Envela Corp — Director's Dealing 2011

Nov 2, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: DGSE COMPANIES INC (DGSE)
CIK: 0000701719
Period of Report: 2011-11-01

Reporting Person: SMITH L S (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-11-01	Common Stock	S	219924	$7.63	Disposed	1628014	Direct
2011-11-01	Common Stock	X	577777	$2.25	Acquired	1628014	Direct
2011-11-01	Common Stock	X	267857	$1.12	Acquired	1628014	Direct
2011-11-01	Common Stock	X	100000	$0.78	Acquired	1628014	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-11-01	Call Option (Right to Buy)	$2.25	X	1	Disposed		Common Stock (577777)	Direct
2011-11-01	Call Option (Right to Buy)	$1.12	X	1	Disposed		Common Stock (267857)	Direct
2011-11-01	Call Option (Right to Buy)	$0.78	X	1	Disposed		Common Stock (100000)	Direct

Footnotes

F1: The transaction date reported under this Form 4 is the date on which the transaction was reflected on the books and records of the Issuer.

F2: The Reporting Person tendered shares of the common stock of the Issuer, par value $0.01 per share (the "Common Stock"), to the Issuer as payment of the aggregate exercise price of options to purchase a total of 945,634 shares of the Common Stock.

F3: Following the exercise of the Reporting Person's options to purchase a total of 945,634 shares of the Common Stock reported hereunder, the reporting person owns no derivative securities of the Issuer.

F4: The Reporting Person exercised options to purchase a total of 945,634 shares of the Common Stock represented by three Option Agreements: (i) that certain Option Agreement, dated October 8, 2001 (the "2001 Option"), by and between the Issuer and the Reporting Person, granting the Reporting Person the option to purchase a total of 577,777 shares of the Common Stock; (ii) that certain Option Agreement, dated November 20, 2002 (the "2002 Option"), by and between the Issuer and the Reporting Person, granting the Reporting Person the option to purchase a total of 267,857 shares of the Common Stock; and (iii) that certain Option Agreement, dated August 14, 2009 (the "2009 Option"), by and between the Issuer and the Reporting Person, granting the Reporting Person the option to purchase a total of 100,000 shares of the Common Stock.

F5: Each of the 2001 Option, the 2002 Option and the 2009 Option by their respective terms would expire 180 days after the termination of employment of the Reporting Person by the Issuer.

F6: Each of the 2001 Option, the 2002 Option and the 2009 Option were granted in consideration for the Reporting Person rendering services to the Issuer.