Revenue up 59% in Q3 vs. prior year period

Stockholders’ Equity up 496% to $73.3 million

ROCHESTER, N.Y., Oct. 26, 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 third quarter ended September 30, 2020.

“This was a truly transformational quarter for DSS with a $1.20 per share in net income from continuing operations and shareholder equity increasing nearly five-fold to $73.3 million,” stated Frank D. Heuszel, CEO of DSS. “We also demonstrated our vision of sharing the economic benefits of our success with our shareholders in the third quarter, after completing the acquisition of Impact BioMedical, by declaring a special share dividend. With multiple multi-million-dollar contract wins, game-changing research and development collaborations and partnerships, and a track record of execution, I believe we are well positioned to accelerate growth in the quarters ahead.”

Business Highlights:

  • Completed acquisition of Impact BioMedical.
  • Strengthened balance sheet with addition of $9.9 million from two separate offerings in July, resulting in cash of $11.6 million as of September 30, 2020.
  • 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.
  • 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.
  • Impact BioMedical initiated bioplastics research collaboration with one of the world’s largest platstics manufacturers to develop five new types of advanced microbial-resistant plastics.
  • Began efficacy testing of pan-coronavirus vaccine under new wholly owned subsdidiary, Innate Immune, Inc.
  • Expanded board to eight members and appointed Chan Tung Moe, 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 September 30, 2020.
  • Chan Heng Fai, 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.
  • Board of Directors approved special dividend of two shares of Impact BioMedical for every one share of DSS common stock held on the Record Date of September 7, 2020, contingent on effectiveness of a registration statement under the Securities Act of 1933 to be filed with the Securities and Exchange Commission.

“We are beginning to execute on our new business model,” commented Jason Grady, Chief Operating Officer of DSS. “I am very pleased with our progress and confident that shareholders will continue to see improvements in our top and bottom line as we execute on our business strategy.”

Third Quarter 2020 Financial Highlights

  • Revenue for the third quarter of 2020 was $4.2 million, up 59% from $2.6 million in the third quarter of 2019.

  • Printed products segment revenue was $3.0 million in the third quarter of 2020, up 40% from $2.1 million in the third quarter of 2019.

  • Technology sales, services, and licensing segment revenue was $483,000, down 3% from the prior year period.

  • Direct marketing revenue increased $715,000 in the third quarter, showing strong growth in the Company’s entrance into the direct marketing industry and its associated opportunities.
  • Net income from continuing operations during the third quarter of 2020 increased to $5.4 million, or $1.20 per share, up from a net loss from continuing operations of approximately $1.2 million ($1.53 per share) during the third quarter of 2019. The increase in net income during the three months ended September 30, 2020 as compared to the same period in 2019 primarily reflect the company’s unrealized gains on its marketable securities of $7.8 million.

  • Costs and expenses for the third quarter of 2020 totaled $6.6 million, as compared to $3.8 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 496% to $73.3 million as of September 30, 2020, up from $12.3 million at December 31, 2019.

A full analysis of results for the quarter ended September 30, 2020 is available in the Company’s Form 10-Q which was filed on October 23, 2020 and is available on the Company’s website at or through the Securities and Exchange Commission’s Edgar database at

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

Investor Contact:

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 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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