DSS (DSS) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 24, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	DOCUMENT SECURITY SYSTEMS INC
Entity Central Index Key	771,999
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 11,923,377
Entity Common Stock, Shares Outstanding		51,881,948
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 1,440,256	$ 2,343,675
Restricted cash	293,043	355,793
Accounts receivable, net	2,097,433	2,097,671
Inventory	937,830	869,262
Prepaid expenses and other current assets	313,528	425,671
Total current assets	5,082,090	6,092,072
Property, plant and equipment, net	5,003,818	5,016,539
Investments and other assets, net	100,632	686,912
Goodwill	2,453,349	12,046,197
Other intangible assets, net	3,017,544	3,908,399
Total assets	15,657,433	27,750,119
Current liabilities:
Accounts payable	1,945,073	1,037,359
Accrued expenses and other current liabilities	1,964,726	$ 1,997,241
Short-term debt	4,023,379
Current portion of long-term debt, net	1,553,061	$ 754,745
Total current liabilities	9,486,239	3,789,345
Long-term debt, net	2,258,115	7,439,036
Other long-term liabilities	63,697	520,180
Deferred tax liability, net	162,107	145,759
Stockholders’ equity
Common stock, $.02 par value; 200,000,000 shares authorized, 51,881,948 shares issued and outstanding (46,172,404 on December 31, 2014)	1,037,639	923,448
Additional paid-in capital	103,041,941	101,012,659
Accumulated other comprehensive loss	(63,697)	(61,180)
Accumulated deficit	(100,328,608)	(86,019,128)
Total stockholders’ equity	3,687,275	15,855,799
Total liabilities and stockholders’ equity	$ 15,657,433	$ 27,750,119

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value	$ .02	$ .02
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	51,881,948	46,172,404
Common stock, shares outstanding	51,881,948	46,172,404

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue
Printed products	$ 15,700,676	$ 16,478,303
Technology sales, services and licensing	1,804,433	1,809,193
Total revenue	17,505,109	18,287,496
Costs and expenses
Cost of revenue, exclusive of depreciation and amortization	10,665,122	11,689,743
Selling, general and administrative (including stock based compensation)	9,271,533	10,767,449
Depreciation and amortization	1,558,899	5,274,323
Impairment of goodwill	9,592,848	3,000,000
Impairment of assets	500,000	34,034,862
Total costs and expenses	31,588,402	64,766,377
Operating loss	(14,083,293)	(46,478,881)
Other income and (expense):
Interest expense	(334,738)	(317,191)
Net loss on debt modification and extinguishment	(19,096)	$ (51,915)
Gain on disposals of investment and equipment, net	120,431
Foreign currency transaction gain	29,400	$ 2,305
Loss before income taxes	(14,287,296)	(46,845,682)
Income tax expense (benefit)	22,184	(988,630)
Net loss	$ (14,309,480)	(45,857,052)
Less: loss attributable to noncontrolling interest		4,700,000
Net loss to common shareholders	$ (14,309,480)	(41,157,052)
Other comprehensive loss:
Interest rate swap loss	(2,517)	(33,614)
Comprehensive loss:	$ (14,311,997)	$ (41,190,666)
Loss per common share:
Basic and diluted	$ (0.30)	$ (0.98)
Shares used in computing loss per common share:
Basic and diluted	47,759,877	42,105,619

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (14,309,480)	$ (45,857,052)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	1,558,899	5,274,323
Stock based compensation	974,137	1,355,430
Paid in-kind interest	84,379	$ 48,000
Gain on disposals of equipment, net	$ (20,431)
Amortization of note discount		$ 22,707
Impairment of goodwill	$ 9,592,848	3,000,000
Impairment of intangible assets and investments inclusive of noncontrolling interest	500,000	$ 34,034,862
Net loss on debt modification and extinguishment	19,096
Change in deferred tax provision	22,184	$ (988,630)
Foreign currency transaction gain	(29,400)	(2,305)
Decrease (increase) in assets:
Accounts receivable	238	51,452
Inventory	(68,568)	(34,283)
Prepaid expenses and other assets	198,423	30,081
Restricted cash	62,750	144,207
Increase (decrease) in liabilities:
Accounts payable	907,714	(384,406)
Accrued expenses and other liabilities	(469,419)	915,376
Net cash used by operating activities	(976,630)	(2,390,238)
Cash flows from investing activities:
Purchase of property and equipment	(157,098)	$ (280,902)
Sale of equipment	$ 46,283
Purchase of investments		$ (750,000)
Purchase of intangible assets	$ (5,159)	(1,243,714)
Net cash used by investing activities	$ (115,974)	(2,274,616)
Cash flows from financing activities:
Net payments on revolving lines of credit		(158,087)
Payments of long-term debt	$ (939,151)	(616,393)
Borrowings of long-term debt		4,041,000
Issuances of common stock, net of issuance costs	$ 1,128,336	1,764,978
Net cash provided by financing activities	189,185	5,031,498
Net (decrease) increase in cash	(903,419)	366,644
Cash beginning of year	2,343,675	1,977,031
Cash end of year	$ 1,440,256	$ 2,343,675

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders’ Equity - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2013	$ 988,230	$ 97,790,426	$ (27,566)	$ 4,500,000	$ (44,862,076)	$ 58,389,014
Balance, shares at Dec. 31, 2013	49,411,486
Issuance of common stock, net	$ 78,494	1,472,173				1,550,667
Issuance of common stock, net, shares	3,924,700
Stock based payments, net of tax effect	$ 6,556	1,500,060				1,506,616
Stock based payments, net of tax effect, shares	327,775
Retirement of shares held in escrow	$ (150,000)	150,000
Retirement of shares held in escrow, shares	(7,500,000)
Exchange of warrants for common stock	$ 168					168
Exchange of warrants for common stock, shares	8,443
Change in noncontrolling interest in Virtual Agility Technology Investment, LLC		100,000		200,000		300,000
Other comprehensive loss			(33,614)			(33,614)
Net Loss				$ (4,700,000)	(41,157,052)	(45,857,052)
Balance at Dec. 31, 2014	$ 923,448	101,012,659	$ (61,180)		$ (86,019,128)	15,855,799
Balance, shares at Dec. 31, 2014	46,172,404
Issuance of common stock, net	$ 109,091	1,019,245				1,128,336
Issuance of common stock, net, shares	5,454,544
Stock based payments, net of tax effect	$ 3,100	971,037				974,137
Stock based payments, net of tax effect, shares	155,000
Shares issued in debt modification	$ 2,000	39,000				41,000
Shares issued in debt modification, shares	100,000
Other comprehensive loss			$ (2,517)			(2,517)
Net Loss					$ (14,309,480)	(14,309,480)
Balance at Dec. 31, 2015	$ 1,037,639	$ 103,041,941	$ (63,697)		$ (100,328,608)	$ 3,687,275
Balance, shares at Dec. 31, 2015	51,881,948

