Envela (ELA) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 07, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	DGSE COMPANIES INC
Entity Central Index Key	701,719
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	DGSE
Entity Common Stock, Shares Outstanding		26,924,381

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 615,611	$ 1,412,082
Trade receivables, net of allowances	741,419	245,095
Trade receivables, net of allowances, related party	23,496	40,627
Inventories	8,576,593	9,384,136
Prepaid expenses	311,235	55,029
Note receivable, current	33,525	0
Total current assets	10,301,879	11,136,969
Property and equipment, net	1,560,240	1,665,103
Note receivable, long term	641,475	0
Other assets	77,196	110,605
Total assets	12,580,790	12,912,677
Current Liabilities:
Current maturities of capital leases	4,714	12,590
Accounts payable - trade	479,818	1,103,022
Accounts payable - trade, related party	4,105,705	4,107,425
Accrued expenses	730,408	1,209,902
Customer deposits and other liabilities	254,634	572,362
Total current liabilities	5,575,279	7,005,301
Capital lease obligations, less current maturities	0	1,074
Total liabilities	5,575,279	7,006,375
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value; 60,000,000 shares authorized 26,924,381 and 26,905,631 shares issued and outstanding	269,244	269,056
Additional paid-in capital	40,172,677	40,162,177
Accumulated deficit	(33,436,410)	(34,524,931)
Total stockholders' equity	7,005,511	5,906,302
Total liabilities and stockholders' equity	$ 12,580,790	$ 12,912,677

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	26,924,381	26,905,631
Common stock, shares outstanding	26,924,381	26,905,631

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Sales	$ 15,678,361	$ 10,572,071	$ 47,549,134	$ 37,844,993
Cost of goods sold	12,782,357	8,704,491	39,345,247	31,546,514
Gross margin	2,896,004	1,867,580	8,203,887	6,298,479
Expenses:
Selling, general and administrative expenses	2,156,843	2,184,041	6,712,428	7,401,556
Loss on the sale of assets	0	1,026,078	0	1,026,078
Depreciation and amortization	67,272	77,878	245,048	287,278
Total operating expenses	2,224,115	3,287,997	6,957,476	8,714,912
Operating income (loss)	671,889	(1,420,417)	1,246,411	(2,416,433)
Other (income) expense:
Other income, net	(8,580)	(3,110)	(23,239)	(3,371)
Interest expense	50,316	88,909	149,522	284,679
Total other (income) expense	41,736	85,799	126,283	281,308
Income (loss) from continuing operations before income taxes	630,153	(1,506,216)	1,120,128	(2,697,741)
Income tax expense	26,279	4,334	31,607	39,960
Income (loss) from continuing operations	603,874	(1,510,550)	1,088,521	(2,737,701)
Discontinued operations:
Income from discontinued operations, net of taxes	0	825	0	661
Net income (loss)	$ 603,874	$ (1,509,725)	$ 1,088,521	$ (2,737,040)
Basic net income (loss) per common share:
Income (loss) from continuing operations	$ 0.02	$ (0.12)	$ 0.04	$ (0.22)
Income (loss) from discontinued operations	0	0	0	0
Net income (loss) per share	0.02	(0.12)	0.04	(0.22)
Diluted net income (loss) per share:
Income (loss) from continuing operations	0.02	(0.12)	0.04	(0.22)
Income (loss) from discontinued operations	0	0	0	0
Net income (loss) per share	$ 0.02	$ (0.12)	$ 0.04	$ (0.22)
Weighted-average number of common shares
Basic	26,924,381	12,358,466	26,916,414	12,327,753
Diluted	27,434,586	12,358,466	27,394,132	12,327,753

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows From Operating Activities
Net income (loss)	$ 1,088,521	$ (2,737,040)
Income from discontinued operations, net of tax	0	661
Loss from continuing operations, net of tax	1,088,521	(2,737,701)
Adjustments to reconcile income (loss) from continuing operations to net cash used in operating activities of continuing operations:
Depreciation and amortization	245,048	287,278
Loss on sale of assets	0	1,026,078
Stock based compensation to employees, officers and directors	10,688	63,950
Changes in operating assets and liabilities:
Trade receivables, net	(479,193)	4,122
Inventories	807,543	417,338
Prepaid expenses	(256,206)	11,244
Note receivable	(675,000)	0
Other assets	33,409	93,621
Accounts payable and accrued expenses	(1,104,418)	1,042,271
Customer deposits and other liabilities	(317,727)	(458,444)
Net cash used in operating activities of continuing operations	(647,335)	(250,243)
Cash Flows From Investing Activities:
Proceeds from sale of assets	0	2,124,416
Purchase of property and equipment	(140,186)	(887,201)
Net cash provided by (used in) investing activities of continuing operations	(140,186)	1,237,215
Cash Flows From Financing Activities:
Repayment of debt	0	(1,589,521)
Payments on capital lease obligations	(8,950)	(9,005)
Net cash used in financing activities of continuing operations	(8,950)	(1,598,526)
Cash Flows from Discontinued Operations:
Net cash provided by operating activities of discontinued operations	0	661
Net change in cash and cash equivalents	(796,471)	(610,893)
Cash and cash equivalents, beginning of period	1,412,082	1,752,711
Cash and cash equivalents, end of period	615,611	1,141,818
Supplemental Disclosures:
Cash paid during the period for: Interest	149,521	237,849
Cash paid during the period for: Income taxes	$ 0	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Basis of Presentation [Abstract]
Business Description and Basis of Presentation [Text Block]	Note 1 - Basis of Presentation The consolidated interim financial statements of DGSE Companies, Inc., a Nevada corporation, and its subsidiaries (the “Company” or “DGSE”), included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the Commission’s rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The Company suggests that these financial statements be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (such fiscal year, “Fiscal 2016” and such Annual Report on Form 10-K, the “Fiscal 2016 10-K”). In the opinion of the management of the Company, the accompanying unaudited interim financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary to present fairly its results of operations and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. Certain reclassifications were made to the prior year's consolidated financial statements to conform to the current year presentation.

Principles of Consolidation and

Principles of Consolidation and Nature of Operations	9 Months Ended
	Sep. 30, 2017
Principles of Consolidation and Nature of Operations [Abstract]
Nature of Operations [Text Block]	Note 2 - Principles of Consolidation and Nature of Operations DGSE buys and sells jewelry and bullion products to both retail and wholesale customers throughout the United States through its facilities in South Carolina and Texas, and through its various internet sites. The interim consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its subsidiaries. All material intercompany transactions and balances have been eliminated.

Critical Accounting Policies an

Critical Accounting Policies and Estimates	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Critical Accounting Policies and Estimates [Text Block]	Note 3 - Critical Accounting Policies and Estimates The carrying amounts reported in the consolidated balance sheets for cash equivalents, trade receivables, trade receivables related party, accounts payable, accounts payable related party and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The carrying amount reported for the Company’s capital lease approximates fair value because the underlying instrument has an interest rate with current market rates. This instrument is not held for trading purposes. On September 22, 2017, the Company entered into an Asset Purchase Agreement (the “Agreement”) with David Larson and the Larson Group, LLC (David Larson and the Larson Group, LLC are collectively referred to as the “Buyer”). David Larson ran the wholesale watch division for the Company until his resignation on August 2, 2017. The Buyer purchased $ 675,000 15 4 October 15, 2024 Basic earnings per common share is computed by dividing net earnings available to holders of the Company’s common stock by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and warrants outstanding determined using the treasury stock method. In May 2014, the Financial Accounting Standards Board (“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 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.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 4 - Inventories A summary of inventories is as follows: September 30, December 31, 2017 2016 Jewelry $ 6,789,259 $ 7,193,126 Scrap gold 711,524 885,194 Bullion 586,251 292,591 Rare coins and Other 489,559 1,013,225 $ 8,576,593 $ 9,384,136

Basic and Diluted Average Share

Basic and Diluted Average Shares	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 5 - Basic and Diluted Average Shares A reconciliation of basic and diluted weighted average common shares for the three and nine months ended September 30, 2017 and 2016 is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic weighted average shares 26,924,381 12,358,466 26,916,414 12,327,753 Effect of potential dilutive securities 510,205 - 477,718 - Diluted weighted average shares 27,434,586 12,358,466 27,394,132 12,327,753 For the three and nine months ended September 30, 2017 and 2016, there were 1,015,000 5,015,000 6,015,000 5,000,000 15

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 6 - Long-Term Debt Outstanding Balance September 30, December 31, Current 2017 2016 Interest Rate Maturity Capital lease (1) $ 4,714 $ 13,664 4.20 % May 1, 2018 Sub-Total 4,714 13,664 Less: Current maturities of capital lease 4,714 12,590 Capital lease obligation, less current maturities $ - $ 1,074 (1) On April 3, 2011 58,563 2,304 1,077 60 4.2 1

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation [Text Block]	Note 7 - Stock-Based Compensation The Company accounts for share-based compensation by measuring the cost of the employee services received in exchange for an award of equity instruments, including grants of stock options, based on the fair value of the award at the date of grant. In addition, to the extent that the Company receives an excess tax benefit upon exercise of an award, such benefit is reflected as cash flow from financing activities in the consolidated statement of cash flows. Stock-based compensation expense for the three months ended September 30, 2017 and 2016 was $ 0 25,628 10,688 63,950 Number of shares Price of Unrecognized Unrecognized granted, stock at expense at expense at Date of grant Employee unvested grant date December 31, 2016 September 30, 2017 April 27, 2016 Matthew Peakes 150,000 $ 0.57 $ 85,500 - Former CEO and President January 23, 2014 Nabil Lopez 500 $ 2.18 1,090 - January 23, 2014 Steve Thomas 500 $ 2.18 1,090 - January 23, 2014 Jessica Moore 500 $ 2.18 1,090 - January 23, 2014 Robert Burnside 250 $ 2.18 545 545 January 23, 2014 Dave Larson 250 $ 2.18 545 - Total cost unrecognized $ 89,860 $ 545 Matthew Peakes had 18,750 RSUs vest on April 27, 2017 due to being employed by the Company on that date. Upon vesting, stock compensation cost was recognized for $10,688 in the second quarter of 2017. He resigned on June 30, 2017 and all remaining RSUs, granted to him, were forfeited. Nabil Lopez, Steve Thomas, Jessica Moore, and Dave Larson are no longer employed by the Company and forfeited their nonvested RSUs. Only 250 nonvested stock awards remain unrecognized as of September 30, 2017.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 8 - Related Party Transactions DGSE has a corporate policy governing the identification, review, consideration and approval or ratification of transactions with related persons, as that term is defined in the Instructions to Item 404(a) of Regulation S-K, promulgated under the Securities Act (“Related Party”). Under this policy, all Related Party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with DGSE’s best interests and the best interests of its stockholders. Among other factors, DGSE’s Board considers the size and duration of the transaction, the nature and interest of the of the Related Party in the transaction, whether the transaction may involve a conflict of interest and if the transaction is on terms that are at least as favorable to DGSE as would be available in a comparable transaction with an unaffiliated third party. DGSE’s Board reviews all Related Party transactions at least annually to determine if it is in DGSE’s best interests and the best interests of DGSE’s stockholders to continue, modify, or terminate any of the Related Party transactions. DGSE’s Related Person Transaction Policy is available for review in its entirety under the “Investors” menu of the Company’s corporate relations website at www.DGSECompanies.com. Elemetal, LLC (“Elemetal”) is DGSE’s largest shareholder. Elemetal and its affiliates are also DGSE’s primary refiner and bullion trading partner. In the nine months ended September 30, 2017, 20 13 35 20 4,105,705 23,496 4,107,425 40,627 149,521 187,784 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 2 August 1, 2015 August 1, 2017 0 0 34,421 In April 2013, DGSE moved its principal corporate offices to office space at 15850 Dallas Parkway, Suite 140, Dallas, Texas. This property is owned by an affiliate of Elemetal, and also serves as its 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. The Midtown location is large enough to facilitate the retail space and our corporate offices. In the nine months ended September 30, 2017 and 2016, the Company recognized rent expense of $ 0 67,500

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2017
Legal Proceedings [Abstract]
Legal Proceedings [Text Block]	Note 9 - Legal Proceedings In addition to what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016, we received a notice from the Texas Comptroller that we would have a sales and use tax audit for the time period of July 1, 2013 through December 31, 2016. We expect the process to take all of 2017 and at this time, we are unable to determine if the company has any sales tax exposure, therefore, we will not reserve for the sales and use tax audit.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	Note 10 - Discontinued Operations During the first half of 2014, the Company elected to discontinue the operations of Southern Bullion, due to the lack of profitability and management's belief that it was unlikely that profitability would be reached in the foreseeable future. The significant change in the precious metals market in 2013, including a 30% decline in the spot price of gold since the acquisition of Southern Bullion in 2011, had a disproportionately negative impact on the customer traffic, transactional volume and profitability of the Southern Bullion operations. As a result, during 2013, the Southern Bullion operations generated a net loss of approximately $1.9 million. The operating results for all Southern Bullion operations have been reclassified as discontinued operations in the consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue: Sales $ - $ - $ - $ - Cost of goods sold - - - - Gross margin - - - - Expenses: Selling, general and administrative expenses - - - - Depreciation - - - - Total Expenses - - - - Operating income (loss) Other expense (income) - - - - Other income, net - - - - Interest (income) expense - - - - Income from discontinued operations before income taxes - - - - Income tax expense - 825 - 661 Income from discontinued operations after income taxes - 825 - 661 As of September 30, 2017, the Company believes it has now recognized all material expenses related to the closure of Southern Bullion operations. Discontinued operations for the three and nine months ended September 30, 2016, include adjustments of existing expense accruals related to winding down the operations of Southern Bullion.

Critical Accounting Policies 16

Critical Accounting Policies and Estimates (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Fair Value of Financial Instruments, Policy [Policy Text Block]	Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash equivalents, trade receivables, trade receivables related party, accounts payable, accounts payable related party and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The carrying amount reported for the Company’s capital lease approximates fair value because the underlying instrument has an interest rate with current market rates. This instrument is not held for trading purposes. On September 22, 2017, the Company entered into an Asset Purchase Agreement (the “Agreement”) with David Larson and the Larson Group, LLC (David Larson and the Larson Group, LLC are collectively referred to as the “Buyer”). David Larson ran the wholesale watch division for the Company until his resignation on August 2, 2017. The Buyer purchased $ 675,000 15 4 October 15, 2024
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Share Basic earnings per common share is computed by dividing net earnings available to holders of the Company’s common stock by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and warrants outstanding determined using the treasury stock method.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncement In May 2014, the Financial Accounting Standards Board (“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 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.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	A summary of inventories is as follows: September 30, December 31, 2017 2016 Jewelry $ 6,789,259 $ 7,193,126 Scrap gold 711,524 885,194 Bullion 586,251 292,591 Rare coins and Other 489,559 1,013,225 $ 8,576,593 $ 9,384,136

Basic and Diluted Average Sha18

Basic and Diluted Average Shares (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	A reconciliation of basic and diluted weighted average common shares for the three and nine months ended September 30, 2017 and 2016 is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic weighted average shares 26,924,381 12,358,466 26,916,414 12,327,753 Effect of potential dilutive securities 510,205 - 477,718 - Diluted weighted average shares 27,434,586 12,358,466 27,394,132 12,327,753

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	Outstanding Balance September 30, December 31, Current 2017 2016 Interest Rate Maturity Capital lease (1) $ 4,714 $ 13,664 4.20 % May 1, 2018 Sub-Total 4,714 13,664 Less: Current maturities of capital lease 4,714 12,590 Capital lease obligation, less current maturities $ - $ 1,074 (1) On April 3, 2011 58,563 2,304 1,077 60 4.2 1

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block]	The following table represents our total compensation cost related to nonvested awards not yet recognized at year ended December 31, 2016, and September 30, 2017: Number of shares Price of Unrecognized Unrecognized granted, stock at expense at expense at Date of grant Employee unvested grant date December 31, 2016 September 30, 2017 April 27, 2016 Matthew Peakes 150,000 $ 0.57 $ 85,500 - Former CEO and President January 23, 2014 Nabil Lopez 500 $ 2.18 1,090 - January 23, 2014 Steve Thomas 500 $ 2.18 1,090 - January 23, 2014 Jessica Moore 500 $ 2.18 1,090 - January 23, 2014 Robert Burnside 250 $ 2.18 545 545 January 23, 2014 Dave Larson 250 $ 2.18 545 - Total cost unrecognized $ 89,860 $ 545

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue: Sales $ - $ - $ - $ - Cost of goods sold - - - - Gross margin - - - - Expenses: Selling, general and administrative expenses - - - - Depreciation - - - - Total Expenses - - - - Operating income (loss) Other expense (income) - - - - Other income, net - - - - Interest (income) expense - - - - Income from discontinued operations before income taxes - - - - Income tax expense - 825 - 661 Income from discontinued operations after income taxes - 825 - 661

Critical Accounting Policies 22

Critical Accounting Policies and Estimates (Details Textual) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 22, 2017	Sep. 30, 2017	Sep. 30, 2016
Accounting Policies [Abstract]
Increase (Decrease) in Notes Receivable, Current		$ 675,000	$ 0
Notes Receivable, Monthly Payment of Principal and Interest	$ 4,992.89
Notes Receivable, Amortization Period	15 years
Receivable with Imputed Interest, Effective Yield (Interest Rate)	4.00%
Receivable with Imputed Interest, Due Date	Oct. 15, 2024

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Inventory [Line Items]
Jewelry	$ 6,789,259	$ 7,193,126
Scrap gold	711,524	885,194
Bullion	586,251	292,591
Rare coins and Other	489,559	1,013,225
Total	$ 8,576,593	$ 9,384,136

Basic and Diluted Average Sha24

Basic and Diluted Average Shares (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic And Diluted Average Shares [Line Items]
Basic weighted average shares	26,924,381	12,358,466	26,916,414	12,327,753
Effect of potential dilutive securities	510,205	0	477,718	0
Diluted weighted average shares	27,434,586	12,358,466	27,394,132	12,327,753

Basic and Diluted Average Sha25

Basic and Diluted Average Shares (Details Textual) - $ / shares	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 26, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
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
Common Share options, Warrants, and Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		1,015,000	6,015,000	5,015,000	6,015,000

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)		9 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Sub-Total		$ 4,714	$ 13,664
Less: Current maturities of capital lease		4,714	12,590
Capital lease obligation, less current maturities		0	1,074
Capital leases [Member]
Debt Instrument [Line Items]
Sub-Total	[1]	$ 4,714	$ 13,664
Current Interest Rate	[1]	4.20%
Maturity	[1]	May 1, 2018
[1]	On April 3, 2011, DGSE entered into a capital lease for $58,563 with Graybar Financial Services for phones at the new corporate headquarters. The non-cancelable lease agreement required an advanced payment of $2,304 and monthly payments of $1,077 for 60 months at an interest rate of 4.2% beginning in May 2011. At the end of the lease in May 2018, the equipment can be purchased for $1. As of September 30, 2017, we are five payments ahead of schedule and expect to pay off the capital lease early.

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - Graybar Financial Services lease [Member]	1 Months Ended
	Apr. 03, 2011USD ($)
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, 2011
Debt Instrument, Face Amount	$ 58,563
Monthly payments	$ 1,077

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Unrecognized expense	$ 545	$ 89,860
Matthew Peakes Former CEO and President [Member] | April 27, 2016 [Member]
Number ofshares granted, unvested	150,000
Price of stock at grant date	$ 0.57
Unrecognized expense	$ 0	85,500
Nabil Lopez [Member] | January 23, 2014 [Member]
Number ofshares granted, unvested	500
Price of stock at grant date	$ 2.18
Unrecognized expense	$ 0	1,090
Steve Thomas [Member] | January 23, 2014 [Member]
Number ofshares granted, unvested	500
Price of stock at grant date	$ 2.18
Unrecognized expense	$ 0	1,090
Jessica Moore [Member] | January 23, 2014 [Member]
Number ofshares granted, unvested	500
Price of stock at grant date	$ 2.18
Unrecognized expense	$ 0	1,090
Robert Burnside [Member] | January 23, 2014 [Member]
Number ofshares granted, unvested	250
Price of stock at grant date	$ 2.18
Unrecognized expense	$ 545	545
Dave Larson [Member] | January 23, 2014 [Member]
Number ofshares granted, unvested	250
Price of stock at grant date	$ 2.18
Unrecognized expense	$ 0	$ 545

Stock-Based Compensation (Det29

Stock-Based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended	9 Months Ended
	Apr. 27, 2017	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 0	$ 25,628		$ 10,688	$ 63,950
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares		250			250
Share-based Compensation				$ 10,688	$ 10,688	$ 63,950
RSUs [Member] | Former CEO and President [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

Related Party Transactions (Det

Related Party Transactions (Details Textual) - USD ($)	Feb. 04, 2015	Jun. 20, 2016	Feb. 25, 2014	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Jul. 19, 2012
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
Interest Paid				$ 0	$ 34,421
Shares Issued, Price Per Share		$ 0.41
Stock Issued During Period, Shares, Conversion of Convertible Securities		5,948,560
Corporate Office [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense				0	67,500
Elemetal [Member]
Related Party Transaction [Line Items]
Due to Related Parties				4,105,705		$ 4,107,425
Due from Related Parties				23,496		$ 40,627
Interest Paid				$ 149,521	$ 187,784
Elemetal [Member] | Sales [Member]
Related Party Transaction [Line Items]
Concentration Risk, Percentage				20.00%	35.00%
Elemetal [Member] | Purchases [Member]
Related Party Transaction [Line Items]
Concentration Risk, Percentage				13.00%	20.00%
NTR Metals, LLC [Member]
Related Party Transaction [Line Items]
Long-term Line of Credit				$ 0

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Expenses:
Selling, general and administrative expenses	$ (2,156,843)	$ (2,184,041)	$ (6,712,428)	$ (7,401,556)
Depreciation	0	0	0	0
Other expense (income)
Other income, net	(8,580)	(3,110)	(23,239)	(3,371)
Income from discontinued operations after income taxes	0	825	0	661
Southern Bullion [Member]
Revenue:
Sales	0	0	0	0
Cost of goods sold	0	0	0	0
Gross margin	0	0	0	0
Expenses:
Selling, general and administrative expenses	0	0	0	0
Total Expenses	0	0	0	0
Other expense (income)
Other income, net	0	0	0	0
Interest (income) expense	0	0	0	0
Income from discontinued operations before income taxes	0	0	0	0
Income tax expense	0	825	0	661
Income from discontinued operations after income taxes	$ 0	$ 825	$ 0	$ 661

Discontinued Operations (Deta32

Discontinued Operations (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Income (Loss) Attributable to Parent	$ 603,874	$ (1,509,725)	$ 1,088,521	$ (2,737,040)
Southern Bullion [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Income (Loss) Attributable to Parent					$ 1,900,000