What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 150 added, 105 removed, 471 unchanged (35% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cost of goods sold

8 unchanged sentences

( 1,173,986 )

( 3,636,486 )

( 1,515,427 )

Basic earnings per share:

6 unchanged sentences

Cash and cash equivalents

Accounts receivable, net of allowance for credit losses of $544,642 and $735,944 as of March 31, 2026 and December 31, 2025, respectively

Accounts receivable, net of allowance for credit losses of $527,645 and $735,944 as of June 30, 2026 and December 31, 2025, respectively

Prepaid expenses

Other current assets

Total current assets

21 unchanged sentences

60,000,000 shares authorized;

26,924,631 shares issued and 25,963,476 shares outstanding as of March 31, 2026;

26,924,631 shares issued and 25,963,476 shares outstanding as of June 30, 2026;

26,924,631 shares issued and 25,963,476 shares outstanding as of December 31, 2025

Treasury stock at cost, 961,155 and 961,155 shares, as of March 31, 2026 and December 31, 2025, respectively

Treasury stock at cost, 961,155 and 961,155 shares, as of June 30, 2026 and December 31, 2025, respectively

( 4,757,731 )

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities

4 unchanged sentences

Non-cash lease expense

Loss on disposal of equipment

Changes in operating assets and liabilities:

3 unchanged sentences

Accounts payable

( 1,679,880 )

Accrued expenses

Operating leases

( 1,035,528 )

( 1,173,750 )

Other liabilities

( 1,556,650 )

Net cash provided by operating activities

1 unchanged sentence

Purchase of property and equipment

( 1,530,683 )

Purchase of intangible assets

Proceeds from notes receivable

Proceeds from sales of equipment

Net cash (used in) investing activities

( 1,530,683 )

Financing activities

13 unchanged sentences

Stockholders’

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Balance as of April 1, 2025

( 4,571,449 )

Shares repurchased

Balance as of June 30, 2025

( 4,690,149 )

Treasury Stock

Preferred Stock

Stockholders’

Three Months Ended June 30, 2026

Balance as of April 1, 2026

( 4,757,731 )

Balance as of June 30, 2026

( 4,757,731 )

The accompanying notes are an integral part of these condensed consolidated financial statements.

ENVELA CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Treasury Stock

Preferred Stock

Stockholders’

Six Months Ended June 30, 2025

Balance as of January 1, 2025

1 unchanged sentence

Shares repurchased

Balance as of March 31, 2025

Balance as of June 30, 2025

( 4,690,149 )

2 unchanged sentences

Stockholders’

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Balance as of January 1, 2026

( 4,757,731 )

Balance as of March 31, 2026

Balance as of June 30, 2026

( 4,757,731 )

3 unchanged sentences

NOTE 1 — BASIS OF PRESENTATION

Presentation of Financial Results

These unaudited 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 in accordance with United States Generally Accepted Accounting Principles (“U.S.

2 unchanged sentences

In the opinion of management, all adjustments, which are of a normal and recurring nature except those which have been disclosed elsewhere in this Quarterly Report on Form 10-Q (“Form 10-Q”), necessary for a fair presentation of the consolidated financial statements for these interim periods, have been included.

The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results to be expected for the fiscal year ended December 31, 2026 (“Fiscal 2026”).

Management suggests that these unaudited interim condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“Fiscal 2025”) filed with the SEC on March 18, 2026 (“2025 Annual Report”).

The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the fiscal year ended December 31, 2026 (“Fiscal 2026”).

Management suggests these unaudited interim condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“Fiscal 2025”) filed with the SEC on March 18, 2026 (“2025 Annual Report”).

The Company’s operations are located within the contiguous United States of America ("U.S”) and its functional and reporting currency is the U.S.

17 unchanged sentences

Envela files annual reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements, and other information with the SEC.

Such information and amendments to reports previously filed or furnished are available on the Company’s corporate website, www.envela.com, as soon as reasonably practicable after such materials

Such information and amendments to reports previously filed or furnished are available on the Company’s corporate website, www.envela.com, as soon as reasonably practicable after such materials are filed with or furnished to the SEC.

