The accompanying notes are an integral
part of these consolidated financial statements.
The accompanying notes are an integral
part of these consolidated financial statements.
The accompanying notes are an integral
part of these consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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, 2015 (such fiscal year, “Fiscal 2015” and such Annual Report on Form 10-K, the “Fiscal 2015 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.
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 Illinois, 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.
Note 3 - Critical Accounting Policies
and Estimates
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 leases 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.
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 outstanding determined
using the treasury stock method.
Recent Accounting Pronouncement
In May 2014, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09,
Revenue from Contracts with Customers
(“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle
of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects
the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process
to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process
than are required under existing U.S. GAAP. In August 2015, the FASB issued Accounting Standards Update No. 2015-14,
Revenue
from Contracts with Customers (Topic 606): Deferral of the Effective Date
, which delays the effective date of ASU 2014-09
by one year. ASU 2014-09 is now effective for annual reporting periods beginning after December 15, 2017, including interim periods
within that reporting period. The standard is to be applied retrospectively, with early application permitted for annual reporting
periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating
the new standard, but does not anticipate a material impact to the consolidated financial statements once implemented in 2018.
On July 22, 2015, the FASB issued Accounting
Standards Update No. 2015-11,
Simplifying the Measurement of Inventory
(“ASU 2015-11”). ASU 2015-11 requires
an entity to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under
which an entity must measure inventory at the lower of cost or market. ASU 2015-11 will not apply to inventories that are measured
using either the last-in, first-out (“LIFO”) method or the retail inventory method. ASU 2015-11 is effective
for public entities for financial statements issued for fiscal years beginning after December 15, 2016, including interim
periods within those fiscal years. However, early application is permitted. The Company is evaluating the financial statement
implications of adopting ASU 2015-11.
In November 2015, the FASB issued Accounting
Standards Update No. 2015-17,
Balance Sheet Classification of Deferred Taxes
(“ASU 2015-17”), which requires
entities to present deferred tax assets and liabilities as non-current in a classified balance sheet. Entities are permitted to
apply ASU 2015-17 prospectively or retrospectively. For the Company, the new standard is effective for annual periods beginning
after December 15, 2016 and interim periods within those years. However, early adoption is permitted. The Company has adopted
this standard on a retrospective basis. The adoption of this did not have an impact on the Company’s consolidated balance
sheet as the Company currently has a full valuation allowance recorded on its deferred tax assets.
On February 25, 2016, the FASB issued
its new lease accounting guidance in Accounting Standards Update No. 2016-02 (“ASU 2016-02”),
Leases
(Topic
842). Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where
necessary, lessor accounting with the lessee accounting model and Topic 606,
Revenue from Contracts with Customers.
Under
the new guidance, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease
payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the
lessee’s right to use, or control the use of, a specified asset for the lease term for all leases (with the exception of
short-term leases) at the commencement date. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including
interim periods within those fiscal years. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing,
and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the
beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would
not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors
may not apply a full retrospective transition approach. The Company is evaluating the financial statement implications of adopting
ASU 2016-02.
Note 4 - Inventories
A summary of inventories is as follows:
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Jewelry
|
|
$
|
8,514,241
|
|
|
$
|
8,365,828
|
|
Scrap gold
|
|
|
504,532
|
|
|
|
506,560
|
|
Bullion
|
|
|
974,094
|
|
|
|
357,644
|
|
Rare coins and Other
|
|
|
257,137
|
|
|
|
335,474
|
|
|
|
$
|
10,250,004
|
|
|
$
|
9,565,506
|
|
Note 5 - Basic and Diluted Average
Shares
A reconciliation of basic and diluted
weighted average common shares is as follows:
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Basic weighted average shares
|
|
|
12,297,501
|
|
|
|
12,245,679
|
|
Effect of potential dilutive securities
|
|
|
-
|
|
|
|
-
|
|
Diluted weighted average shares
|
|
|
12,297,501
|
|
|
|
12,245,679
|
|
For the three months ended March 31, 2016
and 2015, options to purchase 5,015,000 and 5,030,000 shares of common stock, respectively, were not added to the diluted average
shares because inclusion of such shares would be antidilutive. For the three months ended March 31, 2016 and 2015, there were
93,530 and 72,600 unvested Restricted Stock Units (“RSUs”), respectively, not added to the diluted average shares
because inclusion of such shares would be antidilutive.
