XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Stock Options and Restricted Stock Units | 12 Months Ended
--- | ---
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9 – Stock Options and Restricted Stock Units On June 21, 2004, our shareholders approved the adoption of the 2004 Stock Option Plan (the “2004 Plan”), which reserved 1,700,000 shares of our Common Stock for issuance upon exercise of options to purchase our Common Stock. We granted options to purchase an aggregate of 1,459,634 shares of our Common Stock under the 2004 Plan to certain of our officers, directors, key employees and certain other individuals who provided us with goods and services. Each option vested on either January 1, 2004 or immediately upon issuance thereafter. The exercise price of each option issued pursuant to the 2004 Plan is equal to the market value of our Common Stock on the date of grant, as determined by the closing bid price for our Common Stock on the Exchange on the date of grant or, if no trading occurred on the date of grant, on the last day prior to the date of grant on which our securities were listed and traded on the Exchange. Of the options issued under the 2004 Plan, as of December 31, 2017, 845,634 have been exercised, 599,000 have expired, and 15,000 remain outstanding. No further issuances can be made pursuant to the 2004 Plan. On June 27, 2006, our shareholders approved the adoption of the 2006 Equity Incentive Plan (the “2006 Plan”), which reserved 750,000 shares for issuance upon exercise of options to purchase our Common Stock or other stock awards. We subsequently granted options to purchase 150,000 shares of our Common Stock pursuant to the 2006 Plan, of which 100,000 have been exercised, 50,000 have expired, and none remain outstanding as of December 31, 2017. In January 2014, we granted 112,000 Restricted Stock Units (“RSUs”) to management and key employees, subject to the 2006 Plan. Under the terms of the RSU Award Agreements from January 2014, 25% of these RSUs vested immediately, with the remaining 75% to vest ratably over the next three years, pending the each recipient’s continued employment by DGSE. On September 24, 2014, the Board awarded the three independent directors a total of 42,600 RSUs as compensation for their Board service. 100% of these RSUs vested on the day prior to DGSE’s 2015 Annual Meeting of Stockholders. On December 10, 2014, the Board awarded DGSE’s former Chief Executive Officer, James D. Clem, 75,000 RSUs as part of his compensation package. 100% of these RSUs vested immediately, and pursuant to this vesting, 75,000 shares of DGSE common stock were issued to Mr. Clem on December 18, 2014. On February 18, 2015, the Company issued 15,000 shares of DGSE’s common stock to management and key employees pursuant to the RSU Award Agreements. On March 24, 2016, the Board awarded the three independent directors on the Board at that time a total of 122,040 RSUs as compensation for their Board service. One-fourth (or 30,510) of the RSUs vested and were issued on March 31, 2016. One-fourth (or 30,510) of the remaining 91,530 RSUs vested and were issued on June 30, 2016. One-fourth (or 30,510) of the remaining 61,020 RSUs vested and were issued September 30, 2016. The remaining 30,510 RSUs vested and were issued December 31, 2016. Each vested RSU converted into one share of our Common Stock, par value $0.01, without additional consideration, on the applicable vesting date. On April 27, 2016, the Board awarded Matthew Peakes, the Company’s former Chief Executive Officer and Nabil J. Lopez, the Company’s former Chief Financial Officer a total of 75,000 and 50,000 RSUs, respectively, as compensation for their service as executives of the Company. For Mr. Peakes, one-fourth (or 18,750), and for Mr. Lopez, one-fourth (or 12,500) of the RSUs were to vest ratably in equal annual installments over a four year period beginning on April 27, 2017, subject to a continued status as an employee on each such date and other terms and conditions set forth in the RSU Award Agreement, dated April 27, 2016. Each vested RSU is convertible into one share of our Common Stock, par value $0.01, without additional consideration. Upon termination of service of the employee, other than by death or disability, any RSUs that have not vested will be forfeited and the award of such units shall terminate. As a result of his resignation effective August 15, 2016, 50,000 RSUs awarded to Mr. Lopez was forfeited. In addition to the RSU grant above for Matthew Peakes and Nabil Lopez, the compensation committee granted an additional 75,000 and 50,000, respectively, performance based RSUs to the executives