The SEC maintains an internet site at www.sec.gov that contains the Company’s filings.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

are filed with or furnished to the SEC.

The SEC maintains an internet site at www.sec.gov that contains the Company’s filings.

NOTE 2 — PRINCIPLES OF CONSOLIDATION AND NATURE OF OPERATIONS

8 unchanged sentences

Our consumer segment primarily operates in the jewelry industry, specializing in the online and brick-and-mortar sale of authenticated high-end luxury goods, including pre-owned fine jewelry, diamonds and gemstones, luxury watches, and secondary market bullion.

We incorporate recycled diamonds and gemstones into new designs, meaning they were previously set and unset, producing a low-carbon and ethical origin product.

We incorporate recycled diamonds and gemstones into new designs, meaning they were previously set and unset, resulting in a low-carbon, ethically sourced product.

The Company caters to consumers seeking environmentally responsible options for engagement rings, wedding bands, and other fine jewelry at accessible prices.

Our profound commitment to extending the lifespan of luxury goods stems from our understanding that well-crafted items have an enduring quality, enabling them to maintain their beauty and value as they are passed from one owner to another.

Our profound commitment to extending the lifespan of luxury goods stems from our understanding that well-crafted items possess enduring quality, enabling them to maintain their beauty and value as they pass from one owner to another.

Commercial Segment

33 unchanged sentences

The Company offers third-party financing for retail customers.

Revenue is recognized upon transfer of title, with the promise of the third-party financing company to pay.

Revenue is recognized upon transfer of title, along with the third-party financing company's promise to pay.

Commercial Segment

1 unchanged sentence

The initial invoice is recognized in full when our performance obligation is satisfied.

Under ASC 606, an estimate of the variable consideration to which we are entitled is included in the transaction price, based on the estimated weight and the current spot price of the metal.

Under ASC 606, an estimate of the variable consideration to which we are entitled to is included in the transaction price, based on the estimated weight and the current spot price of the metal.

An adjustment to revenue is made once the underlying weight and any metal spot price movements are resolved, which usually takes around six weeks.

1 unchanged sentence

Historically, these amounts have not been material.

The commercial segment also provides recycling and product returns services according to a Scope of Work (“SOW”).

Revenue from recycling and product returns services are recognized upon completion of the SOW at a predetermined amount based on the number of units processed and a preset price per unit or weight measurement.

The commercial segment also provides recycling and product return services in accordance with a Scope of Work (“SOW”).

Revenue from recycling and product return services is recognized upon completion of the SOW at a predetermined amount based on the number of units processed and a preset price per unit or weight measurement.

The commercial segment provides freight arrangement services for inbound asset or material movements to our facilities.

5 unchanged sentences

Sales are recorded, net of expected returns.

In certain instances, the consumer and commercial segment’s customers may return a product purchased within 30 days of receipt.

In certain instances, customers in the consumer and commercial segments may return a product purchased within 30 days of receipt.

Our allowance for estimated returns is based on our review of historical returns experience and reduces our reported revenues accordingly.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of March 31, 2026, and December 31, 2025, the consumer segment’s allowance for returns was $ 12,532 and $ 18,190 , respectively.

As of March 31, 2026, and December 31, 2025, the commercial segment’s allowance for returns was $ 54,560 and $ 42,339 , respectively.

As of June 30, 2026, and December 31, 2025, the consumer segment’s allowance for returns was $ 11,463 and $ 18,190 , respectively.

As of June 30, 2026, and December 31, 2025, the commercial segment’s allowance for returns was $ 54,831 and $ 42,339 , respectively.

Concentrations and Credit Risk

4 unchanged sentences

accordingly, the Company identifies the most appropriate sales outlet to ensure timely settlement of transactions.

For the three months ended March 31, 2026, two customers accounted for 49.7 % of our sales and represented 0.0 % of our accounts receivable balance.

For the three months ended March 31, 2025, two customers accounted for 51.3 % of our sales and represented 0.0 % of our accounts receivable balance.

For the six months ended June 30, 2026, two customers aggregated 50.8 % of our sales and represented 0.0 % of our accounts receivable balance.

