XML 118 R18.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Leases | When the ASC 842 lease provision was first adopted by the Company on January 1, 2019, we recognized $1,994,840 of operating lease right-of-use assets, $446,462 in short-term operating lease liabilities and $1,609,891 in long-term operating lease liabilities on our consolidated balance sheet. Operating lease liabilities were determined based on the present value of remaining minimum rental payments, and operating lease right-of-use assets were determined based on the value of lease liabilities, adjusted for deferred rent balances of $61,500, which were previously included in other liabilities. We recognized an additional $2,350,781 of operating lease right-of-use assets, $703,523 in short-term operating lease liabilities and $1,647,258 in long-term operating lease liabilities on our consolidated balance sheet when we purchased the Echo Entities on May 20, 2019. Operating lease liabilities were determined based on the present value of remaining minimum rental payments, and operating lease right-of-use assets were determined based on the value of lease liabilities. In determining our right-of-use assets and lease liabilities, we apply a discount rate to the minimum lease payments within each lease agreement. ASC 842 requires us to use the interest rate that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. If we cannot readily determine the discount rate implicit in lease agreements, we utilize our incremental borrowing rate. The Company has six operating leases—five in the Dallas/Fort Worth Metroplex and one in Charleston, South Carolina. One lease expired during the quarter ended September 30, 2020. The lease for DGSE’s Southlake, Texas location expired July 31, 2020, with no renewal options. We decided not to renew the lease and vacated the premises on July 31, 2020. The lease for DGSE’s flagship-store at 13022 Preston Road, Dallas, Texas will expire October 31, 2021, with no current renewal options. This location is under review as to whether to pursue a lease renewal. The lease for DGSE’s Grand Prairie, Texas location expires June 30, 2022, and has no current renewal options. The lease for DGSE’s Charleston, South Carolina location expires April 30, 2025, with no additional renewal options. The lease for DGSE’s Euless, Texas location expires June 30, 2025, with an option for an additional five years. ECHG’s Echo Environmental, located on W. Belt Line Road, in Carrollton, Texas, renewed their lease starting January 1, 2021 for 61 months, expiring January 31, 2026. A portion of this building is sublet, and the rent received is applied against the rental expense for the building. ECHG’s lease for ITAD’s location on McKenzie Drive in Carrollton, Texas expires July 31, 2021 and has no renewal option. All of the Company’s six leases are triple net, for which it pays its proportionate share of common area maintenance, property taxes and property insurance. Leasing costs for the three months ended September 30, 2020 and 2019 was $421,790 and $338,402, respectively. Leasing costs for the nine months ended September 30, 2020 and 2019 was $1,071,066 and 814,572, respectively, comprised of a combination of minimum lease payments and variable lease costs. As of September 30, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 2.5 years and 5.5%, respectively. For the three months ending September 30, 2020 and 2019, the Company’s cash paid for operating lease liabilities was $428,241 and $348,955, respectively. The Company’s cash paid for operating lease liabilities for the nine months ended September 30, 2020 and 2019 was $1,100,280 and $826,745, respectively. Future annual minimum lease payments as of September 30, 2020:
|  | Operating
|  | Leases
| DGSE |  |  |  |  |
| 2020 (excluding the nine months ending September 30, 2020) |  |  | $ | 130,612 |
| 2021 |  |  |  | 479,162 |
| 2022 |  |  |  | 235,674 |
| 2023 |  |  |  | 212,854 |
| 2024 |  |  |  | 213,884 |
| 2025 and thereafter |  |  |  | 64,087 |
| Total minimum lease payments |  |  |  | 1,336,273 |
| Less imputed interest |  |  |  | (126,541 | )
| Subtotal |  |  |  | 1,209,732 |
| ECHG |  |  |  |  |
| 2020 (excluding the nine months ending September 30, 2020) |  |  |  | 147,707 |
| 2021 |  |  |  | 855,423 |
| 2022 |  |  |  | 784,598 |
| 2023 |  |  |  | 806,175 |
| 2024 |  |  |  | 828,346 |
| 2025 and thereafter |  |  |  | 924,003 |
| Total minimum lease payments |  |  |  | 4,346,252 |
| Less imputed interest |  |  |  | (482,659 | )
| Subtotal |  |  |  | 3,863,593 |
|  |  |  |  | 5,073,325 |
| Less current portion |  |  |  | (1,132,411 | )
| Long term operating lease liability |  |  | $ | 3,940,914 |

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

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration