XML 28 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information

12. Segment Information

 

The Company’s eight businesses lines are organized, managed and internally reported as four operating segments. Packaging and Printing is engaged in the printing and production of paper, and cardboard documents with a wide range of features, including the Company’s patented technologies and trade secrets designed for the protection of documents against unauthorized duplication and altering. A second operating segment, Digital, is comprised of DSS Digital Group, and DSS International, and is engaged in research, development, marketing and selling worldwide the Company’s digital products, including and primarily our AuthentiGuard® product, which is a brand authentication application that integrates the Company’s counterfeit deterrent technologies with proprietary digital data security-based solutions. The third operating segment, Technology Management, primary mission has been to monetize its various patent portfolios through commercial litigation and licensing. Except for investment in its social networking related patents, we have historically partnered with various third-party funding groups in connection with patent monetization programs. The fourth segment, Direct Marketing, direct marketing or network marketing is the business of selling products or services directly to the public, e.g., by online or telephone selling, rather than through retailers. We believe this business has significant growth potential in the blossoming “gig economy” with comparisons to the growth that is being realized in parallel businesses such as ride sharing.

 

Approximate information concerning the Company’s operations by reportable segment for the three and Nine months ended September 30, 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:

 

Three Months Ended September 30, 2020   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 2,972,000     $ -     $ 483,000     $ -     $ 714,000     $ -     $ 4,169,000  
Depreciation and amortization     165,000       -       9,000       21,000       1,000       50,000       246,000  
Interest expense     24,000       -       2,000       -       -       3,000       29,000  
Stock based compensation     3,000       -       7,000       -       -       122,000       132,000  
Net Income (loss) from continuing operations     136,000       -       82,000       (36,000 )     (1,139,000 )     6,323,000       5,366,000  
Capital expenditures     1,000       -       -       -       1,000       -       2,000  
Identifiable assets     10,013,000       1,209,000       657,000       1,000       1,809,000       68,304,000       81,993,000  

 

Three Months Ended September 30, 2019   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 2,119,000     $ -     $ 498,000     $ -     $       -     $ -     $ 2,617,000  
Depreciation and amortization     228,000       -       7,000       62,000       -       -       297,000  
Interest expense     24,000       -       2,000       -       -       22,000       48,000  
Stock based compensation     4,000       -       20,000       -       -       249,000       273,000  
Net loss from continuing operations     (322,000 )     -       139,000       (203,000 )     -       (836,000 )     (1,222,000 )
Capital expenditures     -       -       -       -       -       -       -  
Identifiable assets     9,156,000       3,884,000       899,000       -       -       4,611,000       18,550,000  

 

Nine Months Ended September 30, 2020   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 8,394,000     $ -     $ 1,331,000     $ -     $ 1,792,000     $ -     $ 11,517,000  
Depreciation and amortization     584,000       -       28,000       48,000       1,000       163,000       824,000  
Interest expense     79,000       -       9,000       -       -       13,000       101,000  
Stock based compensation     11,000       -       37,000       -       -       168,000       216,000  
Net Income (loss) from continuing operations     222,000       -       (120,000 )     (325,000 )     (960,000 )     4,954,000       3,771,000  
Capital expenditures     91,000       -       9,000       -       1,000       1,000       102,000  
Identifiable assets     10,013,000       1,209,000       657,000       1,000       1,809,000       68,304,000       81,993,000  

 

Nine Months Ended September 30, 2019   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 8,434,000             $ 1,424,000     $ -     $       -     $ -     $ 9,858,000  
Depreciation and amortization     675,000       -       24,000       144,000       -       1,000       844,000  
Interest expense     76,000       -       6,000       -       -       22,000       104,000  
Stock based compensation     13,000       -       62,000       -       -       256,000       331,000  
Net loss from continuing operations     (254,000 )     -       (224,000 )     (418,000 )     -       (1,490,000 )     (2,386,000 )
Capital expenditures     574,000       -       24,000       -       -       4,000       602,000  
Identifiable assets     9,156,000       3,884,000       899,000       -       -       4,611,000       18,550,000  

 

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

 

Printed Products Revenue Information:      
       
Three months ended September 30, 2020      
Packaging Printing and Fabrication   $ 2,568,000  
Commercial and Security Printing     403,000  
Total Printed Products   $ 2,971,000  

 

Three months ended September 30, 2019      
Packaging Printing and Fabrication   $ 1,883,000  
Commercial and Security Printing     236,000  
Total Printed Products   $ 2,119,000  

 

Nine months ended September 30, 2020      
Packaging Printing and Fabrication   $ 7,631,000  
Commercial and Security Printing     774,000  
Total Printed Products   $ 8,405,000  

 

Nine months ended September 30, 2019      
Packaging Printing and Fabrication   $ 7,619,000  
Commercial and Security Printing     814,000  
Total Printed Products   $ 8,433,000  

 

Technology Sales, Services and Licensing Revenue Information:

 

Three months ended September 30, 2020      
Information Technology Sales and Services   $ 24,000  
Digital Authentication Products and Services     359,000  
Royalties from Licensees     100,000  
Total Printed Products   $ 483,000  

 

Three months ended September 30, 2019      
Information Technology Sales and Services   $ 46,000  
Digital Authentication Products and Services     307,000  
Royalties from Licensees     145,000  
Total Printed Products   $ 498,000  

 

Nine months ended September 30, 2020      
Information Technology Sales and Services   $ 65,000  
Digital Authentication Products and Services     947,000  
Royalties from Licensees     307,000  
Total Printed Products   $ 1,319,000  

 

Nine months ended September 30, 2019      
Information Technology Sales and Services   $ 151,000  
Digital Authentication Products and Services     857,000  
Royalties from Licensees     416,000  
Total Printed Products   $ 1,424,000  

 

Direct Marketing

 

Three months ended September 30, 2020      
Direct Marketing Internet Sales   $ 715,000  
Total Direct Marketing   $ 715,000  

 

Three months ended September 30, 2019        
Direct Marketing Internet Sales   $ -  
Total Direct Marketing   $ -  

 

Nine months ended September 30, 2020      
Direct Marketing Internet Sales   $ 1,793,000  
Total Direct Marketing   $ 1,793,000  

 

Nine months ended September 30, 2019        
Direct Marketing Internet Sales   $ -  
Total Direct Marketing   $ -