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	NOTE 1 - DESCRIPTION OF BUSINESS Document Security Systems, Inc. (the “Company”), through two of its subsidiaries, Premier Packaging Corporation, which operates under the assumed name of DSS Packaging Group, and Plastic Printing Professionals, Inc., which operates under the assumed name of DSS Plastics Group, operates in the security and commercial printing, packaging and plastic ID markets. The Company develops, markets, manufactures and sells paper and plastic products designed to protect valuable information from unauthorized scanning, copying, and digital imaging. The Company’s subsidiary, Extradev, Inc., which operates under the assumed name of DSS Digital Group, develops, markets and sells digital information services, including data hosting, disaster recovery and data back-up and security services. The Company’s subsidiary, DSS Technology Management, Inc., manages, licenses and acquires intellectual property (“IP”) 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Use of Estimates Reclassifications Restricted Cash Accounts Receivable Inventory Property, Plant and Equipment Investments – Goodwill - Other Intangible Assets and Patent Application Costs Impairment of Long Lived Assets Fair Value of Financial Instruments ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts reported in the balance sheet of cash, accounts receivable, prepaids, notes receivable, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair value of revolving credit lines, notes payable and long-term debt approximates their carrying value as the stated or discounted rates of the debt reflect recent market conditions. Derivative instruments, as discussed below, are recorded as assets and liabilities at estimated fair value based on available market information. At December 31, 2014, the Company’s convertible note payable was recorded at its face amount, net of an unamortized premium for a beneficial conversion feature and had an estimated fair value of approximately $117,000 based on the underlying shares the note could be converted into at the trading price on December 31, 2014. Since the underlying shares were trading in an active, observable market, the fair value measurement qualified as a Level 1 input. As included in Note 7, the conversion feature associated with this note was removed during 2015. Derivative Instruments The Company has an interest rate swap with Citizens that changes the variable rate on a term loan to a fixed rate as follows: Notional Amount Variable Rate Fixed Cost Maturity Date $ 1,021,926 3.39 % 5.87 % August 30, 2021 Conventional Convertible Debt Share-Based Payments Revenue Recognition - For technology sales and services, revenue is recognized in accordance with FASB ASC 985-605. Accordingly, revenue is recognized when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service or product has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is reasonably assured. We recognize cloud computing revenue, including data backup, recovery and security services, on a monthly basis, beginning on the date the customer commences use of our services. Professional services are recognized in the period services are provided. For printing technology licenses, revenue is recognized once all the following criteria for revenue recognition have been met: (1) persuasive evidence of an agreement exists; (2) the right and ability to use the product or technology has been rendered; (3) the fee is fixed and determinable and not subject to refund or adjustment; and (4) collection of the amounts due is reasonably assured. For other technology licenses, revenue arrangements generally provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. These rights typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patented technologies owned or controlled the Company, (ii) a covenant-not-to-sue, (iii) the release of the licensee from certain claims, and (iv) the dismissal of any pending litigation. The intellectual property rights granted may be perpetual in nature, extending until the expiration of the related patents, or can be granted for a defined, relatively short period of time, with the licensee possessing the right to renew the agreement at the end of each contractual term for an additional minimum upfront payment. Pursuant to the terms of these agreements, the Company has no further obligation with respect to the grant of the non-exclusive retroactive and future licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s part to maintain or upgrade the technology, or provide future support or services. Generally, the agreements provide for the grant of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the agreement, or upon receipt of the minimum upfront payment for term agreement renewals. As such, the earnings process is complete and revenue is recognized upon the execution of the agreement, when collectability is reasonably assured, or upon receipt of the minimum upfront fee for term agreement renewals, and when all other revenue recognition criteria have been met. Certain of the Company’s revenue arrangements provide for future royalties or additional required payments based on future licensee activities. Additional royalties are recognized in revenue upon resolution of the related contingency provided that all revenue recognition criteria, as described above, have been met. Amounts of additional royalties due under these license agreements, if any, cannot be reasonably estimated by management. Costs of revenue - Contingent Legal Expenses - Advertising Costs . Research and Development Income Taxes Earnings Per Common Share As of December 31, 2015 and 2014, there were 11,874,620 and 12,019,194, respectively, of common stock share equivalents potentially issuable under convertible debt agreements, employment agreements, options, warrants, and restricted stock agreements that could potentially dilute basic earnings per share in the future. Common stock equivalents were excluded from the calculation of diluted earnings per share for 2015 and 2014 in which the Company had a net loss, since their inclusion would have been anti-dilutive. Comprehensive Loss Concentration of Credit Risk During 2015, two customers accounted for 35% of the Company’s consolidated revenue. As of December 31, 2015, these two customers accounted for 27% of the Company’s trade accounts receivable balance. During 2014, these same two customers accounted for 40% of the Company’s consolidated revenue. As of December 31, 2014, these two customers accounted for 25% of the Company’s trade accounts receivable balance. Continuing Operations - Recent Accounting Pronouncements - In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The guidance requires an entity to evaluate whether there are conditions or events, in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and to provide related footnote disclosures in certain circumstances. The guidance is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company does not believe the adoption of this ASU will have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest”, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not believe the adoption of this ASU will have a significant impact on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” The guidance requires that certain inventory, including inventory measured using the first-in-first-out method, be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The guidance becomes effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company applied this guidance to its current fiscal years ending December 31, 2015 and 2014. The adoption of this guidance had no material impact on the results of operations or financial position. Certain prior year deferred tax assets or liabilities have been reclassified to conform with the current year presentation. In February 2016, the FASB issued an accounting standard update ASU 2016-02, “Leases”, which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company has not yet evaluated nor has it determined the effect of the standard on its ongoing financial reporting.

Inventory

Inventory	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventory	NOTE 3 – INVENTORY Inventory consisted of the following at December 31: 2015 2014 Finished Goods $ 718,601 $ 572,695 Work in process 167,779 123,611 Raw Materials 51,450 172,956 $ 937,830 $ 869,262

Property Plant and Equipment

Property Plant and Equipment	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property Plant and Equipment	NOTE 4 - PROPERTY PLANT AND EQUIPMENT Property, plant and equipment consisted of the following at December 31: 2015 2014 Estimated Useful Life Machinery and equipment 5-10 years $ 5,615,562 $ 5,156,060 Building and improvements 39 years 1,923,027 1,913,727 Land 185,000 185,000 Leasehold improvements See (1) 722,984 818,846 Furniture and fixtures 7 years 68,272 163,300 Software and websites 3 years 402,225 439,373 Total cost 8,917,070 8,676,306 Less accumulated depreciation 3,913,252 3,659,767 Property, plant, and equipment, net $ 5,003,818 $ 5,016,539 (1)

