7 unchanged sentences
Our management has the responsibility for establishing and maintaining adequate internal control over financial reporting and for our assessment of the effectiveness of internal control over financial reporting.
−Removed: Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act, and with respect to us as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officer and effected by the Board, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles that achieve certain specified controls over the records of business transactions.
+Added: Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act, with respect to us as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officer and effected by the Board, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles that achieve certain specified controls over the records of business transactions.
Because of its inherent limitations, internal control over financial reporting only provides reasonable assurance with respect to financial statement presentation and preparation.
7 unchanged sentences
OTHER INFORMATION
+Added: The Company released its earnings with a press release issued March 20, 2024, a copy of which is attached hereto as exhibit 99.1.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
19 unchanged sentences
We believe that our audits provide a reasonable basis for our opinion.
−Removed: Critical Audit Matter
−Removed: The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:
−Removed: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective, or complex judgments.
−Removed: The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Realizability of Deferred Tax Assets
−Removed: Description of the Matter
−Removed: As discussed in Note 14 to the consolidated financial statements, the Company considers the need for a valuation allowance based on their assessment of the realizability of the Company’s deferred tax assets.
−Removed: As of December 31, 2022, the balance of the Company’s net deferred tax assets was approximately $1.5 million.
−Removed: A significant portion of the deferred tax assets are subject to future expiration.
−Removed: Management performs an analysis to determine whether sufficient future taxable income will be generated to support the realization of deferred tax assets prior to expiration in order to determine the need for a valuation allowance adjustment.
−Removed: This analysis involves a high degree of subjectivity and significant judgment.
−Removed: The principal considerations for our procedures relating to the realizability of deferred tax assets as a critical audit matter is that there was significant judgment by management in evaluating how the current economic environment could impact management’s projections of future taxable income.
−Removed: This required significant auditor judgment to evaluate management’s analysis of the overall realizability of deferred tax assets.
−Removed: How We Addressed the Matter in Our Audit
−Removed: The primary procedures we performed included evaluating the quantitative and qualitative analysis management prepares to determine realizability of deferred tax assets.
−Removed: This analysis includes consideration of past years income, taxable income as well as management’s consideration of how the current economic environment could impact future operating results.
+Added: Critical Audit Matters
+Added: Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:
+Added: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
+Added: We determined that there are no critical audit matters.
/s/ Whitley Penn LLP
22 unchanged sentences
Consolidated Balance Sheets
−Removed: Consolidated Cash Flows Statements
+Added: Consolidated Cash Flow Statements
Consolidated Stockholders’ Equity Statements
1 unchanged sentence
Report of Independent Registered Public Accounting Firm (PCAOB ID 726 )
−Removed: Incorporated by Reference
Date Filed with SEC
6 unchanged sentences
Description of Capital Stock
+Added: March 16, 2022
Registration Rights Agreement, dated September 12, 2011, by and between DGSE Companies, Inc.
14 unchanged sentences
October 5, 2020
−Removed: Purchase Agreement Dated May 6, 2021, for The Frisco, Texas location,
−Removed: by and between DGSE, LLC and KMTHT Holding, LLC
+Added: Revised note payable, related party, dated January 1, 2020, between DGSE, LLC and John R.
+Added: October 5, 2020
+Added: Revised note payable, related party, dated January 1, 2020, between ECHG, LLC and John R.
+Added: October 5, 2020
+Added: Purchase Agreement Dated May 6, 2021, for The Frisco, Texas location, by and between DGSE, LLC and KMTHT Holding, LLC
August 4, 2021
−Removed: 2016 Long-Term Incentive Plan
−Removed: March 27, 2014
+Added: Business Conduct & Ethics Policy
Subsidiaries of the Registrant
9 unchanged sentences
Section 906 of the Sarbanes-Oxley Act of 2002 by Bret A.
+Added: Clawback Policy
+Added: 2023 Earnings Press Release
XBRL Instance Document
9 unchanged sentences
Chairman of the Board,
−Removed: Chief Executive Officer,
+Added: Chief Executive Officer, President
(Principal Executive Officer)
2 unchanged sentences
Chairman of the Board,
−Removed: Chief Executive Officer,
+Added: Chief Executive Officer, President
(Principal Executive Officer)
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.