Selling, general and administrative expenses increased $3.3 million, or 28 percent, in fiscal 2011 to $15.0 million, compared to $11.7 million in the prior year. This increase was primarily due to the addition of SBT in September of 2011 and to expenses related to opening new stores.In fiscal 2011, the Company recorded a $4.4 million one-time non-cash loss on settlement of debt with a related party. This non-cash loss related to two separate transactions with NTR. In September of 2011, NTR forgave $2 million of payables owed by DGSE in exchange for 400,000 of our restricted shares of common stock. Based on the value of the shares at that time, the Company recorded a $1.7 million non-cash loss on settlement of this debt. In October of 2011, NTR forgave $2.5 million of additional payables in exchange for 5,000,000 options to purchase shares of our common stock at an exercise price of $15 per share. Based on the fair value of these options, estimated using the Black-Scholes model, the Company recognized an additional non-cash loss of $2.6 million. The Company had net income of $1.01 million, or $0.09 per diluted share, in fiscal 2011 compared to $10.7 million, or $0.96 per diluted share, as restated in fiscal year 2010.
DGSE Reports Restated Financials For Fiscal 2010, Consolidated Financials For Fiscal 2011, And Financial Results For First And Second Quarter 2012
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