that were to vest ratably over a four year period beginning April 27, 2017 if certain financial performance criteria are achieved. As a result of his resignation effective August 15, 2016, 50,000 RSUs awarded to Mr. Lopez were forfeited. On April 27, 2017, 18,750 RSUs, one-fourth of the original 75,000 RSU grant for service dated April 27, 2016, were exercised by Matthew Peakes due to his continued employment. However, 18,750 RSUs, one-fourth of the original 75,000 RSU performance grant dated April 27, 2016, were forfeited by Matthew Peakes for not reaching certain financial performance criteria. As a result of his resignation effective June 30, 2017, 112,500 RSUs awarded to Matthew Peakes, 56,250 for his continued employment and 56,250 for the performance grant were forfeited. Subsequent to such grants, the 2006 Plan expired, as a result, no further issuances can be made pursuant to the 2006 Plan. On December 7, 2016, our shareholders approved the adoption of the 2016 Equity Incentive Plan (the “2016 Plan”), which reserved 1,100,000 shares for issuance pursuant to awards issued thereunder. As of December 31, 2017, no awards had been made under the 2016 Plan. On October 25, 2011, the Company entered into a debt cancellation agreement with NTR, whereby NTR agreed to forgive $2,500,000 of payables owed to NTR by the Company. In consideration for this debt forgiveness, NTR was granted options to purchase 5,000,000 shares of the common stock of DGSE, par value $0.01 per share, at an exercise price of fifteen dollars ($15) per share (the “NTR Options”). These options were not issued pursuant to either of the shareholder-approved employee stock option plans. The NTR Options vested immediately upon grant, and expired unexercised on October 25, 2016. The following table summarizes the activity in common shares subject to options and warrants:
|  | Year Ended December 31, |
|  | 2017 |  | 2016 |
|  |  |  | Weighted |  |  |  | Weighted |
|  |  |  | average exercise |  |  |  | average exercise |
|  | Shares |  | price |  | Shares |  | price |
Outstanding at beginning of year |  |  | 1,015,000 |  | $ | 0.67 |  |  | 5,025,000 |  | $ | 14.95 |
Granted |  |  | - |  |  | - |  |  | 1,000,000 |  |  | 0.65 |
Exercised |  |  | - |  |  | - |  |  | - |  |  | - |
Forfeited |  |  | - |  |  | - |  |  | 5,010,000 |  |  | 14.95 |
Outstanding at end of year |  |  | 1,015,000 |  | $ | 0.67 |  |  | 1,015,000 |  | $ | 0.67 |
Optons exercisable at end of year |  |  | 1,015,000 |  | $ | 0.67 |  |  | 1,015,000 |  | $ | 0.67 |
Information about stock options and warrants outstanding at December 31, 2017 is summarized as follows:
|  |  | Options and Warrants Outstanding and Exercisable |
|  |  |  |  |  | Weighted average |  |  |  |  |  |  |  |
|  |  |  |  |  | remaining |  |  | Weighted |  |  |  |
|  |  |  |  |  | contractual life |  |  | average |  | Aggregate Intrinsic |
Exercise price |  | Number outstanding |  | (Years) |  |  | exercise price |  | Value |
$ | 2.13 |  |  | 10,000 |  |  | NA | (1) |  | $ | 2.13 |  | $ | - |
$ | 2.25 |  |  | 5,000 |  |  | NA | (1) |  |  | 2.25 |  |  | - |
$ | 0.65 |  |  | 1,000,000 |  |  | 1 |  |  |  | 0.65 |  |  | 280,000 |
|  |  |  | 1,015,000 |  |  |  |  |  |  |  |  | $ | 280,000 |
| (1) | Options currently issued pursuant to the Company’s 2004 Employee Stock Option Plans have no expiration date.
The aggregate intrinsic values in the above table were based on the closing price of our Common Stock of $0.93 as of December 31, 2017. A summary of the status of our non-vested RSU grants issued under our 2006 Plan is presented below:
|  | Year Ended December 31, |
|  | 2017 |  | 2016 |
|  |  |  | Weighted |  |  |  | Weighted |
|  |  |  | average exercise |  |  |  | average exercise |
|  | Shares |  | price |  | Shares |  | price |
Nonvested at beginning of year |  |  | 152,000 |  | $ | 0.56 |  |  | 4,000 |  | $ | 2.12 |
Granted |  |  | - |  |  | - |  |  | 372,040 |  |  | 0.64 |
Vested |  |  | (18,750) |  |  | 0.56 |  |  | (124,040) |  |  | 0.83 |
Forfeited |  |  | (132,750) |  |  | 0.56 |  |  | (100,000) |  |  | 1.24 |
Outstanding at end of year |  |  | 500 |  | $ | 0.56 |  |  | 152,000 |  | $ | 0.56 |
As a result of the expiration of the 2006 Plan, as of December 31, 2017, no further shares could be issued under the 2006 Plan. A total of 1,100,000 shares remain available for future grants pursuant to the 2016 Plan. During 2017 and 2016, the Company recognized $10,688 and $101,782, respectively, of stock-based compensation expense attributable to employees and directors which was recorded in selling, general, and administrative expenses.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration