Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

(15)  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. For the six months ended June 30, 2019, 6% of sales and 2% of purchases were transactions with a certain Related Entity, and in the same period of 2018, these tranactions represented 13% of DGSE’s sales and 3% 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. The warrant for the additional 1,000,000 expired in December 2018. As of June 30, 2019, the Company was obligated to pay $0 to the certain Related Entity as a trade payable. As of June 30, 2018, the Company was obligated to pay $3,378,960 to the certain Related Entity as a trade payable. For the six months ended June 30, 2019 and 2018, the Company paid the Related Entities $46,068 and $92,530 respectively, in interest on the Company’s outstanding payable.

On May 20, 2019, John Loftus, CEO and President of DGSE Companies, Inc., became the largest beneficial shareholder of our common stock, par value $0.01 per share, as reported on Form 13 D/A filed on May 24, 2019. On the same day, Mr. Loftus loaned a wholly owned subsidiary, Corrent Resource Holdings, LLC $6,925,979 to complete the Echo Transaction. Interest and principal payments totaling $49,620 are paid monthly and the loan matures May 16, 2024. Also on the same day, Mr. Loftus loaned the Company $3,074,021 to pay off the certain Related Entities outstanding payable, related party. Interest and principal payments totaling $22,023 are paid monthly and the loan matures May 16, 2024. As of June 30, 2019 and 2018, the Company was obligated to pay Mr. Loftus, as note payable, related party $9,774,347 and $0 respectively. For the six months ended June 30, 2019 and 2018, the Company paid Mr. Loftus $45,990 and $0 respectively, in interest on the Company’s note payable, related party.