On August 16, 2021, Joel S. Friedman, an independent member of the board of directors of Envela Corporation (the ‘Company’) and the Chairman of the Compensation Committee, resigned from the Board of Directors and agreed to become the Company’s Chief Information Officer (‘CIO’), effective immediately. Mr. Friedman did not advise the Company of any disagreement with the Company on any matter relating to its operations, policies, practices or otherwise. Mr. Friedman was also a member of the Audit and Compliance and Nominating Committees. The Company is currently searching for a replacement to fill the vacated independent position on the Board.