Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 4 – Property and Equipment

Property and equipment consists of the following:

	December 31,
	2016		2015
Building and improvements	$	1,580,584	$	3,285,381
Machinery and equipment		1,456,314		1,874,598
Furniture and fixtures		570,889		442,041
		3,607,787		5,602,020
Less: accumulated depreciation		(1,942,684)		(2,481,102)
		1,665,103		3,120,918
Land		-		1,160,470
Total property and equipment	$	1,665,103	$	4,281,388

We owned a 20,456 square foot facility at 11311 Reeder Road, Dallas, Texas, which housed our largest retail operation. The land and buildings were subject to a mortgage maturing in August 2016, with a principal balance outstanding of $1,587,106 as of July 26, 2016. We sold that facility on July 26, 2016 for $2,250,000 to 2 DAK Investments, LLC. The land was recorded on the books at $1,160,470 and accompanying buildings were recorded at $2,142,530. Both were retired along with the accumulated depreciation of $401,724 upon the sale of the assets. After all the fees were recorded, DGSE posted a loss of $1,156,135 upon the sale of the Reeder Road location.

Depreciation expense was $389,932 and $521,438 for Fiscal 2016 and Fiscal 2015, respectively, excluding discontinued operations.