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Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2014
Long-Term Debt [Abstract]  
Long-Term Debt and Convertible Debt

The following table details the Company's long-term debt:

 

Outstanding Balance        
December 31, December 31,     Current      
2014 2013     Interest Rate     Maturity
             
NTR line of credit (1)   $ 2,303,359
     $ 2,383,359       2.0%
  August 1, 2017
Mortgage payable     1,720,525
       1,843,061       6.7%
  August 1, 2016
Capital lease (2)     38,244
       48,393       Various     Various
Sub-Total     4,062,128
       4,274,813              
Less: Current portion, capital lease     11,529
       11,091              
Less: Current maturities     131,003
       122,536              
Long-term debt     3,919,596
       4,141,186              
Less: Line of credit (1)     2,303,359
       2,383,359              
Long term debt, less current maturities   $ 1,616,237
     $ 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 year. 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. No debt issuance costs were incurred in relation to these extensions. All other terms of the agreement remain the same. As of December 31, 2014, the outstanding balance of the NTR loan was $2,303,359.

(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.
Maturities of Long-Term Obligations

Maturities of DGSE's long-term obligations over the next five years are as follows:

 

Total     2015     2016     2017     2018     2019     Thereafter  
Line of credit, related party $ 2,303,359
     $ -     $ -
     $ 2,303,359     $ -     $ -     $ -  
Long-term debt and capital lease   1,758,769
       142,532
       1,601,591
       12,590
       2,056
       -
       -  
Total $ 4,062,128
     $ 142,532
     $ 1,601,591
     $ 2,315,949
     $ 2,056
     $ -
     $ -