DSS Releases Full Year 2020 Financial Results: Income From Continuing Operations Increased $5.7 Million in 2020
March 31 2021 - 8:15AM
Document Security Systems, Inc. (“DSS” or the “Company”) (NYSE
American: DSS), a multinational company operating business segments
in direct marketing, consumer packaging, brand protection
technology, healthcare, real estate, blockchain security, and
securitized digital assets, today announced its financial results
for its fiscal year ended December 31, 2020.
“I am pleased to report we made tremendous
progress in 2020 toward our goal of transforming DSS, an initiative
we first embarked upon in 2019,” stated Frank D. Heuszel, CEO of
DSS. “Despite an extremely challenging business environment from
COVID-19, our team executed on multiple fronts, generating a $5.7
million increase in net income from continuing operations, 12%
revenue growth, and a 522% surge in stockholders’ equity. We
continue to build on the successes of 2020 with several key
strategic initiatives already achieved this year which I believe
will help to further accelerate revenue and profit growth in the
quarters ahead.”
“Because of our strong and balanced corporate
performance in 2020, we are well positioned to drive sustainable
growth in 2021,” continued Heuszel. “2020 was our highest net
income in years. The investments made in 2020, as well as those we
have made and will continue to make in 2021, place us in an
advantageous position to capitalize on the wealth of opportunities
across the markets we target with our diverse business
segments.”
2020 Financial Highlights:The
following summarizes financial highlights of fiscal 2020:
- Net income from continuing
operations increased to $3.1 million, or $1.01 per share, up $5.7
million from a net loss from continuing operations of approximately
$2.6 million ($3.05 per share) in 2019. The increase in net income
in 2020 primarily reflects the company’s unrealized gains of $10.6
million on its marketable securities.
- Strengthened cash position with
addition of $20.2 million from multiple offerings in 2020, followed
by two additional offerings in 2021 generating $61.0 million.
- Stockholders’ equity increased 522%
to $76.5 million as of December 31, 2020, up from $12.3 million at
December 31, 2019.
- Revenue increased 12% to $17.4
million in 2020, up from $15.6 million in 2019.
- Printed products segment revenue
was $13.0 million in 2020, compared to $13.2 million in 2019.
- Technology sales, services, and
licensing segment revenue was $2.1 million in 2020, compared to
$2.1 million in 2019.
- Direct marketing revenue increased
to $2.3 million in 2020, up from $0.2 million in 2019.
- Costs and expenses totaled $28.1
million in 2020, as compared to $18.2 million in 2019, driven by
increases in sales, marketing, general, and administrative
expenses, along with an increase in professional fees primarily
driven by acquisition activities and consulting fees incurred by
the Direct Marketing business segment.
“Since the spring of 2019, we have reduced the
Company’s monthly cash burn by eliminating non-essential layers of
management and redundant operating expenses, as well as by
renegotiating vendor contracts and supply chain optimization,”
commented Jason Grady, Chief Operating Officer of DSS. “We
remain relentlessly focused on strengthening DSS by exiting
unprofitable business lines, investing in and continuing to revive
our core businesses, improving top line revenues and net margins,
controlling costs and creating new long-term scalable, recurring
revenue streams. I am very pleased with the progress our team has
made on these fronts and confident that shareholders will continue
to see improvements as we execute on our robust, multi-faceted,
global business strategy.”
Key Highlights and Strategic
Milestones:
- Completed acquisition of Impact
BioMedical.
- Launched collaborative partnership with Coinstreet Partners and
GSX Group to develop new digital asset exchange business in
US.
- Expanded DSS Securities ecosystem through investments in
WestPark Capital and BMI Capital in February 2021.
- Published results from Impact
BioMedical’s in-vitro testing of Equivir and Linebacker against
COVID-19, demonstrating success as a treatment, as well as a
prophylactic protecting the cells from infection by the virus.