For the six months ended June 30, 2025, two customers aggregated 50.3 % of our sales and represented 19.1 % of our accounts receivable balance.

The Company believes that no single customer is critical to its business, given its diverse revenue streams and the optionality of its sales outlets, which are primarily associated with base and precious metals.

3 unchanged sentences

Cost of Goods Sold

Cost of goods sold includes the cost of commodities, harvested components from technology, and merchandise sold, as well as inbound and outbound freight costs.

Selling, General and Administrative Expenses

Selling, general, and administrative expenses include facility costs, asset and commodity processing costs, processing and store-level personnel costs, and waste disposal costs.

Cost of goods sold includes the cost of commodities, harvested components from technology, and merchandise sold, including authenticated high-end luxury goods, secondary-market bullion, and re-marketed technology assets, as well as inbound and outbound freight costs.

Selling, General and Administrative Expense

Selling, general, and administrative expense includes facility costs, asset and commodity processing costs, processing and store-level personnel costs, and waste disposal costs.

Selling, general, and administrative expenses also include personnel costs for sourcing business partner relationships and outbound sales, as well as support and corporate overhead costs associated with accounting and finance, legal, risk management, compliance, information systems, logistics, marketing, and any third-party service providers.

The Company allocates its corporate overhead to its operating segments, which includes selling, general and administrative expenses, along with depreciation and amortization, other income, interest expense, and income tax expense.

The Company allocates its corporate overhead to its operating segments, which include selling, general, and administrative expense, depreciation and amortization expense, other income, interest expense, and income tax expense.

See Note 2 – Principles of Consolidation and Nature of Operations for further details.

Management’s Discussion and Analysis of Financial Condition and Results of Operations for further details.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Shipping and Handling Costs

1 unchanged sentence

Shipping and handling costs are accounted for as fulfillment costs.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the three months ended March 31, 2026 and 2025, the consumer segment’s shipping and handling costs were $ 41,214 and $ 16,686 , respectively.

For the three months ended March 31, 2026 and 2025, the commercial segment’s shipping and handling costs were $ 691,400 and $ 991,324 , respectively.

For the three months ended June 30, 2026 and 2025, the consumer segment’s shipping and handling costs were $ 5,900 and $ 13,914 , respectively.

For the three months ended June 30, 2026 and 2025, the commercial segment’s shipping and handling costs were $ 906,493 and $ 926,483 , respectively.

For the six months ended June 30, 2026 and 2025, the consumer segment’s shipping and handling costs were $ 47,114 and $ 30,600 , respectively.

For the six months ended June 30, 2026 and 2025, the commercial segment’s shipping and handling costs were $ 1,597,893 and $ 1,917,808 , respectively.

Advertising Costs

Advertising costs for the consumer and commercial segments are expensed as incurred.

For the three months ended March 31, 2026 and 2025, the consumer segment’s advertising costs were $ 162,252 and $ 280,163 , respectively.

For the three months ended March 31, 2026 and 2025, the commercial segment’s advertising costs were $ 82,213 and $ 81,135 , respectively.

For the three months ended June 30, 2026 and 2025, the consumer segment’s advertising costs were $ 91,967 and $ 290,278 , respectively.

For the three months ended June 30, 2026 and 2025, the commercial segment’s advertising costs were $ 46,202 and $ 124,874 , respectively.

For the six months ended June 30, 2026 and 2025, the consumer segment’s advertising costs were $ 254,219 and $ 570,440 , respectively.

For the six months ended June 30, 2026 and 2025, the commercial segment’s advertising costs were $ 128,415 and $ 206,008 , respectively.

We determine if an arrangement is a lease at inception.

7 unchanged sentences

See Note 11 – Leases for further details.

Store Pre-Opening Costs

The Company may incur significant costs associated with new store openings, including, but not limited to, advertising, employee recruitment, licenses, permits, supplies, training, travel, and general store readiness, and these costs are expensed as incurred.

Income taxes are accounted for under the asset and liability method prescribed by ASC 740, Income Taxes.

