Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Entity Registrant Name | 'DGSE COMPANIES INC | ' |
Entity Central Index Key | '0000701719 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 12,175,584 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $2,438,266 | $4,911,087 |
Trade receivables, net of allowances | 152,227 | 718,501 |
Inventories | 13,525,730 | 11,932,729 |
Prepaid expenses | 280,388 | 321,709 |
Total current assets | 16,396,611 | 17,884,026 |
Property and equipment, net | 5,176,360 | 4,849,937 |
Intangible assets, net | 2,999,195 | 3,169,840 |
Other assets | 245,084 | 211,069 |
Total assets | 24,817,250 | 26,114,872 |
Current Liabilities: | ' | ' |
Current maturities of line of credit, related party | 3,583,358 | ' |
Current maturities of long-term debt | 124,471 | 146,949 |
Current maturities of capital leases | 18,611 | 28,285 |
Accounts payable-trade | 4,809,213 | 3,561,794 |
Accrued expenses | 1,739,541 | 1,250,319 |
Customer deposits and other liabilities | 1,922,994 | 2,617,592 |
Total current liabilities | 12,198,188 | 7,604,939 |
Line of credit, related party | ' | 3,583,358 |
Long-term debt, less current maturities | 1,789,648 | 1,843,062 |
Total liabilities | 13,987,836 | 13,031,359 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, $0.01 par value; 30,000,000 shares authorized; 12,175,584 shares issued and outstanding | 121,755 | 121,755 |
Additional paid-in capital | 34,045,654 | 34,045,654 |
Accumulated deficit | -23,337,995 | -21,083,896 |
Total stockholders' equity | 10,829,414 | 13,083,513 |
Total liabilities and stockholders' equity | $24,817,250 | $26,114,872 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,175,584 | 12,175,584 |
Common stock, shares outstanding | 12,175,584 | 12,175,584 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue: | ' | ' | ' | ' |
Sales | $23,754,623 | $28,975,063 | $83,819,585 | $90,374,423 |
Cost of goods sold | 19,222,318 | 22,787,722 | 69,537,396 | 73,447,142 |
Gross margin | 4,532,305 | 6,187,341 | 14,282,189 | 16,927,281 |
Expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 5,499,007 | 6,405,147 | 15,665,812 | 17,924,355 |
Depreciation and amortization | 187,079 | 152,337 | 543,735 | 448,260 |
Total operating expenses | 5,686,086 | 6,557,484 | 16,209,547 | 18,372,615 |
Operating loss | -1,153,781 | -370,143 | -1,927,358 | -1,445,334 |
Other expense (income): | ' | ' | ' | ' |
Other income, net | -2,845 | -39,352 | -18,204 | -66,012 |
Interest expense | 66,604 | 72,677 | 170,566 | 253,796 |
Other expense (income) | 63,759 | 33,325 | 152,362 | 187,784 |
Loss from continuing operations before income taxes | -1,217,540 | -403,468 | -2,079,720 | -1,633,118 |
Income tax expense | 214,414 | 26,603 | 174,379 | 106,413 |
Loss from continuing operations | -1,431,954 | -430,071 | -2,254,099 | -1,739,531 |
Discontinued operations: | ' | ' | ' | ' |
Loss from discontinued operations, net of taxes of $0 | ' | -105,819 | ' | -706,641 |
Net loss | ($1,431,954) | ($535,890) | ($2,254,099) | ($2,446,172) |
Basic net loss per common share: | ' | ' | ' | ' |
Loss from continuing operations | ($0.12) | ($0.03) | ($0.19) | ($0.14) |
Loss from discontinued operations | ' | ($0.01) | ' | ($0.06) |
Net loss per share | ($0.12) | ($0.04) | ($0.19) | ($0.20) |
Diluted net loss per common share: | ' | ' | ' | ' |
Loss from continuing operations | ($0.12) | ($0.03) | ($0.19) | ($0.14) |
Loss from discontinued operations | ' | ($0.01) | ' | ($0.06) |
Net loss per share | ($0.12) | ($0.04) | ($0.19) | ($0.20) |
Weighted-average number of common shares | ' | ' | ' | ' |
Basic | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 |
Diluted | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' |
Loss from discontinued operations, tax | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows From Operating Activities: | ' | ' |
Net loss | ($2,254,099) | ($2,446,172) |
Loss from discontinued operations | ' | 706,641 |
Loss from continuing operations | -2,254,099 | -1,739,531 |
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations: | ' | ' |
Depreciation and amortization | 543,735 | 448,260 |
Gain on marketable securities | ' | -59,313 |
Stock based compensation | ' | 26,826 |
Stock issued as compensation for consulting services | ' | 76,365 |
Changes in operating assets and liabilities: | ' | ' |
Trade receivables, net | 566,274 | 139,498 |
Inventories | -1,593,001 | -974,998 |
Prepaid expenses | 41,321 | -140,097 |
Other assets | -55,071 | -13,973 |
Accounts payable and accrued expenses | 1,736,641 | -1,115,383 |
Customer deposits and other liabilities | -694,598 | 618,745 |
Net cash used in operating activities of continuing operations | -1,708,798 | -2,733,601 |
Cash Flows From Investing Activities: | ' | ' |
Payments for property and equipment | -619,894 | -882,760 |
Purchase of available-for-sale investments | ' | -95,000 |
Proceeds from sales of available-for-sale investments | ' | 154,313 |
Net cash used in investing activities of continuing operations | -619,894 | -823,447 |
Cash Flows From Financing Activities: | ' | ' |
Repayment of debt | -116,010 | -277,432 |
Payments on capital lease obligations | -28,119 | -17,471 |
Repayment of line of credit | ' | -3,566,545 |
Proceeds from line of credit with related party | ' | 3,583,358 |
Debt issuance costs | ' | -56,150 |
Net cash used in financing activities of continuing operations | -144,129 | -334,240 |
Cash Flows From Discontinued Operations: | ' | ' |
Net cash provided by operating activities of discontinued operations | ' | 690,322 |
Net change in cash | -2,472,821 | -3,200,966 |
Cash, beginning of period | 4,911,087 | 5,976,928 |
Cash, end of period | 2,438,266 | 2,775,962 |
Supplemental Disclosures: | ' | ' |
Cash paid during the period for: Interest | 59,468 | 141,052 |
Cash paid during the period for: Income taxes | ' | ' |
Non cash activities: | ' | ' |
Equipment purchased with capital lease | $58,563 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||
Sep. 30, 2013 | |||
Basis of Presentation [Abstract] | ' | ||
Basis of Presentation | ' | ||
-1 | Basis of Presentation | ||