Investments

Investments	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Investments	NOTE 5 — INVESTMENTS During 2014 and 2013 DSS Technology Management made a series of investments in VirtualAgility, Inc. (“VirtualAgility”), a developer of programming platforms that facilitate the creation of business applications without programming or coding. The initial investment consisted of a $200,000 non-recourse note plus an equity stake of 1/8 of 7% of the outstanding common stock of VirtualAgility, for a total cash investment of $250,000. The non-recourse note is eligible for a preferred return of $1,250,000, plus a variable return of 1.875% based on gross proceeds, if any, derived from VirtualAgility’s patent portfolio. In addition, VirtualAgility granted DSS Technology Management a total of seven additional options to make additional quarterly investments of $250,000 apiece, under the same terms as the first investment. If all of such options are exercised, DSS Technology Management will have invested an aggregate of $2,000,000, consisting of $1,600,000 in non-recourse notes that would be eligible for an aggregate preferred return of $10,000,000 plus up to 15% of variable returns and, based on the current capitalization of VirtualAgility, DSS Technology Management would also own approximately 7% of the outstanding common stock of VirtualAgility. In May 2013, DSS Technology Management created a subsidiary called VirtualAgility Technology Investment, LLC (“VATI”) and transferred its ownership of the VirtualAgility investment and future investment options to VATI. Also in May 2013, a third-party investor became a 40% member of VATI. In exchange, the investor contributed $250,000 into VATI which was used to exercise one of the investment options in VirtualAgility per the terms described above. As of July 1, 2013, DSS Technology Management owned 60% of VATI. In conjunction with its acquisition accounting, the Company assessed the fair value of the VirtualAgility investment, including the expected exercise of future investment options as of the acquisition date, at approximately $10,750,000, which became the cost basis of the investment as of July 1, 2013. In August 2013, the Company contributed $250,000 into VATI which used the funds to make an additional investment in VirtualAgility per the terms described above. In November 2013, the other member of VATI contributed $250,000 into VATI which used the funds to make an additional investment in VirtualAgility per the terms described above. On February 14, 2014, DSS Technology Management contributed $250,000 into VATI which used the funds to make an additional investment in VirtualAgility per the terms described above. In May 2014, the other member of VATI contributed $250,000 into VATI which used the funds to make an additional investment in VirtualAgility per the terms described above. As of June 30, 2014, VATI owned 657,119 shares of common stock of VirtualAgility. As of June 30, 2014, investment in VATI was approximately $11,750,000 and DSS Technology Management owned 60% of VATI. VirtualAgility was the plaintiff in a patent infringement lawsuit against Salesforce.com, Inc. et al. In January and February 2014, DSS Technology Management made investments of $100,000 and $400,000, respectively, to purchase an aggregate of 594,530 shares of common stock of Express Mobile, Inc. (“Express Mobile”), which represented approximately 6% of the outstanding common stock of Express Mobile at the time of investment. Express Mobile is a developer of custom mobile applications and websites. The investments were recorded using the cost method. In accordance with paragraphs 16 through 19 of FASB ASC 825-10-50 the Company determined that it is not practicable to estimate the fair value of these investments since Express Mobile is a privately-held company that is not subject to the same disclosure regulations as U.S. public companies, and as such, the basis for an estimated fair value is subject to the completeness, quality, timing and accuracy of data received from Express Mobile. In December 2015, based on discussions with Express Mobile management and the Company’s understanding of the status of Express Mobile’s business, the Company determined that the investment was impaired and recognized an impairment loss of $500,000.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	NOTE 6 - INTANGIBLE ASSETS AND GOODWILL During 2015 and 2014, the Company spent approximately $5,000 and $94,000, respectively, on patent application costs. In 2014, the Company spent $1,150,000 on patent acquisitions. On July 8, 2013, the Company’s subsidiary, DSS Technology Management, purchased two patents for $500,000 covering certain methods and processes related to Bluetooth devices. In conjunction with the patent purchases, DSS Technology Management entered into a Proceed Right Agreement with certain investors pursuant to which DSS Technology Management initially received $250,000 of a total of $750,000 which it will ultimately receive thereunder, subject to certain payment milestones, in exchange for 40% of the proceeds which it receives, if any, from the use, sale or licensing of the two patents. As of December 31, 2015, the Company had received an aggregate of $650,000 ($650,000 in 2014) from the investors pursuant to the agreement of which approximately $551,000 was in accrued expenses in the consolidated balance sheet ($603,000 as December 31, 2014). On May 23, 2014, the Company’s subsidiary, DSS Technology Management, purchased 115 patents covering certain methods and processes in the semiconductor industry for $1,150,000. On January 5, 2015, the United States District Court for the Northern District of California issued a decision granting summary judgment to defendant Facebook, Inc. in connection with a lawsuit filed on October 3, 2012 by plaintiff Bascom Research, LLC (a subsidiary of the Company) alleging patent infringement. As a result of the Court’s decision, the Company evaluated the valuation of the patents that were the basis of the case for impairment as of December 31, 2014. The Company determined that since the patents had been invalidated the probability of future cash flows derived from the patents that would support the value of the assets had decreased so that the assets had been impaired. As a result, the Company recorded an impairment charge for the underlying patent assets of the net book value of the patents as of December 31, 2014 of approximately $22,285,000. Intangible assets are comprised of the following: December 31, 2015 December 31, 2014 Useful Life Gross Carrying Amount Accumulated Amortizaton Net Carrying Amount Gross Carrying Amount Accumulated Amortizaton Net Carrying Amount Acquired intangibles- customer lists and non-compete agreements 5 -10 years 1,997,300 1,635,257 362,043 1,997,300 1,532,123 465,177 Acquired intangibles-patents and patent rights Varied (1) 3,650,000 1,562,526 2,087,474 3,650,000 852,343 2,797,657 Patent application costs Varied (2) 1,062,958 494,931 568,027 1,058,833 413,268 645,565 $ 6,710,258 $ 3,692,714 $ 3,017,544 $ 6,706,133 $ 2,797,734 $ 3,908,399 (1) Acquired patents and patent rights are amortized over their expected useful life which is generally the remaining legal life of the patent. As of December 31, 2015, the weighted average remaining useful life of these assets in service was approximately 4.4 years. (2) Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of December 31, 2015, the weighted average remaining useful life of these assets in service was approximately 9.3 years. Amortization expense for the year ended December 31, 2015 amounted to approximately $896,000 ($4,653,000 –2014). Approximate expected amortization for each of the five succeeding fiscal years is as follows: Year Amount 2016 $ 692,000 2017 $ 673,000 2018 $ 537,000 2019 $ 265,000 2020 $ 193,000 Goodwill The Company performed its annual goodwill impairment test as of December 31, 2015. The Company performed the first step of the goodwill impairment test by comparing the fair value of each of its reporting units with their carrying amounts including goodwill. In performing this step, the Company determined estimates of fair value using a discounted cash flow model for each of its reporting units. The Company determined that its Packaging and Plastic units each had to the fair values in excess of their carrying value of their assets including goodwill and therefore, did not have an indication of goodwill impairment. For the Company’s Technology Management unit, the Company determined that the estimated fair value of the reporting unit was below its carrying value and therefore, required a second step goodwill impairment analysis. In performing the second step of the goodwill impairment test, the Company compared the carrying value of its Technology Management goodwill to its implied fair value. For the Company’s technology reporting unit for which a significant amount of future value is based on the value of patents and patent rights, the Company uses a valuation methodology that assesses the potential value of claims against parties the Company believes have infringed on the patents and therefore, the Company has the rights to receive royalties for those infringers. The Company uses its best estimates to determine the amount and timing of royalties that would be due from each potential infringing party based on the estimated scope of usage of the patented technology by each potential infringing party. Furthermore, the Company uses discount factors to take into account the potential of settlements at various stages of a typical patent infringement court case depending on the stage of each of the Company’s infringement proceedings. During the Company’s annual assessment of goodwill in 2015, the Company considered the negative trends in patent litigation which have reduced the success of patent owners in protecting their patents in the federal court system, among other factors. In performing Step 1 analysis, the Company determined that its DSS TM reporting unit had a negative carrying value as a result of the identifiable liabilities exceeding the assets and as a result was required to perform Step 2. In performing Step 2, the Company determined the fair value of the identifiable assets exceeded the enterprise value of the reporting unit and accordingly the Company recorded an approximately $9,600,000 goodwill impairment charge to the goodwill assigned to its DSS Technology Management division. During the Company’s annual assessment of goodwill in 2014, the Company assessed that the negative trends in patent litigation that have reduced the success of patent owners in protecting their patents in the federal court system had impairment the Company’s goodwill assigned to its DSS Technology Management division and accordingly, the Company recorded a $3,000,000 goodwill impairment charge to the goodwill assigned to its DSS Technology Management division. There are inherent assumptions and estimates used in developing future cash flows requiring management’s judgment in applying these assumptions and estimates to the analysis of identifiable intangibles and asset impairment including projecting revenues, timing and amount of claim or settlements related to patent infringement cases, royalty rates, interest rates, and the cost of capital. Many of the factors used in assessing fair value are outside the Company’s control and it is reasonably likely that assumptions and estimates will change in future periods. These changes can result in future impairments. The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows: Packaging Plastics Technolgy Management Total Balance as of January 1, 2014 Goodwill $ 1,768,400 $ 684,949 $ 12,831,774 $ 15,285,123 Accumulated impairment losses - - (238,926 ) (238,926 ) 1,768,400 684,949 12,592,848 15,046,197 Goodwill acquired during the year - - - - Impairment losses - - (3,000,000 ) (3,000,000 ) Balance as of December 31, 2014 Goodwill 1,768,400 684,949 12,831,774 15,285,123 Accumulated impairment losses - - (3,238,926 ) (3,238,926 ) 1,768,400 684,949 9,592,848 12,046,197 Goodwill acquired during the year - - - - Impairment losses - - (9,592,848 ) (9,592,848 ) Balance as of December 31, 2015 Goodwill 1,768,400 684,949 12,831,774 15,285,123 Accumulated impairment losses - - (12,831,774 ) (12,831,774 ) $ 1,768,400 $ 684,949 $ - $ 2,453,349