Impact BioMedical also demonstrated 10-fold reduction in viral
population of COVID-19 in surface disinfectant efficacy testing of
its proprietary 3F Biofragrance.
- Impact BioMedical initiated
bioplastics research collaboration with one of the world’s largest
plastics manufacturers to develop five new types of advanced
microbial-resistant plastics.
- Impact BioMedical expanded its
nutraceutical product lines through investment in nano
nutraceutical contract manufacturer Nano9.
- Signed global personal protective
equipment (PPE) exporter as an early adopter of the Company's new
AuthentiGuard as a Service (AGaaS) anti-counterfeiting
technology.
- Launched AGaaS app on The App
Store.
- Premier Packaging subsidiary signed
multi-year contract valued at $3.2 million per annum with one of
world’s largest photography and image sharing companies; total
contract valued at nearly $10 million.
- Premier Packaging subsidiary signed
multi-year contract valued at $2.6 million per annum with the world
leading digital retailer and manufacturing platform for photography
and personalized products.
- Expanded board to eight members and
appointed Tung Moe Chan, Group Chief Development Officer of
Singapore Exchange-listed Alset International Limited, as a new
director.
- Increased ownership in Sharing
Services Global Corp. (OTCQB: SHRG) to 62,457,378 class A common
shares, representing 32.2% ownership, as of December 31, 2020;
entered into a letter of intent to provide a $30 million investment
into SHRG through convertible promissory note in Q1 2021.
- Heng Fai Ambrose Chan, Chairman of
DSS, through Global BioMedical Pte Ltd., converted 4,293 shares of
its Series A Preferred Stock of DSS into 662,500 restricted shares
of the Common Stock of the Company at an above-market conversion
price of $6.48 per share.
A full analysis of results for the fiscal year
ended December 31, 2020 is available in the Company’s Form 10-K
filed on March 31, 2021 and is available on the Company’s website
at www.dsssecure.com or through the
Securities and Exchange Commission’s Edgar database
at www.sec.gov.
About Document Security Systems, Inc.
DSS is a multinational company operating
business segments in direct marketing, consumer packaging, brand
protection technology, healthcare, real estate, blockchain
security, and securitized digital assets. Its business model is
based on a distribution sharing system in which shareholders will
receive shares in its subsidiaries as DSS strategically spins them
out into IPOs. Its historic business revolves around counterfeit
deterrent and authentication technologies, smart packaging, and
consumer product engagement. DSS is led by its Chairman and largest
shareholder, Mr. Fai Chan, a highly successful global business
veteran of more than 40 years specializing in corporate
transformation while managing risk. He has successfully
restructured more than 35 corporations with a combined value of $25
billion.
For more information on DSS
visit http://www.dsssecure.com.
Investor Contact:
Dave Gentry, CEORedChip Companies
Inc.407-491-4498Dave@redchip.com
Safe Harbor Disclosure
This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include, but are not limited to,
statements related to the Company's intended use of proceeds and
other statements that are not historical facts. Forward-looking
statements are based on management's current expectations and are
subject to risks and uncertainties that may cause actual results or
events to differ materially from those projected. These risks and
uncertainties, many of which are beyond our control, include: risks
relating to our growth strategy; our ability to obtain, perform
under and maintain financing and strategic agreements and
relationships; risks relating to the results of development
activities; our ability to attract, integrate and retain key
personnel; our need for substantial additional funds; patent and
intellectual property matters; competition; as well as other risks
described in the section entitled "Risk Factors" in the prospectus
and in our other filings with the SEC, including, without
limitation, our reports on Forms 8-K and 10-Q, all of which can be
obtained on the SEC website at www.sec.gov. Readers are cautioned
not to place undue reliance on the forward-looking statements,
which speak only as of the date on which they are made and reflect
management's current estimates, projections, expectations and
beliefs. We expressly disclaim any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in our
expectations or any changes in events, conditions or circumstances
on which any such statement is based, except as required by
law.
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