Operating Leases

12 Months Ended

Dec. 31, 2017

Leases of Lessee Disclosure [Text Block]

Note 12 – Operating Leases

The Company leases certain of its facilities under operating leases. The minimum rental commitments under non-cancellable operating leases as of December 31, 2017 are as follows:

		Total			2018			2019			2020			2021			2022			Thereafter
Operating Leases		$	1,704,238		$	496,886		$	496,886		$	417,966		$	268,500		$	24,000		$	-

On January 21, 2013, the Company signed a lease with 15850 Holdings, LLC (an affiliate of Mr. Loftus), for 4,500 square feet of office space in North Dallas, to be used as the Company’s new corporate headquarters. The Company received free rent from April through December of 2013, and paid $7,500 from January of 2014, through the termination date of the current lease in December of 2015. The Company continued to pay this lease on a month-to-month basis until our new Midtown retail location was completed in December 2016. The building is large enough to facilitate the retail space and our corporate offices.

In November 2013, the Company signed an agreement to lease a portion of DGSE’s Reeder Road facility to an unaffiliated third party, beginning in January 2014. Under the terms of the five-year agreement DGSE was to receive $5,000 per month in base rent initially, increasing to $7,500 per month after 24 months if certain conditions were met. The lessee was also to be required to pay additional rent based on revenue it generates using the facility. On July 26, 2016, the facility was sold and no further rents payments were received.

Rent expense, net of sublease income, for Fiscal 2017 and Fiscal 2016 was $507,238 and $821,696, respectively.