The Company recorded a loss from continuing operations of $1,621,655 in Fiscal 2012, compared to income from continuing operations of $1,600,949 in Fiscal 2011, a reduction of $3,222,604. Excluding $3,176,884 in one-time expenses related to the recent restatement and related legal matters, the Company would have recorded income from continuing operations of $1,555,229 in Fiscal 2012.

Net loss in Fiscal 2012 was $2,311,168 compared to net income of $1,013,535 in Fiscal 2011, a reduction of $3,324,703. The net loss includes $689,513 and $587,414 in 2012 and 2011 respectively related to the discontinued operations of our Superior Galleries subsidiary.

Fourth Quarter 2012 Results

Revenues decreased by $4,029,067 or 10% in the quarter ending December 31, 2012, to $37,502,187, compared to $41,531,254 in the in the quarter ending December 31, 2011. This decrease was primarily the result of an industry-wide reduction in bullion demand.

Gross Margin decreased in the quarter ending December 31, 2012 by $2,870,645, to $7,356,772 or 19.6% of revenue, compared to $10,227,417 or 24.6% of revenue in the prior year quarter.

Selling, general and administrative expenses increased $1,279,541 or 23% in the quarter ending December 31, 2012, to $6,771,623 compared to $5,492,082 in the prior year quarter. This increase was partially driven by one-time expenses of $628,712 related to the recent restatement and related legal matters, as well as expenses related to new store openings.

Depreciation and amortization increased by $108,430 or 78% in the quarter ending December 31, 2012, to $248,217 compared to $139,787 in the prior year quarter. This increase was driven primarily by new assets related to store openings being placed into service.

The Company recorded a gain from continuing operations of $135,004 in the quarter ending December 31, 2012, compared to income from continuing operation of $1,748,096 in the prior year quarter, a reduction of $1,613,092. Excluding $628,712 in one-time expenses related to the recent restatement and related legal matters, the Company would have recorded income from continuing operations of $763,716 in the quarter ending December 31, 2012.

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