Note 6 - Long-Term Debt
|
|
Outstanding Balance
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
Current
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Interest Rate
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
NTR line of credit (1)
|
|
$
|
2,303,359
|
|
|
$
|
2,303,359
|
|
|
|
2.0
|
%
|
|
August 1, 2017
|
Mortgage payable (2)
|
|
|
1,555,380
|
|
|
|
1,589,522
|
|
|
|
6.7
|
%
|
|
August 1, 2016
|
Capital leases (3)
|
|
|
22,763
|
|
|
|
25,733
|
|
|
|
4.2
|
%
|
|
May 1, 2018
|
Sub-Total
|
|
|
3,881,502
|
|
|
|
3,918,614
|
|
|
|
|
|
|
|
Less: Current maturities of capital leases
|
|
|
12,207
|
|
|
|
12,069
|
|
|
|
|
|
|
|
Less: Current maturities of mortgage payable
|
|
|
1,555,380
|
|
|
|
1,589,522
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
2,313,915
|
|
|
|
2,317,023
|
|
|
|
|
|
|
|
Less: Line of credit (1)
|
|
|
2,303,359
|
|
|
|
2,303,359
|
|
|
|
|
|
|
|
Long term debt, less current maturities
|
|
$
|
10,556
|
|
|
$
|
13,664
|
|
|
|
|
|
|
|
|
(1)
|
On July 19, 2012, DGSE entered into a loan agreement with NTR
Metals, LLC (“NTR”), an affiliate of DGSE’s largest stockholder Elemetal,
LLC (“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 termination–at 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 carries 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, were amortized to interest expense on a straight-line basis over two years,
and were completely amortized as of July 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, unless earlier terminated as described
above. No debt issuance costs were incurred in relation to these extensions. All other
terms of the agreement remain the same. As of March 31, 2016 and December 31,
2015, the outstanding balance of the NTR loan was $2,303,359.
|
|
(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 bears 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 payment payments
of $20,192 plus accrued interest are required. The note is secured by the land and building.
As of March 31, 2016 and December 31, 2015, the outstanding balance of the note
was $1,555,380 and $1,589,522, respectively.
|
|
(3)
|
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.
|
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.
In January 2014, DGSE’s Board of
Directors (the “Board”) granted 112,000 RSUs to its officers and certain key employees. Each RSU is convertible into
one share of Common Stock without additional payment pursuant to the terms of the Restricted Stock Unit Award Agreement, dated
January 23, 2014, between the Company and each recipient (the “RSU Award Agreement”). One-fourth (or 28,000) of the
RSUs vested and were exercisable as of the date of the grant, and an additional one-fourth of the RSUs (calculated using the total
number of RSUs at the time of grant) vest and will be exercisable on each subsequent anniversary of the date of grant until 100
percent of the RSUs have vested, subject to the recipient’s continued status as an employee on each such date and other
terms and conditions as set forth in the RSU Award Agreement. Upon termination of service of the recipient to us, other than by
reason of death or disability, any RSUs that have not vested will be forfeited and the award of such units shall terminate. Pursuant
to these grants, an additional 2,000 RSUs vested in January 2016, and the recipients were subsequently issued common stock. Of
the RSUs granted in January 2014, only 2,000 remain unvested and outstanding as of March 31, 2016.
In September of 2014, the Board granted
14,200 RSUs to each of its three outside directors, for a total of 42,600 RSUs issued. Each RSU is convertible into one share
of Common Stock without additional payment pursuant to the terms of the RSU Award Agreement, dated September 17, 2014, between
the Company and each recipient. All of the RSUs were to vest and become exercisable on the earlier of: (i) the one year anniversary
of the grant date; or (ii) the day prior to the next Annual Meeting of the Stockholders of DGSE Companies, Inc., subject
to each recipient’s continued status as a Director through such dates and other terms and conditions of set forth in the
RSU Award Agreement. Upon termination of service of the recipient to the Company, other than by reason of death or disability,
any RSUs that have not vested will be forfeited and the award of such units shall terminate. All 42,600 of these RSUs vested as
of June 9, 2015, the day prior to our 2015 Annual Meeting of Stockholders, which was held June 10, 2015, and subsequently 42,600
shares of common stock were issued pursuant to these RSUs, on June 11, 2015.
On March 24, 2016, the Board awarded the
three independent directors a total of 122,040 RSUs as compensation for their Board service. One-fourth (or 30,510) of the RSUs
vested and were issued on March 31, 2016. The remaining RSUs will vest ratably and will be exercisable at the end of every
quarter (June 30, September 30 and December 31) during the year ending December 31, 2016, subject to the continued status
as a director on each such date and other terms and conditions as set forth in the RSU Award Agreement, dated March 24, 2016.
Each vested RSU is convertible into one share of our Common Stock, par value $0.01, without additional consideration. Upon termination
of service of each independent director, other than by reason of death or disability, any RSUs that have not vested will be forfeited
and the award of such units shall terminate. Of these RSUs, 91,530 remain unvested and outstanding as of March 31, 2016.
Stock-based compensation expense for the
three months ended March 31, 2016 and 2015 was $16,050 and $60,433, respectively relating to employee and director RSUs, and included
in selling, general and administrative expenses in the accompanying consolidated statements of operations.
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 is DGSE’s largest shareholder.
Elemetal and its affiliates are also DGSE’s primary refiner and bullion trading partner. In the three months ended March
31, 2016, 26% of sales and 27% of purchases were transactions with Elemetal, and in the same period of 2015, these transactions
represented 14% of DGSE’s sales and 36% of DGSE’s purchases. As of March 31, 2016, the Company was obligated
to pay $4,977,730 to Elemetal as a trade payable, and had a $4,074 receivable from Elemetal. As of December 31, 2015, the Company
was obligated to pay $4,176,037 to Elemetal as a trade payable, and had a $169,136 receivable from Elemetal. In the three months
ended March 31, 2016 and 2015, the Company paid Elemetal $56,811 and $42,802, respectively, in interest on the Company’s
outstanding payable.
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. The Loan Agreement anticipated termination–at which point all amounts outstanding thereunder
would be due and payable–upon the earlier of: (i) August 1, 2014; (ii) the date that is twelve months after DGSE 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, DGSE granted a security interest in the respective personal property of each of its subsidiaries. The
loan carries an interest rate of two percent (2%) per annum for all funds borrowed pursuant to the Loan Agreement. Proceeds received
by DGSE 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 DGSE and Texas Capital Bank, N.A., and
additional proceeds are expected were used as working capital in the ordinary course of business. 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, unless earlier terminated
as described above. All other terms of the agreement remain the same. As of March 31, 2016 and December 31, 2015, the outstanding
balance of the NTR loan was $2,303,359. In the three months ended March 31, 2016 and 2015, the Company paid NTR $11,388 and $11,260,
respectively, in interest on the Company’s line of credit.
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 their headquarters. DGSE leases space in the building subject to a lease that expired in December
2015. The Company continues to pay this lease on a month-to-month basis with no increase in the rent. In the three months ended
March 31, 2016 and 2015, the Company recognized rent expense of $22,500 and $11,125, respectively, related to this lease.
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 wrapped up 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 the three months ended March
31, 2016, the Company made no sales or purchases from the Fund, and owed the Fund nothing as of March 31, 2016 in trade payables.
In the three months ended March 31, 2015, the Company made no sales to the Fund, had purchases of $11,330 from the Fund, and owed
the Fund $148,085 as of March 31, 2015 in trade payables. Additionally, in the three months ended March 31, 2015, the General
Partner generated net income of $1,269 from its role with the Fund.
On April 15, 2016, the Company entered
into a non-binding letter of intent with Elemetal pursuant to which, in exchange for satisfaction of $3,500,000 of trade payables
owed by DGSE to Elemetal as a result of bullion-related transactions, DGSE would issue to Elemetal (a) shares of common stock
at a stock price of $0.41 per share, which based on an amount of debt exchanged of $3,500,000 would result in the issuance of
8,536,585 shares to Elemetal and (b) a one-year option to purchase from DGSE 1,000,000 shares of common stock of DGSE at an exercise
price of $0.65 per share.
DGSE also entered into a non-binding letter
of intent with NTR pursuant to which, in exchange for satisfaction of debt owed by DGSE to NTR that was incurred in connection
with the certain Loan Agreement (the balance of which as of April 13, 2016, including principal and interest, was $2,408,238),
DGSE would issue to NTR shares of common stock at a stock price of $0.41 per share, which based on the balance outstanding as
of April 13, 2016, would result in the issuance of 5,873,753 shares to NTR.
Both letters of intent are non-binding
and are subject to numerous conditions, including negotiation and execution of definitive agreements and shareholder approval.
No assurance can be made that DGSE will be able to negotiate mutually satisfactory definitive agreements with Elemetal and NTR
or that it will receive the necessary shareholder approval.
Note 9 - Legal Proceedings
There have been no material changes with
respect to the legal proceedings disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015.
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 months ended March 31, 2016 and 2015.
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
-
|
|
|
$
|
65
|
|
Cost of goods sold
|
|
|
-
|
|
|
|
-
|
|
Gross margin
|
|
|
-
|
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
-
|
|
|
|
(2,459
|
)
|
Depreciation and amortization
|
|
|
-
|
|
|
|
-
|
|
Total expenses
|
|
|
-
|
|
|
|
(2,459
|
)
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
-
|
|
|
|
2,524
|
|
|
|
|
|
|
|
|
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
-
|
|
|
|
-
|
|
Interest (income) expense
|
|
|
-
|
|
|
|
(40
|
)
|
|
|
|
-
|
|
|
|
(40
|
)
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations before income taxes
|
|
|
-
|
|
|
|
2,564
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
(97
|
)
|
|
|
-
|
|
(Loss) income from discontinued operations after income
taxes
|
|
$
|
(97
|
)
|
|
$
|
2,564
|
|
As of March 31, 2016, the Company believes
it has now recognized all material expenses related to the closure of Southern Bullion operations. The three months ended March
31, 2015 include minor adjustments of existing expense accruals related to winding down the operations of Southern Bullion.