8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 2, 2008

DOCUMENT SECURITY SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

New York	1-32146	16-1229730
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

First Federal Plaza, Suite 1525 28 East Main Street Rochester, NY	14614
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (585) 325-3610

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On December 2, 2008, Document Security Systems, Inc. (the “Company”) received notice (“Notice”) from the NYSE Alternext Staff (the “Exchange”) indicating that the Company is below certain of the Exchange’s continued listing standards as set forth in the Exchange’s Company Guide (the “Company Guide”).

The Notice indicated that the Company had fallen below section 1003(a)(ii) of the Company Guide, which requires companies listed on the Exchange to maintain stockholders' equity of at least $4,000,000 if such company has sustained losses from continuing operations and/or net losses in three of its four most recent fiscal years, and section 1003(a)(iii) which requires that companies maintain stockholders' equity of at least $6,000,000 if such issuer has sustained losses from continuing operations and/or net losses in its five most recent fiscal years.

Pursuant to the Company Guide, the Company was afforded the opportunity to submit a plan of compliance (the “Plan”) to the Exchange by January 2, 2009 that demonstrates the Company’s ability to regain compliance with sections 1003(a)(ii) and (iii) of the Company Guide by June 2, 2010. If the Company does not submit a Plan to the Exchange, or if the Exchange does not accept the Plan, the Company will be subject to delisting procedures as mandated by the Company Guide. The Company intends to submit a Plan to the Exchange. If the Exchange accepts the Plan, it will review the Company periodically to ensure compliance with the Plan.

On December 8, 2008, the Registrant issued a press release regarding the Notice, a copy of which is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Document
99.1	Press Release of the Registrant dated December 8, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

	DOCUMENT SECURITY SYSTEMS, INC.
Dated: December 8, 2008	By:	/s/ Patrick White
		Patrick White
		Chief Executive Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release of the Registrant dated December 8, 2008.

EX-99.1

Document Security Systems, Inc. 585.325.3610 News Release

Document Security Systems Receives Continued Listing Standards Notice from the NYSE Alternext

Rochester, NY, December 8, 2008 – Document Security Systems, Inc., (NYSE/Alternext US LLC: DMC) a leader in patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, received notification from the staff of the NYSE Alternext (“Exchange”) on December 2 that based on a review of Document Security Systems’ Form 10-Q for the period ended September 30, 2008, the company did not meet certain of the Exchange’s continued listing standards related to stockholders’ equity as set forth in Part 10 of the NYSE Alternext Company Guide (the “Company Guide”). As a result, the company has become subject to the procedures and requirements of Section 1009 of the Company Guide.

The company was afforded the opportunity to submit a plan of compliance to the Exchange by January 2, 2009.  If the company does not submit a plan or if the Exchange does not accept the plan, the company may be subject to delisting procedures.  The company intends to submit a plan by January 2, 2009 advising the Exchange of the action it has taken, or will take, that would bring it into compliance with the continued listing standards identified above by June 2, 2010, 18 months after the company's receipt of the notice, in accordance with the Exchange’s rules.

The company's common stock remains listed on the Exchange under the symbol "DMC", but the Exchange will assign a ".BC" indicator to the symbol to denote the company’s non-compliance.

About Document Security Systems, Inc.

Document Security Systems is a world leader in the development of optical deterrent technologies that help prevent counterfeiting and brand fraud from the use of the most advanced scanners, copiers and imaging systems in the market. The company’s patented and patent-pending technologies protect valuable documents and printed products from counterfeiters and identity thieves. Document Security Systems’ customers, which include international governments, major corporations and world financial institutions, use its covert and overt technologies to protect a number of applications including, but not limited to, currency, vital records, brand protection, ID cards, internet commerce, passports and gift certificates. DSS’ strategy is to become the world’s leading producer of cutting-edge security technologies for paper, plastic and electronically generated printed assets. More information about Document Security Systems can be found at its websites: www.documentsecurity.com and www.plasticprintingprofessionals.com.

Safe Harbor Statement

This release contains forward-looking statements regarding expectations for future financial performance, which involve uncertainty and risk. It is possible the company's future financial performance may differ from expectations due to a variety of factors including, but not limited to, changes in economic and business conditions in the world, increased competitive activity, achieving sales levels to fulfill revenue expectations, consolidation among its competitors and customers, technology advancements, unexpected costs and charges, adequate funding for plans, changes in interest and foreign exchange rates, regulatory and other approvals and failure to implement all plans, for whatever reason. It is not possible to foresee or identify all such factors. Any forward-looking statements in this report are based on current conditions; expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected. The company makes no commitment to update any forward-looking statement included herein, or disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement.

Contact:

Lippert/Heilshorn & Associates, Inc.

Amy Gibbons

212-838-3777

agibbons@lhai.com