2 unchanged sentences

The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Valuation of Deferred Tax Assets

1 unchanged sentence

The Company reviews the likelihood that the benefit of the deferred tax assets will be realized and the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required.

We have not taken a tax position that, if challenged, would have a material effect on the consolidated financial statements or the effective tax rate for the three months ended March 31, 2026 and 2025.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of March 31, 2026, the Company had a deferred tax liability of $ 84,021 .

We have not taken a tax position that, if challenged, would have a material effect on the condensed consolidated financial statements or the effective tax rate for the three and six months ended June 30, 2026 and 2025.

As of June 30, 2026, the Company had a deferred tax liability of $ 178,796 .

As of December 31, 2025, the Company had a deferred tax liability of $ 147,381 .

The Company did no t have a valuation allowance as of March 31, 2026, or December 31, 2025.

The Company did no t have a valuation allowance as of June 30, 2026, or December 31, 2025.

Segment Information

15 unchanged sentences

The Company records the amounts collected as a current liability and releases such liability upon remittance to the taxing authority, without affecting revenues or expenses.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Financial Instruments

4 unchanged sentences

At times, cash and cash equivalents may exceed federally insured limits.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Cash and Cash Equivalents

7 unchanged sentences

Accounts receivable are written off when all efforts to collect have been exhausted, and the potential for recovery is considered remote.

As of March 31, 2026, and December 31, 2025, the consumer segment’s allowance for credit losses was $ 0 and $ 0 , respectively.

As of March 31, 2026, and December 31, 2025, the commercial segment’s allowance for credit losses was $ 544,642 and $ 735,944 , respectively.

As of June 30, 2026, and December 31, 2025, the consumer segment’s allowance for credit losses was $ 0 and $ 0 , respectively.

As of June 30, 2026, and December 31, 2025, the commercial segment’s allowance for credit losses was $ 527,645 and $ 735,944 , respectively.

Consumer Segment

13 unchanged sentences

See Note 4 – Inventories for further details.

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.

There were no triggering events identified during the three months ended March 31, 2026, requiring an interim goodwill impairment test, and the Company did not record a goodwill impairment charge in any of the periods presented.

See Note 5 – Goodwill for further details.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

There were no triggering events identified during the six months ended June 30, 2026, requiring an interim goodwill impairment test, and the Company did not record a goodwill impairment charge in any of the periods presented.

See Note 5 – Goodwill for further details.

Property and Equipment, Net

17 unchanged sentences

Technology (1)

Trademarks/tradenames

Trademarks and tradenames

(1) Technology consists of domain names, software assets, and enterprise resource planning systems.

1 unchanged sentence

See Note 7 – Intangible Assets, Net for further details.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Recent Accounting Pronouncements

New Accounting Standards Pronouncements

10 unchanged sentences

The Company is currently evaluating the potential impact of adopting this new guidance on the consolidated financial statements and related disclosures.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

6 unchanged sentences

ASU 2025-12 addresses stakeholder suggestions regarding the ASC and makes other incremental improvements to U.S.

The update represents changes to the codification that clarify, correct errors, or make other improvements to a variety of topics that are intended to make it easier to understand and apply.

The update represents changes to the codification that clarify, correct errors, or make other improvements across a variety of topics, intended to make it easier to understand and apply.

The guidance is effective for annual and interim periods beginning December 15, 2026, with early adoption and prospective or retrospective application permitted.

3 unchanged sentences

No other recently issued or effective ASUs had, or are expected to have, a material impact on our financial position and results of operations.

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 4 — INVENTORIES

31 unchanged sentences

accumulated depreciation

(1) As of March 31, 2026 and December 31, 2025, these assets have not yet been placed into service and are not yet depreciable.

(1) As of June 30, 2026 and December 31, 2025, these assets are being constructed, have not yet been placed into service, and are not yet depreciable.

