DSS Announces Second Quarter 2020 Financial Results
August 14 2020 - 8:00AM
Document Security Systems, Inc. (“DSS” or the “Company”) (NYSE
American: DSS), a multinational company operating businesses
focusing on brand protection technology, blockchain security,
direct marketing, healthcare, real estate, and securitized digital
assets, today announced its financial results for the second
quarter ended June 30, 2020.
Business Highlights:
- Signed agreement to acquire Impact
BioMedical; after the quarter end, DSS shareholders voted to
approve the acquisition, meeting the final condition required to
complete the transaction.
- Strengthened balance sheet by
completing a $6.2 million offering in June and subsequently raised
an additional $9.9 million in two separate offerings in July
2020.
- Premier Packaging subsidiary signed
multi-year contract valued at $6 million per annum with one of
world’s largest retailers; total contract valued in excess of $24
million.
- DSS Digital subsidiary launched its
AuthentiGuard as a Service anti-counterfeiting platform with early
adoption by global personal protective equipment (PPE) exporter
Crecom Burj Group.
- Executed non-binding letter of
intent in April 2020 to sell assets of the Company’s Plastics
Printing Professionals, Inc. business line.
“We ended the quarter with a significantly
strengthened balance sheet after successfully completing a capital
raise in June that generated $6.2 million in net proceeds, and
further bolstered our financial position raising an additional $9.9
million subsequent to the quarter end in July,” stated Frank D.
Heuszel, CEO of DSS. “While second quarter revenues were impacted
due to the effects of COVID-19, our Premier Packaging subsidiary
began the third quarter with a major win, signing a multi-year deal
valued at more than $24 million with a long-term customer and one
of the world’s largest retailers. We are also extremely excited to
have recently met the final condition to move forward with our
acquisition of Impact BioMedical. DSS is continuing to pursue its
strategy of diversification and this acquisition represents the
dedicated efforts of our team to identify assets that we expect
will be accretive to our business while approaching such
transactions with vision and a focus toward creating lasting
shareholder value.”
Second Quarter 2020 Financial
Highlights
- Revenue for the second quarter of
2020 was $3.1 million, as compared to $3.5 million in the second
quarter of 2019. The 10% decrease is a result of declining Printed
Products and Technology revenue as both lines were impacted
by the COVID-19 pandemic as demand for consumer packaging decreased
and several customer events were cancelled or postponed.
- Net Loss from continuing operations
during the second quarter of 2020 decreased to $672,000 ($0.19 per
share), down from a net loss from continuing operations of
approximately $732,000 ($1.00 per share) during the second quarter
of 2019.
- Costs and expenses for the second
quarter of 2020 totaled $4.4 million, as compared to $4.2 million
during the same period of 2019, driven by increases in sales,
marketing, general and administrative expenses, along with an
increase in professional fees primarily driven by increase in
consulting fees incurred by the Direct Marketing business segment
and acquisition activities.
- Stockholders’ equity increased
62.3% to $19.9 million as of June 30, 2020, up from $12.3
million at December 31, 2019.
A full analysis of results for the quarter ended
June 30, 2020 is available in the Company’s Form 10-Q which was
filed on August 14, 2020 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
businesses focused on brand protection technology, blockchain
security, direct marketing, healthcare, real estate, 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, CEO RedChip Companies Inc. 407-491-4498
Dave@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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