Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | DGSE COMPANIES INC | |
Entity Central Index Key | 701,719 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 26,924,381 | |
Trading Symbol | DGSE | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 903,113 | $ 1,272,208 |
Trade receivables, net of allowances | 1,055,415 | 767,761 |
Trade receivables, related party | 39,215 | |
Inventories | 8,600,881 | 8,597,690 |
Prepaid expenses | 369,678 | 181,392 |
Note receivable, current | 34,201 | 33,862 |
Total current assets | 10,963,288 | 10,892,128 |
Property and equipment, net | 1,647,149 | 1,690,872 |
Note receivable, long term | 624,197 | 632,860 |
Other assets | 59,715 | 98,753 |
Total assets | 13,294,349 | 13,314,613 |
Current Liabilities: | ||
Current maturities of capital leases | 1,172 | 2,352 |
Accounts payable - trade | 628,127 | 776,800 |
Accounts payable - trade, related party | 3,689,677 | 3,902,293 |
Accrued expenses | 645,227 | 804,687 |
Customer deposits and other liabilities | 228,162 | 72,705 |
Total current liabilities | 5,192,365 | 5,558,837 |
Total liabilities | 5,192,365 | 5,558,837 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $0.01 par value; 60,000,000 shares authorized 26,924,381 and 26,924,381 shares issued and outstanding | 269,244 | 269,244 |
Additional paid-in capital | 40,172,677 | 40,172,677 |
Accumulated deficit | (32,339,937) | (32,686,145) |
Total stockholders' equity | 8,101,984 | 7,755,776 |
Total liabilities and stockholders' equity | $ 13,294,349 | $ 13,314,613 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 26,924,381 | 26,924,381 |
Common stock, shares outstanding | 26,924,381 | 26,924,381 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | ||
Sales | $ 14,055,872 | $ 15,123,845 |
Cost of goods sold | 11,553,866 | 12,629,604 |
Gross margin | 2,502,006 | 2,494,241 |
Expenses: | ||
Selling, general and administrative expenses | 2,008,667 | 2,118,833 |
Depreciation and amortization | 89,752 | 85,242 |
Total operating expenses | 2,098,419 | 2,204,075 |
Operating income | 403,587 | 290,166 |
Other (income) expense: | ||
Other (income) expense, net | (23,959) | 4,931 |
Interest expense | 46,882 | 49,840 |
Total other (income) expense | 22,923 | 54,771 |
Income before income taxes | 380,664 | 235,395 |
Income tax expense | 34,456 | 15,859 |
Net income | $ 346,208 | $ 219,536 |
Basic net income per common share: | $ 0.01 | $ 0.01 |
Diluted net income per share: | $ 0.01 | $ 0.01 |
Weighted-average number of common shares - Basic | 26,924,381 | 26,905,631 |
Weighted-average number of common shares - Diluted | 27,233,980 | 27,416,909 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 346,208 | $ 219,536 |
Adjustments to reconcile net income from operations to net cash used in operating activities: | ||
Depreciation and amortization | 89,752 | 85,242 |
Loss on sale of equipment | 40,045 | |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (209,217) | 24,413 |
Trade receivables, related party, net | (39,215) | 67,985 |
Inventories | (3,190) | (156,391) |
Prepaid expenses | (188,287) | (264,297) |
Note receivable | 8,317 | |
Other assets | 39,038 | 30,526 |
Accounts payable and accrued expenses | (308,133) | (858,148) |
Accounts payable, related party | (212,616) | (153,411) |
Customer deposits and other liabilities | 155,458 | 92,728 |
Net cash used in operating activities | (281,840) | (911,817) |
Cash Flows From Investing Activities: | ||
Purchase of property and equipment | (86,074) | (33,750) |
Net cash used in investing activities | (86,074) | (33,750) |
Cash Flows From Financing Activities: | ||
Payments on capital lease obligations | (1,181) | (4,287) |
Net cash used in financing activities | (1,181) | (4,287) |
Net change in cash and cash equivalents | (369,095) | (949,854) |
Cash and cash equivalents, beginning of period | 1,272,208 | 1,412,082 |
Cash and cash equivalents, end of period | 903,113 | 462,228 |
Supplemental Disclosures: | ||
Cash paid during the period for: Interest | 46,882 | 49,840 |
