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Long-Term Debt (Tables)
 9 Months Ended
Sep. 30, 2014
Long-Term Debt [Abstract]  
Schedule of Long-Term Debt
    Outstanding Balance              
   

September 30,
2014

     December 31,
2013		     Current Interest
Rate		   Maturity  
                         
NTR line of credit (1)   $ 2,303,359     $ 2,383,359     2.0%   August 1, 2015  
Mortgage payable     1,751,931       1,843,061     6.7%   August 1, 2016  
Capital leases (2)     40,119       48,393       Various     Various  
Sub-Total     4,095,409       4,274,813                  
Less: Current portion capital leases     11,448       11,091                  
Less: Current maturities     2,432,192       122,536                  
Long-term debt     1,651,769       4,141,186                  
Less: Line of credit (1)     -       2,383,359                  
Long term debt, less current maturities   $ 1,651,769     $ 1,757,827                  

 

  (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 and were amortized to interest expense on a straight-line basis over two years, and have been completely amortized as of the current quarter. On February 25, 2014, the Company and NTR entered into a one-year extension of the Loan Agreement, extending the termination date to August 1, 2015. All other terms of the agreement remain the same. As of September 30, 2014 and December 31, 2013, the Company had outstanding balances of $2,303,359 and $2,383,359, respectively, drawn on the NTR credit facility. As of August 1, 2014 the NTR credit facility has been reclassified as a current liability. The Company currently expects to renew or replace the credit facility in advance of its termination on August 1, 2015.

 

  (2)
On April 3, 2013, 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 2013.  At the end of the lease in May 2018, the equipment can be purchased for $1.