Short Term and Long Term Debt

Short Term and Long Term Debt	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Short Term and Long Term Debt	NOTE 7 – SHORT TERM AND LONG TERM DEBT Revolving Credit Lines Long-Term Debt On May 24, 2013, the Company entered into a promissory note in the principal sum of $850,000 to purchase three printing presses that were previously leased by the Company’s wholly-owned subsidiary, Secuprint Inc., and carries an interest rate of 9% per annum. Interest is payable quarterly, in arrears. The Company also issued the lender as additional consideration a five-year warrant to purchase up to 60,000 shares of the Company’s common stock at an exercise price of $3.00 per share. The warrant was valued at approximately $69,000 using the Black-Scholes-Merton option pricing model with a volatility of 60.0%, a risk free rate of return of 0.89% and zero dividend and forfeiture estimates. In conjunction with the issuance of the warrants, the Company recorded a discount on debt of approximately $69,000 that was amortized over the original term of the note. The note was set to mature on May 24, 2014, but its maturity date was extended on May 2, 2014 to May 24, 2015 by the lender. In exchange for the extension, the Company also issued the lender as additional consideration a five-year warrant to purchase up to 40,000 shares of the Company’s common stock at an exercise price of $1.50 per share. The warrant was valued at approximately $29,000 using the Black-Scholes-Merton option pricing model with a volatility of 70.0%, a risk free rate of return of 1.53% and zero dividend and forfeiture estimates. In conjunction with the issuance of the warrants, the Company recorded expense for modification of debt of approximately $29,000. On February 23, 2015, the Company entered into Promissory Note Amendment No. 2 to extend the maturity date to May 31, 2016 and to institute principal payments in the amount of $15,000 per month plus interest through the extended maturity date, and a balloon payment of $610,000 due on the extended maturity date. As of December 31, 2015, the balance of the term loan was $685,000 ($850,000 at December 31, 2014). Term Loan Debt On October 8, 2010, Premier Packaging amended its credit facility agreement with Citizens Bank to add a standby term loan note pursuant to which Citizens Bank was to provide Premier Packaging with up to $450,000 towards the funding of eligible equipment purchases for up to one year. In October 2011, the Company had borrowed $42,594 under the facility which amount was converted into a term note payable in 60 monthly installments of $887 plus interest at 1 Month LIBOR plus 3% (3.24% at December 31, 2015). As of December 31, 2015, the balance under this term note was $8,874 ($19,522 at December 31, 2014). On July 19, 2013, Premier Packaging entered into an equipment loan with People’s Capital and Leasing Corp. (“Peoples Capital”) for a printing press. The loan was for $1,303,900, repayable over a 60-month period which commenced when the equipment was placed in service in January 2014. The loan bears interest at 4.84% and is payable in equal monthly installments of $24,511. As of December 31, 2015, the loan had a balance of $819,681 ($1,067,586 at December 31, 2014). On April 28, 2015, Premier Packaging entered into a term note with Citizens for $525,000, repayable over a 60-month period. The loan bears interest at 3.61% and is payable in equal monthly installments of $9,591. Premier Packaging used the proceeds of the term note to acquire a HP Indigo 7800 Digital press. As of December 31, 2015, the loan had a balance of $460,448. Promissory Notes On December 6, 2013, Premier Packaging entered into a Construction to Permanent Loan with Citizens Bank for up to $450,000 that was converted into a promissory note upon the completion and acceptance of building improvements to the Company’s packaging plant in Victor, New York. In May 2014, the Company converted the loan into a $450,000 note payable in monthly installments over a 5 year period of $2,500 plus interest calculated at a variable rate of 1 Month Libor plus 3.15% (3.39% at December 31, 2015), which payments commenced on July 1, 2014. The note matures in July 2019 at which time a balloon payment of the remaining principal balance of $300,000 is due. As of December 31, 2015, the note had a balance of $405,247 ($435,000 –December 31, 2014). Under the Citizens Bank credit facilities, the Company’s subsidiary, Premier Packaging, is subject to various covenants including fixed charge coverage ratio, tangible net worth and current ratio covenants. For the quarters ended March 31, 2015, June 30, 2015, September 30, 2015, and December 31, 2015, Premier Packaging was in compliance with the covenants. The Citizens Bank obligations are secured by all of the assets of Premier Packaging and are also secured through cross guarantees by the Company and its other wholly-owned subsidiaries, Plastic Printing Professionals and Secuprint. A summary of scheduled principal payments of long-term debt, not including revolving lines of credit and other debt which can be settled with non-monetary assets, subsequent to December 31, 2015 are as follows: Year Amount 2016 $ 1,553,061 2017 467,727 2018 486,599 2019 491,618 2020 104,691 Thereafter 707,480 Total $ 3,811,176 Other Debt On March 27, 2014, the Company received an additional $1,000,000 under the Agreement comprised of a promissory note of $900,000 was promissory note and fixed return interests on $100,000. On September 5, 2014, the Company received the remaining $1,500,000 under the Agreement comprised of a promissory note of $900,000 was promissory note and fixed return interests on $100,000. In September 2015, the Company made a payment of $150,000 on the note. As of December 31, 2015, total Advances equaled $4,350,000, which consisted of $3,891,000 under the Agreement and an aggregate of $459,000 under the fixed return equity interest and contingent equity interests. Aggregate accrued interest totaled $132,000 as of December 31, 2015 ($48,000 as of December 31, 2014). The Agreement defines certain Events of Default, one of which is the failure by the Company, on or before the second anniversary of the Effective Date, which was February 13, 2016, to make payments to the Investors equal to the outstanding Advances. On February 13, 2016, the Company failed to make these payments. Under the Agreement, upon an Event of Default, the Collateral Agent and the Investors have a number of remedies, including rights related to foreclosure or direct monetization of the Patents. As a result of the Event of Default discussed above, the sole and exclusive recourse of the Investors and the Collateral Agent is to form a special purpose entity to take possession of the Patents, subject to a perpetual, non-transferable, non-exclusive worldwide royalty-free license back to the Company. The Agreement further provides that, in the case of this default, the Collateral Agent and Investors will not, individually or collectively, seek to enforce any monetary judgment with respect to or against any assets of the Company other than the Patents and any payments received in respect of the Patents, including settlement payments, license fees and royalties on the Patents. In the event that the Collateral Agent or Investors foreclose on, and take possession of the Patents, the Company will still be entitled to receive any payments received in respect of the Patents in the event of a recovery by any substituted plaintiff in any related litigation proceedings, subject to payment of amounts owed under the Agreement to the Investors and the Collateral Agent. In addition, as a result of the default, the interest rate on the unpaid amounts due increased to 2% per year effective February 13, 2016. As a result of the event of default, the Company has classified the remainder of the amounts due on the notes of approximately $4,023,000 as short-term debt as of December 31, 2015. The Company has been in discussions with the investors to amend the Agreement or otherwise to remedy the event of default; however, there can be no assurance as to the ultimate success of these discussions.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity	NOTE 8 - STOCKHOLDERS’ EQUITY Sales of Equity - The securities offered were made pursuant to prospectus supplements to the prospectus dated November 1, 2013, pursuant to the Company’s shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission on October 11, 2013 and became effective on November 1, 2013. The offering closed on December 31, 2015. No placement agent or underwriter was involved in the offering. On February 23, 2015, the Company amended two of its debt obligations that, among other things, extended the maturity dates of the notes, instituted principal payments for the notes, and eliminated a conversion feature on one of the notes. In conjunction with these agreements, the Company issued an aggregate of 100,000 shares of its common stock with a grant date fair value of $41,000. Stock Warrants The following is a summary with respect to warrants outstanding and exercisable at December 31, 2015 and 2014 and activity during the years then ended: 2015 2014 Weighted Weighted Average Average Exercise Exercise Warrants Price Warrants Price Outstanding January 1 6,566,385 $ 4.70 6,875,586 $ 4.64 Granted during the year 1,090,911 0.40 100,000 1.56 Exercised/transferred - - (80,645 ) 3.10 Lapsed/terminated (207,235 ) 3.52 (328,556 ) 2.91 Outstanding at December 31 7,450,061 $ 4.10 6,566,385 $ 4.70 Exercisable at December 31 6,359,150 $ 4.10 6,535,274 $ 4.71 Weighted average months remaining 34.3 40.0 Stock Options The following is a summary with respect to options outstanding at December 31, 2015 and 2014 and activity during the years then ended: 2015 2014 Number of Options Weighted Average Exercise Price Weighted Average Life Remaining Number of Options Weighted Average Exercise Price Weighted Average Life Remaining (in years) (in years) Outstanding at January 1: 4,928,291 2.92 4,073,898 3.25 Granted 53,550 0.60 1,172,197 1.96 Exercised - - - - Lapsed/terminated (557,282 ) 2.95 (317,804 ) 3.56 Outstanding at December 31: 4,424,559 2.89 4.0 4,928,291 2.92 4.0 Exercisable at December 31: 3,628,495 2.77 4.6 2,806,696 2.94 5.0 Expected to vest at December 31: 346,064 2.00 3.2 1,660,169 2.46 5.8 Aggregate intrinsic value of outstanding options at December 31: $ - $ - Aggregate intrinsic value of exercisable options at December 31: $ - $ - Aggregate intrinsic value of options expected to vest at December 31: $ - $ - Included in these amounts are earn-out options issued to the previous owners of ExtraDev with a contractual term of 5 years, to purchase an aggregate of 450,000 shares of common stock at an exercise price of $4.50 per share that will be vested if the Company’s Digital division achieves certain annual revenue targets by the end of fiscal year 2016. The fair value of the earn-out options amounted to $594,000. If the annual revenue targets are met or are deemed probable to occur, then the Company will record stock based compensation expense. As of December 31, 2015, vesting is considered remote. All options granted to the owners of ExtraDev were classified as compensation for post combination services since the vesting of each grant is based on length of employment, with all unvested options forfeiting upon termination of employment, therefore, the fair value of these equity instruments was not considered a component of the purchase price of the ExtraDev acquisition. The weighted-average grant date fair value of options granted during the year ended December 31, 2015 was $0.12 ($0.71 -2014). The aggregate grant date fair value of options that vested during the year was approximately $988,000 ($1,145,000 -2014). There were no options exercised during 2015 or 2014. The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes-Merton Option Pricing Model. The Company estimated the expected volatility of the Company’s common stock at the grant date using the historical volatility of the Company’s common stock over the most recent period equal to the expected stock option term. In January 2015, the Company issued an aggregate of 53,550 options to purchase shares of the Company’s common stock with an exercise price of $0.60 per share to certain members of the Company’s board in exchange for agreements by the board members to reduce their cash compensation for the fiscal year of 2015. The options vested on August 15, 2015 and had an aggregate grant date fair value of approximately $6,000. The aggregate fair value of these options was determined by utilizing the Black-Scholes-Merton option pricing model with a volatility of 72.6%, a risk free rate of return of 1.66% and zero dividend and forfeiture estimates. On March 5, 2014, the Company issued an aggregate of 1,138,697 options to purchase the Company’s common stock at $2.00 per share with a term of 5 years to its employees covered under the 2013 Plan. The options vest pro-ratably as follows: 1/3 on the grant date, 1/3 on the first anniversary of the grant date and 1/3 on the second anniversary of the grant date as long as the employee is employed on such dates. The options were valued at approximately $833,000 using the Black-Scholes-Merton option pricing model with a volatility of 67.0%, a risk free rate of return of 0.92% and zero dividend and forfeiture estimates. On March 13, 2014, the Company issued an aggregate of 84,025 shares of common stock to three of its directors to pay approximately $134,000 of accrued director’s fees. In December 2014, the Company issued 33,500 options to purchase the Company’s common stock at $0.60 per share with a term of 5 years to members of the Company’s executive management in exchange for an agreement by each employee to reduce his cash compensation for the fiscal year of 2015. The options vested on August 15, 2015 and had a grant date fair value of $6,643. The options were valued using the Black-Scholes-Merton option pricing model with a volatility of 72.6%, a risk free rate of return of 1.66% and zero dividend and forfeiture estimates. The following table shows our weighted average assumptions used to compute the share-based compensation expense for stock options and warrants granted during the years ended December 31, 2015 and 2014: 2015 2014 Volatility 72.6 % 67.1 % Expected option term 2.9 years 3.5 years Risk-free interest rate 1.7 % 0.9 % Expected forfeiture rate 0.0 % 0.0 % Expected dividend yield 0.0 % 0.0 % Restricted Stock In January 2015, the Company issued an aggregate of 30,000 shares of restricted common stock to certain members of the Company’s board in exchange for agreements by the board members to reduce their cash compensation for the fiscal year of 2015. The restricted shares vested on August 15, 2015 and had an aggregate grant date fair value of approximately $11,000. In November 2015, the Company issued 125,000 restricted shares to a consultant in exchange for media advertising services agreement. The restricted shares vested over a 90 period and had a grant date fair value of $27,500. In December 2014, the Company issued an aggregate of 243,750 shares of restricted common stock to certain members of the Company’s executive and senior management in exchange for agreements by the employees to reduce their cash compensation for the fiscal year of 2015. The restricted shares vested on August 15, 2015 and had an aggregate grant date fair value of $117,000. The following is a summary of activity of restricted stock during the years ended at December 31, 2015 and 2014: Shares Weighted- average Grant Date Fair Value Restricted shares outstanding, December 31, 2013 41,176 $ 3.33 Restricted shares granted 243,750 0.48 Restricted shares vested (20,588 ) 3.33 Restricted shares outstanding, December 31, 2014 264,338 $ 0.70 Restricted shares granted 155,000 0.25 Restricted shares vested (359,338 ) 0.59 Restricted shares outstanding, December 31, 2015 60,000 $ 0.22 Stock-Based Compensation

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 9 - INCOME TAXES Following is a summary of the components giving rise to the income tax provision (benefit) for the years ended December 31: 2015 2014 Currently payable: Federal $ - $ - State 5,836 6,735 Total currently payable 5,836 6,735 Deferred: Federal (990,745 ) (13,939,671 ) State (147,674 ) 488,406 Total deferred (1,138,419 ) (13,451,265 ) Less: increase in allowance 1,154,767 12,455,900 Net deferred 16,348 (995,365 ) Total income tax provision (benefit) $ 22,184 $ (988,630 ) Individual components of deferred taxes are as follows: Deferred tax assets: 2015 2014 Net operating loss carry forwards $ 17,383,770 $ 16,104,083 Equity issued for services 855,139 1,050,348 Goodwill and other intangibles 692,470 773,019 Investment in pass-through entity 268,476 268,476 Other 681,889 591,259 Gross deferred tax assets 19,881,744 18,787,185 Deferred tax liabilities: Goodwill and other intangibles 291,706 312,277 Depreciation and amortization 289,534 312,823 Gross deferred tax liabilities 581,240 625,100 Less valuation allowance (19,462,611 ) (18,307,844 ) Net deferred tax liabilities $ (162,107 ) $ (145,759 ) During 2014, the Company recognized a $995,000 net deferred tax benefit primarily as a result of the expense recognized during the period related to the impairment of the investment in VATI and the Bascom patents. The Company has approximately $51,958,000 in federal net operating loss carryforwards (“NOLs”) available to reduce future taxable income, which will expire at various dates from 2022 through 2034. Due to the uncertainty as to the Company’s ability to generate sufficient taxable income in the future and utilize the NOLs before they expire, the Company has recorded a valuation allowance accordingly. The Company’s NOLs could also be subject to annual limitation as a result of a change in its equity ownership as defined under the Internal Revenue Code Section 382. This limitation, as applicable, could further limit the use of the NOLs. The excess tax benefits associated with stock option exercises are recorded directly to stockholders’ equity only when realized. As a result, the excess tax benefits available in net operating loss carryforwards but not reflected in deferred tax assets was approximately $1,019,000. These carryforwards expire at various dates from 2022 through 2030. The excess tax benefits associated with stock option exercises are recorded directly to stockholders’ equity only when realized. The differences between the United States statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of operations are as follows: 2015 2014 Statutory United States federal rate 34.0 % 34.0 % State income taxes net of federal benefit 0.7 (0.7 ) Noncontrolling interest in pass-through entity - (3.4 ) Permanent differences (23.3 ) (2.3 ) Other (3.5 ) 1.1 Change in valuation reserves (8.1 ) (26.6 ) Effective tax rate (0.2 )% 2.1 % At December 31, 2015 and 2014, the total unrecognized tax benefits of $446,000 have been netted against the related deferred tax assets. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2015 and 2014, the Company recognized no interest and penalties. The Company files income tax returns in the U.S. federal jurisdiction and various states. The tax years 2012-2015 generally remain open to examination by major taxing jurisdictions to which the Company is subject.

Defined Contribution Pension Pl

Defined Contribution Pension Plan	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Defined Contribution Pension Plan	NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN The Company maintains qualified employee savings plans (the “401(k) Plans”) which qualify as deferred salary arrangements under Section 401(k) of the Internal Revenue Code which covers all employees. Employees generally become eligible to participate in the 401(k) Plan immediately following the employee’s hire date. Employees may contribute a percentage of their earnings, subject to the limitations of the Internal Revenue Code. The Company matches up to 50% of the employee’s contribution up to a maximum match of 3%. The total matching contributions for 2015 were approximately $109,000 ($107,000 -2014).

