XML 40 R17.htm IDEA: XBRL DOCUMENT
v3.21.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2021
Leases [Abstract] |
Leases | 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. 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 Mt Pleasant, 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. Echo Environmental sublet a portion of the building through December 31, 2020. The subletting company has subsequently vacated the premises and plans are being made to transfer ITAD USA’s operations to share the building with Echo Environmental. ECHG’s lease for ITAD USA’s location on McKenzie Drive in Carrollton, Texas expires July 31, 2021 and the lease will not be pursued for renewal. 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 March 31, 2021 and 2020 was $449,486 and $306,537, respectively, comprised of a combination of minimum lease payments and variable lease costs. As of March 31, 2021, the weighted average remaining lease term and weighted average discount rate for operating leases was 2.4 years and 5.5%, respectively. For the three months ending March 31, 2021 and 2020, the Company’s cash paid for operating lease liabilities was $501,907 and $335,227 respectively. Future annual minimum lease payments as of March 31, 2021:
|  | Operating Leases |
DGSE |  |  |
2021 (excluding the three months ending March 31, 2021) |  | $ | 348,556 |
2022 |  |  | 235,674 |
2023 |  |  | 212,854 |
2024 |  |  | 213,884 |
2025 |  |  | 64,087 |
2026 and thereafter |  |  | - |
Total minimum lease payments |  |  | 1,075,055 |
Less imputed interest |  |  | (94,456 | )
DGSE Subtotal |  |  | 980,599 |
ECHG |  |  |
2021 (excluding the three months ending March 31, 2021) |  |  | 632,048 |
2022 |  |  | 784,599 |
2023 |  |  | 806,175 |
2024 |  |  | 828,345 |
2025 |  |  | 851,125 |
2026 and thereafter |  |  | 72,878 |
Total minimum lease payments |  |  | 3,975,170 |
Less imputed interest |  |  | (411,181 | )
ECHG Subtotal |  |  | 3,563,989 |
Total |  |  | 4,544,588 |
Less current portion |  |  | (1,054,599 | )
Long-term operating lease liability |  | $ | 3,489,989 |

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