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This process is called “re-commerce”.
−Removed: A circular economy is a sustainable economic system that aims to increase the lifespan of manufactured goods and thereby reduce waste and pollution for a cleaner environment.
+Added: A circular economy is a sustainable economic system that aims to increase the lifespan of manufactured goods and thereby reducing waste and pollution for a cleaner environment.
Re-commerce is an integral part of circular economies, and it’s a business model that’s sustainable to its core.
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Envela is a diverse re-commerce company that manages its business through two operating segments.
−Removed: Its commercial-services segment is led by subsidiary ECHG, LLC (“ECHG”), and its direct-to-consumer segment is led by subsidiary DGSE, LLC (“DGSE”).
+Added: Its commercial-services segment, and its consumer segment.
Envela reports its revenue and operating expenses based on these two operating segments.
−Removed: We also include segment information in the notes to our financial statements.
−Removed: COMMERCIAL SERVICES
+Added: We also include segment information in the notes too our financial statements.
+Added: COMMERCIAL SERVICES SEGMENT
Re-commerce through Intelligent Reuse & Responsible Recycling
−Removed: Envela’s commercial services portfolio, led by ECHG and its subsidiaries, provides asset- disposition solutions to government agencies, middle-market firms, major corporations, and other organizations.
+Added: Envela’s commercial services portfolio provides asset- disposition solutions to government agencies, middle-market firms, major corporations, and other organizations.
Through a deep understanding of our clients’ business goals, we’re able to exceed their evolving needs and maintain a differentiated position in this marketplace.
−Removed: When clients upgrade their IT equipment, ECHG purchases the replaced assets.
+Added: When clients upgrade their IT equipment, our commercial services division purchases the replaced assets.
They can then be resold as whole goods, harvested for components to re-use, or recycled if not reusable.
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We separate and shred the remaining materials to reduce them into their commodity components (e.g., plastic, metal, glass) for resale and remanufacture into new products.
−Removed: We experience some seasonal fluctuations that can impact demand with our commercial clients.
−Removed: Our business is subject to fluctuations as device trade-in and upgrade volumes can be based on the release of new devices and promotional programs, as well as customer preferences.
+Added: There can be some seasonal fluctuations that can impact demand with our commercial clients.
+Added: Our business is subject to fluctuations as device trade-in and upgrade volume can be based on the release of new devices and promotional programs, as well as customer preferences.
Our business is also subject to volatility in margins based on the actual and anticipated timing of the release of new devices and promotional programs, as well as to changes in customer preferences.
Most purchases are through non-exclusive, cancelable agreements.
+Added: We maintain relationships with refining partners for many commodity components.
+Added: Management believes no single partner accounted for a material amount of the company’s consolidated sales in 2023.
+Added: The Company believes that many of the products we sell are marketable to numerous sources at competitive prices.
Envela’s commercial-services segment markets its products directly to prospective clients through several wholly owned subsidiary brands including ITAD USA;
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and Avail Recovery Solutions.
−Removed: Sales and operating results for these brands are reported within their respective ECHG operating segments.
−Removed: ECHG operates from two leased warehouses in the Dallas/Fort Worth Metroplex (“DFW”), and one leased warehouse in Chandler, Arizona.
+Added: Sales and operating results for these brands are reported within their respective commercial operating segments.
+Added: Commercial-services operates from two leased warehouses in the Dallas/Fort Worth Metroplex (“DFW”) and one leased warehouse in Chandler, Arizona.
DIRECT-TO-CONSUMER
Authenticated Re-commerce
−Removed: Envela’s direct-to-consumer portfolio, spearheaded by DGSE, primarily buys to resell or recycle luxury hard assets like jewelry, diamonds, gemstones, fine watches, rare coins and related collectibles, precious-metal bullion products, gold, silver and other precious metals.
−Removed: For over 50 years, DGSE has been a destination location for seeking value and liquidity in luxury goods.
+Added: Envela’s direct-to-consumer portfolio primarily buys to resell or recycle luxury hard assets like jewelry, diamonds, gemstones, fine watches, rare coins and related collectibles, precious-metal bullion products, gold, silver and other precious metals.
+Added: For over 50 years, Envela’s consumer segment has been a destination location for seeking value and liquidity in luxury goods.
Our direct-to-consumer business provides a marketplace that delivers what we believe to be unparalleled value and liquidity for those seeking to buy, sell or trade merchandise in every major jewelry, fine watch, diamond, gemstone, finding, precious metal, and premium brand product category.
−Removed: Our experienced staff of experts, including GIA-graduate gemologists, horologists, numismatists, and jewelers and brand authenticators, recondition and rebuild items for resale through our retail locations, e-commerce, or wholesale distributors.
−Removed: When reconditioning is not feasible because crafted precious metals are at the end of their useful lives, we sell them wholesale channels or recycle them by selling them to third-party refiners who recover reusable precious metals for subsequent sale or recrafting into new jewelry or bullion products.
