Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | DGSE COMPANIES INC | ||
Entity Central Index Key | 701,719 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 5,595,030 | ||
Trading Symbol | DGSE | ||
Entity Common Stock, Shares Outstanding | 26,905,631 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 1,412,082 | $ 1,752,711 |
Trade receivables, net of allowances | 245,095 | 60,712 |
Trade receivables, net of allowances, related party | 40,627 | 169,136 |
Inventories | 9,384,136 | 9,565,506 |
Prepaid expenses | 55,029 | 106,547 |
Total Current Assets | 11,136,969 | 11,654,612 |
Property and equipment, net | 1,665,103 | 4,281,388 |
Intangible assets | 0 | 13,784 |
Other assets | 110,605 | 204,226 |
Total Assets | 12,912,677 | 16,154,010 |
Current Liabilities | ||
Current maturities of long-term debt | 0 | 1,589,522 |
Current maturities of capital leases | 12,590 | 12,069 |
Accounts payable-Trade | 1,103,022 | 1,513,019 |
Accounts payable-Trade, related party | 4,107,425 | 4,176,037 |
Accrued expenses | 1,209,902 | 1,174,458 |
Customer deposits and other liabilities | 572,362 | 1,309,648 |
Liabilities related to discontinued operations | 0 | 190,810 |
Total Current Liabilities | 7,005,301 | 9,965,563 |
Line of Credit, related party | 0 | 2,303,359 |
Capital leases, less current maturities | 1,074 | 13,664 |
Total Liabilities | 7,006,375 | 12,282,586 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $0.01 par value; 60,000,000 shares authorized; 26,905,631 and 12,296,446 shares issued and outstanding, respectively | 269,056 | 122,964 |
Additional paid-in capital | 40,162,177 | 34,267,577 |
Accumulated deficit | (34,524,931) | (30,519,117) |
Total Stockholders' Equity | 5,906,302 | 3,871,424 |
Total Liabilities and Stockholders' equity | $ 12,912,677 | $ 16,154,010 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 26,905,631 | 12,296,446 |
Common stock, shares outstanding | 26,905,631 | 12,296,446 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | ||
Sales | $ 48,326,609 | $ 60,917,739 |
Cost of goods sold | 40,018,762 | 51,191,895 |
Gross margin | 8,307,847 | 9,725,844 |
Expenses: | ||
Selling, general and administrative expenses | 10,345,557 | 11,149,194 |
Loss from sale of building and equipment | 1,156,135 | 0 |
Depreciation and amortization | 403,716 | 535,222 |
Total operating expenses | 11,905,408 | 11,684,416 |
Operating Loss | (3,597,561) | (1,958,572) |
Other expense (income) | ||
Other income, net | (4,195) | (8,019) |
Interest expense | 364,532 | 347,967 |
Total other expense (income) | 360,337 | 339,948 |
Loss from continuing operations before income taxes | (3,957,898) | (2,298,520) |
Income tax expense | 47,916 | 31,802 |
Loss from continuing operations | (4,005,814) | (2,330,322) |
Discontinued operations: | ||
Income from discontinued operations, net of taxes | 0 | 78,021 |
Net Loss | $ (4,005,814) | $ (2,252,301) |
Basic net loss per common share: | ||
Loss from continuing operations | $ (0.30) | $ (0.19) |
Income from discontinued operations | 0 | 0.01 |
Net loss per share | (0.30) | (0.18) |
Diluted net loss per common share: | ||
Loss from continuing operations | (0.30) | (0.19) |
Income from discontinued operations | 0 | 0.01 |
Net loss per share | $ (0.30) | $ (0.18) |
Weighted-average number of common shares | ||
Basic | 13,214,835 | 12,275,525 |
Diluted | 13,214,835 | 12,275,525 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2014 | $ 6,086,843 | $ 122,388 | $ 34,231,271 | $ (28,266,816) |
Beginning Balance (in shares) at Dec. 31, 2014 | 12,238,846 | |||
Stock issued to directors, officers and employees | 36,882 | $ 576 | 36,306 | 0 |
Stock issued to directors, officers and employees (in shares) | 57,600 | |||
Net loss | (2,252,301) | $ 0 | 0 | (2,252,301) |
Ending Balance at Dec. 31, 2015 | 3,871,424 | $ 122,964 | 34,267,577 | (30,519,117) |
Ending Balance (in shares) at Dec. 31, 2015 | 12,296,446 | |||
Stock issued to directors, officers and employees | 101,782 | $ 1,240 | 100,542 | 0 |
Stock issued to directors, officers and employees (in shares) | 124,040 | |||
Stock issued to NT R in exchange for debt settlement | 2,438,910 | $ 59,486 | 2,379,424 | 0 |
Stock issued to NT R in exchange for debt settlement (in shares) | 5,948,560 | |||
Stock issued to Elemetal for settlement of payables | 3,500,000 | $ 85,366 | 3,414,634 | 0 |
Stock issued to Elemetal for settlement of payables (in shares) | 8,536,585 | |||
Net loss | (4,005,814) | $ 0 | 0 | (4,005,814) |
Ending Balance at Dec. 31, 2016 | $ 5,906,302 | $ 269,056 | $ 40,162,177 | $ (34,524,931) |
Ending Balance (in shares) at Dec. 31, 2016 | 26,905,631 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (4,005,814) | $ (2,252,301) |
Income from discontinued operations, net of tax | 0 | 78,021 |
Loss from continuing operations, net of tax | (4,005,814) | (2,330,322) |
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities of continuing operations: | ||
Depreciation and amortization | 403,716 | 535,222 |
Bad debt expense | 78,028 | 0 |
Stock based compensation to employees, officers, and directors | 101,782 | 36,882 |
Loss on sale of property and equipment | 1,156,135 | 0 |
Changes in operating assets and liabilities: | ||
Trade receivables | (262,411) | 809,021 |
Trade receivables, related party | 128,509 | (134,793) |
Inventories | 181,370 | 1,578,651 |
Prepaid expenses | 51,518 | (2,034) |
Other assets | 93,621 | (75,870) |
Accounts payable and accrued expenses | 3,260,997 | (964,636) |
Accounts payable and accrued expenses, related party | (68,612) | 454,863 |
Customer deposits and other liabilities | (737,286) | 226,870 |
Net cash provided by operating activities of continuing operations | 381,553 | 133,854 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of property and equipment | 2,250,000 | 0 |
Purchase of property and equipment | (1,179,782) | (437,059) |
Net cash provided by (used) in investing activities of continuing operations | 1,070,218 | (437,059) |
Cash Flows From Financing Activities: | ||
Payments on notes payable | (1,589,522) | (131,004) |
Payments of capital lease obligations | (12,069) | (12,511) |
Net cash used in financing activities of continuing operations | (1,601,591) | (143,515) |
Cash Flows from Discontinued Operations: | (190,809) | 14,996 |
Net change in cash | (340,629) | (431,724) |
Cash, beginning of period | 1,752,711 | 2,184,435 |
Cash, end of period | 1,412,082 | 1,752,711 |
Supplemental Disclosures | ||
Interest | 364,532 | 266,546 |
Income taxes | 47,916 | 70,425 |
Non cash activities: | ||
Stock issued to Elemetal for settlement of payable | 3,500,000 | 0 |
Stock issued to NTR for settlement of debt | $ 2,438,910 | $ 0 |
Summary of Accounting Policies
Summary of Accounting Policies and Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Note 1 Summary of Accounting Policies and Nature of Operations A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: DGSE Companies, Inc., a Nevada corporation, and its subsidiaries (the “Company” or “DGSE”), buy and sell jewelry, diamonds, fine watches, rare coins and currency, precious metal bullion products, scrap gold, silver, platinum and palladium as well as collectibles and other valuables. DGSE operates six jewelry stores at both the retail and wholesale level, throughout the United States through its facilities in South Carolina and Texas. The Company also maintains a presence in the retail market through our ecommerce sites, www.dgse.com and www.cgdeinc.com. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its subsidiaries. All material intercompany transactions and balances have been eliminated. The Company operates the business as one operating and one reportable segment under a variety of banners including Charleston Gold & Diamond Exchange and Dallas Gold & Silver Exchange. The Company’s fiscal year ends are December 31, 2016 (“Fiscal 2016”) and December 31, 2015 (“Fiscal 2015”). Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. The carrying amounts reported in the consolidated balance sheets approximate fair value. Inventories All inventory is valued at the lower of cost or market. The Company acquires a majority of its inventory from individual customers, including pre-owned jewelry, watches, bullion, rare coins and collectibles. The Company acquires these items based on its own internal estimate of the fair market value of the items at the time of purchase. The Company considers factors such as the current spot market price of precious metals and current market demand for the items being purchased. The Company supplements these purchases from individual customers with inventory purchased from wholesale vendors. These wholesale purchases of new merchandise can take the form of full asset purchases, or consigned inventory. Consigned inventory is accounted for on the Company’s consolidated balance sheet with a fully offsetting contra account so that consigned inventory has a net zero balance. The majority of the Company’s inventory has some component of its value that is based on the spot market price of precious metals. Because the overall market value for precious metals regularly fluctuates, these fluctuations could have either a positive or negative impact on the value of the Company’s inventory and could positively or negatively impact the profitability of the Company. The Company regularly monitors these fluctuations to evaluate any necessary impairment to its inventory. Property and Equipment Property and equipment are stated at cost and are depreciated over their estimated useful lives, generally from five to ten years, on a straight-line basis. Equipment capitalized under capital leases are amortized over the lesser of the useful life or respective lease terms and the related amortization is included in depreciation and amortization expense. Leasehold improvements are amortized on a straight-line basis over the shorter of their useful life or the term of the lease. Expenditures for maintenance and repairs are charged against income as incurred; betterments that increase the value or materially extend the life of the related assets are capitalized. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is recorded to current operating income. Impairment of Long-Lived Assets and Amortized Intangible Assets The Company performs impairment evaluations of its long-lived assets, including property, equipment, and intangible assets with finite lives whenever business conditions or events indicate that those assets may be impaired. When the estimated future undiscounted cash flows to be generated by the assets are less than the carrying value of the long-lived assets, the assets are written down to fair market value and a charge is recorded to current operations. Based on the Company’s evaluations no impairment was required as of December 31, 2016 or 2015. 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 lease 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. Advertising Costs Advertising costs are expensed as incurred, and amounted to $946,599 and $1,571,199 for Fiscal 2016 and Fiscal 2015, respectively. Accounts Receivable The Company’s generally low level of A/R and its historically good experience with bad debt uses an analytical approach to estimating an appropriate reserve for bad debt. While DGSE’s overall A/R is up versus 2015, most of the A/R balance is over 120 days, $124,160 out of $285,722. Past due A/R increased significantly at year end, up to $148,475 at December 31, 2016 compared to $33,743 at year end 2015. The company uses a simplified approach to calculate a general bad debt reserve. An allowance is calculated for each aging time period based on the risk profile of that time period. Based on our historical experience, we have chosen to not place any reserve on amounts that are less than 60 days past due. From there the reserve amount escalates: 10% reserve on amounts over 60 but less than 90 days past due, 25% on amounts over 90 but less than 120 past due, and 75% on amounts over 120 days past due. By utilizing this approach, we have calculated that a reserve of $90,800 is appropriate as of December 31, 2016. DGSE has increased the reserve percentage for over 120 days accounts to 75% in 2016 vs the 50% approach in 2015. Having established this reserve, once an amount is considered to be uncollectable it is to be written off against the reserve. We will revisit the reserve periodically, but no less than annually, with the same analytical approach in order to determine if the reserve needs to be increased or decreased, based on the risk profile of open accounts receivable. As of December 31, 2016 and 2015, DGSE’s allowance for doubtful accounts was $90,800 and $12,772, respectively. A summary of the Allowance for Doubtful Accounts is presented below: December 31, 2016 2016 2015 Beginning balance 12,772 12,772 Bad debt expense (+) 78,028 - Receivables written off (-) - - Ending balance 90,800 12,772 Income Taxes Income taxes are accounted for under the asset and liability method prescribed by Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes The Company accounts for its position in tax uncertainties in accordance with ASC 740. 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. ASC 740 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 years ended December 31, 2016 and 2015. The Company’s federal income tax returns and major state income tax returns for the years subsequent to December 31, 2013 and December 31, 2012, respectively, remain subject to examination. The Company currently believes that its significant filing positions are highly certain and that all of its other significant income tax filing positions and deductions would be sustained upon audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions. The Company recognizes accrued interest and penalties resulting from audits by tax authorities in the provision for income taxes in the consolidated statements of operations. During Fiscal 2016 and Fiscal 2015, the Company did not incur any federal income tax interest or penalties. Revenue Recognition Revenue is generated from wholesale and retail sales of jewelry, rare coins, currency, collectibles, bullion and scrap. The recognition of revenue varies for wholesale and retail transactions and is, in large part, dependent on the type of payment arrangements made between the parties. The Company recognizes sales on a shipping point basis. Revenues for monetary transactions (i.e., cash and receivables) with dealers are recognized when the merchandise is shipped to the related dealer. The Company does not grant credit to retail customers, however it does offer a structured layaway plan. When a retail customer utilizes the Company’s layaway plan, the Company generally collects a payment of 25% of the sales price, establishes a payment schedule for the remaining balance and holds the merchandise as collateral as security against the customer’s receivable until all amounts due are paid in full. Revenue for layaway sales is recognized when the merchandise is paid for in full and delivered to the retail customer. In limited circumstances, the Company exchanges merchandise for similar merchandise and/or monetary consideration with both dealers and retail customers, for which the Company recognizes revenue in accordance with ASC 845, Nonmonetary Transactions The Company has a return policy (money-back guarantee). The policy covers retail transactions involving jewelry, graded rare coins and currency only. Customers may return jewelry, graded rare coins and currency purchased within 30 days of the receipt of the items for a full refund as long as the items are returned in exactly the same condition as they were delivered. In the case of jewelry, graded rare coins and currency sales on account, customers may cancel the sale within 30 days of making a commitment to purchase the items. The receipt of a deposit and a signed purchase order evidences the commitment. Any customer may return a jewelry item or graded rare coins and currency if they can demonstrate that the item is not authentic, or there was an error in the description of a graded coin or currency piece. Returns are accounted for as a reversal of the original transaction, with the effect of reducing revenues, and cost of sales, and returning the merchandise to inventory. DGSE has established an allowance for estimated returns, which is based on the Company’s review of historical returns experience, and reduces the Company’s reported revenues and cost of sales accordingly. As of December 31, 2016 and 2015, DGSE’s allowance for returns was $28,402 and $28,402, respectively. Shipping and Handling Costs Shipping and handling costs are included in selling, general and administrative expenses, and amounted to $80,530 and $102,663, for 2016 and 2015, respectively . Taxes Collected From Customers The Company’s policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenues or expenses. Earnings Per Share Basic earnings per common share is computed by dividing net earnings available to common stockholders 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 and warrants outstanding determined using the treasury stock method. Stock-Based Compensation The Company accounts for stock-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 Fiscal 2016 and Fiscal 2015 amounted to $101,782 and $36,882 respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the use of certain estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including depreciation of property and equipment and amortization or impairment of intangible assets. The Company evaluates its estimates and assumptions on an ongoing basis and relies on historical experience and various other factors that it believes to be reasonable under the circumstances to determine such estimates. Because uncertainties with respect to estimates and assumptions are inherent in the preparation of financial statements, actual results could differ from these estimates. New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date On July 22, 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes On February 25, 2016, the FASB issued its new lease accounting guidance in Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases Revenue from Contracts with Customers. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Note 2 Concentration of Credit Risk The Company maintains cash balances in financial institutions in excess of federally insured limits. Other than Elemetal, LLC (“Elemetal”), the Company has no retail or wholesale customers that account for more than 10% of its revenues. During Fiscal 2016, 25 27 24 26 13 74 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | December 31, 2016 2015 Jewelry $ 7,193,126 $ 8,365,828 Scrap Gold 885,194 506,560 Bullion 292,591 357,644 Rare Coins and Other 1,013,225 335,474 $ 9,384,136 $ 9,565,506 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4 Property and Equipment December 31, 2016 2015 Building and improvements $ 1,580,584 $ 3,285,381 Machinery and equipment 1,456,314 1,874,598 Furniture and fixtures 570,889 442,041 3,607,787 5,602,020 Less: accumulated depreciation (1,942,684) (2,481,102) 1,665,103 3,120,918 Land - 1,160,470 Total property and equipment $ 1,665,103 $ 4,281,388 We owned a 20,456 square foot facility at 11311 Reeder Road, Dallas, Texas, which housed our largest retail operation. The land and buildings were subject to a mortgage maturing in August 2016, with a principal balance outstanding of $1,587,106 as of July 26, 2016. We sold that facility on July 26, 2016 for $2,250,000 to 2 DAK Investments, LLC. The land was recorded on the books at $1,160,470 and accompanying buildings were recorded at $2,142,530. Both were retired along with the accumulated depreciation of $401,724 upon the sale of the assets. After all the fees were recorded, DGSE posted a loss of $1,156,135 upon the sale of the Reeder Road location. Depreciation expense was $ 389,932 521,438 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 5 Long-Term Debt December 31, 2016 2015 NTR Line of credit (1) $ - $ 2,303,359 Mortgage payable (2) - 1,589,522 Capital lease (3) 13,664 25,733 Sub-Total 13,664 3,918,614 Less Current portion capital lease 12,590 12,069 Less Current maturities - 1,589,522 Long-term debt 1,074 2,317,023 Less Line of credit (1) - 2,303,359 Long term debt less current maturities $ 1,074 $ 13,664 (1) On July 19, 2012 7,500,000 2 56,150 August 1, 2015 5,948,560 0.41 0 2,303,359 (2) On July 11, 2006, DGSE entered into a promissory note for $ 2,530,000 6.70 1.5 20,192 0 1,589,522 (3) On April 3, 2013 58,563 2,304 1,077 60 4.2 1 Total 2017 2018 2019 2020 Thereafter Capital lease obligation $ 13,664 $ 12,590 $ 1,074 $ - $ - $ - Total $ 13,664 $ 12,590 $ 1,074 $ - $ - $ - Pursuant to the Elemetal Agreement the Company exchanged $ 3.5 8,536,585 0.41 1,000,000 0.65 |
Basic and Diluted Average Share
Basic and Diluted Average Shares | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 6 Basic and Diluted Average Shares Year Ended December 31, 2016 2015 Basic weighted average shares 13,214,835 12,275,525 Effect of potential dilutive securities - - Diluted weighted average shares 13,214,835 12,275,525 For the years ended December 31, 2016 and 2015, there were 1,167,000 5,029,000 5,000,000 15 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common Stock [Text Block] | Note 7 Common Stock In January 2014, DGSE’s Board of Directors (the “Board”) granted 112,000 28,000 100 |
Stock Options and Restricted St
Stock Options and Restricted Stock Units | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 8 Stock Options and Restricted Stock Units On June 21, 2004, our shareholders approved the adoption of the 2004 Stock Option Plan (the “2004 Plan”), which reserved 1,700,000 1,459,634 845,634 599,000 15,000 On June 27, 2006, our shareholders approved the adoption of the 2006 Equity Incentive Plan (the “2006 Plan”), which reserved 750,000 150,000 100,000 50,000 In January 2014, we granted 112,000 25 75 42,600 100 75,000 100 75,000 15,000 On March 24, 2016, the Board awarded the three independent directors on the Board at that time a total of 122,040 30,510 0.01 On April 27, 2016, the Board awarded Matthew Peakes, the Company’s former Chief Executive Officer, and Nabil J. Lopez, the Company’s former Chief Financial Officer, a total of 75,000 50,000 18,750 12,500 0.01 50,000 75,000 50,000 Subsequent to such grants, the 2006 Plan expired, as a result, no further issuances can be made pursuant to the 2006 Plan. On December 7, 2016, our shareholders approved the adoption of the 2016 Equity Incentive Plan (the “2016 Plan”), which reserved 1,100,000 On October 25, 2011, the Company entered into a debt cancellation agreement with NTR, whereby NTR agreed to forgive $ 2,500,000 5,000,000 0.01 15 Year Ended December 31, 2016 2015 Weighted Weighted average exercise average exercise Shares price Shares price Outstanding at beginning of year 5,025,000 $ 14.95 5,030,000 $ 14.93 Granted 1,000,000 0.65 - - Exercised - - - - Forfeited 5,010,000 14.95 (5,000) 2.25 Outstanding at end of year 1,015,000 $ 0.03 5,025,000 $ 14.95 Optons exercisable at end of year 1,015,000 $ 0.03 5,025,000 $ 14.95 Options and Warrants Outstanding and Exercisable Weighted average remaining Weighted contractual life average Aggregate Intrinsic Exercise price Number outstanding (Years) exercise price Value $ 2.13 10,000 NA (1) $ 2.13 $ - $ 2.25 5,000 NA (1) 2.25 - $ 0.65 1,000,000 2 0.65 590,000 1,015,000 $ 590,000 (1) Options currently issued pursuant to the Company’s 2004 Employee Stock Option Plans have no expiration date. The aggregate intrinsic values in the above table were based on the closing price of our Common Stock of $ 1.24 Year Ended December 31, 2016 2015 Weighted Weighted average exercise average exercise Shares price Shares price Nonvested at beginning of year 4,000 $ 2.12 87,600 $ 1.77 Granted 372,040 0.64 - - Vested (124,040) 0.83 (57,600) 1.59 Forfeited (100,000) 1.24 (26,000) 2.12 Outstanding at end of year 152,000 $ 0.56 4,000 $ 2.12 As a result of the expiration of the 2006 Plan, as of December 31, 2016, no further shares could be issued under the 2006 Plan. A total of 1,100,000 During 2016 and 2015, the Company recognized $ 101,782 36,882 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies [Text Block] | Note 9 Litigation On April 16, 2012, DGSE 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, DGSE also announced that the Company 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. On June 2, 2014, the Company received notice of the entry of an agreed final judgment by the Honorable Judge Jane Boyle (the “Agreed Final Judgment”) in Civil Action No. 3:14-cv-01909-B, entitled Securities and Exchange Commission v. DGSE Companies Inc., et. al., filed on May 27, 2014 in Federal District Court for the Northern District of Texas (the “Civil Action”). The Company consented to the Agreed Final Judgment prior to the filing of the Civil Action by the SEC. The Agreed Final Judgment was entered in connection with the conclusion of the investigation against the Company by the SEC regarding the Accounting Irregularities. In connection with the Agreed Final Judgment and as remedial measures in connection with the Accounting Irregularities, the Company has agreed to undertake certain corporate governance reforms, all of which we believe to be complete at this time (the “Corporate Governance Reforms”). The Corporate Governance Reforms include the appointment of two new independent directors to the Board, establishing the position of a Lead Independent Director on the Board and establishing reasonable term limits for members of the Board, among other reforms. The Company engaged a consultant satisfactory to the SEC to confirm implementation of the Corporate Governance Reforms. Due to Board member resignations in the latter half of Fiscal 2015, we were unable to complete our confirmation with the consultant by the initial deadline; however, with the addition of new independent directors, we regained compliance with the Corporate Governance Reforms. The Agreed Final Judgment did not require the payment of any civil damages by the Company in connection with the Accounting Irregularities. Also in connection with the Accounting Irregularities, and the subsequent halt in trading of DGSE’s Common Stock, the Company settled two lawsuits in Fiscal 2013. 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 complaint alleged violations of the securities laws and sought 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 and entitled 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 statements made in DGSE’s proxy materials 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. The approved settlement resolved all issues which were pending before the United States District Court for the Northern District of Texas in both cases. The defendants agreed to pay $ 2 Beginning in 2010, the Comptroller of Public Accounts of the State of Texas (the “Texas Comptroller”) conducted a sales and use tax audit of our operations in Texas 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 DGSE owed an amount of tax due, plus penalties and interest (the “2010 Sales Tax Audit”). The Company submitted a request for redetermination to the Texas Comptroller by letter dated January 13, 2011. By letter dated August 25, 2011, the Texas Comptroller stated that DGSE’s request for a redetermination hearing had been granted. On July 15, 2014, the Company received final notice from the Texas Comptroller of its consent to the negotiated payment agreement (the “Payment Agreement”) to pay amounts due by the Company under the Texas Comptroller’s final decision in connection with the 2010 Sales Tax Audit (the “Decision”), as more fully discussed in the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission on July 17, 2014. The Decision dismissed our Petition for Redetermination and concluded the 2010 Sales Tax Audit based on an agreement between the Texas Comptroller and DGSE, whereby we agreed to pay: (i) tax due of $ 800,397 10 325,000 47,000 18 In Fiscal 2014, we recognized an additional expense of $ 104,958 1.1 47,000 47,000 The Texas Comptroller conducted a second sales and use tax audit of our operations in Texas with respect to the period December 1, 2009 through June 30, 2013 and subsequently sent us a preliminary assessment in September 2015 asserting