Envela Corp 10-Q

ITEM 5. OTHER INFORMATION N o n e ​ 57 Table of Contents ITEM 6. EXHIBITS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exhibit Number Description Filed Herein Incorporated by Reference Form Date Filed with SEC Exhibit Number 31.1 ​ Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 implementing Section 302 of the Sarbanes-Oxley Act of 2002 by John R. Loftus ​ X ​ ​ ​ ​ ​ ​ ​ ​ 31.2 ​ Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 implementing Section 302 of the Sarbanes-Oxley Act of 2002 by John G. DeLuca ​ X ​ ​ ​ ​ ​ ​ ​ ​ 32.1 ​ Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by John R. Loftus ​ X ​ ​ ​ ​ ​ ​ ​ ​ 32.2 ​ Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by John G. DeLuca ​ X ​ ​ ​ ​ ​ ​ ​ ​ 101.INS ​ XBRL Instance Document ​ X ​ ​ ​ ​ ​ ​ ​ ​ 101.SCH ​ XBRL Taxonomy Extension Schema Document ​ X ​ ​ ​ ​ ​ ​ ​ ​ 101.CAL ​ XBRL Taxonomy Calculation Linkbase Document ​ X ​ ​ ​ ​ ​ ​ ​ ​ 101.DEF ​ XBRL Taxonomy Definition Linkbase Document ​ X ​ ​ ​ ​ ​ ​ ​ ​ 101.LAB ​ XBRL Taxonomy Label Linkbase Document ​ X ​ ​ ​ ​ ​ ​ ​ ​ 101.PRE ​ XBRL Taxonomy Presentation Linkbase Document ​ X ​ ​ ​ ​ ​ ​ ​ ​ 104* ​ Cover Page Interactive Data File (formatted as Inline XBRL and contained in exhibit 101) ​ X ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 58 Table of Contents SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ​ ​ ​ ​ ​ ENVELA CORPORATION ​ ​ (Registrant) ​ ​ ​ ​ Date: November 5, 2025 ​ ​ /s/ JOHN G. DELUCA ​ ​ ​ John G. DeLuca ​ ​ ​ Chief Financial Officer (Principal Accounting Officer) ​ ​ ​ G ​ 59 Table of Contents GLOSSARY OF DEFINED TERMS ​ The following definitions apply to terms used in this document: ​ ​ 2024 Annual Report Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 26, 2025 2025 Plan 2025 Equity Incentive Plan Adjusted Debt Obligations Adjusted Debt Obligations represents (i) Debt Obligations plus (ii) operating lease liabilities per the Balance Sheet. Adjusted Debt to Adjusted EBITDAR Leverage Ratio The Adjusted Debt to Adjusted EBITDAR Leverage Ratio is a non-U.S. GAAP measure and represents (i) Adjusted Debt Obligations divided by (ii) Adjusted EBITDAR. Adjusted Debt to Net Income Leverage Ratio The Adjusted Debt to Net Income Leverage Ratio is a non-U.S. GAAP measure and represents the sum of (i) Debt Obligations and operating lease liabilities (ii) divided by (iii) Adjusted EBITDAR. Adjusted EBITDA Adjusted Earnings Before Interest, Tax, Depreciation, and Amortization Adjusted EBITDAR Adjusted EBITDAR is a non-U.S. GAAP measure and equals (i) Adjusted EBITDA plus (ii) minimum fixed rent expense for properties occupied under operating leases. Adjusted Net Debt Obligations Adjusted Net Debt Obligations is a non-U.S. GAAP measure and represents the difference between (i) Adjusted Debt Obligations per the Balance Sheet and (ii) Total Cash. Adjusted Net Debt to Adjusted EBITDAR Leverage Ratio The Adjusted Net Debt to Adjusted EBITDAR Leverage Ratio is a non-U.S. GAAP measure and represents (i) Adjusted Net Debt Obligations divided by (ii) Adjusted EBITDAR. ASC Accounting Standards Codification ASU Accounting Standards Update ASU 2024-03 ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ASU 2025-05 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets ASU 2025-06 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software Avail Transaction The acquisition of Avail Recovery Solutions, LLC on October 29, 2021 Board Board of Directors Capital Expenditures Capital Expenditures represent the purchase of (i) property and equipment, and (ii) intangible assets. CODM Chief Operating Decision Maker Common Stock The Company's common stock, par value $0.01 per share Company Envela Corporation, a Nevada corporation, and its subsidiaries Debt Obligations Debt Obligations represents amounts outstanding under notes payable balances per the Balance Sheet. Debt to Adjusted EBITDA Leverage Ratio The Debt to Adjusted EBITDA Leverage Ratio is a non-U.S. GAAP measure and represents (i) Debt Obligations divided by (ii) Adjusted EBITDA. Debt to Net Income Leverage Ratio The Debt to Net Income Leverage Ratio represents the leverage ratio of the Company utilizing the following U.S. GAAP measures: (i) Debt Obligations divided by (ii) Net Income. Envela Envela Corporation, a Nevada corporation, and its subsidiaries Exchange Act Securities Exchange Act of 1934 Financial Statements The Related Condensed Consolidated Statements of Income, Stockholders’ Equity, and Cash Flows Fiscal 2024 Fiscal year ended December 31, 2024 Fiscal 2025 Fiscal year ended December 31, 2025 Form 10-Q Form 10-Q for the three and nine months ended September 30, 2025 Free Cash Flow Free Cash Flow is a non-U.S. GAAP measure and represents the difference between the Company’s (i) Operating Cash Flow and (ii) Capital Expenditures. FSB Farmer's State Bank of Oakley, Kansas 60 Table of Contents ISO Incentive Stock Options IT Information Technology ITAD Information Technology Asset Disposition Net Cash The difference between (i) cash and cash equivalents and (ii) the sum of debt obligations Net Debt Obligations Net Debt Obligations is a non-U.S. GAAP measure and represents the difference between (i) Debt Obligations per the Balance Sheet and (ii) Total Cash. Net Debt to Adjusted EBITDA Leverage Ratio The Net Debt to Adjusted EBITDA Leverage Ratio is a non-U.S. GAAP measure that represents (i) Net Debt Obligations divided by (ii) Adjusted EBITDA. NM Not Meaningful NYSE New York Stock Exchange OBBBA One Big Beautiful Bill Act Operating Cash Flow Operating Cash Flow measures the amount of cash generated from normal business operations during a specific period and is referred to as net cash provided by operations in the Statement of Cash Flows. Rent Expense Minimum fixed rent expense for properties occupied under operating leases. Scottsdale Transaction The acquisition of the assets of a bespoke fabricator of jewelry in Scottsdale, Arizona SEC U.S. Securities and Exchange Commission Securities Act Securities Act of 1933 SOW Scope of Work TBT Texas Bank & Trust Total Cash Total Cash represents cash and cash equivalents per the Balance Sheet. Trailing Four Quarters The Trailing Four Quarters ended period is defined as the cumulative total amount of the most recent four consecutive fiscal quarters of financial results for the respective reported balance. U.S. United States U.S. Dollar $ U.S. GAAP United States Generally Accepted Accounting Principles ​ ​ ​ ​ ​ 61