Envela (ELA) 10-Q 12 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 12, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Entity Registrant Name	DGSE COMPANIES INC
Entity Central Index Key	701,719
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,296,446

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 1,342,152	$ 2,184,435
Trade receivables, net of allowances	167,074	904,076
Inventories	10,678,270	11,144,157
Prepaid expenses	$ 171,730	104,513
Assets related to discontinued operations		49,729
Total current assets	$ 12,359,226	14,386,910
Property and equipment, net	4,308,762	4,365,767
Intangible assets, net	17,230	27,568
Other assets	125,646	128,356
Total assets	16,810,864	18,908,601
Current Liabilities:
Current maturities of long-term debt	1,623,098	131,003
Current maturities of capital leases	11,942	11,529
Accounts payable-trade	4,237,211	5,831,736
Accrued expenses	1,196,205	1,541,552
Customer deposits and other liabilities	2,443,596	1,082,778
Liabilities related to discontinued operations	212,485	303,564
Total current liabilities	9,724,537	8,902,162
Line of credit, related party	2,303,359	2,303,359
Long-term debt, less current maturities	16,729	1,616,237
Total liabilities	$ 12,044,625	$ 12,821,758
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value; 30,000,000 shares authorized; 12,296,446 and 12,238,846 shares issued and outstanding	$ 122,964	$ 122,388
Additional paid-in capital	34,267,577	34,231,271
Accumulated deficit	(29,624,302)	(28,266,816)
Total stockholders' equity	4,766,239	6,086,843
Total liabilities and stockholders' equity	$ 16,810,864	$ 18,908,601

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
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	12,296,446	12,238,846
Common stock, shares outstanding	12,296,446	12,238,846

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Sales	$ 16,523,826	$ 17,040,249	$ 44,341,612	$ 52,622,968
Cost of goods sold	14,137,085	13,905,844	37,052,512	43,267,708
Gross margin	2,386,741	3,134,405	7,289,100	9,355,260
Expenses:
Selling, general and administrative expenses	2,689,569	2,930,475	8,108,750	9,634,616
Depreciation and amortization	80,499	105,971	302,831	287,786
Total operating expenses	2,770,068	3,036,446	8,411,581	9,922,402
Operating (loss) income	(383,327)	97,959	(1,122,481)	(567,142)
Other expense (income):
Other (income) expense, net	(3,766)	12,982	(7,469)	(44,679)
Interest expense	84,826	89,240	257,487	258,383
Other expense	81,060	102,222	250,018	213,704
Loss from continuing operations before income taxes	(464,387)	(4,263)	(1,372,499)	(780,846)
Income tax expense (benefit)	18,159	(17,094)	43,082	29,976
(Loss) income from continuing operations	(482,546)	12,831	(1,415,581)	(810,822)
Discontinued operations:
Income (loss) from discontinued operations, net of taxes	13,848	166,757	58,095	(3,984,808)
Net (loss) income	$ (468,698)	$ 179,588	$ (1,357,486)	$ (4,795,630)
Basic net loss per common share:
(Loss) income from continuing operations	$ (0.04)	$ 0	$ (0.11)	$ (0.06)
(Loss) income from discontinued operations		0.01		(0.33)
Net (loss) income per share	$ (0.04)	0.01	$ (0.11)	(0.39)
Diluted net loss per common share:
(Loss) income from continuing operations	$ (0.04)	0	$ (0.11)	(0.06)
(Loss) income from discontinued operations		0.01		(0.33)
Net (loss) income per share	$ (0.04)	$ 0.01	$ (0.11)	$ (0.39)
Weighted-average number of common shares
Basic	12,296,446	12,223,584	12,268,475	12,209,416
Diluted	12,296,446	12,271,362	12,268,475	12,209,416

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows From Operating Activities:
Net loss	$ (1,357,486)	$ (4,795,630)
Income (loss) from discontinued operations, net of tax	58,095	(3,984,808)
Loss from continuing operations, net of tax	(1,415,581)	(810,822)
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:
Depreciation and amortization	302,831	287,786
Stock based compensation to employees, officers and directors	36,882	39,358
Changes in operating assets and liabilities:
Trade receivables, net	737,002	(62,276)
Inventories	465,887	320,964
Prepaid expenses	(67,217)	(68,380)
Other assets	2,710	60,511
Accounts payable and accrued expenses	(1,939,872)	(738,614)
Customer deposits and other liabilities	1,360,818	(864,725)
Net cash used in operating activities of continuing operations	(516,540)	(1,836,198)
Cash Flows From Investing Activities:
Purchases of property and equipment	(235,488)	(141,887)
Net cash used in investing activities of continuing operations	(235,488)	(141,887)
Cash Flows From Financing Activities:
Repayment of debt	(97,427)	(91,131)
Payments on capital lease obligations	$ (9,573)	(8,274)
Repayment of line of credit with related party		(80,000)
Net cash used in financing activities of continuing operations	$ (107,000)	(179,405)
Cash Flows From Discontinued Operations:
Net cash provided by operating activities of discontinued operations	16,745	1,470,618
Net change in cash	(842,283)	(686,872)
Cash, beginning of period	2,184,435	2,637,726
Cash, end of period	1,342,152	1,950,854
Supplemental Disclosures:
Cash paid during the period for: Interest	$ 149,884	$ 146,157
Cash paid during the period for: Income taxes
Noncash item:
Transfer of inventory from discontinued operations		$ 1,524,864

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation [Abstract]
Basis of Presentation	(1) Basis of Presentation The consolidated interim financial statements of DGSE Companies, Inc., a Nevada corporation, and its subsidiaries (the “Company” or “DGSE”), 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, 2014 (such fiscal year, “Fiscal 2014” and such Annual Report on Form 10-K, the “Fiscal 2014 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 and

Principles of Consolidation and Nature of Operations	9 Months Ended
	Sep. 30, 2015
Principles of Consolidation and Nature of Operations [Abstract]
Principles of Consolidation and Nature of Operations	(2) Principles of Consolidation and Nature of Operations DGSE buys and sells jewelry and bullion products to both retail and wholesale customers throughout the United States through its facilities in Illinois, South Carolina, 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 an

Critical Accounting Policies and Estimates	9 Months Ended
	Sep. 30, 2015
Critical Accounting Policies and Estimates [Abstract]
Critical Accounting Policies and Estimates	(3) Critical Accounting Policies and Estimates 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. Recent Accounting Pronouncement In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers On July 22, 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 requires an entity to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. ASU 2015-11 will not apply to inventories that are measured using either the last-in, first-out (LIFO) method or the retail inventory method. ASU 2015-11 is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years; early application is permitted. The Company is evaluating the financial statement implications of adopting ASU 2015-11.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
Inventories	(4) Inventories A summary of inventories is as follows: September 30, December 31, 2015 2014 Jewelry $ 9,166,112 $ 9,755,580 Scrap gold 604,191 536,181 Bullion 598,182 493,368 Rare coins and Other 309,785 359,028 $ 10,678,270 $ 11,144,157

Basic and Diluted Average Share

Basic and Diluted Average Shares	9 Months Ended
	Sep. 30, 2015
Basic and Diluted Average Shares [Abstract]
Basic and Diluted Average Shares	(5) Basic and Diluted Average Shares A reconciliation of basic and diluted weighted average common shares for the three months and nine months ended September 30, 2015 and 2014, is as follows: For the Three Months Ended September 30, For the Nine Months Ended 2015 2014 2015 2014 Basic weighted average shares 12,296,446 12,223,584 12,268,475 12,209,416 Effect of potential dilutive securities - 47,778 - - Diluted weighted average shares 12,296,446 12,271,362 12,268,475 12,209,416 For the three and nine months ended September 30, 2015 and 2014, options to purchase 5,030,000 5,327,500 17,500 42,145

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2015
Long-Term Debt [Abstract]
Long-Term Debt	(6) Long-Term Debt Outstanding Balance September 30, 2015 December 31, Current Maturity NTR line of credit (1) $ 2,303,359 $ 2,303,359 2.0 % August 1, 2017 Mortgage payable (2) 1,623,098 1,720,525 6.7 % August 1, 2016 Capital leases (3) 28,671 38,244 4.2 % May 1, 2018 Sub-Total 3,955,128 4,062,128 Less: Current maturities of capital leases 11,942 11,529 Less: Current maturities of mortgage payable 1,623,098 131,003 Long-term debt 2,320,088 3,919,596 Less: Line of credit (1) 2,303,359 2,303,359 Long term debt, less current maturities $ 16,729 $ 1,616,237 (1) On July 19, 2012 7,500,000 August 1, 2014 (2 56,150 two August 1, 2015 August 1, 2017 2,303,359 (2) On July 11, 2006, DGSE entered into a promissory note for $ 2,530,000 6.70 1.5 August 1, 2016 20,192 1,623,098 1,720,525 (3) On April 3, 2011 58,563 2,304 1,077 60 4.2 May 2011 . At the end of the lease in May 2018 , the equipment can be purchased for $ 1