The consolidated interim financial statements of DGSE Companies, Inc. included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to the Commission's rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The Company suggests that these financial statements be read in conjunction with the financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (such fiscal year, "Fiscal 2012" and such annual Report on Form 10-K, the "Fiscal 2012 10-K"). In the opinion of the management of the Company, the accompanying unaudited interim financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary to present fairly its results of operations and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. Certain reclassifications were made to the prior year's consolidated financial statements to conform to the current year presentation. |
Principles_of_Consolidation_an
Principles of Consolidation and Nature of Operations | 9 Months Ended | |
Sep. 30, 2013 | ||
Principles of Consolidation and Nature of Operations [Abstract] | ' | |
Principles of Consolidation and Nature of Operations | ' | |
-2 | Principles of Consolidation and Nature of Operations | |
DGSE Companies, Inc., a Nevada corporation, and its subsidiaries (the "Company" or "DGSE"), buy and sell jewelry and bullion products to both retail and wholesale customers throughout the United States through its facilities in Alabama, Florida, Georgia, Illinois, South Carolina, Tennessee, and Texas, and through its various internet sites. | ||
The interim consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its subsidiaries. All material intercompany transactions and balances have been eliminated. |
Critical_Accounting_Policies_a
Critical Accounting Policies and Estimates | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Critical Accounting Policies and Estimates [Abstract] | ' | ||||
Critical Accounting Policies and Estimates | ' | ||||
-3 | Critical Accounting Policies and Estimates | ||||
Income Taxes | |||||
The Company accounts for its position in tax uncertainties in accordance with Accounting Standards Codification ("ASC") 740, Income Taxes. The guidance establishes standards for accounting for uncertainty in income taxes. The guidance provides several clarifications related to uncertain tax positions. Most notably, a "more likely-than-not" standard for initial recognition of tax positions, a presumption of audit detection and a measurement of recognized tax benefits based on the largest amount that has a greater than 50 percent likelihood of realization. The guidance applies a two-step process to determine the amount of tax benefit to be recognized in the financial statements. First, the Company must determine whether any amount of the tax benefit may be recognized. Second, the Company determines how much of the tax benefit should be recognized (this would only apply to tax positions that qualify for recognition). The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements or the effective tax rate during the periods ended September 30, 2013 and 2012, respectively. | |||||
Fair Value Measures | |||||
The Company follows the Financial Accounting Standards Board issued ASC 820, Fair Value Measurements and Disclosure. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair values. These tiers include: | |||||
Level 1 | - | Quoted prices for identical instruments in active markets; | |||
Level 2 | - | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; and | |||
Level 3 | - | Instruments whose significant inputs are unobservable. | |||
The Company utilizes fair value techniques to evaluate the need for potential impairment losses related intangible assets not subject to amortization pursuant to ASC 350, Intangible-Goodwill and Other and long-lived assets pursuant to ASC 360, Property, Plant and Equipment. The Company calculates estimated fair value using Level 3 inputs, including the present value of future cash flows expected to be generated using weighted average cost of capital, terminal values and updated financial projections. The weighted average cost of capital is estimated using information from comparable companies and management's judgment related to risks associated with the operations of each reporting unit. | |||||
Financial Instruments | |||||
The carrying amounts reported in the consolidated balance sheets for cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The line of credit, related party does not bear a market rate of interest. Management believes that, based on the Company's situation at the time the line was negotiated, it could not have obtained comparable financing, and as such cannot estimate the fair value of the line of credit, related party. The carrying amounts reported for the Company's long-term debt, and capital leases approximate fair value because substantially all of the underlying instruments have variable interest rates, which adjust frequently, or the interest rates approximate current market rates. None of these instruments are held for trading purposes. | |||||
Earnings Per Share | |||||
Basic earnings per common share is computed by dividing net earnings available to holders of the Company's common stock by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options outstanding determined using the treasury stock method. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
-4 | Inventories | ||||||||
A summary of inventories is as follows: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Jewelry | $ | 9,081,630 | $ | 6,979,144 | |||||
Scrap | 1,502,125 | 2,354,338 | |||||||
Bullion | 1,723,067 | 1,558,414 | |||||||
Rare coins | 1,218,908 | 1,040,833 | |||||||
$ | 13,525,730 | $ | 11,932,729 | ||||||
Basic_and_Diluted_Average_Shar
Basic and Diluted Average Shares | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Basic and Diluted Average Shares [Abstract] | ' | ||||||||||||||||
Basic and Diluted Average Shares | ' | ||||||||||||||||
-5 | Basic and Diluted Average Shares | ||||||||||||||||
A reconciliation of basic and diluted average common shares for the three months and nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic weighted average shares | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 | |||||||||||||
Effect of potential dilutive securities: | |||||||||||||||||
Stock options | - | - | - | - | |||||||||||||
Diluted weighted average shares | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 | |||||||||||||
For the three and nine months ended September 30, 2013 and 2012, options to purchase approximately 5,372,500 shares of common stock were not added to the diluted average shares because inclusion of such shares would be antidilutive. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Long-Term Debt [Abstract] | ' | ||||||||||||
Long-Term Debt | ' | ||||||||||||
-6 | Long-Term Debt | ||||||||||||
Outstanding Balance | |||||||||||||
September 30, | December 31, | Current | Maturity | ||||||||||
2013 | 2012 | Interest Rate | |||||||||||
NTR line of credit (1) | $ | 3,583,358 | $ | 3,583,358 | 2.00% | 1-Aug-14 | |||||||
Mortgage payable | 1,872,438 | 1,957,678 | 6.70% | 1-Aug-16 | |||||||||
Settlement payment (2) | - | 23,890 | 8.00% | 15-Feb-13 | |||||||||
Notes payable | 1,562 | 8,443 | Various | Various | |||||||||
Capital leases (3) | 58,730 | 28,285 | Various | Various | |||||||||
Sub-Total | 5,516,088 | 5,601,654 | |||||||||||
Less: Capital leases | 18,611 | 28,285 | |||||||||||
Less: Current maturities | 3,707,829 | 146,949 | |||||||||||
Long-term debt | 1,789,648 | 5,426,420 | |||||||||||
Less: Line of credit (1) | - | 3,583,358 | |||||||||||
Long term debt, less current maturities | $ | 1,789,648 | $ | 1,843,062 | |||||||||
-1 | On July 19, 2012, DGSE entered into a loan agreement with NTR Metals, LLC, DGSE's majority stockholder ("NTR"), pursuant to which NTR, agreed to provide the Company a guidance line of revolving credit in an amount up to $7,500,000 (the "Loan Agreement"). The Loan Agreement will terminate-and all amounts outstanding thereunder will be due and payable (such amounts, the "Obligations")-upon the earlier of: (i) August 1, 2014; (ii) the date that is twelve months after the Company receives notice from NTR demanding the repayment of the Obligations; (iii) the date the Obligations are accelerated in accordance with the terms of the Loan Agreement; or (iv) the date on which the commitment terminates under the Loan Agreement. In connection with the Loan Agreement, the Company granted a security interest in the respective personal property of each of its subsidiaries. The loan carries an interest rate of two percent (2%) per annum for all funds borrowed pursuant to the Loan Agreement. Proceeds received by the Company pursuant to the terms of the Loan Agreement were used for repayment of all outstanding financial obligations incurred in connection with that certain Loan Agreement, dated as of December 22, 2005, between the Company and Texas Capital Bank, and additional proceeds are expected to be used as working capital in the ordinary course of business. The Company incurred debt issuance costs associated with the Loan Agreement totaling $56,150. The debt issuance costs are included in other assets in the accompanying consolidated balance sheet and are being amortized to interest expense on a straight-line basis over two years. As of September 30, 2013 and December 31, 2012, we had an outstanding balance of $3,583,358 drawn on the NTR credit facility. As of August 2013, the outstanding balance on the NTR credit facility has been reclassified as a current liability, given its August 1, 2014 maturity date. The Company is discussing the extension of this credit facility with NTR, as well as various commercial lenders, and expects to extend or re-finance this balance sometime in the first half of 2014. | ||||||||||||
-2 | On February 26, 2010, our subsidiary, Superior Galleries, Inc., a Delaware corporation ("Superior Galleries") entered into a settlement agreement for a lawsuit filed by its previous landlord, DBKK, LLC for $385,000 to be paid over three years bearing interest at 8%. The lawsuit resulted from a lease transaction entered into by certain officers of Superior Galleries. The final payment under the settlement agreement was made in February of 2013. | ||||||||||||
-3 | On November 23, 2010, DGSE entered into a capital lease for $78,450 with Direct Capital Corporation for a radio-frequency identification ("RFID") inventory management solution. The non-cancelable lease agreement required an advanced payment of $5,169 and monthly payments of $2,584 for 36 months at an interest rate of 11.5% beginning in January 2011. At the end of the lease in December 2013, the equipment can be purchased for $1. On April 3, 2013, DGSE entered into a capital lease for $58,563 with Graybar Financial Services for phones at the new corporate headquarters. The non-cancelable lease agreement required an advanced payment of $2,304 and monthly payments of $1,077 for 60 months at an interest rate of 4.2% beginning in May 2013. At the end of the lease in May 2018, the equipment can be purchased for $1. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |
Sep. 30, 2013 | ||
Stock-Based Compensation [Abstract] | ' | |
Stock-Based Compensation | ' | |
-7 | Stock-Based Compensation. | |
The Company accounts for share-based compensation by measuring the cost of the employee services received in exchange for an award of equity instruments, including grants of stock options, based on the fair value of the award at the date of grant. In addition, to the extent that the Company receives an excess tax benefit upon exercise of an award, such benefit is reflected as cash flow from financing activities in the consolidated statement of cash flows. Stock-based compensation expense for 2012 includes compensation expense for new share-based awards and for share-based awards granted prior to, but not yet vested, as of January 1, 2008. | ||
Stock-based compensation expense for the three months ended September 30, 2013 and 2012 was $0 and $8,942, respectively, and for the nine months ended September 30, 2013 and 2012 was $0 and $26,826, respectively, relating to employee and director stock options, and included in selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |
Sep. 30, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions | ' | |
-8 | Related Party Transactions. | |
