Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

We determine our business segments based upon an internal reporting structure. Our financial performance is based on the following segments: DGSE and ECHG.

The DGSE segment includes Dallas Gold & Silver Exchange, which has five retail stores in the Dallas/Fort Worth Metroplex, and Charleston Gold & Diamond Exchange, which has one retail store in Charleston,  South Carolina.

The ECHG segment includes Echo, ITAD USA and Teladvance. These three companies were added during 2019 and are involved in recycling and the reuse of electronic waste.

We allocate our corporate costs and expenses, including rental income and expenses relating to our new corporate headquarters, to our business segments. These income and expenses are included in selling, general and administrative expenses, depreciation and amortization, other income, interest expense and income tax expense. Our management team evaluates the operating performance of each segment and makes decisions about the allocation of resources according to each segment profit. The allocations are generally amounts agreed upon by management, which may differ from an arms-length amount.

The following table segments the financial results of DGSE and ECHG for Fiscal 2020:

	Fiscal 2020
	DGSE			ECHG			Consolidated
Revenue:
Sales	$	85,661,391		$	28,260,624		$	113,922,015
Cost of goods sold		75,291,521			15,561,531			90,853,052
Gross profit		10,369,870			12,699,093			23,068,963
Expenses:
Selling, general and administrative expenses		6,933,259			8,620,015			15,553,274
Depreciation and amortization		321,833			406,793			728,626
		7,255,092			9,026,808			16,281,900
Operating income		3,114,778			3,672,285			6,787,063
Other income:
Other income		(113,974	)		(193,023	)		(306,997	)
Interest expense		209,295			411,204			620,499
Income before income taxes		3,019,457			3,454,104			6,473,561
Income tax expense		40,283			49,335			89,618
Income from continuing operations	$	2,979,174		$	3,404,769		$	6,383,943