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
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. In January 2014, DGSE's Board of Directors (the “Board”) granted 112,000 28,000 15,000 17,500 In September of 2014, the Board granted 14,200 42,600 42,600 42,600 Stock-based compensation expense for the three months ended September 30, 2015 and 2014 was $ 687 5,760 10,919 112,330

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
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 considers the size and duration of the transaction, the nature and interest of the 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 DGSE's stockholders to continue, modify, or terminate any of the Related Party transactions. DGSE's Related Person Transaction Policy is available for review in its entirety under the “Investors” menu of the Company's corporate relations website at www.DGSECompanies.com. Elemetal is DGSE's largest shareholder. Elemetal and its affiliates are also DGSE's primary refiner and bullion trading partner. In the nine months ended September 30, 2015, 22 28 24 26 3,728,906 90,000 As of December 31, 2014, the Company was obligated to pay $ 3,721,144 34,343 136,528 140,898 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 twelve two 2 one two 2,303,359 In the nine months ended September 30, 2015 and 2014, the Company paid NTR $ 34,293 34,502 In April 2011, DGSE moved its principal corporate offices to office space at 15850 Dallas Parkway, Suite 140, Dallas, Texas. This property is owned by an affiliate of Elemetal and also serves as their headquarters. DGSE leases space in the building subject to a lease that will expire in December 2015. In the nine months ended September 30, 2015 and 2014, the Company recognized rent expense of $ 39,375 39,375 In the fourth quarter of Fiscal 2011, the Company established a wholly owned subsidiary named Carbon Fund One, LLC to act as the general partner (the “General Partner”) for Carbon Fund One, LP (the “Fund”), which was established at the same time. The Fund was an investment fund specializing in the buying and selling of gemstones. The General Partner receives a one 2 20 no 11,330 nothing 37,148 97,515 119,999 1,334 35,907

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2015
Legal Proceedings [Abstract]
Legal Proceedings	(9) Legal Proceedings There have been no material changes with respect to the legal proceedings disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2015
Discontinued Operations [Abstract]
Discontinued Operations	(10) Discontinued Operations During the first half of 2014, the Company elected to discontinue the operations of Southern Bullion, due to the lack of profitability and management's belief that it was unlikely that profitability would be reached in the foreseeable future. The significant change in the precious metals market in 2013, including a 30% decline in the spot price of gold since the acquisition of Southern Bullion in 2011, had a disproportionately negative impact on the customer traffic, transactional volume and profitability of the Southern Bullion operations. As a result, during 2013, the Southern Bullion operations generated a net loss of approximately $ 1.9 For the Three Months Ended September 30, For the Nine Months Ended 2015 2014 2015 2014 Revenue: Sales $ - $ 59 $ 65 $ 5,367,867 Cost of goods sold - (5,433 ) - 3,642,244 Gross margin - 5,492 65 1,725,623 Expenses: Selling, general and administrative expenses (11,725 ) (76,042 ) (55,867 ) 2,479,085 Depreciation and amortization - - - 3,259,552 Total expenses (11,725 ) (76,042 ) (55,867 ) 5,738,637 Operating income (loss) 11,725 81,534 55,932 (4,013,014 ) Other expense (income): Other income, net - (77 ) - (19,475 ) Interest (income) expense - (920 ) (40 ) 9,968 - (997 ) (40 ) (9,507 ) Income (loss) from discontinued operations before income taxes 11,725 82,531 55,972 (4,003,507 ) Income tax benefit 2,123 84,226 2,123 18,699 Income (loss) from discontinued operations after income taxes $ 13,848 $ 166,757 $ 58,095 $ (3,984,808 ) Discontinued operations for the three and nine months ended September 30, 2015, include adjustments of existing expense accruals related to winding down the operations of Southern Bullion. The three and nine months ended September 30, 2014, includes losses related to store operations, prior to all stores being closed, as well as expenses for key Southern Bullion personnel involved in winding down the business, and expenses related to cancellation of leases and other contracts. The Company believes it has now recognized all material expenses related to the closure of Southern Bullion operations.