ENVELA CORPORATION AND SUBSIDIARIES

3 unchanged sentences

Customer lists

Trademarks/tradenames

Trademarks and tradenames

accumulated amortization

Trademarks/tradenames

Trademarks and tradenames

Customer contracts

4 unchanged sentences

accumulated amortization

The following table depicts the Company’s estimated future amortization expense related to intangible assets as of March 31, 2026:

The following table depicts the Company’s estimated future amortization expense related to intangible assets as of June 30, 2026:

ENVELA CORPORATION AND SUBSIDIARIES

8 unchanged sentences

The CODM uses operating income to evaluate overall business performance, make investment decisions, and allocate resources.

The following table depicts the Company’s segment results of operations, including significant expenses that are regularly reviewed by the CODM, for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

The following table depicts the Company’s segment results of operations, including significant expenses that are regularly reviewed by the CODM, for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Cost of goods sold

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table depicts the reconciliation of the Company’s segment operating income to income before income taxes for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

The following table depicts the reconciliation of the Company’s segment operating income to income before income taxes for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Operating income

1 unchanged sentence

Income before income taxes

Other significant segment items regularly reviewed by the CODM include capital expenditures, which the Company defines as purchases of property and equipment or intangible assets.

The following table depicts capital expenditures for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

The following table depicts the Company’s segment results of operations, including significant expenses that are regularly reviewed by the CODM, for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

Cost of goods sold

Selling, general and administrative

Depreciation and amortization

Operating income

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table depicts the reconciliation of the Company’s segment operating income to income before income taxes for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

Operating income

Interest expense

Income before income taxes

Other significant segment items that are regularly reviewed by the CODM are Capital Expenditures, which the Company defines as any purchases of property and equipment or intangible assets.

The following table depicts Capital Expenditures for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,

The following table depicts Capital Expenditures for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

The following table depicts the Company’s total assets:

March 31, 2026

June 30, 2026

December 31, 2025

NOTE 10 — REVENUE

The following table depicts the Company’s disaggregation of total sales and gross margin for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

ENVELA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 10 — REVENUE

The following table depicts the Company’s disaggregation of total sales and gross margin for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,

The following table depicts the Company’s disaggregation of total sales and gross margin for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

The following table lists the opening and closing balances of our contract assets and liabilities:

7 unchanged sentences

Closing Balance - 6/30/2026

The Company has no contract assets, and the contract liabilities are customer deposits, store credit, and gift cards, which are reported within other liabilities in the condensed consolidated balance sheets.

The Company has no contract assets, and the contract liabilities are customer deposits, store credit, and gift cards, which are reported within other current liabilities in the condensed consolidated balance sheets.

ENVELA CORPORATION AND SUBSIDIARIES

1 unchanged sentence

NOTE 11 — LEASES

The following table depicts the Company’s future minimum lease payments as of March 31, 2026:

The following table depicts the Company’s future minimum lease payments as of June 30, 2026:

Total minimum lease payments

2 unchanged sentences

imputed interest

( 1,015,795 )

current portion

All of the Company’s leased facilities as of March 31, 2026, are non-cancellable.

All of the Company’s leased facilities as of June 30, 2026, are non-cancellable.

The leases are a combination of triple-net leases, under which the Company pays its proportionate share of common area maintenance, property taxes, and property insurance, and modified-gross leases, under which the Company pays for common area maintenance and property insurance.

The following table depicts supplemental cash flow information related to operating leases:

Three Months Ended March 31,

Six Months Ended June 30,

Non-cash activities:

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table depicts the Company’s leasing costs for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

The following table depicts the Company’s leasing costs for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Operating lease cost

1 unchanged sentence

Short-term lease cost

As of March 31, 2026, the weighted average remaining lease term and weighted average discount rate for operating leases were 4.4 years and 5.1 %.

As of March 31, 2025, the weighted average remaining lease term and weighted average discount rate for operating leases were 3.2 years and 4.0 %.

The following table depicts the Company’s leasing costs for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

Operating lease cost

Variable lease cost

Short-term lease cost

As of June 30, 2026, the weighted average remaining lease term and weighted average discount rate for operating leases were 4.2 years and 5.2 %.

As of June 30, 2025, the weighted average remaining lease term and weighted average discount rate for operating leases were 2.8 years and 4.2 %.

