NOTE 6— GOODS HELD FOR SALE OR AUCTION

At December 31, 2016, there were no goods held for sale or auction. At December 31, 2015, goods held for sale or auction with a carrying value of $37 consisted of aircraft parts which included a lower of cost or market adjustment of $1,330. The total amount recorded by the Company for a lower-of-cost or market adjustment for goods held for sale or auction was $33 and $4,673 during the years ended December 31, 2015 and 2014, respectively. 

In 2014, machinery and equipment, which consisted of five oil rigs with a carrying value of $4,026 served as collateral for the note payable collateralized by machinery and equipment which had an outstanding principal balance of $6,570 as of December 31, 2014. The machinery and equipment was owned by Great American Group Energy Equipment, LLC (“GAGEE”), a wholly-owned special purpose subsidiary of the Company, which filed for bankruptcy in the first quarter of 2015 as more fully described in Note 11. As a result of the bankruptcy filing, the asset and liabilities of GAGEE including the machinery and equipment is no longer consolidated in the Company’s consolidated financial statements.