Critical Accounting Policies 16

Critical Accounting Policies and Estimates (Policy)	9 Months Ended
	Sep. 30, 2015
Critical Accounting Policies and Estimates [Abstract]
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.
Recent Accounting Pronouncement	Recent Accounting Pronouncement In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers On July 22, 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 requires an entity to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. ASU 2015-11 will not apply to inventories that are measured using either the last-in, first-out (LIFO) method or the retail inventory method. ASU 2015-11 is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years; early application is permitted. The Company is evaluating the financial statement implications of adopting ASU 2015-11.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
Schedule of Inventories	September 30, December 31, 2015 2014 Jewelry $ 9,166,112 $ 9,755,580 Scrap gold 604,191 536,181 Bullion 598,182 493,368 Rare coins and Other 309,785 359,028 $ 10,678,270 $ 11,144,157

Basic and Diluted Average Sha18

Basic and Diluted Average Shares (Tables)	9 Months Ended
	Sep. 30, 2015
Basic and Diluted Average Shares [Abstract]
Schedule of Reconciliation of Basic and Diluted Average Common Shares	For the Three Months Ended September 30, For the Nine Months Ended 2015 2014 2015 2014 Basic weighted average shares 12,296,446 12,223,584 12,268,475 12,209,416 Effect of potential dilutive securities - 47,778 - - Diluted weighted average shares 12,296,446 12,271,362 12,268,475 12,209,416

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Long-Term Debt [Abstract]
Schedule of Long-Term Debt	Outstanding Balance September 30, 2015 December 31, Current Maturity NTR line of credit (1) $ 2,303,359 $ 2,303,359 2.0 % August 1, 2017 Mortgage payable (2) 1,623,098 1,720,525 6.7 % August 1, 2016 Capital leases (3) 28,671 38,244 4.2 % May 1, 2018 Sub-Total 3,955,128 4,062,128 Less: Current maturities of capital leases 11,942 11,529 Less: Current maturities of mortgage payable 1,623,098 131,003 Long-term debt 2,320,088 3,919,596 Less: Line of credit (1) 2,303,359 2,303,359 Long term debt, less current maturities $ 16,729 $ 1,616,237 (1) On July 19, 2012 7,500,000 August 1, 2014 (2 56,150 two August 1, 2015 August 1, 2017 2,303,359 (2) On July 11, 2006, DGSE entered into a promissory note for $ 2,530,000 6.70 1.5 August 1, 2016 20,192 1,623,098 1,720,525 (3) On April 3, 2011 58,563 2,304 1,077 60 4.2 May 2011 . 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, 2015
Discontinued Operations [Abstract]
Schedule of Discontinued Operations	For the Three Months Ended September 30, For the Nine Months Ended 2015 2014 2015 2014 Revenue: Sales $ - $ 59 $ 65 $ 5,367,867 Cost of goods sold - (5,433 ) - 3,642,244 Gross margin - 5,492 65 1,725,623 Expenses: Selling, general and administrative expenses (11,725 ) (76,042 ) (55,867 ) 2,479,085 Depreciation and amortization - - - 3,259,552 Total expenses (11,725 ) (76,042 ) (55,867 ) 5,738,637 Operating income (loss) 11,725 81,534 55,932 (4,013,014 ) Other expense (income): Other income, net - (77 ) - (19,475 ) Interest (income) expense - (920 ) (40 ) 9,968 - (997 ) (40 ) (9,507 ) Income (loss) from discontinued operations before income taxes 11,725 82,531 55,972 (4,003,507 ) Income tax benefit 2,123 84,226 2,123 18,699 Income (loss) from discontinued operations after income taxes $ 13,848 $ 166,757 $ 58,095 $ (3,984,808 )

Critical Accounting Policies 21

Critical Accounting Policies and Estimates (Details)	Sep. 30, 2015Instruments
Critical Accounting Policies and Estimates [Abstract]
Number of instruments held for trading purposes	0

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Inventories [Abstract]
Jewelry	$ 9,166,112	$ 9,755,580
Scrap gold	604,191	536,181
Bullion	598,182	493,368
Rare coins and Other	309,785	359,028
Total	$ 10,678,270	$ 11,144,157

