DGSE Companies, Inc. Announces Final Resolution of Texas Sales Tax Dispute
July 16 2014 - 5:23PM
Business Wire
DGSE Companies, Inc. (NYSE MKT: DGSE) (“DGSE” or the “Company”),
a leading wholesaler and retailer of jewelry, diamonds, fine
watches, and precious metal bullion and rare coin products, today
announced that it has received a decision from the Comptroller of
Public Accounts of the State of Texas (the “Comptroller”) regarding
the Company’s Petition for Redetermination in relation to the
Comptroller’s Sales and Use Tax Audit for the period of March 1,
2006 through November 30, 2009. The Comptroller’s decision
dismisses the petition and finalizes the audit based on an
agreement between the Comptroller Tax Division and the Company,
whereby the Company has agreed to pay tax due of $800,397, as well
as a 10% penalty, and interest. The total amount due as of May 29,
2014, equaled approximately $1.1 million, although interest will
continue to accrue.
The Company also announced that it has reached a payment
agreement with the Comptroller, allowing the Company to pay the
agreed amount over an 18-month period, beginning with an initial
payment of $325,000 followed by monthly payments of $47,000 until
all agreed tax amounts, penalty and accrued interest are paid.
Dusty Clem, Chairman and Chief Executive Officer, stated, “While
still a material amount, we’ve worked closely with the
Comptroller’s office to reduce this payment from the initial $4.4
million tax assessment the Comptroller estimated in 2010. We’re
happy to have resolved the last of the significant legacy issues
that related to DGSE’s previous management team, so that we can
continue to focus on creating a sustainably profitable business for
our shareholders.”
The Company previously announced that it had accrued
approximately $1.1 million towards an estimated settlement with the
Comptroller, which the Company believes will cover the majority of
the settlement. The Company may incur some additional interest
charges, based on the payment plan it has now executed with the
Comptroller.
About DGSE Companies
DGSE Companies, Inc. wholesales and retails jewelry, diamonds,
fine watches, and precious metal bullion and rare coin products
through its Bullion Express, Charleston Gold & Diamond
Exchange, and Dallas Gold & Silver Exchange operations. DGSE
also owns Fairchild International, Inc., one of the largest vintage
watch wholesalers in the country. In addition to its retail
facilities in Illinois, South Carolina, and Texas, the Company
operates internet websites which can be accessed at
www.bullionexpress.com, www.dgse.com, and www.cgdeinc.com.
Real-time price quotations and real-time order execution in
precious metals are provided on another DGSE website at
www.USBullionExchange.com. Wholesale customers can access the full
vintage watch inventory through the restricted site at
www.FairchildWatches.com. The Company is headquartered in Dallas,
Texas and its common stock trades on the NYSE MKT exchange under
the symbol "DGSE."
This press release includes statements which may constitute
"forward-looking" statements, usually containing the words
"believe," "estimate," "project," "expect" or similar expressions.
These statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
continued acceptance of the Company's products and services in the
marketplace, competitive factors, dependence upon third-party
vendors, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission. By making
these forward-looking statements, the Company undertakes no
obligation to update these statements for revisions or changes
after the date of this release.
DGSE Companies, Inc.Dusty Clem, 972-587-4021Chairman, President
and CEOinvestorrelations@dgse.com
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