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 11 – COMMITMENTS AND CONTINGENCIES Facilities - Equipment Leases The following table summarizes the Company’s lease commitments. Operating Leases Equipment Facilities Total Payments made in 2015 $ 45,745 $ 337,738 $ 383,483 Future minimum lease commitments: 2016 $ 48,499 $ 233,937 $ 282,436 2017 44,131 237,929 282,060 2018 43,258 243,002 286,260 2019 14,419 68,820 83,239 2020 - 68,820 68,820 Total future minimum lease commitments $ 150,307 $ 852,508 $ 1,002,815 Employment Agreements Related Party Payments - Contingent Litigation Payments Legal Proceedings On October 3, 2012, Lexington Technology Group’s (now DSS Technology Management) subsidiary, Bascom Research, LLC, commenced legal proceedings against five companies, including Facebook, Inc. and LinkedIn Corporation, pursuant to which Bascom Research, LLC alleged that such companies infringed on one or more of its patents. On January 5, 2015, the U.S. District Court for the Northern District of California granted summary judgment to defendants Facebook, Inc., and LinkedIn Corp. effectively ending the case at the trial court level. On January 22, 2015, Bascom Research, LLC and Facebook, Inc. entered in to a Stipulation filed with the District Court whereby Bascom Research, LLC agreed not to appeal the District Court’s judgment, and Facebook, Inc. agreed to request the dismissal of a pending CBM review it had previously filed with the USPTO’s Patent Trial and Appeal Board (PTAB). The CBM proceeding was terminated on February 24, 2015. On November 26, 2013, DSS Technology Management filed suit against Apple, Inc. (“Apple”), in the United States District Court for the Eastern District of Texas, for patent infringement (the “Apple Litigation”). The complaint alleges infringement by Apple of DSS Technology Management’s patents that relate to systems and methods of using low power wireless peripheral devices. DSS Technology Management is seeking a judgement for infringement, injunctive relief, and compensatory damages from Apple. On October 28, 2014, the case was stayed by the District Court pending a determination of Apple’s motion to transfer the case to the Northern District of California. On November 7, 2014, the case was transferred to the Northern District of California. In December 2014, Apple filed two IPR petitions with PTAB for review of the patents at issue in the case. The PTAB instituted the IPRs on June 25, 2015. Oral arguments of the IPRs took place on March 15, 2016, with a decision expected from PTAB by the end of June 2016. On March 10, 2014, DSS Technology Management filed suit in the United States District Court for the Eastern District of Texas against Taiwan Semiconductor Manufacturing Company, TSMC North America, TSMC Development, Inc. (referred to collectively as TSMC), Samsung Electronics Co., Ltd, Samsung Electronics America, Inc., Samsung Telecommunications America L.L.C., Samsung Semiconductor, Inc., Samsung Austin Semiconductor LLC (referred to collectively as Samsung), and NEC Corporation of America (referred to as NEC), for patent infringement involving certain of its semiconductor patents. DSS Technology Management sought a judgment for infringement, injunctive relief, and money damages from each of the named defendants. In June, 2014, TSMC filed an IPR petition with PTAB for review of the patents at issue. Samsung then filed an IPR petition relating to the same patents in September 2014, and filed a corrected IPR petition in October 2014. On December 31, 2014, the PTAB instituted review of several of the patent claims at issue in the case. Samsung then filed a motion with PTAB to join TSMC’s IPR proceeding. The request was granted by PTAB. On November 30, 2015, the PTAB issued a decision invalidating the patent claims at issue in the case. DSS Technology Management then filed a notice of appeal of the IPR decision with the Federal Circuit on February 1, 2016, which is pending as of the date of this Report. On March 3, 2015, a Markman hearing was held in the Eastern District of Texas. Based on the District Court’s claim construction order issued on April 9, 2015, DSS Technology Management and TSMC entered in to a Joint Stipulation and Proposed Final Judgment of Non-Infringement dated May 4, 2015, subject to DSS Technology Management’s right to appeal the court’s claim construction order to the Federal Circuit, thus preserving the status quo in the event an appeal results in a remand for further proceedings in the District Court. On March 22, 2016, the Federal Circuit ruled in favor of TSMC in the appeal. On April 28, 2015, DSS Technology Management reached a confidential settlement with NEC, ending the litigation with NEC. On May 30, 2014, DSS Technology Management filed suit against Lenovo (United States), Inc. (“Lenovo”) in the United States District Court for the Eastern District of Texas, for patent infringement. The complaint alleged infringement by Lenovo of one of DSSTM’s patents that relates to systems and methods of using low power wireless peripheral devices. DSS Technology Management sought judgment for infringement and money damages from Lenovo in connection with the case. On June 17, 2015, the parties entered in to a confidential non-suit agreement which ended the litigation with Lenovo. On February 16, 2015, DSS Technology Management filed suit in the United States District Court, Eastern District of Texas, against defendants Intel Corporation, Dell, Inc., GameStop Corp., Conn’s Inc., Conn Appliances, Inc., NEC Corporation of America, Wal-Mart Stores, Inc., Wal-Mart Stores Texas, LLC, and AT&T, Inc. The complaint alleges patent infringement and seeks judgment for infringement of two of DSSTM’s patents, injunctive relief and money damages. On December 9, 2015, Intel filed IPR petitions with PTAB for review of the patents at issue in the case. PTAB has not yet made a determination whether the IPRs will be instituted. On March 18, 2016, the District Court issued an Order granting Intel’s motion to stay the case until completion of the IPR proceedings. On July 16, 2015, DSS Technology Management filed three separate lawsuits in the United States District Court for the Eastern District of Texas alleging infringement of certain of its semiconductor patents. The defendants are SK Hynix et al., et al., On January 29, 2016, the Company received notice of the dismissal of a shareholder derivative suit filed in New York State Court in April 2015 by Benjamin Lapin, derivatively and on behalf of all others similarly situated, Plaintiff v. Robert Fagenson, Jeffrey Ronaldi, Peter Hardigan, Robert Bzdick, Jonathon Perrelli, Warren Hurwitz, Ira Greenstein, David Klein and Philip Jones, Defendants, and the Company, as Nominal Defendant. In addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and have not been finally adjudicated. Although there can be no assurance in this regard, in the opinion of management, none of the legal proceedings to which we are a party, whether discussed herein or otherwise, will have a material adverse effect on its results of operations, cash flows or our financial condition. The Company accrues for potential litigation losses when a loss is probable and reasonably estimable.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	NOTE 12 - SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information for the years ended December 31: 2015 2014 Cash paid for interest $ 251,000 $ 298,000 Non-cash investing and financing activities: Accrued liabilities with related parties settled with equity $ - $ 134,000 Financing of building improvements $ - $ 200,000 Financing of equipment purchases $ 525,000 $ - Change in non-controlling interest $ - $ (4,700,000 ) Loss from change in fair value of interest rate swap derivative $ (2,500 ) $ (34,000 ) Escrow shares retired $ - $ 150,000

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment Information	NOTE 13 - SEGMENT INFORMATION As of January 1, 2015, the Company’s businesses are organized, managed and internally reported as four operating segments. Two of these operating segments, Packaging and Printing and Plastics, are engaged in the printing and production of paper, cardboard and plastic 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. The two other operating segments, ExtraDev, Inc., dba DSS Digital Group, and DSS Technology Management, Inc., are engaged in various aspects of developing, acquiring, selling and licensing technology assets and are grouped into one reportable segment called Technology. Approximate information concerning the Company’s operations by reportable segment for the years ended December 31, 2015 and 2014 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, 2015 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 11,797,000 3,904,000 1,804,000 - $ 17,505,000 Depreciation and amortization 584,000 120,000 847,000 8,000 1,559,000 Interest expense 137,000 - 84,000 114,000 335,000 Stock based compensation 69,000 39,000 112,000 754,000 974,000 Impairment of goodwill - - 9,593,000 - 9,593,000 Impairment of intangible assets and investments - - 500,000 - 500,000 Income tax expense - - - 22,000 22,000 Net income (loss) to common stockholders 1,070,000 166,000 (12,944,000 ) (2,601,000 ) (14,309,000 ) Capital expenditures 621,000 52,000 9,000 - 682,000 Identifiable assets 9,571,000 2,131,000 3,299,000 656,000 15,657,000 Year Ended December 31, 2014 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 12,926,000 3,552,000 1,809,000 - $ 18,287,000 Depreciation and amortization 567,000 171,000 4,532,000 4,000 5,274,000 Interest expense 156,000 7,000 54,000 100,000 317,000 Stock based compensation 121,000 69,000 155,000 1,010,000 1,355,000 Impairment of goodwill - - 3,000,000 - 3,000,000 Impairment of intangible assets and investments - - 34,035,000 - 34,035,000 Loss attributable to noncontrolling interest - - (4,700,000 ) - (4,700,000 ) Income tax benefit - - - (989,000 ) (989,000 ) Net income (loss) to common stockholders 842,000 (106,000 ) (38,843,000 ) (3,050,000 ) (41,157,000 ) Capital expenditures 717,000 131,000 1,244,000 - 2,092,000 Identifiable assets 8,873,000 1,872,000 14,872,000 2,133,000 27,750,000 International revenue, which consists of sales to customers with operations in Canada, Western Europe, Latin America, Africa, the Middle East and Asia comprised 2% of total revenue for 2015 (2%- 2014). Revenue is allocated to individual countries by customer based on where the product is shipped to, location of services performed or the location of equipment that is under an annual maintenance agreement. The Company had no long-lived assets in any country other than the United States for any period presented.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates
Reclassifications	Reclassifications
Restricted Cash	Restricted Cash
Accounts Receivable	Accounts Receivable
Inventory	Inventory
Property, Plant and Equipment	Property, Plant and Equipment
Investments	Investments –
Goodwill	Goodwill -
Other Intangible Assets and Patent Application Costs	Other Intangible Assets and Patent Application Costs
Impairment of Long Lived Assets	Impairment of Long Lived Assets
Fair Value of Financial Instruments	Fair Value of Financial Instruments ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts reported in the balance sheet of cash, accounts receivable, prepaids, notes receivable, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair value of revolving credit lines, notes payable and long-term debt approximates their carrying value as the stated or discounted rates of the debt reflect recent market conditions. Derivative instruments, as discussed below, are recorded as assets and liabilities at estimated fair value based on available market information. At December 31, 2014, the Company’s convertible note payable was recorded at its face amount, net of an unamortized premium for a beneficial conversion feature and had an estimated fair value of approximately $117,000 based on the underlying shares the note could be converted into at the trading price on December 31, 2014. Since the underlying shares were trading in an active, observable market, the fair value measurement qualified as a Level 1 input. As included in Note 7, the conversion feature associated with this note was removed during 2015.
Derivative Instruments	Derivative Instruments The Company has an interest rate swap with Citizens that changes the variable rate on a term loan to a fixed rate as follows: Notional Amount Variable Rate Fixed Cost Maturity Date $ 1,021,926 3.39 % 5.87 % August 30, 2021
Conventional Convertible Debt	Conventional Convertible Debt
Share-Based Payments	Share-Based Payments
Revenue Recognition	Revenue Recognition - For technology sales and services, revenue is recognized in accordance with FASB ASC 985-605. Accordingly, revenue is recognized when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service or product has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is reasonably assured. We recognize cloud computing revenue, including data backup, recovery and security services, on a monthly basis, beginning on the date the customer commences use of our services. Professional services are recognized in the period services are provided. For printing technology licenses, revenue is recognized once all the following criteria for revenue recognition have been met: (1) persuasive evidence of an agreement exists; (2) the right and ability to use the product or technology has been rendered; (3) the fee is fixed and determinable and not subject to refund or adjustment; and (4) collection of the amounts due is reasonably assured. For other technology licenses, revenue arrangements generally provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. These rights typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patented technologies owned or controlled the Company, (ii) a covenant-not-to-sue, (iii) the release of the licensee from certain claims, and (iv) the dismissal of any pending litigation. The intellectual property rights granted may be perpetual in nature, extending until the expiration of the related patents, or can be granted for a defined, relatively short period of time, with the licensee possessing the right to renew the agreement at the end of each contractual term for an additional minimum upfront payment. Pursuant to the terms of these agreements, the Company has no further obligation with respect to the grant of the non-exclusive retroactive and future licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s part to maintain or upgrade the technology, or provide future support or services. Generally, the agreements provide for the grant of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the agreement, or upon receipt of the minimum upfront payment for term agreement renewals. As such, the earnings process is complete and revenue is recognized upon the execution of the agreement, when collectability is reasonably assured, or upon receipt of the minimum upfront fee for term agreement renewals, and when all other revenue recognition criteria have been met. Certain of the Company’s revenue arrangements provide for future royalties or additional required payments based on future licensee activities. Additional royalties are recognized in revenue upon resolution of the related contingency provided that all revenue recognition criteria, as described above, have been met. Amounts of additional royalties due under these license agreements, if any, cannot be reasonably estimated by management.
Costs of Revenue	Costs of revenue -
Contingent Legal Expenses	Contingent Legal Expenses -
Advertising Costs	Advertising Costs .
Research and Development	Research and Development
Income Taxes	Income Taxes
Earnings Per Common Share	Earnings Per Common Share As of December 31, 2015 and 2014, there were 11,874,620 and 12,019,194, respectively, of common stock share equivalents potentially issuable under convertible debt agreements, employment agreements, options, warrants, and restricted stock agreements that could potentially dilute basic earnings per share in the future. Common stock equivalents were excluded from the calculation of diluted earnings per share for 2015 and 2014 in which the Company had a net loss, since their inclusion would have been anti-dilutive.
Comprehensive Loss	Comprehensive Loss
Concentration of Credit Risk	Concentration of Credit Risk During 2015, two customers accounted for 35% of the Company’s consolidated revenue. As of December 31, 2015, these two customers accounted for 27% of the Company’s trade accounts receivable balance. During 2014, these same two customers accounted for 40% of the Company’s consolidated revenue. As of December 31, 2014, these two customers accounted for 25% of the Company’s trade accounts receivable balance.
Continuing Operations	Continuing Operations -
Recent Accounting Pronouncements	Recent Accounting Pronouncements - In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The guidance requires an entity to evaluate whether there are conditions or events, in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and to provide related footnote disclosures in certain circumstances. The guidance is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company does not believe the adoption of this ASU will have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest”, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not believe the adoption of this ASU will have a significant impact on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” The guidance requires that certain inventory, including inventory measured using the first-in-first-out method, be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The guidance becomes effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company applied this guidance to its current fiscal years ending December 31, 2015 and 2014. The adoption of this guidance had no material impact on the results of operations or financial position. Certain prior year deferred tax assets or liabilities have been reclassified to conform with the current year presentation. In February 2016, the FASB issued an accounting standard update ASU 2016-02, “Leases”, which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company has not yet evaluated nor has it determined the effect of the standard on its ongoing financial reporting.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Derivative Instruments	The Company has an interest rate swap with Citizens that changes the variable rate on a term loan to a fixed rate as follows: Notional Amount Variable Rate Fixed Cost Maturity Date $ 1,021,926 3.39 % 5.87 % August 30, 2021

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following at December 31: 2015 2014 Finished Goods $ 718,601 $ 572,695 Work in process 167,779 123,611 Raw Materials 51,450 172,956 $ 937,830 $ 869,262

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment consisted of the following at December 31: 2015 2014 Estimated Useful Life Machinery and equipment 5-10 years $ 5,615,562 $ 5,156,060 Building and improvements 39 years 1,923,027 1,913,727 Land 185,000 185,000 Leasehold improvements See (1) 722,984 818,846 Furniture and fixtures 7 years 68,272 163,300 Software and websites 3 years 402,225 439,373 Total cost 8,917,070 8,676,306 Less accumulated depreciation 3,913,252 3,659,767 Property, plant, and equipment, net $ 5,003,818 $ 5,016,539 (1)

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Other Intangible Assets	Intangible assets are comprised of the following: December 31, 2015 December 31, 2014 Useful Life Gross Carrying Amount Accumulated Amortizaton Net Carrying Amount Gross Carrying Amount Accumulated Amortizaton Net Carrying Amount Acquired intangibles- customer lists and non-compete agreements 5 -10 years 1,997,300 1,635,257 362,043 1,997,300 1,532,123 465,177 Acquired intangibles-patents and patent rights Varied (1) 3,650,000 1,562,526 2,087,474 3,650,000 852,343 2,797,657 Patent application costs Varied (2) 1,062,958 494,931 568,027 1,058,833 413,268 645,565 $ 6,710,258 $ 3,692,714 $ 3,017,544 $ 6,706,133 $ 2,797,734 $ 3,908,399 (1) Acquired patents and patent rights are amortized over their expected useful life which is generally the remaining legal life of the patent. As of December 31, 2015, the weighted average remaining useful life of these assets in service was approximately 4.4 years. (2) Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of December 31, 2015, the weighted average remaining useful life of these assets in service was approximately 9.3 years.
Schedule of Estimated Future Amortization of Intangible Assets	Approximate expected amortization for each of the five succeeding fiscal years is as follows: Year Amount 2016 $ 692,000 2017 $ 673,000 2018 $ 537,000 2019 $ 265,000 2020 $ 193,000
Schedule of Changes on Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows: Packaging Plastics Technolgy Management Total Balance as of January 1, 2014 Goodwill $ 1,768,400 $ 684,949 $ 12,831,774 $ 15,285,123 Accumulated impairment losses - - (238,926 ) (238,926 ) 1,768,400 684,949 12,592,848 15,046,197 Goodwill acquired during the year - - - - Impairment losses - - (3,000,000 ) (3,000,000 ) Balance as of December 31, 2014 Goodwill 1,768,400 684,949 12,831,774 15,285,123 Accumulated impairment losses - - (3,238,926 ) (3,238,926 ) 1,768,400 684,949 9,592,848 12,046,197 Goodwill acquired during the year - - - - Impairment losses - - (9,592,848 ) (9,592,848 ) Balance as of December 31, 2015 Goodwill 1,768,400 684,949 12,831,774 15,285,123 Accumulated impairment losses - - (12,831,774 ) (12,831,774 ) $ 1,768,400 $ 684,949 $ - $ 2,453,349

Short Term and Long Term Debt (

Short Term and Long Term Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of Notes Payable and Long-Term Debt	A summary of scheduled principal payments of long-term debt, not including revolving lines of credit and other debt which can be settled with non-monetary assets, subsequent to December 31, 2015 are as follows: Year Amount 2016 $ 1,553,061 2017 467,727 2018 486,599 2019 491,618 2020 104,691 Thereafter 707,480 Total $ 3,811,176

