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Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Discontinued Operations [Abstract]  
Discontinued Operations

12 – Discontinued Operations

 

In February 2014, the Company elected to discontinue the operations of six Southern Bullion locations and in April 2014 elected to discontinue the operations of the 17 remaining Southern Bullion locations, 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 Fiscal 2013 and Fiscal 2014.


Discontinued operations for the years ended December 31, 2014 and 2013:

Year Ended
December 31,
2014   2013  
Revenue:      
Sales $ 5,367,867     $ 21,445,752  
     Cost of goods sold     3,643,142       15,891,252  
Gross margin     1,724,725       5,554,500  
                 
Expenses:                
     Selling, general and administrative expenses     2,471,230       7,075,272  
     Depreciation and amortization     3,259,552       376,924  
Total expenses     5,730,782       7,452,196  
                 
Operating loss     (4,006,057 )     (1,897,696 )
                 
Other expense (income):                
Other income, net     (19,475 )     (19,325 )
Interest (income) expense     9,968       7,004  
      (9,507 )     (12,321 )
Loss from discontinued operations before income taxes     (3,996,550 )     (1,885,375 )
                 
Income tax (benefit) expense     (107,494 )     52,998  
                 
     Loss from discontinued operations after income taxes   $ (3,889,056 )   $ (1,938,373 )


Discontinued operations for the year ended December 31, 2014, include store operations through April 17, 2014, ongoing expenses for key Southern Bullion personnel involved in winding down the business, and expenses related to cancellation of leases and other contracts. For the year ended December 31, 2014, discontinued operations also includes the write-off of the $2.9 million intangible asset attributed to the “Southern Bullion Coin & Jewelry” trade name, and the write-off of approximately $296,000 related to the net book value of fixed assets previously utilized in Southern Bullion operations. The Company does not anticipate that it will utilize the trade name in the foreseeable future. Discontinued operations for the year ended December 31, 2013, includes losses from store operations and corporate expenses dedicated to supporting Southern Bullion, all of which have now been eliminated.