Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

(12) Related Party Transactions

Through a series of transactions beginning in 2010, Elemetal, NTR and Truscott (“Related Entities”) became the largest shareholders of our common stock, par value $0.01 per share. A certain Related Entity has been DGSE’s primary refiner and bullion trading partner. In the three months ended March 31, 2019, 10.4% of sales and 10.8% of purchases were transactions with a certain Related Entity, and in the same period of 2018, these transactions represented 10% of DGSE’s sales and 2% of DGSE’s purchases. On December 9, 2016, DGSE and a certain Related Entity closed the transactions contemplated by the Debt Exchange Agreement whereby DGSE issued a certain Related Entity 8,536,585 shares of its common stock and a warrant to purchase an additional 1,000,000 shares to be exercised within two years after December 9, 2016, in exchange for the cancellation and forgiveness of $3,500,000 of trade payables owed to a certain Related Entity as a result of bullion-related transactions. As of March 31, 2019, the Company was obligated to pay $3,075,120 to the certain Related Entity as a trade payable. As of December 31, 2018, the Company was obligated to pay $3,088,973 to the certain Related Entity as a trade payable. For the three months ended March 31, 2019 and 2018, the Company paid the Related Entities $34,549 and $46,882, respectively, in interest on the Company’s outstanding payable.