$ELA

DGSE COMPANIES INC

CIK:0000701719|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
CONSOLIDATED STATEMENTS OF INCOME
Sales	$ 56,774,641	$ 54,876,833	$ 155,155,531	$ 103,132,662
Cost of goods sold	43,396,809	42,488,910	121,157,283	78,776,715
Gross margin	13,377,832	12,387,923	33,998,248	24,355,947
Expenses:
Selling, general and administrative	7,778,113	8,672,067	16,701,905	17,076,329
Depreciation and amortization	497,263	460,411	983,226	905,752
Total operating expenses	8,275,376	9,132,478	17,685,131	17,982,081
Operating income	5,102,456	3,255,445	16,313,117	6,373,866
Other income (expense):
Other income	324,363	394,251	494,707	599,856
Interest expense	(78,647)	(106,228)	(157,419)	(212,549)
Income before income taxes	5,348,172	3,543,468	16,650,405	6,761,173
Income tax expense	(1,173,986)	(791,069)	(3,636,486)	(1,515,427)
Net income	$ 4,174,186	$ 2,752,399	$ 13,013,919	$ 5,245,746
Basic earnings per share:
Net income (in dollar per share)	$ 0.16	$ 0.11	$ 0.5	$ 0.2
Diluted earnings per share:
Net income (in dollars per share)	$ 0.16	$ 0.11	$ 0.5	$ 0.2
Weighted average shares outstanding:
Basic (in shares)	25,963,476	25,991,979	25,963,476	25,993,802
Diluted (in shares)	25,963,476	25,991,979	25,963,476	25,993,802

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2026	Jun. 30, 2025
Operations
Net income	$ 13,013,919	$ 5,245,746
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	983,226	905,752
Provision for credit losses	(205,396)	82,366
Deferred taxes	31,415	(41,332)
Non-cash lease expense	1,537,772	1,208,522
Loss on disposal of equipment		5,491
Changes in operating assets and liabilities:
Accounts receivable	7,992,472	(764,047)
Inventories	5,244,241	(1,675,660)
Prepaid expenses	285,623	(292,616)
Other assets	(169,461)	(96,649)
Accounts payable	(1,679,880)	(19,076)
Accrued expenses	2,631,849	(832,447)
Operating leases	(1,035,528)	(1,173,750)
Other liabilities	(1,556,650)	1,170,294
Net cash provided by operations	27,073,602	3,722,594
Investing
Purchase of property and equipment	(1,530,683)	(831,529)
Purchase of intangible assets		(50,630)
Proceeds from (investment in) notes receivable		2,000
Proceeds from sales of equipment		650
Net cash (used in) investing	(1,530,683)	(879,509)
Financing
Payments on notes payable	(255,912)	(478,893)
Purchase of treasury stock		(121,326)
Net cash (used in) financing	(255,912)	(600,219)
Net change in cash and cash equivalents	25,287,007	2,242,866
Cash and cash equivalents, beginning of period	18,154,849	20,609,003
Cash and cash equivalents, end of period	43,441,856	22,851,869
Cash paid during the period for:
Interest	158,594	218,685
Income taxes	$ 1,708,791	$ 1,732,100

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 43,441,856	$ 18,154,849
Accounts receivable, net of allowance for credit losses of $527,645 and $735,944 as of June 30, 2026 and December 31, 2025, respectively	3,197,115	10,984,191
Inventories	29,821,724	35,065,965
Prepaid expenses	953,860	1,239,483
Other current assets	162,500
Total current assets	77,577,055	65,444,488
Property and equipment, net	14,505,314	13,584,189
Right-of-use assets from operating leases	9,014,354	9,720,925
Goodwill	3,621,453	3,621,453
Intangible assets, net	3,033,499	3,407,167
Other assets	251,486	244,525
Total assets	108,003,161	96,022,747
Current liabilities:
Accounts payable	2,614,563	4,294,443
Notes payable	7,589,297	7,787,468
Operating lease liabilities	2,352,798	1,937,295
Accrued expenses	5,422,852	2,791,003
Other current liabilities	314,565	1,871,215
Total current liabilities	18,294,075	18,681,424
Deferred tax liability	178,796	147,381
Notes payable, less current portion	2,079,426	2,137,167
Operating lease liabilities, less current portion	7,376,737	7,996,567
Total liabilities	27,929,034	28,962,539
Contingencies (Note 16)
Stockholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 26,924,631 shares issued and 25,963,476 shares outstanding as of June 30, 2026; 26,924,631 shares issued and 25,963,476 shares outstanding as of December 31, 2025	269,246	269,246
Treasury stock at cost, 961,155 and 961,155 shares, as of June 30, 2026 and December 31, 2025, respectively	(4,757,731)	(4,757,731)
Additional paid-in capital	40,173,000	40,173,000
Retained earnings	44,389,612	31,375,693
Total stockholders' equity	80,074,127	67,060,208
Total liabilities and stockholders' equity	$ 108,003,161	$ 96,022,747