DGSE has a corporate policy governing the identification, review, consideration and approval or ratification of transactions with related persons, as that term is defined in the Instructions to Item 404(a) of Regulation S-K, promulgated under the Securities Act ("Related Party"). Under this policy, all Related Party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with DGSE's best interests and the best interests of its stockholders. Among other factors, DGSE's Board of Directors (the "Board") considers the size and duration of the transaction, the nature and interest of the Related Party in the transaction, whether the transaction may involve a conflict of interest and if the transaction is on terms that are at least as favorable to DGSE as would be available in a comparable transaction with an unaffiliated third party. DGSE's Board reviews all Related Party transactions at least annually to determine if it is in DGSE's best interests and the best interests of our stockholders to continue, modify, or terminate the Related Party transactions. DGSE's Related Party Transaction Policy is available for review in its entirety under the "Investor Relations" menu in the "DGSE Companies" section of the Company's website at www.DGSE.com. | ||
NTR is DGSE's largest stockholder. NTR is also DGSE's primary refiner and bullion trading partner. For the nine months ended September 30, 2013, 32% of sales and 39% of purchases were transactions with NTR, and in the same period in 2012 these transactions represented 39% of DGSE's sales and 19% of our purchases. As of September 30, 2013 and December 31, 2012, we were obligated to pay $3,258,288 and $1,278,000, respectively, to NTR as a trade payable. | ||
On July 19, 2012, the Company entered into the Loan Agreement with NTR, pursuant to which NTR agreed to provide the Company with a guidance line of revolving credit in an amount up to $7,500,000. The Loan Agreement provides that the Loan Agreement will terminate-and DGSE's Obligations will be due and payable- upon the earlier of (i) August 1, 2014, (ii) the date that is twelve months after DGSE receives notice from NTR demanding the repayment of the Obligations, (iii) the date the Obligations are accelerated in accordance with the terms of the Loan Agreement or (iv) the date on which the commitment terminates under the Loan Agreement. In connection with the Loan Agreement, DGSE granted a security interest in the respective personal property of each of its subsidiaries. The loan carries an interest rate of two percent (2%) per annum for all funds borrowed pursuant to the Loan Agreement. Proceeds received by DGSE pursuant to the terms of the Loan Agreement were used for repayment of all outstanding financial obligations incurred in connection with that certain Loan Agreement, dated as of December 22, 2005, between DGSE and Texas Capital Bank, N.A., and any additional proceeds are expected to be used as working capital in the ordinary course of business. As of September 30, 2013 and December 31, 2012, the outstanding balance of the loan was $3,583,358. | ||
Estate Gold and Silver, LLC, a Texas limited liability company ("Estate Gold") was 25% owned by an entity owned by James Vierling, DGSE's Chief Executive Officer and Chairman, and operated five stores in Oklahoma, primarily focused on buying gold, but also engaging in retail sales of jewelry and bullion. In July of 2013, Estate Gold ceased all operations. The Company previously had an agreement with Estate Gold to provide operations management services, consisting of: (i) the receipt, inventorying, and re-sale of Estate Gold purchases; (ii) the management of Estate Gold's payroll, insurance, accounts payable and receivable; (iii) the maintenance of and updates to Estate Gold's business software; maintenance of the Estate Gold website; and (iv) financial reporting of Estate Gold to its owners. The Company also periodically engaged in the purchase or sale of jewelry, bullion and diamonds to Estate Gold, from time to time in the normal course of business. During the nine months ended September 30, 2013, the Company received $47,060 in fees for services, sold $63,817 in products, and purchased $69,286 in products in transactions with Estate Gold. During the nine months ended September 30, 2012, the Company received $138,319 in fees for services, and sold $201,569 in products, and purchased $90,316 in products in transactions with Estate Gold. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended | ||
Sep. 30, 2013 | |||
Legal Proceedings [Abstract] | ' | ||
Legal Proceedings | ' | ||
-9 | Legal Proceedings. | ||
On April 16, 2012, the Company filed a Current Report on Form 8-K disclosing that our Board had determined the existence of the accounting irregularities beginning approximately during the second calendar quarter of 2007 and continuing in periods subsequent thereto (the "Accounting Irregularities"), which could affect financial information reported since that time. On April 16, 2012, the Company also announced that it had engaged forensic accountants to analyze the Accounting Irregularities, and that financial statements and information reported since the inception of the Accounting Irregularities, believed to begin in the second calendar quarter of 2007, should not be relied upon. The Company brought the Accounting Irregularities to the attention of the SEC in a letter dated April 16, 2012. On June 18, 2012, the Company received written notice that the SEC had initiated a private investigation into the Accounting Irregularities, to determine whether any persons or entities had engaged in any possible violations of the federal securities laws. The Company has cooperated fully, and continue to cooperate fully, with the SEC staff in the investigation. This investigation is still pending as of the date of the filing of this report, and there can be no certainty as to the outcome of this investigation, or to the findings of the SEC. | |||