+Added: Our experienced staff of experts, including GIA-graduate gemologists, horologists, numismatists, jewelers and brand authenticators, recondition and rebuild items for resale through our retail locations, e-commerce, or wholesale distributors.
+Added: When reconditioning is not feasible because crafted precious metals are at the end of their useful lives, we sell them through wholesale channels or recycle them by selling them to third-party refiners who recover reusable precious metals for subsequent sale or recrafting into new jewelry or bullion products.
We offer on-site repair services for jewelry and watches, as well as custom jewelry services.
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As a result, we typically incur higher operating expenses in the last four months of the year as we increase advertising spend.
−Removed: DGSE operates six retail locations throughout DFW, and one in Mt.
−Removed: Pleasant, South Carolina.
−Removed: We opened our newest location in Frisco, Texas, during the first quarter of Fiscal 2022.
−Removed: We own three retail locations in the DFW area and lease the others.
+Added: The consumer segment operates six retail locations throughout DFW, one in Mt.
+Added: Pleasant, South Carolina and one in Phoenix, Arizona.
+Added: We opened our newest location in Phoenix, Arizona, during the fourth quarter of Fiscal 2023 (as defined below).
+Added: The Company owns three retail locations in the DFW area, and leases the others.
+Added: The Company purchased another building in the Phoenix area, during Fiscal 2023, which is currently being prepared to be the ninth retail location.
Our direct-to-consumer brands include Dallas Gold & Silver Exchange, Charleston Gold & Diamond, and Bullion Express.
−Removed: Sales and operating results for these brands are reported within their respective DGSE operating segments.
+Added: Sales and operating results for these brands are reported within the consumer operating segment.
CORPORATE INFORMATION
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(June 26, 2001).
−Removed: In 2016, after recently celebrating its 50th anniversary, it was named by S&P Global Market Intelligence as the second most likely company to go bankrupt, behind Sears Holdings.
+Added: In 2016, after celebrating its 50th anniversary, it was named by S&P Global Market Intelligence as the second most likely company to go bankrupt, behind Sears Holdings.
Aiming to turn the Company around, the board of directors (its “Board”) brought in new management.
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For many employees, that day marked the “true founding” of the Company.
−Removed: Under this new leadership, the Company has posted six straight years of unprecedented profitability.
+Added: Under this new leadership, the Company has posted seven straight years of unprecedented profitability.
By pursuing diversified re-commerce opportunities with potential long-term rewards, we continued to evolve as a company.
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Many of our subsidiaries and brands maintain their own websites for commercial purposes, including primarily the following:
−Removed: DGSE.com, echoenvironmental.com, ITADUSA.com, teladvance.com and AvailRecovery.com.
+Added: DGSE.com, echoenvironmental.com, ITADUSA.com, teladvance.com, AvailRecovery.com and StevenKretchmer.com.
Information contained on, or that can be accessed through, our website or any website of our subsidiaries or brands is not incorporated by reference into this or any other report we file with, or furnish to, the SEC, and you should not consider information on any such website to be part of this or any other report we file with, or furnish to, the SEC.
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We aspire to operate our business with positive social and environmental impact.
−Removed: Our Board, including the Corporate Governance and Nominating Committee, the Audit Committee, and the Compensation Committee, provide oversight on business initiatives and programs that relate to social responsibility, emerging opportunities and the Company’s exposure to risk.
−Removed: The Board and management seek to attract and retain the most qualified inclusive workforce to propel the Company into the next generation.
−Removed: Our Sustainability Program
−Removed: We are committed to extending the useful lives of goods by promoting their recirculation and re-use, rather than creating waste.
−Removed: In this way, sustainability is at the core of our business, and we hope to create a more sustainable future.
Human Capital Resources
−Removed: Our employees are guided by our mission to extend the lifespans of durable goods.
+Added: Our employees are guided by our mission to extend the lifespan of durable goods.
We are part of a diverse global community, and we aim to reflect that diversity within our team.
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Additionally, we rely on independent contractors and temporary personnel to supplement our workforce, primarily in our electronic-disposition centers.
−Removed: None of our employees is represented by a labor union or covered by a collective bargaining agreement.
+Added: The consumer segment is currently developing and training a workforce to help manage and run the new locations that have been opened and are scheduled to open in the Phoenix area during 2024.
+Added: None of our employees are represented by a labor union or covered by a collective bargaining agreement.
We consider our relations with our employees to be positive.
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GOVERNMENT REGULATIONS, ENVIRONMENTAL MATTERS AND IMPACT OF CLIMATE CHANGE
−Removed: Envela buys and resells precious metals, which are generally subject to regulation including conflict mineral tracing.
+Added: Envela buys and resells precious metals, which is generally subject to regulation including conflict mineral tracing.
However, in conjunction with legal counsel, we have determined that we do not have sufficient control over manufacturing of any of our products to be included in the group of companies required to provide conflict-minerals disclosure and reporting.
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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.