The Little Gem opened in June 1907 in a small storefront space. Owner/manager Free Thomas moved from Denver to start the theater, and he spent $600 to renovate the space. Even so, it was a cramped space for a theater. An enlargement in October 1907 brought up the seating capacity to just 100 seats. A new manager, Mr. Edwards, also took over at that time.
The Little Gem's programming focused on moving pictures and illustrated songs, and did not seem to incorporate much else in the way of vaudeville, live music, or theatrical performance during its five months of business. Among the films shown were The Great Train Robbery (1904) and Alice in Wonderland (1903).
The Little Gem management engaged in several creative promotional schemes, including voting for "the most popular young lady" who would win a gold locket and chain, giveaways of candy and firecrackers to children, and cross-promotions with a nearby business for discount tickets.
The last mention of the Little Gem appeared in the local newspaper on November 30, 1907, and by early January news appeared of a new theater opening in the same space: the Orpheum.