M
YoY Change -66.73% 20.03% 30446.67%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.561M 1.654M 2.868M
YoY Change -45.59% 20.12% -1407.49%
NET CHANGE
Cash From Operating Activities 1.779M 762.8K 3.662M
Cash From Investing Activities -1.524M -2.225M -4.582M
Cash From Financing Activities 1.561M 1.654M 2.868M
Net Change In Cash 1.815M 192.1K 1.949M
YoY Change -6.87% -91.33% -0.33%
FREE CASH FLOW
Cash From Operating Activities $1.779M $762.8K $3.662M
Capital Expenditures -$74.44K -$2.580M -$3.982M
Free Cash Flow $1.853M $3.343M $7.644M
YoY Change -75.76% -26.49% 246.74%

Facts In Submission

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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2020Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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CY2019Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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CY2021Q3 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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CY2020Q3 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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30025 USD
ela Acquisition Of Cexchange Assets And Liabilities
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1555892 USD
ela Acquisition Of Cexchange Assets And Liabilities
AcquisitionOfCexchangeAssetsAndLiabilities
0 USD
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CY2020Q3 us-gaap Stockholders Equity
StockholdersEquity
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CY2021Q2 us-gaap Stockholders Equity
StockholdersEquity
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CY2021Q3 us-gaap Net Income Loss
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CY2021Q3 us-gaap Stockholders Equity
StockholdersEquity
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CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2020Q3 us-gaap Stockholders Equity
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us-gaap Net Income Loss
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CY2021Q3 us-gaap Stockholders Equity
StockholdersEquity
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us-gaap Nature Of Operations
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<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><span style="text-decoration:underline">NOTE 2 — PRINCIPLES OF CONSOLIDATION AND NATURE OF OPERATIONS</span></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">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 &amp; Silver Exchange, Charleston Gold &amp; Diamond Exchange, and Bullion Express brands. Through ECHG, LLC (“ECHG”), it operates Echo Environmental Holdings, LLC (“Echo”), ITAD USA Holdings, LLC (“ITAD USA”) and Teladvance, LLC (“Teladvance”). Envela is a Nevada corporation, headquartered in Irving, Texas.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">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 six 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.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">ECHG owns and operates Echo, ITAD USA and Teladvance. ECHG, through its wholly owned holding company CEX Holdings, LLC (“CEX”), purchased substantially all the assets, together with certain liabilities which exceeded the purchased assets by $335,585, of CExchange LLC (“CExchange”) pursuant to an asset purchase agreement (the “CExchange Asset Purchase Agreement”) on June 9, 2021 (the “CExchange Transaction”) in exchange for forgiving $1,500,000 in debt plus accrued interest owed to ECHG. Following the CExchange Transaction, the purchased assets and liabilities were then transferred and assigned to Teladvance. CExchange was a leader in electronics-trade-in services for retailers, providing in-store and online solutions for many of the major consumer electronics retailers in the United States. CExchange helped retailers provide in-store trade-in programs designed to allow retail consumers to exchange their old technology for cash in minutes. The Company believes the acquisition of CExchange’s business fits well with ECHG’s existing core business of refurbishing and reusing electronics, particularly cellular telephones. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">Based on the terms of the purchase, ECHG has concluded the CExchange Transaction represents a business combination pursuant to Financial Accounting Standards Board (“FASB”). Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). ECHG has determined that the assets purchased and the liabilities assumed, through the CExchange Transaction, have an approximate fair value due to the their carrying value.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">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. In addition, following the CExchange Transaction, 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 operates as a value-added reseller 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.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">For additional information on the businesses of both DGSE and ECHG, see “Item 1. Business – Operating Segments” in the Company’s 2020 Annual Report.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">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.</p>
CY2021Q2 ela Exchange Transaction Of Goodwill
ExchangeTransactionOfGoodwill
1891477 USD
CY2020Q3 us-gaap Goodwill
Goodwill
1367109 USD
CY2021Q3 us-gaap Inventory Net
InventoryNet
12654329 USD
CY2020Q2 us-gaap Goodwill
Goodwill
1367109 USD
CY2019Q4 us-gaap Goodwill
Goodwill
1367109 USD
us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
1891477 USD
CY2020 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
0 USD
ela Goodwill Impairment Adjustment
GoodwillImpairmentAdjustment
0 USD
CY2020 ela Goodwill Impairment Adjustment
GoodwillImpairmentAdjustment
0 USD
CY2021Q3 us-gaap Goodwill
Goodwill
3258586 USD
CY2020Q4 us-gaap Goodwill
Goodwill
1367109 USD
CY2021Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
9647470 USD
CY2020Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
6888601 USD
CY2021Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
2691273 USD
CY2020Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
2992473 USD
CY2021Q3 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
1248662 USD
CY2020Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
844324 USD
CY2021Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
2691273 USD
CY2021Q3 us-gaap Contract With Customer Refund Liability
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28000 USD
CY2021Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 USD
CY2020Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 USD
CY2021Q3 us-gaap Lease Cost
LeaseCost
620829 USD
CY2020Q3 us-gaap Lease Cost
LeaseCost
421790 USD
us-gaap Lease Cost
LeaseCost
1516262 USD
us-gaap Lease Cost
LeaseCost
1071066 USD
CY2021Q3 ela Weighted Average Remaining Lease Term
WeightedAverageRemainingLeaseTerm
P3Y6M
CY2021Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.055 pure
CY2021Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
619584 USD
CY2020Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
428241 USD
us-gaap Operating Lease Expense
OperatingLeaseExpense
1496524 USD
us-gaap Operating Lease Expense
OperatingLeaseExpense
1100280 USD
CY2021Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
5332603 USD
CY2021Q3 us-gaap Operating Lease Liability Current
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1092996 USD
CY2021Q3 us-gaap Operating Lease Liability Noncurrent
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4239607 USD
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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26924631 shares
CY2020Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
26924381 shares
CY2021Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
15000 shares
CY2020Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
15250 shares
CY2021Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
26939631 shares
CY2020Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
26939631 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
26924631 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
26924381 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
15000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
15250 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
26939631 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
26939631 shares
CY2021Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
15000 shares
CY2020Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
15250 shares
CY2021Q3 us-gaap Long Term Debt
LongTermDebt
15175553 USD
CY2020Q4 us-gaap Long Term Debt
LongTermDebt
15413925 USD
CY2021Q3 us-gaap Long Term Debt Current
LongTermDebtCurrent
550256 USD
CY2020Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
2120457 USD
CY2021Q3 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
14625297 USD
CY2020Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
13293468 USD
CY2020Q3 ela New Retail Building
NewRetailBuilding
1195000 USD
CY2020Q3 ela Purchase Partly Financed
PurchasePartlyFinanced
956000 USD
CY2020Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P10Y
CY2020Q3 us-gaap Long Term Debt Percentage Bearing Fixed Interest Rate
LongTermDebtPercentageBearingFixedInterestRate
0.036 pure
CY2020Q3 us-gaap Finite Lived Intangible Assets Remaining Amortization Period1
FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1
P20Y
CY2020Q2 us-gaap Long Term Loans Payable
LongTermLoansPayable
1670000 USD
CY2020Q2 us-gaap Long Term Debt Percentage Bearing Fixed Interest Rate
LongTermDebtPercentageBearingFixedInterestRate
0.01 pure
CY2021Q3 us-gaap Notes Payable
NotesPayable
15175553 USD

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