ROCHESTER, N.Y., Aug. 14, 2020 (GLOBE NEWSWIRE) -- 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.
- 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.
Dave Gentry, CEO
RedChip Companies Inc.
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.