Also in connection with the Accounting Irregularities, and the subsequent halt in trading of our Common Stock on the NYSE MKT Exchange, the Company was served notice of two related lawsuits. The first, Civil Action No. 3:12-cv-3664 was filed in the United States District Court for the Northern District of Texas, on September 7, 2012, entitled Grant Barfuss, on behalf of himself and all others similarly situated vs. DGSE Companies, Inc.; L. S. Smith, John Benson and William Oyster. This was a complaint alleging violations of the securities laws and seeks unspecified damages. Plaintiffs alleged that certain public filings in 2010 and 2011 were false and misleading. The second suit, Case No. 3:12-cv-03850 in the United States District Court for the Northern District of Texas, was filed on September 21, 2012, by Jason Farmer, Derivatively on Behalf of Nominal Defendant DGSE Companies, Inc., Plaintiff, v. William H. Oyster, James D. Clem, William Cordeiro, Craig Alan-Lee, David Rector, L. S. Smith, and John Benson, Defendants, and DGSE Companies, Inc., Nominal Defendant. This suit was filed against DGSE, as a nominal defendant, and against certain and former officers and directors. The plaintiff asserted that certain reports were false and misleading, that the defendants breached fiduciary duties owed to DGSE, for abuse of control, and sought unspecified compensatory and exemplary damages, along with certain corporate governance changes, for the benefit of DGSE. On October 21, 2013 the United States District Court for the Northern District of Texas granted final approval of the previously proposed settlement of both the class action and derivative litigation. The defendants have agreed to pay $2 million to resolve all claims in both suits (including obligations to pay plaintiffs' attorneys' fees). It is expected that approximately 90% of the total settlement amount and related expenses will be paid from insurance proceeds. As of September 30, 2013, the Company had incurred approximately $150,000 in attorneys' fees and directly paid $150,000 as its portion of the settlement amount. The Company also expects to incur some additional fees and expenses associated with finalizing the settlement, but expects that any remaining costs associated with the settlement would not have a material effect on its financial position or results of operations. | |||
The Company is currently discussing, both internally among the members of the Board and with its outside counsel, whether it is in the Company's best interest and in the best interest of its stockholders to pursue legal action against those officers and providers of professional services who were involved in the Accounting Irregularities. The Company has not made any determinations on this matter as of the date of this report. | |||
The Texas Comptroller of Public Accounts (the "Comptroller") conducted a sales and use tax audit of DGSE with respect to the period March 1, 2006 through November 30, 2009 and subsequently sent a Notification of Audit Results, by letter dated December 17, 2010, asserting that the Company owed an amount of tax due, plus penalties and interest. We submitted a request for redetermination to the Comptroller by letter dated January 13, 2011. By letter dated August 25, 2011, the Comptroller stated that our request for a redetermination hearing had been granted. The hearing has not yet taken place, but the Company has been actively engaged in discussions with the Comptroller's office. The Company and the Comptroller have reached informal agreement on certain issues, while other issues remain under discussion. Although no final determination has been reached, based on the most recent communication from the Comptroller in October of 2013, the Company believes that it is likely to owe additional taxes and interest to the State of Texas, and has accordingly reserved an additional $650,000 in the current quarter towards the payment of these amounts. The total reserve is based on the Company's current best estimate, and may vary materially from any final assessment. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations [Abstract] | ' | ||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
-10 | Discontinued Operations | ||||||||||||||||
In March of 2012, the Company decided to discontinue the operations of its Superior Galleries subsidiary due to the lack of profitability and current management's belief that it was unlikely that profitability would be reached in the foreseeable future. The Company officially discontinued operations on June 8, 2012 and incurred losses in the first and second quarter of 2012 for the discontinued operations. The operating results for the three and nine months ended September 30, 2013 and 2012 have been reclassified as discontinued operations in the consolidated statements of operations as detailed in the table below. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
Sales | $ | - | $ | 59 | $ | - | $ | 3,168,438 | |||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | - | 560 | - | 2,861,477 | |||||||||||||
S,G&A expenses | - | 29,780 | - | 429,051 | |||||||||||||
Depreciation and amortization | - | (23,727 | ) | - | 220,384 | ||||||||||||
- | 6,613 | - | 3,510,912 | ||||||||||||||
Operating loss | - | (6,554 | ) | - | (342,474 | ) | |||||||||||
Other (expense)/income, net | - | (99,265 | ) | - | (358,805 | ) | |||||||||||
Interest expense | - | - | - | (5,362 | ) | ||||||||||||
- | (99,265 | ) | - | (364,167 | ) | ||||||||||||
Loss from discontinued operations before income taxes | (105,819 | ) | (706,641 | ) | |||||||||||||
Income tax expense | - | - | - | - | |||||||||||||
Loss from discontinued operations after income taxes | $ | - | $ | (105,819 | ) | $ | - | $ | (706,641 | ) | |||||||
For the three and nine months ended September 30, 2013, there was no activity in discontinued operations. For the nine months ended September 30, 2012, depreciation and amortization expense includes $201,091 related to the write off of Superior assets with no future value to the Company. Other (expense) income, net for the nine months ended September 30, 2012, includes of a $62,872 write off of the deferred rent liability net of rent expense and a $158,093 expense related to a settlement paid in October 2012, which was accrued in the nine months ended September 30, 2012. |
Critical_Accounting_Policies_a1
Critical Accounting Policies and Estimates (Policy) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Critical Accounting Policies and Estimates [Abstract] | ' | ||||
Income Taxes | ' | ||||
Income Taxes | |||||
The Company accounts for its position in tax uncertainties in accordance with Accounting Standards Codification ("ASC") 740, Income Taxes. The guidance establishes standards for accounting for uncertainty in income taxes. The guidance provides several clarifications related to uncertain tax positions. Most notably, a "more likely-than-not" standard for initial recognition of tax positions, a presumption of audit detection and a measurement of recognized tax benefits based on the largest amount that has a greater than 50 percent likelihood of realization. The guidance applies a two-step process to determine the amount of tax benefit to be recognized in the financial statements. First, the Company must determine whether any amount of the tax benefit may be recognized. Second, the Company determines how much of the tax benefit should be recognized (this would only apply to tax positions that qualify for recognition). The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements or the effective tax rate during the periods ended September 30, 2013 and 2012, respectively. | |||||
