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Subsequent Events
12 Months Ended
Dec. 31, 2014
Subsequent Events [Abstract]  
Subsequent Events

Note 15 – Subsequent Events


Subsequent to the end of Fiscal 2014 DGSE made the decision to close two stores in the DFW market. As part of an initiative to move toward fewer, but larger retail locations, the Company closed underperforming stores in Euless, Texas and Fort Worth, Texas. These two stores generated a loss of over $200,000 on a combined basis in Fiscal 2014, and management intends to collapse the inventory and key personnel from these stores into its other stores in DFW. Both stores had remaining terms on their leases, and as a result the Company expects to recognize approximately $190,000 in accelerated lease expense and termination fees in the quarter ending March 31, 2015. This expense will be recognized on an accelerated basis, but management has negotiated termination agreements to allow the Company to pay these expenses over the remaining lives of the leases.

 

As part of this same initiative, the Company has now also signed a lease on a new, 4,400 square foot retail space in Euless, Texas, which will be used to consolidate several of our smaller stores. Following three months of free rent, the Company will pay monthly rent of $6,967 for 60 months, with an option to renew for an additional 60 months. The Company expects to open this new location in the summer of 2015, at which time it will relocate its existing Euless, Texas location and terminate that location's lease, with no termination expense.

 

On February 4, 2015, we entered into a two-year extension of our Loan Agreement with NTR, extending the termination date to August 1, 2017. All other terms of the agreement remain the same, including the interest rate of two percent (2%) per annum for all funds borrowed pursuant to the Loan Agreement. As of December 31, 2014, the outstanding balance of the NTR loan was $2,303,359.