Envela Corp 10-K

ITEM 2. PROPERTIES Our facilities by segment and geography were as follows as of December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Facilities ​ ​ ​ ​ Owned ​ ​ ​ Leased ​ Total Consumer ​ ​ ​ ​ Arizona (2) 2 2 ​ 4 South Carolina (2) — 1 ​ 1 Texas (1)(2) 3 7 ​ 10 ​ ​ ​ ​ ​ ​ ​ Sub-total 5 10 ​ 15 ​ ​ ​ ​ ​ ​ ​ Commercial ​ ​ ​ ​ Texas (2) — 2 ​ 2 ​ ​ ​ ​ ​ ​ ​ Sub-total — 2 ​ 2 ​ ​ ​ ​ ​ ​ ​ Corporate ​ ​ ​ ​ Texas 1 — ​ 1 ​ ​ ​ ​ ​ ​ ​ Sub-total 1 — ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ 6 12 ​ 18 (1) Certain Texas-owned properties are encumbered by debt facilities; see Note 13 – Debt for further details. 27 Table of Contents (2) Our leases begin to expire starting in 2027 through 2031, with 5 leases having a right of renewal. Both segments regularly evaluate each of their locations in terms of profitability, effectiveness, and fit with their long-term strategy. In management’s opinion, these properties have been well maintained, are in good operating condition, and contain all necessary equipment and facilities for their intended purposes. See Note 11 – Leases for further details on leased facilities. ​ ITEM 3. LEGAL PROCEEDINGS From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. The Company does not believe that any such legal proceedings and claims pending against the Company would have a material adverse effect on our financial condition and results of operations. ​ ITEM 4. MINE SAFETY DISCLOSURES Not applicable. ​ PART II