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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2023
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 10 — SEGMENT INFORMATION

 

We determine our business segments based upon an internal reporting structure. The financial results are based on the following segments: consumer and commercial. The consumer segment operates Dallas Gold & Silver Exchange, which has six retail stores in DFW, Steven Kretchmer, Inc. has one retail location in Scottsdale, Arizona and Charleston Gold & Diamond Exchange, has one retail store in Mt. Pleasant, South Carolina. The consumer segment has total assets of $ 38,897,373 as of December 31, 2023, and $ 36,966,711 as of December 31,2022.

 

During Fiscal 2023, the consumer segment had $1,856,507 of capital expenditures, of which $1,327,532 was for building and building improvements, $184,673 was for land, $146,188 was to purchase machinery and equipment and $198,114 was to purchase furniture and fixtures. During Fiscal 2022, the consumer segment had $134,419 of capital expenditures, of which $34,446 was for building improvements, $22,280 purchased machinery and equipment and $77,693 purchased furniture and fixtures.

 

The commercial segment includes Echo, ITAD USA, CEX, Teladvance and Avail. These five companies are involved in recycling and the reuse of electronic waste. The commercial segment has total assets of $34,576,856 as of December 31, 2023, and $34,310,498 as of December 31, 2022.

 

During Fiscal 2023, the commercial segment had $184,327 of capital expenditures, of which $60,705 purchased machinery and equipment and $123,622 was to purchase vehicles. During Fiscal 2022, the commercial segment had capital expenditures of $87,486, of which $16,156 was for leasehold improvements and $71,330 was to purchase machinery and equipment.

 

The Company’s corporate costs and expenses are allocated to the business segments. The corporate building’s expenses are included in selling, general and administrative expenses since the building is part of the Company’s operations. Depreciation and amortization, other income from rental income, interest expense and income tax expense are also allocated to the Company’s business segments. Although the company’s depreciation expense is allocated to the segments, the capital expenditures are not. The corporate capital expenditures, for Fiscal 2023 was $197,277, of which $3,500 was for building improvements and $193,777 was software development. The capital expenditures for Fiscal 2022, totaled $50,843, all of which was to purchase equipment. Management evaluates the operating performance of each segment and makes decisions about the allocation of resources to each segment. The allocations are generally amounts agreed upon by management, which may differ from an arms-length transaction.

The following table segments the financial results of the consumer and commercial groups for the years ended December 31, 2023 and 2022:

 

 

 

For the Years Ended

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Consumer

 

 

Commercial

 

 

Consolidated

 

 

Consumer

 

 

Commercial

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$129,413,669

 

 

$42,260,419

 

 

$171,674,088

 

 

$131,107,433

 

 

$51,578,421

 

 

$182,685,854

 

Cost of goods sold

 

 

113,765,111

 

 

 

16,252,447

 

 

 

130,017,558

 

 

 

114,872,994

 

 

 

22,985,774

 

 

 

137,858,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

15,648,558

 

 

 

26,007,972

 

 

 

41,656,530

 

 

 

16,234,439

 

 

 

28,592,647

 

 

 

44,827,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

10,640,840

 

 

 

20,896,837

 

 

 

31,537,677

 

 

 

8,762,432

 

 

 

20,668,291

 

 

 

29,430,723

 

Depreciation and amortization

 

 

325,227

 

 

 

1,036,837

 

 

 

1,362,064

 

 

 

410,759

 

 

 

1,041,075

 

 

 

1,451,834

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,966,067

 

 

 

21,933,674

 

 

 

32,899,741

 

 

 

9,173,191

 

 

 

21,709,366

 

 

 

30,882,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

4,682,491

 

 

 

4,074,298

 

 

 

8,756,789

 

 

 

7,061,248

 

 

 

6,883,281

 

 

 

13,944,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/expense :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

83,806

 

 

 

643,976

 

 

 

727,782

 

 

 

61,686

 

 

 

857,005

 

 

 

918,691

 

Interest expense

 

 

192,393

 

 

 

270,808

 

 

 

463,201

 

 

 

244,202

 

 

 

239,491

 

 

 

483,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(108,587)

 

 

373,168

 

 

 

264,581

 

 

 

(182,516)

 

 

617,514

 

 

 

434,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

4,573,904

 

 

 

4,447,466

 

 

 

9,021,370

 

 

 

6,878,732

 

 

 

7,500,795

 

 

 

14,379,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

927,157

 

 

 

946,761

 

 

 

1,873,918

 

 

 

(1,426,697)

 

 

117,091

 

 

 

(1,309,606)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$3,646,747

 

 

$3,500,705

 

 

$7,147,452

 

 

$8,305,429

 

 

$7,383,704

 

 

$15,689,133