Cash paid during the period for: Income taxes |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The consolidated interim financial statements of DGSE Companies, Inc., a Nevada corporation, and its subsidiaries (the “Company” or “DGSE”), included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the Commission’s rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The Company suggests that these financial statements be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (such fiscal year, “Fiscal 2017” and such Annual Report on Form 10-K, the “Fiscal 2017 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 | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Nature of Operations | (2) Principles of Consolidation and Nature of Operations DGSE buys and sells jewelry and bullion products to both retail and wholesale customers throughout the United States through its facilities in 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 | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies and Estimates | (3) Critical Accounting Policies and Estimates Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash equivalents, trade receivables, 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. 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. Recent Accounting Pronouncement In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers On January 1, 2018 we adopted ASU 2014-09 using the full retrospective method. The Copmany completed its review of its material revenue streams and determined that there will be no impact to its consolidated financial statements, results of operations or liquidity. When comparing the Company’s current revenue recognition to the new applied revenue recognition under Accounting Standards Codification (“ASC”) 606, there was no change to the amount or timing of revenue recognized. Therefore, no quantitative adjustment was required to be made to the prior periods presented on the unaudited condensed consolidated financial statements after the adoption of ASC 606. 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 | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories A summary of inventories is as follows: March 31, 2018 December 31, 2017 Jewelry $ 6,818,262 $ 6,344,948 Scrap gold 1,112,262 1,512,156 Bullion 355,916 414,867 Rare coins and Other 314,441 325,719 $ 8,600,881 $ 8,597,690 |
Basic and Diluted Average Share
Basic and Diluted Average Shares | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Average Shares | (5) Basic and Diluted Average Shares A reconciliation of basic and diluted weighted average common shares for the three months ended March 31, 2018 and 2017 is as follows: For the Three Months Ended March 31, 2018 2017 Basic weighted average shares 26,924,381 26,905,631 Effect of potential dilutive securities 309,599 511,278 Diluted weighted average shares 27,233,980 27,416,909 For the three months ended March 31, 2018 and 2017 there were 1,015,500 and 1,148,250 common share options, warrants, and Restricted Stock Units (RSU’s) unexercised respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (6) Long-Term Debt Outstanding Balance March 31, December 31, Current 2018 2017 Interest Rate Maturity Capital leases (1) $ 1,172 $ 2,352 4.20 % May 1, 2018 Sub-Total 1,172 2,352 Less: Current maturities of capital leases 1,172 2,352 Long term debt, less current maturities $ - $ - (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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (7) Stock-Based Compensation The Company accounts for share-based compensation by measuring the cost of the employee services received in exchange for an award of equity instruments, including grants of stock options, based on the fair value of the award at the date of grant. In addition, to the extent that the Company receives an excess tax benefit upon exercise of an award, such benefit is reflected as cash flow from financing activities in the consolidated statement of cash flows. Stock-based compensation expense for the three months ended March 31, 2018 and 2017 was $0 and $0, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (8) Related Party Transactions DGSE has a corporate policy governing the identification, review, consideration and approval or ratification of transactions with related persons, as that term is defined in the Instructions to Item 404(a) of Regulation S-K, promulgated under the Securities Act (“Related Party”). Under this policy, all Related Party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with DGSE’s best interests and the best interests of its stockholders. Among other factors, DGSE’s Board considers the size and duration of the transaction, the nature and interest of the of the Related Party in the transaction, whether the transaction may involve a conflict of interest and if the transaction is on terms that are at least as favorable to DGSE as would be available in a comparable transaction with an unaffiliated third party. DGSE’s Board reviews all Related Party transactions at least annually to determine if it is in DGSE’s best interests and the best interests of DGSE’s stockholders to continue, modify, or terminate any of the Related Party transactions. DGSE’s Related Person Transaction Policy is available for review in its entirety under the “Investors” menu of the Company’s corporate relations website at www.DGSECompanies.com. Through a series of transactions beginning in 2010, Elemetal, NTR and Truscott (“Related Entities”) became the largest shareholders of our common stock, par value $0.01 per share. A certain Related Entity has been DGSE’s primary refiner and bullion trading partner. In the three months ended March 31, 2018, 10% of sales and 2% of purchases were transactions with a certain Related Entity, and in the same period of 2017, these transactions represented 28% of DGSE’s sales and 24% of DGSE’s purchases. On December 9, 2016, DGSE and a certain Related Entity closed the transactions contemplated by the Debt Exchange Agreement whereby DGSE issued a certain Related Entity 8,536,585 shares of its common stock and a warrant to purchase an additional 1,000,000 shares to be exercised within two years after December 9, 2016, in exchange for the cancellation and forgiveness of $3,500,000 of trade payables owed to a certain Related Entity as a result of bullion-related transactions. As of March 31, 2018, the Company was obligated to pay $3,689,677 to the certain Related Entity as a trade payable, and had a $0 receivable from the certain Related Entity. As of December 31, 2017, the Company was obligated to pay $3,902,293 to the certain Related Entity as a trade payable, and had a $39,215 receivable from the certain Related Entity. For the three months ended March 31, 2018 and 2017, the Company paid the Related Entities $46,882 and $49,840, respectively, in interest on the Company’s outstanding payable. |
Sales and Use Tax
Sales and Use Tax | 3 Months Ended |
Mar. 31, 2018 | |
Sales And Use Tax | |
Sales and Use Tax | (9) Sales and Use Tax The Texas Comptroller conducted a 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 $220,007 plus penalties and interest of $66,645 for a total payment due of $286,652. On February 21, 2017, a Compromise and Settlement Agreement was reached between DGSE and the Comptroller’s Office to pay a lump sum payment of $261,490 on or before March 23, 2017. Payment was made in full on March 2, 2017. The Texas Comptroller conducted another sales and use tax audit of our Texas operations with respect to the period July 1, 2013 through December 31, 2016. The audit was finalized and a determination was made on April 2, 2018, that we owed a total of $17,294, which includes interest and penalties. An initial reserve of $70,000 was established at December 31, 2017 to cover any liability. That reserve was reduced to the amount owed of $17,294 for the accompanying consolidated balance sheet as of March 31, 2018. |
Critical Accounting Policies 15
Critical Accounting Policies and Estimates (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash equivalents, trade receivables, 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. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net earnings available to holders of the Company’s common stock by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and warrants outstanding determined using the treasury stock method. |
Recent Accounting Pronouncement | Recent Accounting Pronouncement In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers On January 1, 2018 we adopted ASU 2014-09 using the full retrospective method. The Copmany completed its review of its material revenue streams and determined that there will be no impact to its consolidated financial statements, results of operations or liquidity. When comparing the Company’s current revenue recognition to the new applied revenue recognition under Accounting Standards Codification (“ASC”) 606, there was no change to the amount or timing of revenue recognized. Therefore, no quantitative adjustment was required to be made to the prior periods presented on the unaudited condensed consolidated financial statements after the adoption of ASC 606. 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) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | A summary of inventories is as follows: March 31, 2018 December 31, 2017 Jewelry $ 6,818,262 $ 6,344,948 Scrap gold 1,112,262 1,512,156 Bullion 355,916 414,867 Rare coins and Other 314,441 325,719 $ 8,600,881 $ 8,597,690 |
Basic and Diluted Average Sha17
Basic and Diluted Average Shares (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Weighted Average Common Shares | A reconciliation of basic and diluted weighted average common shares for the three months ended March 31, 2018 and 2017 is as follows: For the Three Months Ended March 31, 2018 2017 Basic weighted average shares 26,924,381 26,905,631 Effect of potential dilutive securities 309,599 511,278 Diluted weighted average shares 27,233,980 27,416,909 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Outstanding Balance March 31, December 31, Current 2018 2017 Interest Rate Maturity Capital leases (1) $ 1,172 $ 2,352 4.20 % May 1, 2018 Sub-Total 1,172 2,352 Less: Current maturities of capital leases 1,172 2,352 Long term debt, less current maturities $ - $ - (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 $1. |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Jewelry | $ 6,818,262 | $ 6,344,948 |
Scrap gold | 1,112,262 | 1,512,156 |
Bullion | 355,916 | 414,867 |
Rare coins and other | 314,441 | 325,719 |
Total | $ 8,600,881 | $ 8,597,690 |
Basic and Diluted Average Sha20
Basic and Diluted Average Shares (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 1,015,500 | 1,148,250 |
Basic and Diluted Average Sha21
Basic and Diluted Average Shares - Schedule of Reconciliation of Basic and Diluted Weighted Average Common Shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Basic weighted average shares | 26,924,381 | 26,905,631 |
Effect of potential dilutive securities | 309,599 | 511,278 |
Diluted weighted average shares | 27,233,980 | 27,416,909 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Sub-Total | $ 1,172 | $ 2,352 | |
Less: Current maturities of capital leases | 1,172 | 2,352 | |
Long term debt, less current maturities | |||
Current Interest Rate | 4.20% | ||
Maturity | May 1, 2018 | ||
Capital Leases [Member] | |||
Debt Instrument [Line Items] | |||
Sub-Total | [1] | $ 1,172 | $ 2,352 |
[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 $1. |
Long-Term Debt - Schedule of 23
Long-Term Debt - Schedule of Long-term Debt (Details) (Parenthetical) - USD ($) | Apr. 03, 2011 | Mar. 31, 2018 |
Debt instrument, interest rate, stated percentage | 4.20% | |
Graybar Financial Services Capital Lease [Member] | ||
Debt instrument, face amount | $ 58,563 | |
Advances on capital leases | 2,304 | |
Debt instrument, periodic payment | $ 1,077 | |
Debt instrument, term | 60 months | |
Debt instrument, interest rate, stated percentage | 4.20% | |
Bargain purchase option | $ 1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Dec. 09, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Related Entities [Member] | ||||
Related Party Transaction [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Due to related parties | $ 3,689,677 | $ 3,902,293 | ||
Due from related parties | 0 | $ 39,215 | ||
Interest paid | $ 46,882 | $ 49,840 | ||
Related Entities [Member] | Debt Exchange Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt conversion, converted instrument, shares issued | 8,536,585 | |||
Class of warrant or right, number of securities called by warrants or rights | 1,000,000 | |||
Debt conversion, original debt, amount | $ 3,500,000 | |||
Related Entities [Member] | Sales [Member] | ||||
Related Party Transaction [Line Items] | ||||
Concentration risk, percentage | 10.00% | 28.00% | ||
Related Entities [Member] | Purchases [Member] | ||||
Related Party Transaction [Line Items] | ||||
Concentration risk, percentage | 2.00% | 24.00% |
Sales and Use Tax (Details Narr
Sales and Use Tax (Details Narrative) - USD ($) | 1 Months Ended | |||
Mar. 23, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2015 | |
Sales And Use Tax | ||||
Taxes payable | $ 17,294 | $ 220,007 | ||
Income tax examination, penalties and interest accrued | 66,645 | |||
Income tax examination, liability (refund) adjustment from settlement with taxing authority | $ 286,652 | |||
Income taxes paid, net | $ 261,490 | |||
Minimum reserve to cover tax assessment, penalty and interest | $ 70,000 | |||
Reduction in initial reserve to cover tax assessment, penalty and interest | $ 17,294 |