that we owe an amount of $ 220,007 66,645 286,652 261,490 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 10 Income Taxe s 2016 2015 Tax Benefit at Statutory Rate $ (1,345,685) $ (781,497) Valuation Allowance 1,344,094 779,308 Non-Deductible Expenses and Other 1,591 2,189 State Taxes, Net of Federal Benefit 47,916 31,802 Income tax expense $ 47,916 $ 31,802 Current $ 47,916 $ 31,802 Deferred - - Total $ 47,916 $ 31,802 2016 2015 Deferred tax assets (liabilities): Inventories $ 104,190 $ 103,909 Stock options and other 93,985 88,303 Alternative Minimum Tax credit carryforward 24,674 24,674 Contingencies and accruals 152,846 157,936 Property and equipment (214,383) (454,788) Net operating loss carryforward 12,174,859 11,136,538 Goodwill and intangibles - (4,687) Total deferred tax assets, net $ 12,336,171 $ 11,051,886 Valuation allowance $ (12,336,171) $ (11,051,886) As of December 31, 2016, the Company had $ 2,729,636 38,055,994 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Note 11 Operating Leases Total 2017 2018 2019 2020 2021 Thereafter Operating Leases $ 1,830,942 $ 459,974 $ 412,472 $ 412,472 $ 325,524 $ 220,500 $ - On January 21, 2013, the Company signed a lease with 15850 Holdings, LLC (an affiliate of Elemetal), for 4,500 7,500 In November 2013, the Company signed an agreement to lease a portion of DGSE’s Reeder Road facility to a third party, beginning in January 2014. Under the terms of the five-year agreement DGSE was to receive $ 5,000 7,500 Rent expense, net of sublease income, for Fiscal 2016 and Fiscal 2015 was $ 821,696 475,665 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 12 Discontinued Operations In February 2014, the Company elected to discontinue the operations of six Southern Bullion locations and in April 2014 elected to discontinue the operations of the 17 remaining Southern Bullion locations, due to the lack of profitability and management's belief that it was unlikely that profitability would be reached in the foreseeable future. The operating results for all Southern Bullion operations have been reclassified as discontinued operations in the consolidated statements of operations for Fiscal 2016 and Fiscal 2015. December 31, 2016 2015 Revenue: Sales $ - $ 65 Cost of goods sold - - Gross Margin - 65 Expenses: Selling, general and administrative expenses - (77,439) Total Expenses - (77,439) Operating Income - 77,504 Other income: Interest (income) expense - (40) Income from discontinued operations before income taxes - 77,544 Income tax benefit - 477 Income from discontinued operations after income taxes $ - $ 78,021 For the year ended December 31, 2015, income from discontinued operations include adjustments of existing expense accruals related to the winding down the operations of Southern Bullion. The Company believes it has now recognized all material expenses related to the closure of Southern Bullion operations as of December 31, 2016. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 13 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 Fiscal 2016, 25 27 24 26 8,536,585 1,000,000 3,500,000 4,107,425 4,176,037 169,136 240,004 187,888 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 2 August 1, 2015 August 1, 2017 closed the transactions contemplated by the Elemetal Agreement 5,948,560 0 2,303,359 43,723 45,810 In April 2013, DGSE moved its principal corporate offices to 15850 Dallas Parkway, Suite 140, Dallas, Texas. This property is owned by an affiliate of Elemetal and also serves as their headquarters. DGSE leased space in the building subject to a lease that expired in December 2015. The Company continued to pay this lease on a month-to-month basis with no increase in the rent until our new Midtown retail location was completed in December 2016. Midtown location is large enough to facilitate the retail space and our corporate offices. For the year ended December 31, 2016 and 2015, the Company recognized rent expense of $ 90,000 50,500 In the fourth quarter of Fiscal 2013, 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 percent ownership interest of the Fund, and is paid 2% carried interest on assets under management by the Fund, and 20% of net earnings before distributions to the limited partners. The Fund was intended to provide an investment vehicle for individuals interested in investment opportunities in diamonds and gemstones, and provide incremental value to the Company’s shareholders by utilizing the Company’s expertise, infrastructure, and retail and wholesale customer base, to generate additional profit through earnings from its role as General Partner. Ultimately DGSE’s management made the decision to end its involvement in the Fund, and the General Partner has wound down the Fund’s activities and liquidated all remaining inventory. The Fund transacted business with the Company from time to time, including buying gemstones from and selling gemstones to the Company. In Fiscal 2016, the Company made no sales to the Fund, had no purchases from the Fund, and owed the Fund nothing as of December 31, 2016 in trade payables. In Fiscal 2015, the Company made no sales to the Fund, had purchases of $ 5,665 1,334 |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2016 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 14 Defined Contribution Plan The Company sponsors a defined contribution 401(k) plan that is subject to the provisions of the Employee Retirement Income Security Act of 1974. The plan covers substantially all employees who have completed one month of service. Participants can contribute up to 15 |
Summary of Accounting Policie21
Summary of Accounting Policies and Nature of Operations (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Nature of Operations, Policy [Policy Text Block] | Principles of Consolidation and Nature of Operations DGSE Companies, Inc., a Nevada corporation, and its subsidiaries (the “Company” or “DGSE”), buy and sell jewelry, diamonds, fine watches, rare coins and currency, precious metal bullion products, scrap gold, silver, platinum and palladium as well as collectibles and other valuables. DGSE operates six jewelry stores at both the retail and wholesale level, throughout the United States through its facilities in South Carolina and Texas. The Company also maintains a presence in the retail market through our ecommerce sites, www.dgse.com and www.cgdeinc.com. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its subsidiaries. All material intercompany transactions and balances have been eliminated. The Company operates the business as one operating and one reportable segment under a variety of banners including Charleston Gold & Diamond Exchange and Dallas Gold & Silver Exchange. The Company’s fiscal year ends are December 31, 2016 (“Fiscal 2016”) and December 31, 2015 (“Fiscal 2015”). |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. The carrying amounts reported in the consolidated balance sheets approximate fair value. |
Inventories, Policy [Policy Text Block] | Inventories All inventory is valued at the lower of cost or market. The Company acquires a majority of its inventory from individual customers, including pre-owned jewelry, watches, bullion, rare coins and collectibles. The Company acquires these items based on its own internal estimate of the fair market value of the items at the time of purchase. The Company considers factors such as the current spot market price of precious metals and current market demand for the items being purchased. The Company supplements these purchases from individual customers with inventory purchased from wholesale vendors. These wholesale purchases of new merchandise can take the form of full asset purchases, or consigned inventory. Consigned inventory is accounted for on the Company’s consolidated balance sheet with a fully offsetting contra account so that consigned inventory has a net zero balance. The majority of the Company’s inventory has some component of its value that is based on the spot market price of precious metals. Because the overall market value for precious metals regularly fluctuates, these fluctuations could have either a positive or negative impact on the value of the Company’s inventory and could positively or negatively impact the profitability of the Company. The Company regularly monitors these fluctuations to evaluate any necessary impairment to its inventory. |
Property and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost and are depreciated over their estimated useful lives, generally from five to ten years, on a straight-line basis. Equipment capitalized under capital leases are amortized over the lesser of the useful life or respective lease terms and the related amortization is included in depreciation and amortization expense. Leasehold improvements are amortized on a straight-line basis over the shorter of their useful life or the term of the lease. Expenditures for maintenance and repairs are charged against income as incurred; betterments that increase the value or materially extend the life of the related assets are capitalized. When assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is recorded to current operating income. |
Impairment of Long-Lived Assets and Amortized Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets and Amortized Intangible Assets The Company performs impairment evaluations of its long-lived assets, including property, equipment, and intangible assets with finite lives whenever business conditions or events indicate that those assets may be impaired. When the estimated future undiscounted cash flows to be generated by the assets are less than the carrying value of the long-lived assets, the assets are written down to fair market value and a charge is recorded to current operations. Based on the Company’s evaluations no impairment was required as of December 31, 2016 or 2015. |
Financial Instruments, Policy [Policy Text Block] | 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 lease 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. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred, and amounted to $946,599 and $1,571,199 for Fiscal 2016 and Fiscal 2015, respectively. |
Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable The Company’s generally low level of A/R and its historically good experience with bad debt uses an analytical approach to estimating an appropriate reserve for bad debt. While DGSE’s overall A/R is up versus 2015, most of the A/R balance is over 120 days, $124,160 out of $285,722. Past due A/R increased significantly at year end, up to $148,475 at December 31, 2016 compared to $33,743 at year end 2015. The company uses a simplified approach to calculate a general bad debt reserve. An allowance is calculated for each aging time period based on the risk profile of that time period. Based on our historical experience, we have chosen to not place any reserve on amounts that are less than 60 days past due. From there the reserve amount escalates: 10% reserve on amounts over 60 but less than 90 days past due, 25% on amounts over 90 but less than 120 past due, and 75% on amounts over 120 days past due. By utilizing this approach, we have calculated that a reserve of $90,800 is appropriate as of December 31, 2016. DGSE has increased the reserve percentage for over 120 days accounts to 75% in 2016 vs the 50% approach in 2015. Having established this reserve, once an amount is considered to be uncollectable it is to be written off against the reserve. We will revisit the reserve periodically, but no less than annually, with the same analytical approach in order to determine if the reserve needs to be increased or decreased, based on the risk profile of open accounts receivable. As of December 31, 2016 and 2015, DGSE’s allowance for doubtful accounts was $90,800 and $12,772, respectively. A summary of the Allowance for Doubtful Accounts is presented below: December 31, 2016 2016 2015 Beginning balance 12,772 12,772 Bad debt expense (+) 78,028 - Receivables written off (-) - - Ending balance 90,800 12,772 |
Income Taxes, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for under the asset and liability method prescribed by Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes The Company accounts for its position in tax uncertainties in accordance with ASC 740. 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. ASC 740 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 years ended December 31, 2016 and 2015. The Company’s federal income tax returns and major state income tax returns for the years subsequent to December 31, 2013 and December 31, 2012, respectively, remain subject to examination. The Company currently believes that its significant filing positions are highly certain and that all of its other significant income tax filing positions and deductions would be sustained upon audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions. The Company recognizes accrued interest and penalties resulting from audits by tax authorities in the provision for income taxes in the consolidated statements of operations. During Fiscal 2016 and Fiscal 2015, the Company did not incur any federal income tax interest or penalties. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue is generated from wholesale and retail sales of jewelry, rare coins, currency, collectibles, bullion and scrap. The recognition of revenue varies for wholesale and retail transactions and is, in large part, dependent on the type of payment arrangements made between the parties. The Company recognizes sales on a shipping point basis. Revenues for monetary transactions (i.e., cash and receivables) with dealers are recognized when the merchandise is shipped to the related dealer. The Company does not grant credit to retail customers, however it does offer a structured layaway plan. When a retail customer utilizes the Company’s layaway plan, the Company generally collects a payment of 25% of the sales price, establishes a payment schedule for the remaining balance and holds the merchandise as collateral as security against the customer’s receivable until all amounts due are paid in full. Revenue for layaway sales is recognized when the merchandise is paid for in full and delivered to the retail customer. In limited circumstances, the Company exchanges merchandise for similar merchandise and/or monetary consideration with both dealers and retail customers, for which the Company recognizes revenue in accordance with ASC 845, Nonmonetary Transactions The Company has a return policy (money-back guarantee). The policy covers retail transactions involving jewelry, graded rare coins and currency only. Customers may return jewelry, graded rare coins and currency purchased within 30 days of the receipt of the items for a full refund as long as the items are returned in exactly the same condition as they were delivered. In the case of jewelry, graded rare coins and currency sales on account, customers may cancel the sale within 30 days of making a commitment to purchase the items. The receipt of a deposit and a signed purchase order evidences the commitment. Any customer may return a jewelry item or graded rare coins and currency if they can demonstrate that the item is not authentic, or there was an error in the description of a graded coin or currency piece. Returns are accounted for as a reversal of the original transaction, with the effect of reducing revenues, and cost of sales, and returning the merchandise to inventory. DGSE has established an allowance for estimated returns, which is based on the Company’s review of historical returns experience, and reduces the Company’s reported revenues and cost of sales accordingly. As of December 31, 2016 and 2015, DGSE’s allowance for returns was $28,402 and $28,402, respectively. |
Shipping and Handling Costs, Policy [Policy Text Block] | Shipping and Handling Costs Shipping and handling costs are included in selling, general and administrative expenses, and amounted to $80,530 and $102,663, for 2016 and 2015, respectively . |
Taxes Collected From Customers, Policy [Policy Text Block] | Taxes Collected From Customers The Company’s policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenues or expenses. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Basic earnings per common share is computed by dividing net earnings available to common stockholders 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 and warrants outstanding determined using the treasury stock method. |
Stock-Based Compensation [Policy Text Block] | Stock-Based Compensation The Company accounts for stock-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 Fiscal 2016 and Fiscal 2015 amounted to $101,782 and $36,882 respectively. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the use of certain estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including depreciation of property and equipment and amortization or impairment of intangible assets. The Company evaluates its estimates and assumptions on an ongoing basis and relies on historical experience and various other factors that it believes to be reasonable under the circumstances to determine such estimates. Because uncertainties with respect to estimates and assumptions are inherent in the preparation of financial statements, actual results could differ from these estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date On July 22, 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes On February 25, 2016, the FASB issued its new lease accounting guidance in Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases Revenue from Contracts with Customers. |
Summary of Accounting Policie22
Summary of Accounting Policies and Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | A summary of the Allowance for Doubtful Accounts is presented below: December 31, 2016 2016 2015 Beginning balance 12,772 12,772 Bad debt expense (+) 78,028 - Receivables written off (-) - - Ending balance 90,800 12,772 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: December 31, 2016 2015 Jewelry $ 7,193,126 $ 8,365,828 Scrap Gold 885,194 506,560 Bullion 292,591 357,644 Rare Coins and Other 1,013,225 335,474 $ 9,384,136 $ 9,565,506 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consists of the following: December 31, 2016 2015 Building and improvements $ 1,580,584 $ 3,285,381 Machinery and equipment 1,456,314 1,874,598 Furniture and fixtures 570,889 442,041 3,607,787 5,602,020 Less: accumulated depreciation (1,942,684) (2,481,102) 1,665,103 3,120,918 Land - 1,160,470 Total property and equipment $ 1,665,103 $ 4,281,388 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: December 31, 2016 2015 NTR Line of credit (1) $ - $ 2,303,359 Mortgage payable (2) - 1,589,522 Capital lease (3) 13,664 25,733 Sub-Total 13,664 3,918,614 Less Current portion capital lease 12,590 12,069 Less Current maturities - 1,589,522 Long-term debt 1,074 2,317,023 Less Line of credit (1) - 2,303,359 Long term debt less current maturities $ 1,074 $ 13,664 (1) On July 19, 2012 7,500,000 2 56,150 August 1, 2015 5,948,560 0.41 0 2,303,359 (2) On July 11, 2006, DGSE entered into a promissory note for $ 2,530,000 6.70 1.5 20,192 0 1,589,522 (3) On April 3, 2013 58,563 2,304 1,077 60 4.2 1 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Maturities of DGSE’s long-term obligations over the next five years are as follows: Total 2017 2018 2019 2020 Thereafter Capital lease obligation $ 13,664 $ 12,590 $ 1,074 $ - $ - $ - Total $ 13,664 $ 12,590 $ 1,074 $ - $ - $ - |
Basic and Diluted Average Sha26
Basic and Diluted Average Shares (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of basic and diluted average common shares is as follows: Year Ended December 31, 2016 2015 Basic weighted average shares 13,214,835 12,275,525 Effect of potential dilutive securities - - Diluted weighted average shares 13,214,835 12,275,525 |
Stock Options and Restricted 27
Stock Options and Restricted Stock Units (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes the activity in common shares subject to options: Year Ended December 31, 2016 2015 Weighted Weighted average exercise average exercise Shares price Shares price Outstanding at beginning of year 5,025,000 $ 14.95 5,030,000 $ 14.93 Granted 1,000,000 0.65 - - Exercised - - - - Forfeited 5,010,000 14.95 (5,000) 2.25 Outstanding at end of year 1,015,000 $ 0.03 5,025,000 $ 14.95 Optons exercisable at end of year 1,015,000 $ 0.03 5,025,000 $ 14.95 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options and Warrants Outstanding and Exercisable Weighted average remaining Weighted contractual life average Aggregate Intrinsic Exercise price Number outstanding (Years) exercise price Value $ 2.13 10,000 NA (1) $ 2.13 $ - $ 2.25 5,000 NA (1) 2.25 - $ 0.65 1,000,000 2 0.65 590,000 1,015,000 $ 590,000 (1) Options currently issued pursuant to the Company’s 2004 Employee Stock Option Plans have no expiration date. |
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block] | A summary of the status of our non-vested RSU grants issued under our 2006 Plan is presented below: Year Ended December 31, 2016 2015 Weighted Weighted average exercise average exercise Shares price Shares price Nonvested at beginning of year 4,000 $ 2.12 87,600 $ 1.77 Granted 372,040 0.64 - - Vested (124,040) 0.83 (57,600) 1.59 Forfeited (100,000) 1.24 (26,000) 2.12 Outstanding at end of year 152,000 $ 0.56 4,000 $ 2.12 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision for continuing operations reconciled to the tax computed at the statutory Federal rate follows: 2016 2015 Tax Benefit at Statutory Rate $ (1,345,685) $ (781,497) Valuation Allowance 1,344,094 779,308 Non-Deductible Expenses and Other 1,591 2,189 State Taxes, Net of Federal Benefit 47,916 31,802 Income tax expense $ 47,916 $ 31,802 Current $ 47,916 $ 31,802 Deferred - - Total $ 47,916 $ 31,802 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes are comprised of the following: 2016 2015 Deferred tax assets (liabilities): Inventories $ 104,190 $ 103,909 Stock options and other 93,985 88,303 Alternative Minimum Tax credit carryforward 24,674 24,674 Contingencies and accruals 152,846 157,936 Property and equipment (214,383) (454,788) Net operating loss carryforward 12,174,859 11,136,538 Goodwill and intangibles - (4,687) Total deferred tax assets, net $ 12,336,171 $ 11,051,886 Valuation allowance $ (12,336,171) $ (11,051,886) |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Operating Leases of Lessee Disclosure [Table Text Block] | The Company leases certain of its facilities under operating leases. The minimum rental commitments under non-cancellable operating leases as of December 31, 2016 are as follows: Total 2017 2018 2019 2020 2021 Thereafter Operating Leases $ 1,830,942 $ 459,974 $ 412,472 $ 412,472 $ 325,524 $ 220,500 $ - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Discontinued operations are as follows: December 31, 2016 2015 Revenue: Sales $ - $ 65 Cost of goods sold - - Gross Margin - 65 Expenses: Selling, general and administrative expenses - (77,439) Total Expenses - (77,439) Operating Income - 77,504 Other income: Interest (income) expense - (40) Income from discontinued operations before income taxes - 77,544 Income tax benefit - 477 Income from discontinued operations after income taxes $ - $ 78,021 |
Summary of Accounting Policie31
Summary of Accounting Policies and Nature of Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | $ 12,772 | $ 12,772 |
Bad debt expense | 78,028 | 0 |
Receivables written off | 0 | 0 |
Ending balance | $ 90,800 | $ 12,772 |
Summary of Accounting Policie32
Summary of Accounting Policies and Nature of Operations (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Accounting Policies And Nature Of Operations [Line Items] | |||
Advertising Expense | $ 946,599 | $ 1,571,199 | |
Allowance for Doubtful Accounts Receivable, Current | $ 90,800 | 12,772 | $ 12,772 |
Layaway Plan Percent Of Sales Price Collected | 25.00% | ||
Sales Returns and Allowances, Goods, Total | $ 28,402 | 28,402 | |
Shipping, Handling and Transportation Costs | 80,530 | 102,663 | |
Share-based Compensation | 101,782 | 36,882 | |
Due from Related Parties, Current | 285,722 | 124,160 | |
Increase (Decrease) in Due from Related Parties, Current | $ 148,475 | $ 33,743 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Summary Of Accounting Policies And Nature Of Operations [Line Items] | |||
Financing Receivable, Percent Past Due | 10.00% | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Summary Of Accounting Policies And Nature Of Operations [Line Items] | |||
Financing Receivable, Percent Past Due | 25.00% | ||
Financing Receivables Equal to Greater than 120 Days Past Due [Member] | |||
Summary Of Accounting Policies And Nature Of Operations [Line Items] | |||
Financing Receivable, Percent Past Due | 75.00% | 50.00% | |
Stock Based Award [Member] | |||
Summary Of Accounting Policies And Nature Of Operations [Line Items] | |||
Share-based Compensation | $ 101,782 | $ 36,882 | |
Minimum [Member] | |||
Summary Of Accounting Policies And Nature Of Operations [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Maximum [Member] | |||
Summary Of Accounting Policies And Nature Of Operations [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details Textual) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Payable, Supplier [Member] | Supplier Concentration Risk [Member] | ||
Unusual Risk or Uncertainty [Line Items] | ||
Concentration Risk, Percentage | 79.00% | 73.00% |
Elemetal [Member] | Supplier Concentration Risk [Member] | ||
Unusual Risk or Uncertainty [Line Items] | ||
Concentration Risk, Percentage | 27.00% | 26.00% |
Elemetal [Member] | Sales Revenue, Net [Member] | ||
Unusual Risk or Uncertainty [Line Items] | ||
Concentration Risk, Percentage | 25.00% | 24.00% |
Elemetal [Member] | Accounts Receivable [Member] | ||
Unusual Risk or Uncertainty [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 74.00% |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Jewelry | $ 7,193,126 | $ 8,365,828 |
Scrap Gold | 885,194 | 506,560 |
Bullion | 292,591 | 357,644 |
Rare Coins and Other | 1,013,225 | 335,474 |
Total | $ 9,384,136 | $ 9,565,506 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 3,607,787 | $ 5,602,020 |
Less: accumulated depreciation | (1,942,684) | (2,481,102) |
Property, plant and equipment excluding land | 1,665,103 | 3,120,918 |
Land | 0 | 1,160,470 |
Total property and equipment | 1,665,103 | 4,281,388 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 1,580,584 | 3,285,381 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 1,456,314 | 1,874,598 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 570,889 | $ 442,041 |
Property and Equipment (Detai36
Property and Equipment (Details Textual) | 12 Months Ended | ||
Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | Jul. 26, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 389,932 | $ 521,438 | |
Area of Land | ft² | 20,456 | ||
Debt, Long-term and Short-term, Combined Amount | $ 13,664 | 3,918,614 | |
Proceeds from Sale of Property, Plant, and Equipment | 2,250,000 | 0 | |
Land | 0 | 1,160,470 | |
Buildings and Improvements, Gross | 2,142,530 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,942,684 | 2,481,102 | |
Gain (Loss) on Disposition of Property Plant Equipment | $ (1,156,135) | 0 | |
Mortgages payable [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,587,106 | ||
Land and Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 401,724 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Sub-Total | $ 13,664 | $ 3,918,614 | |
Less Current portion capital lease | 12,590 | 12,069 | |
Less Current maturities | 0 | 1,589,522 | |
Long-term debt | 1,074 | 2,317,023 | |
Less Line of credit | [1] | 0 | 2,303,359 |
Long term debt less current maturities | 1,074 | 13,664 | |
Mortgages payable [Member] | |||
Debt Instrument [Line Items] | |||
Sub-Total | [2] | 0 | 1,589,522 |
Capital leases [Member] | |||
Debt Instrument [Line Items] | |||
Sub-Total | [3] | 13,664 | 25,733 |
NTR line of credit [Member] | |||
Debt Instrument [Line Items] | |||
Sub-Total | [1] | $ 0 | $ 2,303,359 |
[1] | On July 19, 2012, DGSE entered into a loan agreement with NTR Metals, LLC (“NTR”), an affiliate of DGSE’s largest stockholder 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 terminationat 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 carried 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 and were amortized to interest expense on a straight-line basis over two years, and have been completely amortized as of Fiscal 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. On December 9, 2016, DGSE and NTR closed the transactions contemplated by stock purchase agreement dated June 20, 2016 (the “Elemetal Agreement”) whereby DGSE issued NTR 5,948,560 shares of common stock for $0.41 per share in exchange for the cancellation and forgiveness of the outstanding Obligations. As of December 31, 2016 and 2015, the outstanding balance of the NTR loan was $0 and $2,303,359, respectively. | ||
[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 bore 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 payments of $20,192 plus accrued interest were required. The note was secured by the land and building. On July 26, 2016 we sold the building for $2,250,000 resulting in net proceeds of $604,615 after the note was paid off. As of December 31, 2016 and 2015, the outstanding balance of the note was $0 and $1,589,522, respectively. | ||
[3] | 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. The lease contract runs through May 2018 but with prior years extra payments the lease will be paid in full February 2018, then the equipment can be purchased for $1. |
Long-Term Debt (Details 1)
Long-Term Debt (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
2,017 | $ 12,590 | ||
2,018 | 1,074 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | 0 | ||
Total | 13,664 | $ 3,918,614 | |
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
2,017 | 12,590 | ||
2,018 | 1,074 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | 0 | ||
Total | [1] | $ 13,664 | $ 25,733 |
[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. The lease contract runs through May 2018 but with prior years extra payments the lease will be paid in full February 2018, then the equipment can be purchased for $1. |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - USD ($) | Dec. 09, 2016 | Feb. 04, 2015 | Apr. 03, 2013 | Jul. 11, 2006 | Jul. 26, 2016 | Feb. 08, 2016 | Feb. 25, 2014 | Jul. 19, 2012 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 1,074 | $ 2,317,023 | ||||||||
Debt Conversion, Converted Instrument, Amount | 2,438,910 | |||||||||
Net Proceeds From Sale Of Buildings | $ 604,615 | |||||||||
Proceeds from Sale of Buildings | $ 2,250,000 | |||||||||
NTR Metals, LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Line of Credit | 0 | |||||||||
NTR Loan Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payments of Stock Issuance Costs | $ 56,150 | |||||||||
Long-term Line of Credit | 0 | 2,303,359 | ||||||||
Debt Instrument, Maturity Date | Aug. 1, 2017 | Aug. 1, 2015 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,500,000 | |||||||||
Debt Instrument, Issuance Date | Jul. 19, 2012 | |||||||||
Line of Credit Facility, Interest Rate at Period End | 2.00% | |||||||||
Graybar Financial Services lease [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Term | 60 months | |||||||||
Bargain Purchase Option | $ 1 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |||||||||
Advances Capital Leases | $ 2,304 | |||||||||
Debt Instrument, Issuance Date | Apr. 3, 2013 | |||||||||
Debt Instrument, Face Amount | $ 58,563 | |||||||||
Debt Instrument, Periodic Payment | $ 1,077 | |||||||||
Mortgages [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 0 | $ 1,589,522 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | |||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 1,500,000 | |||||||||
Debt Instrument, Face Amount | 2,530,000 | |||||||||
Debt Instrument, Periodic Payment | $ 20,192 | |||||||||
Loan Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 5,948,560 | |||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.41 | |||||||||
Loan Agreement [Member] | NTR Metals, LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Conversion, Converted Instrument, Amount | $ 3,500,000 | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 5,948,560 | 8,536,585 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.41 | |||||||||
Loan Agreement [Member] | Elemetal [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,000,000 | |||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.65 |
Basic and Diluted Average Sha40
Basic and Diluted Average Shares (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Basic And Diluted Average Shares [Line Items] | ||
Basic weighted average shares | 13,214,835 | 12,275,525 |
Effect of potential dilutive securities | 0 | 0 |
Diluted weighted average shares | 13,214,835 | 12,275,525 |
Basic and Diluted Average Sha41
Basic and Diluted Average Shares (Details Textual) - $ / shares | 1 Months Ended | 12 Months Ended | |
Oct. 25, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 5,000,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 15 | ||
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,167,000 | 5,029,000 |
Common Stock (Details Textual)
Common Stock (Details Textual) - shares | 1 Months Ended | 12 Months Ended | |||
Mar. 24, 2016 | Feb. 18, 2015 | Jan. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock [Line Items] | |||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Common Stock [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 15,000 | 372,040 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 30,510 | 124,040 | 57,600 | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 75.00% | ||||
Restricted Stock Units (RSUs) [Member] | Officers And Key Employees [Member] | |||||
Common Stock [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 112,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 28,000 | ||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 25.00% |
Stock Options and Restricted 43
Stock Options and Restricted Stock Units (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding at beginning of year | 5,025,000 | 5,030,000 |
Shares, Granted | 1,000,000 | 0 |
Shares, Exercised | 0 | 0 |
Shares, Forfeited | 5,010,000 | (5,000) |
Shares, Outstanding at end of year | 1,015,000 | 5,025,000 |
Shares, Options exercisable at end of year | 1,015,000 | 5,025,000 |
Weighted average exercise price, Outstanding at beginning of year | $ 14.95 | $ 14.93 |
Weighted average exercise price, Granted | 0.65 | 0 |
Weighted average exercise price, Exercised | 0 | 0 |
Weighted average exercise price, Forfeited | 14.95 | 2.25 |
Weighted average exercise price, Outstanding at end of year | 0.03 | 14.95 |
Weighted average exercise price, Options exercisable at end of year | $ 0.03 | $ 14.95 |
Stock Options and Restricted 44
Stock Options and Restricted Stock Units (Details 1) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding | 1,015,000 | |||
Weighted average exercise price | $ 0.03 | $ 14.95 | $ 14.93 | |
Aggregate Intrinsic Value | $ 590,000 | |||
$2.13 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price | $ 2.13 | |||
Number outstanding | 10,000 | |||
Weighted average remaining contractual life (years) | [1] | 0 years | ||
Weighted average exercise price | $ 2.13 | |||
Aggregate Intrinsic Value | $ 0 | |||
$2.25 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price | $ 2.25 | |||
Number outstanding | 5,000 | |||
Weighted average remaining contractual life (years) | [1] | 0 years | ||
Weighted average exercise price | $ 2.25 | |||
Aggregate Intrinsic Value | $ 0 | |||
$0.65 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price | $ 0.65 | |||
Number outstanding | 1,000,000 | |||
Weighted average exercise price | $ 0.65 | |||
Aggregate Intrinsic Value | $ 590,000 | |||
[1] | Options currently issued pursuant to the Company’s 2004 Employee Stock Option Plans have no expiration date. |
Stock Options and Restricted 45
Stock Options and Restricted Stock Units (Details 2) - Restricted Stock Units (RSUs) [Member] - $ / shares | 1 Months Ended | 12 Months Ended | ||
Mar. 24, 2016 | Feb. 18, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of RSUs, Nonvested at beginning of year | 4,000 | 87,600 | ||
Number of RSUs, Granted | 15,000 | 372,040 | 0 | |
Number of RSUs, Vested | (30,510) | (124,040) | (57,600) | |
Number of RSUs, Forfeited | (100,000) | (26,000) | ||
Number of RSUs, Nonvested at end of year | 152,000 | 4,000 | ||
Weighted average grant-date fair value, Nonvested at beginning of year | $ 2.12 | $ 1.77 | ||
Weighted average grant-date fair value, Granted | 0.64 | 0 | ||
Weighted average grant-date fair value, Vested | 0.83 | 1.59 | ||
Weighted average grant-date fair value, Forfeited | 1.24 | 2.12 | ||
Weighted average grant-date fair value, Nonvested at end of year | $ 0.56 | $ 2.12 |
Stock Options and Restricted 46
Stock Options and Restricted Stock Units (Details Textual) - USD ($) | Aug. 15, 2016 | Dec. 10, 2014 | Oct. 25, 2011 | Oct. 25, 2016 | Apr. 27, 2016 | Mar. 24, 2016 | Feb. 18, 2015 | Dec. 18, 2014 | Sep. 24, 2014 | Jan. 31, 2014 | Jun. 27, 2006 | Jun. 21, 2004 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 07, 2016 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,000,000 | 0 | ||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.65 | $ 0 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 1,015,000 | 5,025,000 | 5,030,000 | |||||||||||||
Allocated Share-based Compensation Expense | $ 101,782 | $ 36,882 | ||||||||||||||
Share Price | $ 1.24 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 5,000,000 | |||||||||||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | |||||||||||||||
2004 Stock Option Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,459,634 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 845,634 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 15,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,700,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 599,000 | |||||||||||||||
2006 Equity Inventive Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 150,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 50,000 | |||||||||||||||
2016 Stock Equity Incentive Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,100,000 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 15,000 | 372,040 | 0 | |||||||||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 75.00% | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 30,510 | 124,040 | 57,600 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 100,000 | 26,000 | ||||||||||||||
Restricted Stock Units (RSUs) [Member] | Mr. Lopez [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 50,000 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Matthew Peakes [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 75,000 | |||||||||||||||
NTR [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5,000,000 | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 15 | |||||||||||||||
Debt Instrument, Decrease, Forgiveness | $ 2,500,000 | |||||||||||||||
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 75,000 | |||||||||||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | |||||||||||||||
Three Independent Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 122,040 | 42,600 | ||||||||||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | |||||||||||||||
Officers And Key Employees [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 112,000 | |||||||||||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 25.00% | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 28,000 | |||||||||||||||
Chief Executive Officer And Chief Financial Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,000 | |||||||||||||||
Chief Executive Officer And Chief Financial Officer [Member] | Restricted Stock Units (RSUs) [Member] | Mr. Peakes [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 18,750 | |||||||||||||||
Chief Executive Officer And Chief Financial Officer [Member] | Restricted Stock Units (RSUs) [Member] | Mr. Lopez [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 12,500 | |||||||||||||||
Chief Executive Officer And Chief Financial Officer [Member] | Performance Based Restricted Stock Units RSU [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 75,000 | |||||||||||||||
Common Stock [Member] | Chief Executive Officer [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 75,000 |
Litigation (Details Textual)
Litigation (Details Textual) - USD ($) | Jul. 15, 2014 | Mar. 23, 2017 | Aug. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2014 | Sep. 30, 2016 | Jan. 31, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||||||||
Litigation Settlement, Amount | $ 2,000,000 | |||||||
Taxes Payable | $ 220,007 | |||||||
Income Tax Examination, Penalties and Interest Accrued | 66,645 | |||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 286,652 | |||||||
Subsequent Event [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Income Taxes Paid, Net | $ 261,490 | |||||||
Payment Agreement in 2010 Sale Tax Audit [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency Litigation Settlement Tax Due Amount | $ 800,397 | $ 1,100,000 | ||||||
Loss Contingency Litigation Settlement Percentage of Penalty on Due Tax | 10.00% | |||||||
Loss Contingency Litigation Settlement Initial Payment of Tax | $ 325,000 | |||||||
Loss Contingency Litigation Settlement Periodic Payment of Tax Amount | $ 47,000 | |||||||
Loss Contingency Litigation Settlement Period In Which Tax Due To Be Paid | 18 months | |||||||
Increase (Decrease) Litigation Reserve | $ 104,958 | |||||||
Loss Contingency Accrual Tax Amount at Carrying Value | $ 47,000 | $ 47,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||
Tax Benefit at Statutory Rate | $ (1,345,685) | $ (781,497) |
Valuation Allowance | 1,344,094 | 779,308 |
Non-Deductible Expenses and Other | 1,591 | 2,189 |
State Taxes, Net of Federal Benefit | 47,916 | 31,802 |
Income tax expense | 47,916 | 31,802 |
Current | 47,916 | 31,802 |
Deferred | 0 | 0 |
Total | $ 47,916 | $ 31,802 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets (liabilities): | ||
Inventories | $ 104,190 | $ 103,909 |
Stock options and other | 93,985 | 88,303 |
Alternative Minimum Tax credit carryforward | 24,674 | 24,674 |
Contingencies and accruals | 152,846 | 157,936 |
Property and equipment | (214,383) | (454,788) |
Net operating loss carryforward | 12,174,859 | 11,136,538 |
Goodwill and intangibles | 0 | (4,687) |
Total deferred tax assets, net | 12,336,171 | 11,051,886 |
Valuation allowance | $ (12,336,171) | $ (11,051,886) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 38,055,994 |
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2026 |
Superior [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 2,729,636 |
Operating Leases (Details)
Operating Leases (Details) | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |
Total | $ 1,830,942 |
2,017 | 459,974 |
2,018 | 412,472 |
2,019 | 412,472 |
2,020 | 325,524 |
2,021 | 220,500 |
Thereafter | $ 0 |
Operating Leases (Details Textu
Operating Leases (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2013USD ($) | Jan. 21, 2013USD ($)ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Operating Leased Assets [Line Items] | ||||
Operating Leases, Rent Expense, Net | $ 821,696 | $ 475,665 | ||
Office Space In North Dallas [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Area of Real Estate Property | ft² | 4,500 | |||
Future Rental Payment Amount | $ 7,500 | |||
Reeder Road Facility [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Operating Leases Rent Expense Sublease Rentals Rent Per Month For Years One And Two | $ 5,000 | |||
Operating Leases Rent Expense Sublease Rentals Rent Per Month After Year Two | $ 7,500 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses: | ||
Selling, general and administrative expenses | $ (10,345,557) | $ (11,149,194) |
Other income: | ||
Other income, net | (4,195) | (8,019) |
Income from discontinued operations after income taxes | 0 | 78,021 |
Southern Bullion [Member] | ||
Revenue: | ||
Sales | 0 | 65 |
Cost of goods sold | 0 | 0 |
Gross Margin | 0 | 65 |
Expenses: | ||
Selling, general and administrative expenses | 0 | (77,439) |
Total Expenses | 0 | (77,439) |
Operating Income | 0 | 77,504 |
Other income: | ||
Other income, net | ||
Interest (income) expense | 0 | (40) |
Income from discontinued operations before income taxes | 0 | 77,544 |
Income tax benefit | 0 | 477 |
Income from discontinued operations after income taxes | $ 0 | $ 78,021 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | Dec. 09, 2016 | Feb. 04, 2015 | Feb. 08, 2016 | Feb. 25, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 19, 2012 |
Related Party Transaction [Line Items] | |||||||
Net Income (Loss) Attributable to Parent | $ (4,005,814) | $ (2,252,301) | |||||
Interest Paid | $ 364,532 | 266,546 | |||||
Equity Method Investment Ownership Percentage Description | The General Partner receives a one percent ownership interest of the Fund, and is paid 2% carried interest on assets under management by the Fund, and 20% of net earnings before distributions to the limited partners. | ||||||
NTR Loan Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,500,000 | ||||||
Line of Credit Facility, Interest Rate at Period End | 2.00% | ||||||
Debt Instrument, Maturity Date | Aug. 1, 2017 | Aug. 1, 2015 | |||||
Long-term Line of Credit | $ 0 | 2,303,359 | |||||
Interest Paid | 43,723 | 45,810 | |||||
Loan Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 5,948,560 | ||||||
Loan Agreement [Member] | Elemetal, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 8,536,585 | ||||||
Debt Conversion, Original Debt, Amount | $ 3,500,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,000,000 | ||||||
Warrants Expiration Period | 2 years | ||||||
Corporate Office [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Operating Leases, Rent Expense | 90,000 | 50,500 | |||||
Elemetal [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Due to Related Parties | 4,107,425 | 4,176,037 | |||||
Due from Related Parties | 40,627 | 169,136 | |||||
Interest Paid | $ 240,004 | $ 187,888 | |||||
Elemetal [Member] | Sales [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Concentration Risk, Percentage | 25.00% | 24.00% | |||||
Elemetal [Member] | Purchases [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Concentration Risk, Percentage | 27.00% | 26.00% | |||||
Elemetal [Member] | Loan Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,000,000 | ||||||
Carbon Fund One [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Purchases from Related Party | $ 5,665 | ||||||
Net Income (Loss) Attributable to Parent | $ 1,334 | ||||||
NTR Metals, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Long-term Line of Credit | $ 0 | ||||||
NTR Metals, LLC [Member] | Loan Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 5,948,560 | 8,536,585 | |||||
Debt Conversion, Original Debt, Amount | $ 2,438,909 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15.00% |