• Filing Date: 2021-03-31
  • Form Type: 10-K
  • Description: Annual report
v3.21.1
Segment Information
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information

NOTE 18 - SEGMENT INFORMATION

 

The Company’s eight businesses lines are organized, managed and internally reported as four reportable operating segments. Premier Packaging operates in the paper board folding carton, smart packaging, and document security printing markets. It markets, manufactures, and sells mailers, photo sleeves, sophisticated custom folding cartons, and complex 3-dimensional direct mail solutions designed to provide functionality, marketability, and sustainability to product packaging while providing counterfeit protection and consumer engagement platform. Digital Group researches, develops, markets, and sells the Company’s digital products worldwide. As an industry leader in brand authentication services, our solutions leverage functional anti-counterfeiting features and cutting-edge technologies to satisfy commercial and consumer product needs for branding, intelligent packaging, and marketing. Digital’s primary product is AuthentiGuard®, which is a brand authentication application that integrates the Company’s counterfeit deterrent technologies with proprietary digital data security-based solutions. IP Technology Management Inc., manages, licenses, and acquires intellectual property assets for the purpose of monetizing these assets through a variety of value-enhancing initiatives, including, but not limited to, investments in the development and commercialization of patented technologies, licensing, strategic partnerships, and commercial litigation. Direct Marketing/Online Sales Group provides services to assist companies in the emerging growth gig business model of peer-to-peer decentralized sharing marketplaces. Direct specializes in marketing and distributing its products and services through its subsidiary and partner network, using the popular gig economic marketing strategy as a form of direct marketing.

 

Approximate information concerning the Company’s operations by reportable segment for years ended December 31, 2020 and 2019 is as follows. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein:

 

Year Ended December 31, 2020   Premier Packaging     Digital Group     IP Technology Management     Direct Marketing / Online Sales     Corporate     Total  
Revenue   $ 13,300,000     $ 2,085,000     $ -     $ 2,326,000     $ -     $ 17,411,000  
Depreciation and amortization     736,000       38,000       69,000       28,000       213,000       1,084,000  
Interest expense     102,000       15,000       -       -       68,000       185,000  
Stock based compensation     12,000       45,000       -       -       131,000       188,000  
Income tax benefit     -       -       -       -       1,774,000       1,774,000  
Net income (loss) from continuing operations     1,329,000       838,000       (350,000 )     (2,495,000 )     3,764,000       3,086,000  
Capital expenditures     260,000       11,000       -       49,000       5,000       325,000  
Identifiable assets     10,715,000       817,000       -       2,775,000       77,612,000       91,919,000  

  

Year Ended December 31, 2019   Premier Packaging     Digital Group     IP Technology Management     Direct Marketing / Online Sales     Corporate     Total  
Revenue   $ 13,230,000     $ 2,148,000     $ -     $ -     $ 172,000     $ 15,550,000  
Depreciation and amortization     904,000       33,000       82,000       -       132,000       1,151,000  
Interest expense     96,000       7,000       -       -       22,000       125,000  
Stock based compensation     17,000       81,000       -       -       324,000       422,000  
Income tax benefit     -       -       -       -       125,000       125,000  
Net income (loss) from continuing operations     311,000       (579,000 )     (475,000 )     -       (1,852,000 )     (2,595,000 )
Capital expenditures     819,000       24,000       -       -       104,000       947,000  
Identifiable assets     10,425,000       924,000       58,000       -       8,739,000       20,146,000  

 

International revenue, which consists of sales to customers with operations in Canada, Western Europe, Latin America, Africa, the Middle East and Asia comprised 9.0% of total revenue for 2020 (2.0% - 2019). Revenue is allocated to individual countries by customer based on where the product is shipped. The Company had no long-lived assets in any country other than the United States for any period presented.

 

The following tables disaggregate our business segment revenues by major source:

 

Printed Products Revenue Information:      
       
Twelve months ended December 31, 2020      
Packaging Printing and Fabrication   $ 11,782,000  
Commercial and Security Printing     1,218,000  
Total Printed Products   $ 13,000,000  
         
Twelve months ended December 31, 2019        
Packaging Printing and Fabrication   $ 12,071,000  
Commercial and Security Printing     1,159,000  
Total Printed Products   $ 13,230,000  
         
Technology Sales, Services and Licensing Revenue Information:        
         
Twelve months ended December 31, 2020        
Information Technology Sales and Services   $ 152,000  
Digital Authentication Products and Services     1,503,000  
Royalties from Licensees     430,000  
Total Printed Products   $ 2,085,000  
         
Twelve months ended December 31, 2019        
Information Technology Sales and Services   $ 189,000  
Digital Authentication Products and Services     1,414,000  
Royalties from Licensees     545,000  
Total Printed Products   $ 2,148,000  
         
Direct Marketing        
         
Twelve months ended December 31, 2020        
Direct Marketing Internet Sales   $ 2,326,000  
Total Direct Marketing   $ 2,326,000  
         
Twelve months ended December 31, 2019        
Direct Marketing Internet Sales   $ 172,000  
Total Direct Marketing   $ 172,000