Basic and Diluted Average Sha23

Basic and Diluted Average Shares (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the denominator in the computation of earnings per share	5,030,000	5,327,500	5,030,000	5,327,500
Unvested Restricted Stock Units ("RSUs") [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the denominator in the computation of earnings per share	17,500	42,145	17,500	42,145

Basic and Diluted Average Sha24

Basic and Diluted Average Shares (Reconciliation of Basic Earnings per Common Share and Diluted Earnings Per Common Share) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic and Diluted Average Shares [Abstract]
Basic weighted average shares	12,296,446	12,223,584	12,268,475	12,209,416
Effect of potential dilutive securities		47,778
Diluted weighted average shares	12,296,446	12,271,362	12,268,475	12,209,416

Long-Term Debt (Schedule of Deb

Long-Term Debt (Schedule of Debt) (Details) - USD ($)		9 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Sub-Total		$ 3,955,128	$ 4,062,128
Less: Current maturities of capital leases		11,942	11,529
Less: Current maturities of mortgage payable		1,623,098	131,003
Long-term debt		2,320,088	3,919,596
Less: Line of credit	[1]	2,303,359	2,303,359
Long-term debt, less current maturities		16,729	1,616,237
NTR line of credit [Member]
Debt Instrument [Line Items]
Sub-Total	[1]	$ 2,303,359	2,303,359
Current Interest Rate	[1]	2.00%
Maturity	[1]	Aug. 1, 2017
Mortgage payable [Member]
Debt Instrument [Line Items]
Sub-Total	[2]	$ 1,623,098	1,720,525
Current Interest Rate	[2]	6.70%
Maturity	[2]	Aug. 1, 2016
Capital leases [Member]
Debt Instrument [Line Items]
Sub-Total	[3]	$ 28,671	$ 38,244
Current Interest Rate	[3]	4.20%
Maturity	[3]	May 1, 2018
[1]	On July 19, 2012, DGSE entered into a loan agreement with NTR Metals, LLC (“NTR”), an affiliate of DGSE's largest stockholder Elemetal, LLC (“Elemetal”), 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 anticipated termination–at which point all amounts outstanding thereunder would 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 have been 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 were included in other assets in the accompanying consolidated balance sheet, were amortized to interest expense on a straight-line basis over two years, and were completely amortized as of July 2014. On February 25, 2014, we entered into a one-year extension of the Loan Agreement with NTR, extending the termination date to August 1, 2015, and on February 4, 2015, we entered into an additional two-year extension, extending the termination date to August 1, 2017, unless earlier terminated as described above. No debt issuance costs were incurred in relation to these extensions. All other terms of the agreement remain the same. As of September 30, 2015 and December 31, 2014, the outstanding balance of the NTR loan was $2,303,359.
[2]	On July 11, 2006, DGSE entered into a promissory note for $2,530,000 related to the mortgage on its largest retail location in Dallas, Texas with The Ohio National Life Insurance Company. The note bears an interest rate of six and seventy one-hundredths of one percent (6.70%) per annum, with a balloon payment of approximately $1.5 million on August 1, 2016 for the outstanding balance. Monthly principal payment payments of $20,192 plus accrued interest are required. The note is secured by the land and building. As of September 30, 2015 and December 31, 2014, the outstanding balance of the note was $1,623,098 and $1,720,525, respectively.
[3]	On April 3, 2011, 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 2011. At the end of the lease in May 2018, the equipment can be purchased for $1.

Long-Term Debt (Footnotes) (Det

Long-Term Debt (Footnotes) (Details) - USD ($)	1 Months Ended		9 Months Ended
	Feb. 25, 2014	Jul. 19, 2012	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term Debt			$ 2,320,088	$ 3,919,596
NTR Loan Agreement [Member]
Debt Instrument [Line Items]
Issuance date			Jul. 19, 2012
Credit facility amount, maximum			$ 7,500,000
Maturity	Aug. 1, 2015	Aug. 1, 2014	Aug. 1, 2017
Interest rate, credit			2.00%
Debt issuance costs		$ 56,150
Period in which debt issuance costs are to be amortized			2 years
Outstanding balance of credit facility			$ 2,303,359	2,303,359
Graybar Financial Services lease [Member]
Debt Instrument [Line Items]
Issuance date			Apr. 3, 2011
Debt instrument, face amount			$ 58,563
Advances on capital leases			2,304
Monthly payments			$ 1,077
Term			60 months
Interest rate, debt			4.20%
Equipment purchase option, purchase price			$ 1
Mortgages [Member]
Debt Instrument [Line Items]
Debt instrument, face amount			2,530,000
Monthly payments			$ 20,192
Maturity			Aug. 1, 2016
Interest rate, debt			6.70%
Balloon payment due			$ 1,500,000
Long-term Debt			$ 1,623,098	$ 1,720,525

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - RSUs [Member] - USD ($)	Jul. 11, 2015	Jul. 09, 2015	Jan. 31, 2015	Sep. 30, 2014	Jan. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted				42,600	112,000
Units vested		42,600	15,000		28,000
Units exercised	42,600
Units outstanding						17,500		17,500
Stock-based compensation expense						$ 687	$ 5,760	$ 10,919	$ 112,330
Outside Director One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted				14,200
Outside Director Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted				14,200
Outside Director Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted				14,200

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Feb. 25, 2014	Jul. 19, 2012	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Interest paid					$ 149,884	$ 146,157
Accounts payable-trade			$ 4,237,211		4,237,211		$ 5,831,736
Net income			(468,698)	$ 179,588	(1,357,486)	(4,795,630)
Elemetal [Member]
Related Party Transaction [Line Items]
Due to related party			3,728,906		3,728,906		3,721,144
Due from related party			$ 90,000		90,000		34,343
Interest paid					136,528	140,898
Carbon Fund One [Member]
Related Party Transaction [Line Items]
Related party revenue						37,148
Purchases from related party					$ 11,330	97,515
Accounts payable-trade				$ 119,999		119,999
Net income					$ (1,334)	$ 35,907
Sales [Member] | Elemetal [Member]
Related Party Transaction [Line Items]
Concentration risk, percentage					22.00%	24.00%
Purchases [Member] | Elemetal [Member]
Related Party Transaction [Line Items]
Concentration risk, percentage					28.00%	26.00%
NTR Loan Agreement [Member]
Related Party Transaction [Line Items]
Interest paid					$ 34,293	$ 34,502
Issuance date					Jul. 19, 2012
Credit facility amount, maximum			$ 7,500,000		$ 7,500,000
Interest rate, credit			2.00%		2.00%
Maturity	Aug. 1, 2015	Aug. 1, 2014			Aug. 1, 2017
Long-term Line of Credit			$ 2,303,359		$ 2,303,359		$ 2,303,359
Corporate Office [Member]
Related Party Transaction [Line Items]
Rent expenses					$ 39,375	$ 39,375

Discontinued Operations (Narrat

Discontinued Operations (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss	$ (468,698)	$ 179,588	$ (1,357,486)	$ (4,795,630)
Southern Bullion [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss					$ (1,900,000)

Discontinued Operations (Schedu

Discontinued Operations (Schedule of Discontinued Operations) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Selling, general and administrative expenses	$ 2,689,569	$ 2,930,475	$ 8,108,750	$ 9,634,616
Other income, net	(3,766)	12,982	(7,469)	(44,679)
Other income, net	81,060	102,222	250,018	213,704
Income (loss) from discontinued operations after income taxes	$ 13,848	166,757	58,095	(3,984,808)
Southern Bullion [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales		59	$ 65	5,367,867
Cost of goods sold		(5,433)		3,642,244
Gross margin		5,492	$ 65	1,725,623
Selling, general and administrative expenses	$ (11,725)	$ (76,042)	$ (55,867)	2,479,085
Depreciation and amortization				3,259,552
Total expenses	$ (11,725)	$ (76,042)	$ (55,867)	5,738,637
Operating income (loss)	$ 11,725	81,534	$ 55,932	(4,013,014)
Other income, net		(77)		(19,475)
Interest (income) expense		(920)	$ (40)	9,968
Other income, net		(997)	(40)	(9,507)
Income (loss) from discontinued operations before income taxes	$ 11,725	82,531	55,972	(4,003,507)
Income tax benefit	2,123	84,226	2,123	18,699
Income (loss) from discontinued operations after income taxes	$ 13,848	$ 166,757	$ 58,095	$ (3,984,808)