Fair Value Measures | ' | ||||
Fair Value Measures | |||||
The Company follows the Financial Accounting Standards Board issued ASC 820, Fair Value Measurements and Disclosure. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair values. These tiers include: | |||||
Level 1 | - | Quoted prices for identical instruments in active markets; | |||
Level 2 | - | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; and | |||
Level 3 | - | Instruments whose significant inputs are unobservable. | |||
The Company utilizes fair value techniques to evaluate the need for potential impairment losses related intangible assets not subject to amortization pursuant to ASC 350, Intangible-Goodwill and Other and long-lived assets pursuant to ASC 360, Property, Plant and Equipment. The Company calculates estimated fair value using Level 3 inputs, including the present value of future cash flows expected to be generated using weighted average cost of capital, terminal values and updated financial projections. The weighted average cost of capital is estimated using information from comparable companies and management's judgment related to risks associated with the operations of each reporting unit. | |||||
Financial Instruments | ' | ||||
Financial Instruments | |||||
The carrying amounts reported in the consolidated balance sheets for cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The line of credit, related party does not bear a market rate of interest. Management believes that, based on the Company's situation at the time the line was negotiated, it could not have obtained comparable financing, and as such cannot estimate the fair value of the line of credit, related party. The carrying amounts reported for the Company's long-term debt, and capital leases approximate fair value because substantially all of the underlying instruments have variable interest rates, which adjust frequently, or the interest rates approximate current market rates. None of these instruments are held for trading purposes. | |||||
Earnings Per Share | ' | ||||
Earnings Per Share | |||||
Basic earnings per common share is computed by dividing net earnings available to holders of the Company's common stock by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options outstanding determined using the treasury stock method. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
A summary of inventories is as follows: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Jewelry | $ | 9,081,630 | $ | 6,979,144 | |||||
Scrap | 1,502,125 | 2,354,338 | |||||||
Bullion | 1,723,067 | 1,558,414 | |||||||
Rare coins | 1,218,908 | 1,040,833 | |||||||
$ | 13,525,730 | $ | 11,932,729 | ||||||
Basic_and_Diluted_Average_Shar1
Basic and Diluted Average Shares (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Basic and Diluted Average Shares [Abstract] | ' | ||||||||||||||||
Schedule of Reconciliation of Basic and Diluted Average Common Shares | ' | ||||||||||||||||
A reconciliation of basic and diluted average common shares for the three months and nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic weighted average shares | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 | |||||||||||||
Effect of potential dilutive securities: | |||||||||||||||||
Stock options | - | - | - | - | |||||||||||||
Diluted weighted average shares | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 | |||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Long-Term Debt [Abstract] | ' | ||||||||||||
Schedule of Long-Term Debt | ' | ||||||||||||
Outstanding Balance | |||||||||||||
September 30, | December 31, | Current | Maturity | ||||||||||
2013 | 2012 | Interest Rate | |||||||||||
NTR line of credit (1) | $ | 3,583,358 | $ | 3,583,358 | 2.00% | 1-Aug-14 | |||||||
Mortgage payable | 1,872,438 | 1,957,678 | 6.70% | 1-Aug-16 | |||||||||
Settlement payment (2) | - | 23,890 | 8.00% | 15-Feb-13 | |||||||||
Notes payable | 1,562 | 8,443 | Various | Various | |||||||||
Capital leases (3) | 58,730 | 28,285 | Various | Various | |||||||||
Sub-Total | 5,516,088 | 5,601,654 | |||||||||||
Less: Capital leases | 18,611 | 28,285 | |||||||||||
Less: Current maturities | 3,707,829 | 146,949 | |||||||||||
Long-term debt | 1,789,648 | 5,426,420 | |||||||||||
Less: Line of credit (1) | - | 3,583,358 | |||||||||||
Long term debt, less current maturities | $ | 1,789,648 | $ | 1,843,062 | |||||||||
-1 | On July 19, 2012, DGSE entered into a loan agreement with NTR Metals, LLC, DGSE's majority stockholder ("NTR"), pursuant to which NTR, agreed to provide the Company a guidance line of revolving credit in an amount up to $7,500,000 (the "Loan Agreement"). The Loan Agreement will terminate-and all amounts outstanding thereunder will be due and payable (such amounts, the "Obligations")-upon the earlier of: (i) August 1, 2014; (ii) the date that is twelve months after the Company receives notice from NTR demanding the repayment of the Obligations; (iii) the date the Obligations are accelerated in accordance with the terms of the Loan Agreement; or (iv) the date on which the commitment terminates under the Loan Agreement. In connection with the Loan Agreement, the Company granted a security interest in the respective personal property of each of its subsidiaries. The loan carries an interest rate of two percent (2%) per annum for all funds borrowed pursuant to the Loan Agreement. Proceeds received by the Company pursuant to the terms of the Loan Agreement were used for repayment of all outstanding financial obligations incurred in connection with that certain Loan Agreement, dated as of December 22, 2005, between the Company and Texas Capital Bank, and additional proceeds are expected to be used as working capital in the ordinary course of business. The Company incurred debt issuance costs associated with the Loan Agreement totaling $56,150. The debt issuance costs are included in other assets in the accompanying consolidated balance sheet and are being amortized to interest expense on a straight-line basis over two years. As of September 30, 2013 and December 31, 2012, we had an outstanding balance of $3,583,358 drawn on the NTR credit facility. As of August 2013, the outstanding balance on the NTR credit facility has been reclassified as a current liability, given its August 1, 2014 maturity date. The Company is discussing the extension of this credit facility with NTR, as well as various commercial lenders, and expects to extend or re-finance this balance sometime in the first half of 2014. | ||||||||||||
-2 | On February 26, 2010, our subsidiary, Superior Galleries, Inc., a Delaware corporation ("Superior Galleries") entered into a settlement agreement for a lawsuit filed by its previous landlord, DBKK, LLC for $385,000 to be paid over three years bearing interest at 8%. The lawsuit resulted from a lease transaction entered into by certain officers of Superior Galleries. The final payment under the settlement agreement was made in February of 2013. | ||||||||||||
-3 | On November 23, 2010, DGSE entered into a capital lease for $78,450 with Direct Capital Corporation for a radio-frequency identification ("RFID") inventory management solution. The non-cancelable lease agreement required an advanced payment of $5,169 and monthly payments of $2,584 for 36 months at an interest rate of 11.5% beginning in January 2011. At the end of the lease in December 2013, the equipment can be purchased for $1. On April 3, 2013, DGSE entered into a capital lease for $58,563 with Graybar Financial Services for phones at the new corporate headquarters. The non-cancelable lease agreement required an advanced payment of $2,304 and monthly payments of $1,077 for 60 months at an interest rate of 4.2% beginning in May 2013. At the end of the lease in May 2018, the equipment can be purchased for $1. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations [Abstract] | ' | ||||||||||||||||
Schedule of Discontinued Operations | ' | ||||||||||||||||
The operating results for the three and nine months ended September 30, 2013 and 2012 have been reclassified as discontinued operations in the consolidated statements of operations as detailed in the table below. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
Sales | $ | - | $ | 59 | $ | - | $ | 3,168,438 | |||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | - | 560 | - | 2,861,477 | |||||||||||||
S,G&A expenses | - | 29,780 | - | 429,051 | |||||||||||||
Depreciation and amortization | - | (23,727 | ) | - | 220,384 | ||||||||||||
- | 6,613 | - | 3,510,912 | ||||||||||||||
Operating loss | - | (6,554 | ) | - | (342,474 | ) | |||||||||||
Other (expense)/income, net | - | (99,265 | ) | - | (358,805 | ) | |||||||||||
Interest expense | - | - | - | (5,362 | ) | ||||||||||||
- | (99,265 | ) | - | (364,167 | ) | ||||||||||||
Loss from discontinued operations before income taxes | (105,819 | ) | (706,641 | ) | |||||||||||||
Income tax expense | - | - | - | - | |||||||||||||
Loss from discontinued operations after income taxes | $ | - | $ | (105,819 | ) | $ | - | $ | (706,641 | ) | |||||||
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventories [Abstract] | ' | ' |
Jewelry | $9,081,630 | $6,979,144 |
Scrap | 1,502,125 | 2,354,338 |
Bullion | 1,723,067 | 1,558,414 |
Rare coins | 1,218,908 | 1,040,833 |
Total | $13,525,730 | $11,932,729 |
Basic_and_Diluted_Average_Shar2
Basic and Diluted Average Shares (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Basic and Diluted Average Shares [Abstract] | ' |
Anti-dilutive options excluded from the denominator in the computation of earnings per share | 5,372,500 |
Basic_and_Diluted_Average_Shar3
Basic and Diluted Average Shares (Reconciliation of Basic Earnings per Common Share and Diluted Earnings Per Common Share) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Basic and Diluted Average Shares [Abstract] | ' | ' | ' | ' |
Basic weighted average shares | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 |
Effect of potential dilutive securities: Stock options | ' | ' | ' | ' |
Diluted weighted average shares | 12,175,584 | 12,175,287 | 12,175,584 | 12,175,287 |
LongTerm_Debt_Schedule_of_Debt
Long-Term Debt (Schedule of Debt) (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | $5,516,088 | $5,601,654 | ||
Less: Capital leases | 18,611 | 28,285 | ||
Less: Current maturities | 3,707,829 | 146,949 | ||
Long-term debt | 1,789,648 | 5,426,420 | ||
Less: Line of credit | ' | [1] | 3,583,358 | [1] |
Long-term debt, less current maturities | 1,789,648 | 1,843,062 | ||
NTR line of credit [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 3,583,358 | [1] | 3,583,358 | [1] |
Current Interest Rate | 2.00% | ' | ||
Maturity | 1-Aug-14 | ' | ||
Mortgage payable [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 1,872,438 | 1,957,678 | ||
Current Interest Rate | 6.70% | ' | ||
Maturity | 1-Aug-16 | ' | ||
Settlement payable [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | ' | [2] | 23,890 | [2] |
Current Interest Rate | 8.00% | ' | ||
Maturity | 15-Feb-13 | ' | ||
Notes payable [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 1,562 | 8,443 | ||
Capital leases [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | $58,730 | [3] | $28,285 | [3] |
[1] | On July 19, 2012, DGSE entered into a loan agreement with NTR Metals, LLC, DGSE's majority stockholder ("NTR"), pursuant to which NTR, agreed to provide the Company a guidance line of revolving credit in an amount up to $7,500,000 (the "Loan Agreement"). The Loan Agreement will terminate-and all amounts outstanding thereunder will be due and payable (such amounts, the "Obligations")-upon the earlier of: (i) August 1, 2014; (ii) the date that is twelve months after the Company receives notice from NTR demanding the repayment of the Obligations; (iii) the date the Obligations are accelerated in accordance with the terms of the Loan Agreement; or (iv) the date on which the commitment terminates under the Loan Agreement. In connection with the Loan Agreement, the Company granted a security interest in the respective personal property of each of its subsidiaries. The loan carries an interest rate of two percent (2%) per annum for all funds borrowed pursuant to the Loan Agreement. Proceeds received by the Company pursuant to the terms of the Loan Agreement were used for