NOTE 12 — BASIC AND DILUTED AVERAGE SHARES

The following table is a reconciliation of the Company’s basic and diluted weighted average common shares for the three months ended March 31, 2026 and 2025:

The following table is a reconciliation of the Company’s basic and diluted weighted average common shares for the three months ended June 30, 2026 and 2025:

Three Months Ended

2 unchanged sentences

Diluted weighted average shares

For three months ended March 31, 2026 and 2025, there were no Common Stock options unexercised.

For the three months ended March 31, 2026 and 2025, there were no anti-dilutive shares.

On March 14, 2023, a stock repurchase program was unanimously approved by the Company’s Board, which gave management authorization to purchase up to 1.0 million shares of the Company’s Common Stock, at a per-share price not to exceed $ 9.00 , on the open market.

On March 27, 2025, the Board unanimously approved the repurchase of an additional 100 thousand shares of the Common Stock, bringing the total authorization under the existing repurchase program to 1.1 million shares.

The stock repurchase program expires on March 31, 2028.

The following table lists the repurchase of Company shares for the three months ended March 31, 2026:

Total Number of

Average Price

Shares Available

Fiscal Period

Shares Purchased

Paid per Share

Balance as of January 1, 2026

January 1 - 31, 2026

February 1 - 28, 2026

March 1 - 31, 2026

Balance as of March 31, 2026

For the three months ended March 31, 2026, the Company had no share repurchases.

The following table is a reconciliation of the Company’s basic and diluted weighted average common shares for the six months ended June 30, 2026 and 2025:

Six Months Ended

Basic weighted average shares

Effect of potential dilutive securities

Diluted weighted average shares

For three and six months ended June 30, 2026 and 2025, there were no Common Stock options unexercised.

For the three and six months ended June 30, 2026 and 2025, there were no anti-dilutive shares.

ENVELA CORPORATION AND SUBSIDIARIES

18 unchanged sentences

The note payable bears interest at 3.65 % and matures on July 9, 2030.

(4) On July 30, 2021, the consumer segment entered into a $ 1.772 million secured amortizing note payable with Texas Bank and Trust (“TBT”).

(4) On July 30, 2021, the consumer segment entered into a $ 1.772 million secured amortizing note payable with TBT.

The note payable bears interest at 3.75 % and matures on July 30, 2031.

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table depicts the Company’s future principal payments on long-term debt obligations as of March 31, 2026:

The following table depicts the Company’s future principal payments on long-term debt obligations as of June 30, 2026:

Note payable, FSB (1)

4 unchanged sentences

Line of credit, FSB (6)

The Company was in compliance with all of its debt obligation covenants for the three months ended March 31, 2026 and 2025.

The following table depicts the Company’s future scheduled aggregate principal payments and maturities as of March 31, 2026:

The Company was in compliance with all of its debt obligation covenants for the three and six months ended June 30, 2026 and 2025.

The following table depicts the Company’s future scheduled aggregate principal payments and maturities as of June 30, 2026:

Scheduled Principal Payments and Maturities by Year

2 unchanged sentences

The 2025 Plan provides for the grant of up to 1.1 million shares of Common Stock pursuant to awards granted under the plan.

The 2025 Plan will remain in effect for a term of 10 years from the effective date, unless sooner terminated by the Board of Directors.

As of March 31, 2026, no awards have been granted under the 2025 Plan.

No stock-based compensation expense was recognized for the three months ended March 31, 2026 and 2025.

The 2025 Plan will remain in effect for a term of 10 years from the effective date, unless sooner terminated by the Board of Directors (the “Board”).

As of June 30, 2026 and 2025, no awards have been granted under the 2025 Plan.

No stock-based compensation expense was recognized for the three and six months ended June 30, 2026 and 2025.

ENVELA CORPORATION AND SUBSIDIARIES

9 unchanged sentences

However, the outcomes of any currently pending lawsuits, claims, and proceedings cannot be predicted, and therefore, there can be no assurance that this will be the case.

There are no loss contingencies subject to reporting for the three months ended March 31, 2026 and 2025.

There are no loss contingencies subject to reporting for the three and six months ended June 30, 2026 and 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements