Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 13, 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 | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 26,924,381 | |
Trading Symbol | DGSE | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 478,870 | $ 1,272,208 |
Trade receivables, net of allowances | 107,818 | 767,761 |
Trade receivables, related party | 39,215 | |
Inventories | 9,498,441 | 8,597,690 |
Prepaid expenses | 179,537 | 181,392 |
Note receivable, current | 33,862 | |
Total current assets | 10,264,666 | 10,892,128 |
Property and equipment, net | 1,338,740 | 1,690,872 |
Note receivable, long term | 632,860 | |
Intangible assets, net | 212,500 | |
Other assets | 69,461 | 98,753 |
Total assets | 11,885,367 | 13,314,613 |
Current Liabilities: | ||
Current maturities of capital leases | 2,352 | |
Accounts payable - trade | 204,956 | 776,800 |
Accounts payable - trade, related party | 3,134,227 | 3,902,293 |
Accrued expenses | 486,974 | 804,687 |
Customer deposits and other liabilities | 177,954 | 72,705 |
Total current liabilities | 4,004,111 | 5,558,837 |
Total liabilities | 4,004,111 | 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 | (32,560,665) | (32,686,145) |
Total stockholders' equity | 7,881,256 | 7,755,776 |
Total liabilities and stockholders' equity | $ 11,885,367 | $ 13,314,613 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | ||||
Sales | $ 13,659,395 | $ 15,678,361 | $ 40,448,530 | $ 47,549,134 |
Cost of goods sold | 11,182,226 | 12,782,357 | 33,278,876 | 39,345,247 |
Gross margin | 2,477,169 | 2,896,004 | 7,169,654 | 8,203,887 |
Expenses: | ||||
Selling, general and administrative expenses | 2,858,911 | 2,156,843 | 6,672,858 | 6,712,428 |
Depreciation and amortization | 98,237 | 67,272 | 275,721 | 245,048 |
Total operating expenses | 2,957,148 | 2,224,115 | 6,948,579 | 6,957,476 |
Operating income (loss) | (479,979) | 671,889 | 221,075 | 1,246,411 |
Other (income) expense: | ||||
Other income, net | (6,527) | (8,580) | (58,822) | (23,239) |
Interest expense | 38,100 | 50,316 | 130,630 | 149,522 |
Total other (income) expense | 31,573 | 41,736 | 71,808 | 126,283 |
Income (loss) before income taxes | (511,552) | 630,153 | 149,267 | 1,120,128 |
Income tax expense (benefit) | (16,646) | 26,279 | 23,787 | 31,607 |
Net income (loss) | $ (494,906) | $ 603,874 | $ 125,480 | $ 1,088,521 |
Basic net income (loss) per common share: | $ (0.02) | $ 0.02 | $ 0 | $ 0.04 |
Diluted net income (loss) per share: | $ (0.02) | $ 0.02 | $ 0 | $ 0.04 |
Weighted-average number of common shares Basic | 26,924,381 | 26,924,381 | 26,924,381 | 26,916,414 |
Weighted-average number of common shares Diluted | 26,924,381 | 27,434,586 | 27,107,339 | 27,394,132 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 125,480 | $ 1,088,521 |
Adjustments to reconcile income to net cash used in operating activities: | ||
Depreciation and amortization | 275,721 | 245,048 |
Bad debt expense | 1,196,660 | |
True up of accounts payable | (468,081) | |
Loss on sale of assets | (40,045) | |
Stock based compensation to employees, officers and directors | 10,688 | |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (146,811) | 479,193 |
Inventories | 900,750 | (807,543) |
Prepaid expenses | (1,854) | 256,206 |
Note receivable | (22,409) | 675,000 |
Other assets | (29,292) | (33,409) |
Accounts payable and accrued expenses | (1,189,542) | (1,104,418) |
Customer deposits and other liabilities | 105,250 | (317,727) |
Net cash used in operating activities | (614,851) | (647,335) |
Cash Flows From Investing Activities: | ||
Purchase of property and equipment | 125,135 | 140,186 |
Purchase of intangible assets | 51,000 | |
Net cash used in investing activities | (176,135) | (140,186) |
Cash Flows From Financing Activities: | ||
Payments on capital lease obligations | 2,352 | 8,950 |
Net cash used in financing activities | (2,352) | (8,950) |
Net change in cash and cash equivalents | (793,338) | (796,471) |
Cash and cash equivalents, beginning of period | 1,272,208 | 1,412,082 |
Cash and cash equivalents, end of period | 478,870 | 615,611 |
Cash paid during the period for: | ||
Interest | 130,594 | 149,521 |
Income taxes | 20,025 | |
Non cash activities: | ||
Transfer of fixed assets to intangible assets | $ 204,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 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 | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Nature of Operations | 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, 2018 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies and Estimates | Note 3 - Critical Accounting Policies and Estimates Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash equivalents, accounts receivable, accounts receivable 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 approximate 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 | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 - Inventories A summary of inventories is as follows: September 30, December 31, 2018 2017 Jewelry $ 6,708,671 $ 6,344,948 Scrap 970,934 1,512,156 Bullion 649,573 414,867 Rare coins and Other 1,169,263 325,719 $ 9,498,441 $ 8,597,690 |
Basic and Diluted Average Share
Basic and Diluted Average Shares | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Average Shares | Note 5 - Basic and Diluted Average Shares A reconciliation of basic and diluted weighted average common shares for the three and six months ended September 30, 2018 and 2017 is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic weighted average shares 26,924,381 26,924,381 26,924,381 26,916,414 Effect of potential dilutive securities - 510,205 182,958 477,718 Diluted weighted average shares 26,924,381 27,434,586 27,107,339 27,394,132 For the three and nine months ended September 30, 2018 and 2017, there were 1,015,000 and 1,015,000 of common share options, warrants, and Restricted Stock Units (RSU’s) unexercised respectively. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9- Other A $675,000 Secured Promissory Note, dated September 22, 2017, between DGSE and Larson Group LLC, with a remaining balance of $644,313, became likely uncollectable following the death of its principal, David Larson, and subsequent filing by Larson Group LLC under chapter 7 of the US Bankruptcy Protection laws, on August 6, 2018. The Promissory Note was related to a certain Asset Purchase Agreement, dated September 22, 2017, between DGSE and Larson Group LLC, under which DGSE sold the assets related to its vintage watch business operated under its Fairchild International division. DGSE viewed the likelihood of collecting remaining funds or collateral as remote and wrote off the full balance. Also predominately related to DGSE’s vintage watch business before its sale to Larson Group LLC, DGSE wrote off an additional $552,347 of bad debt against accounts receivables that it viewed as unlikely to be collectable. During the implementation of our new POS system, problems in transferring data from our old system to the POS created an over statement in accounts payable and an adjustment created a $468,081 reduction in cost of goods sold for quarter ending September 30, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 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, 2018 and 2017 was $0 and $0 respectively, and stock based compensation expense for the nine months ended September 30, 2018 and 2017 was $0 and $10,688, respectively, relating to employee and director RSUs, and included in selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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. 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. For the nine months ended September 30, 2018, 10% of sales and 3% of purchases were transactions with a certain Related Entity, and in the same period of 2017, these transactions represented 20% of DGSE’s sales and 13% 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 September 30, 2018, the Company was obligated to pay $3,134,227 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 nine months ended September 30, 2018 and 2017, the Company paid the Related Entities $130,594 and $149,521 respectively, in interest on the Company’s outstanding payable. |
Other
Other | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Other | Note 9- Other A $675,000 Secured Promissory Note, dated September 22, 2017, between DGSE and Larson Group LLC, with a remaining balance of $644,313, became likely uncollectable following the death of its principal, David Larson, and subsequent filing by Larson Group LLC under chapter 7 of the US Bankruptcy Protection laws, on August 6, 2018. The Promissory Note was related to a certain Asset Purchase Agreement, dated September 22, 2017, between DGSE and Larson Group LLC, under which DGSE sold the assets related to its vintage watch business operated under its Fairchild International division. DGSE viewed the likelihood of collecting remaining funds or collateral as remote and wrote off the full balance. Also predominately related to DGSE’s vintage watch business before its sale to Larson Group LLC, DGSE wrote off an additional $552,347 of bad debt against accounts receivables that it viewed as unlikely to be collectable. During the implementation of our new POS system, problems in transferring data from our old system to the POS created an over statement in accounts payable and an adjustment created a $468,081 reduction in cost of goods sold for quarter ending September 30, 2018. |
Critical Accounting Policies _2
Critical Accounting Policies and Estimates (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash equivalents, accounts receivable, accounts receivable 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 approximate 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) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | A summary of inventories is as follows: September 30, December 31, 2018 2017 Jewelry $ 6,708,671 $ 6,344,948 Scrap 970,934 1,512,156 Bullion 649,573 414,867 Rare coins and Other 1,169,263 325,719 $ 9,498,441 $ 8,597,690 |
Basic and Diluted Average Sha_2
Basic and Diluted Average Shares (Tables) | 9 Months Ended |
Sep. 30, 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 and six months ended September 30, 2018 and 2017 is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic weighted average shares 26,924,381 26,924,381 26,924,381 26,916,414 Effect of potential dilutive securities - 510,205 182,958 477,718 Diluted weighted average shares 26,924,381 27,434,586 27,107,339 27,394,132 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Outstanding Balance September 30, December 31, Current 2018 2017 Interest Rate Maturity Capital lease (1) $ - $ 2,352 4.20 % May 1, 2018 Sub-Total - 2,352 Less: Current maturities of capital lease - 2,352 Capital lease obligation, 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 was purchased for $1. |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Jewelry | $ 6,708,671 | $ 6,344,948 |
Scrap | 970,934 | 1,512,156 |
Bullion | 649,573 | 414,867 |
Rare coins and other | 1,169,263 | 325,719 |
Inventories | $ 9,498,441 | $ 8,597,690 |
Basic and Diluted Average Sha_3
Basic and Diluted Average Shares (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 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 | 1,015,000 | 1,015,000 | 1,015,000 | 1,015,000 |
Basic and Diluted Average Sha_4
Basic and Diluted Average Shares - Schedule of Reconciliation of Basic and Diluted Weighted Average Common Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares | 26,924,381 | 26,924,381 | 26,924,381 | 26,916,414 |
Effect of potential dilutive securities | 510,205 | 182,958 | 477,718 | |
Diluted weighted average shares | 26,924,381 | 27,434,586 | 27,107,339 | 27,394,132 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Sub-Total | $ 2,352 | ||
Less: Current maturities of capital leases | 2,352 | ||
Capital lease obligation, less current maturities | |||
Current Interest Rate | 4.20% | ||
Maturity | May 1, 2018 | ||
Capital Lease [Member] | |||
Debt Instrument [Line Items] | |||
Sub-Total | [1] | $ 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 was purchased for $1. |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Long-term Debt (Details) (Parenthetical) - USD ($) | Apr. 03, 2011 | May 31, 2018 | Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 10,688 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Dec. 09, 2016 | Sep. 30, 2018 | Sep. 30, 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 | $ 3,134,227 | $ 3,902,293 | ||
Due from related parties | 0 | $ 39,215 | ||
Interest paid | $ 130,594 | $ 149,521 | ||
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% | 20.00% | ||
Related Entities [Member] | Purchases [Member] | ||||
Related Party Transaction [Line Items] | ||||
Concentration risk, percentage | 3.00% | 13.00% |
Other (Details Narrative)
Other (Details Narrative) - USD ($) | Sep. 22, 2017 | Sep. 30, 2018 |
Bad debts | $ 1,196,660 | |
Larson Group LLC [Member] | ||
Secured Promissory Note | $ 675,000 | |
Outstanding secured debt | $ 644,313 | |
Bad debts | 552,347 | |
Accounts payable | $ 468,081 |