(6)

Long-Term Debt

	Outstanding Balance
	March 31,		December		Current
	2012		31, 2011		Interest Rate		Maturity

Texas Capital Bank note and line of credit (1)(2)	$	3,633,213	$	3,683,214		6.0%		June 22, 2012
Mortgage payable		2,038,753		2,064,887		6.7%		August 1, 2016
Settlement payment (3)		127,551		136,860		8.0%		February 15,2013
Notes payable		13,936		13,936		Various		Various
Capital leases (4)		46,523		52,098		17.4%		December 2013

Sub-Total		5,859,976		5,950,995
Less: Capital leases		46,523		52,098
Less: Current maturities		444,171		451,674
Long-term debt		5,369,282		5,447,223
Less: Line of credit		2,999,887		2,999,887
Long term debt, less current maturities	$	2,369,395	$	2,447,336

(1)

Based on the revolving promissory notes payable to the bank, a note of $2,999,887 at March 31, 2012 and 2011 which bears an interest rate of 6% or prime plus 1% (6.0% at March 2012) and was due June 22, 2012. In addition, another note of $633,326 which bears an interest rate of 6% or prime plus 1% (6.0% at March 2012) due in equal monthly payments of $16,667 through June 22, 2012. These notes are secured by all accounts receivable, inventory, property and equipment and intangible assets. The notes contain certain covenants, restricting payment of dividends and requiring the Company to maintain certain financial ratios.

(2)

Subsequent to the period covered by this report, on July 19, 2012, DGSE entered into a Loan Agreement with NTR Metals, LLC ("NTR"), 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 provides that the Loan Agreement will terminate-and all amounts outstanding thereunder will 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 are expected to be used as working capital in the ordinary course of business.

(3)

On February 26, 2010, Superior Galleries entered into a settlement agreement for a lawsuit filed by its previous landlord, DBKK, LLC ("DBKK") for $385,000 to be paid over three years bearing interest at 8%. The lawsuit resulted from a lease transaction entered into by certain officers of Superior Galleries.

(4)

On November 23, 2010, DGSE entered into a capital lease for $78,450 with Direct Capital Corporation for a radio-frequency identification ("RFID") inventory management solution. The non-cancelable lease agreement required an advanced payment of $5,169 and monthly payments of $2,584 for 36 months at an interest rate of 11.5% beginning in January 2011. At the end of the lease in December 2013, the equipment can be purchased for $1.