repayment of all outstanding financial obligations incurred in connection with that certain Loan Agreement, dated as of December 22, 2005, between the Company and Texas Capital Bank, and additional proceeds are expected to be used as working capital in the ordinary course of business. The Company incurred debt issuance costs associated with the Loan Agreement totaling $56,150. The debt issuance costs are included in other assets in the accompanying consolidated balance sheet and are being amortized to interest expense on a straight-line basis over two years. As of September 30, 2013 and December 31, 2012, we had an outstanding balance of $3,583,358 drawn on the NTR credit facility. As of August 2013, the outstanding balance on the NTR credit facility has been reclassified as a current liability, given its August 1, 2014 maturity date. The Company is discussing the extension of this credit facility with NTR, as well as various commercial lenders, and expects to extend or re-finance this balance sometime in the first half of 2014. | |||
[2] | On February 26, 2010, our subsidiary, Superior Galleries, Inc., a Delaware corporation ("Superior Galleries") entered into a settlement agreement for a lawsuit filed by its previous landlord, DBKK, LLC for $385,000 to be paid over three years bearing interest at 8%. The lawsuit resulted from a lease transaction entered into by certain officers of Superior Galleries. The final payment under the settlement agreement was made in February of 2013. | |||
[3] | On November 23, 2010, DGSE entered into a capital lease for $78,450 with Direct Capital Corporation for a radio-frequency identification ("RFID") inventory management solution. The non-cancelable lease agreement required an advanced payment of $5,169 and monthly payments of $2,584 for 36 months at an interest rate of 11.5% beginning in January 2011. At the end of the lease in December 2013, the equipment can be purchased for $1. On April 3, 2013, DGSE entered into a capital lease for $58,563 with Graybar Financial Services for phones at the new corporate headquarters. The non-cancelable lease agreement required an advanced payment of $2,304 and monthly payments of $1,077 for 60 months at an interest rate of 4.2% beginning in May 2013. At the end of the lease in May 2018, the equipment can be purchased for $1. |
LongTerm_Debt_Footnotes_Detail
Long-Term Debt (Footnotes) (Details) (USD $) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 19, 2012 | Jul. 19, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 26, 2010 | Nov. 23, 2010 | Apr. 03, 2013 | |
NTR Loan Agreement [Member] | NTR Loan Agreement [Member] | NTR Loan Agreement [Member] | Superior settlement agreement [Member] | Direct Capital Corporation lease [Member] | Graybar Financial Services lease [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount | $5,516,088 | ' | $5,601,654 | ' | ' | ' | ' | $385,000 | $78,450 | $58,563 |
Interest rate, credit | ' | ' | ' | 2.00% | 2.00% | ' | ' | ' | ' | ' |
Interest rate, debt | ' | ' | ' | ' | ' | ' | ' | 8.00% | 11.50% | 4.20% |
Monthly payments | ' | ' | ' | ' | ' | ' | ' | ' | 2,584 | 1,077 |
Debt issuance costs | ' | -56,150 | ' | ' | 56,150 | ' | ' | ' | ' | ' |
Credit facility amount, maximum | ' | ' | ' | 7,500,000 | 7,500,000 | 3,583,358 | 3,583,358 | ' | ' | ' |
Credit facility, amount outstanding | 3,583,358 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances on capital leases | ' | ' | ' | ' | ' | ' | ' | ' | $5,169 | $2,304 |
Term | ' | ' | ' | ' | ' | ' | ' | '3 years | '36 months | '60 months |
Equipment purchase option, purchase price | ' | ' | ' | ' | ' | ' | ' | ' | '1 | '1 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $0 | $8,942 | $0 | $26,826 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 19, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Sales to major customer, percent of revenues | 32.00% | 39.00% | ' | ' |
Payments to supplier, percent of purchases | 39.00% | 19.00% | ' | ' |
Due to NTR | $3,258,288 | ' | $1,278,000 | ' |
Credit facility amount, maximum | ' | ' | ' | 7,500,000 |
Interest rate, credit | ' | ' | ' | 2.00% |
Credit facility, amount outstanding | 3,583,358 | ' | ' | ' |
Estate Gold [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Percentage of ownership by the related party in the entity | 25.00% | ' | ' | ' |
Proceeds from related party | 47,060 | 138,319 | ' | ' |
Related party revenue | 63,817 | 201,569 | ' | ' |
Purchases from related party | $69,286 | 90,316 | ' | ' |
Legal_Proceedings_Details
Legal Proceedings (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Oct. 21, 2013 | |
Legal Proceedings [Abstract] | ' | ' | ' |
Attorney fees incurred for litigation | ' | $150,000 | ' |
Accrued litigation settlement | 150,000 | 150,000 | 2,000,000 |
Reserves for additional taxes and interest | $650,000 | ' | ' |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2012 | |
Discontinued Operations [Abstract] | ' |
Write off of subsidiary assets with no future value to the company, included in depreciation and amortization expense | $201,091 |
Write off of deferred rent liability | 62,872 |
Settlement payment | $158,093 |
Discontinued_Operations_Schedu
Discontinued Operations (Schedule of Discontinued Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Selling, general and administrative expenses | $5,499,007 | $6,405,147 | $15,665,812 | $17,924,355 |
Other (expense)/income, net | 2,845 | 39,352 | 18,204 | 66,012 |
Total nonoperating expense | -63,759 | -33,325 | -152,362 | -187,784 |
Loss from discontinued operations after income taxes | ' | -105,819 | ' | -706,641 |
Superior Galleries [Member] | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Revenues | ' | 59 | ' | 3,168,438 |
Cost of sales | ' | 560 | ' | 2,861,477 |
Selling, general and administrative expenses | ' | 29,780 | ' | 429,051 |
Depreciation and amortization | ' | -23,727 | ' | 220,384 |
Total | ' | 6,613 | ' | 3,510,912 |
Operating loss | ' | -6,554 | ' | -342,474 |
Other (expense)/income, net | ' | -99,265 | ' | -358,805 |
Interest expense | ' | ' | ' | -5,362 |
Total nonoperating expense | ' | -99,265 | ' | -364,167 |
Loss from discontinued operations before income taxes | ' | -105,819 | ' | -706,641 |
Income tax expense | ' | ' | ' | ' |
Loss from discontinued operations after income taxes | ' | ($105,819) | ' | ($706,641) |