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of Warrant Activity	The following is a summary with respect to warrants outstanding and exercisable at December 31, 2015 and 2014 and activity during the years then ended: 2015 2014 Weighted Weighted Average Average Exercise Exercise Warrants Price Warrants Price Outstanding January 1 6,566,385 $ 4.70 6,875,586 $ 4.64 Granted during the year 1,090,911 0.40 100,000 1.56 Exercised/transferred - - (80,645 ) 3.10 Lapsed/terminated (207,235 ) 3.52 (328,556 ) 2.91 Outstanding at December 31 7,450,061 $ 4.10 6,566,385 $ 4.70 Exercisable at December 31 6,359,150 $ 4.10 6,535,274 $ 4.71 Weighted average months remaining 34.3 40.0
Summary of Stock Option Activity Under Stock Option and Incentive Plans	The following is a summary with respect to options outstanding at December 31, 2015 and 2014 and activity during the years then ended: 2015 2014 Number of Options Weighted Average Exercise Price Weighted Average Life Remaining Number of Options Weighted Average Exercise Price Weighted Average Life Remaining (in years) (in years) Outstanding at January 1: 4,928,291 2.92 4,073,898 3.25 Granted 53,550 0.60 1,172,197 1.96 Exercised - - - - Lapsed/terminated (557,282 ) 2.95 (317,804 ) 3.56 Outstanding at December 31: 4,424,559 2.89 4.0 4,928,291 2.92 4.0 Exercisable at December 31: 3,628,495 2.77 4.6 2,806,696 2.94 5.0 Expected to vest at December 31: 346,064 2.00 3.2 1,660,169 2.46 5.8 Aggregate intrinsic value of outstanding options at December 31: $ - $ - Aggregate intrinsic value of exercisable options at December 31: $ - $ - Aggregate intrinsic value of options expected to vest at December 31: $ - $ -
Schedule of Assumptions Used to Compute the Share-based Compensation Expense for Stock Options and Warrants	The following table shows our weighted average assumptions used to compute the share-based compensation expense for stock options and warrants granted during the years ended December 31, 2015 and 2014: 2015 2014 Volatility 72.6 % 67.1 % Expected option term 2.9 years 3.5 years Risk-free interest rate 1.7 % 0.9 % Expected forfeiture rate 0.0 % 0.0 % Expected dividend yield 0.0 % 0.0 %
Summary of Restricted Stock	The following is a summary of activity of restricted stock during the years ended at December 31, 2015 and 2014: Shares Weighted- average Grant Date Fair Value Restricted shares outstanding, December 31, 2013 41,176 $ 3.33 Restricted shares granted 243,750 0.48 Restricted shares vested (20,588 ) 3.33 Restricted shares outstanding, December 31, 2014 264,338 $ 0.70 Restricted shares granted 155,000 0.25 Restricted shares vested (359,338 ) 0.59 Restricted shares outstanding, December 31, 2015 60,000 $ 0.22

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision	Following is a summary of the components giving rise to the income tax provision (benefit) for the years ended December 31: 2015 2014 Currently payable: Federal $ - $ - State 5,836 6,735 Total currently payable 5,836 6,735 Deferred: Federal (990,745 ) (13,939,671 ) State (147,674 ) 488,406 Total deferred (1,138,419 ) (13,451,265 ) Less: increase in allowance 1,154,767 12,455,900 Net deferred 16,348 (995,365 ) Total income tax provision (benefit) $ 22,184 $ (988,630 )
Schedule of Deferred Tax Assets and Liabilities	Individual components of deferred taxes are as follows: Deferred tax assets: 2015 2014 Net operating loss carry forwards $ 17,383,770 $ 16,104,083 Equity issued for services 855,139 1,050,348 Goodwill and other intangibles 692,470 773,019 Investment in pass-through entity 268,476 268,476 Other 681,889 591,259 Gross deferred tax assets 19,881,744 18,787,185 Deferred tax liabilities: Goodwill and other intangibles 291,706 312,277 Depreciation and amortization 289,534 312,823 Gross deferred tax liabilities 581,240 625,100 Less valuation allowance (19,462,611 ) (18,307,844 ) Net deferred tax liabilities $ (162,107 ) $ (145,759 )
Schedule of Effective Income Tax Rate Reconciliation	The differences between the United States statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of operations are as follows: 2015 2014 Statutory United States federal rate 34.0 % 34.0 % State income taxes net of federal benefit 0.7 (0.7 ) Noncontrolling interest in pass-through entity - (3.4 ) Permanent differences (23.3 ) (2.3 ) Other (3.5 ) 1.1 Change in valuation reserves (8.1 ) (26.6 ) Effective tax rate (0.2 )% 2.1 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments Under Operating Leases	The following table summarizes the Company’s lease commitments. Operating Leases Equipment Facilities Total Payments made in 2015 $ 45,745 $ 337,738 $ 383,483 Future minimum lease commitments: 2016 $ 48,499 $ 233,937 $ 282,436 2017 44,131 237,929 282,060 2018 43,258 243,002 286,260 2019 14,419 68,820 83,239 2020 - 68,820 68,820 Total future minimum lease commitments $ 150,307 $ 852,508 $ 1,002,815

Supplemental Cash Flow Inform29

Supplemental Cash Flow Information (Tables)	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Information [Abstract]
Schedule of Supplemental Cash Flow Information	Supplemental cash flow information for the years ended December 31: 2015 2014 Cash paid for interest $ 251,000 $ 298,000 Non-cash investing and financing activities: Accrued liabilities with related parties settled with equity $ - $ 134,000 Financing of building improvements $ - $ 200,000 Financing of equipment purchases $ 525,000 $ - Change in non-controlling interest $ - $ (4,700,000 ) Loss from change in fair value of interest rate swap derivative $ (2,500 ) $ (34,000 ) Escrow shares retired $ - $ 150,000

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of Operations by Reportable Segment	Approximate information concerning the Company’s operations by reportable segment for the years ended December 31, 2015 and 2014 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, 2015 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 11,797,000 3,904,000 1,804,000 - $ 17,505,000 Depreciation and amortization 584,000 120,000 847,000 8,000 1,559,000 Interest expense 137,000 - 84,000 114,000 335,000 Stock based compensation 69,000 39,000 112,000 754,000 974,000 Impairment of goodwill - - 9,593,000 - 9,593,000 Impairment of intangible assets and investments - - 500,000 - 500,000 Income tax expense - - - 22,000 22,000 Net income (loss) to common stockholders 1,070,000 166,000 (12,944,000 ) (2,601,000 ) (14,309,000 ) Capital expenditures 621,000 52,000 9,000 - 682,000 Identifiable assets 9,571,000 2,131,000 3,299,000 656,000 15,657,000 Year Ended December 31, 2014 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 12,926,000 3,552,000 1,809,000 - $ 18,287,000 Depreciation and amortization 567,000 171,000 4,532,000 4,000 5,274,000 Interest expense 156,000 7,000 54,000 100,000 317,000 Stock based compensation 121,000 69,000 155,000 1,010,000 1,355,000 Impairment of goodwill - - 3,000,000 - 3,000,000 Impairment of intangible assets and investments - - 34,035,000 - 34,035,000 Loss attributable to noncontrolling interest - - (4,700,000 ) - (4,700,000 ) Income tax benefit - - - (989,000 ) (989,000 ) Net income (loss) to common stockholders 842,000 (106,000 ) (38,843,000 ) (3,050,000 ) (41,157,000 ) Capital expenditures 717,000 131,000 1,244,000 - 2,092,000 Identifiable assets 8,873,000 1,872,000 14,872,000 2,133,000 27,750,000

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	1 Months Ended		12 Months Ended
	Feb. 28, 2014	Jan. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Significant Accounting Policies [Line Items]
Restricted cash			$ 293,000	$ 355,793
Accounts receivable, allowance			59,000	59,000
Depreciation expense			663,000	622,000
Debt instrument, fair value				117,000
Net gain (loss) attributable to cash flow hedge			64,000	61,000
Advertising costs			25,000	39,000
Research and development			$ 470,000	$ 462,000
Antidilutive securities			11,874,620	12,019,194
Proceeds from sale of equity			$ 1,100,000
Unrestricted cash			1,440,000
Maximum borrowing capacity			$ 800,000
Sales Revenue, Goods, Net [Member]
Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage			35.00%	40.00%
Accounts Receivable [Member]
Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage			27.00%	25.00%
DSS Technology Management [Member]
Significant Accounting Policies [Line Items]
Total cash investment	$ 400,000	$ 100,000
Investment owned shares			594,530
Percent of outstanding common stock	6.00%
Cost of investment			$ 500,000

Summary of Significant Accoun32

Summary of Significant Accounting Policies - Schedule of Derivative Instruments (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Summary Of Significant Accounting Policies - Schedule Of Derivative Instruments Details
Notional Amount	$ 1,021,926
Variable Rate	3.39%
Fixed Cost	5.87%
Maturity Date	Aug. 30, 2021

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished Goods	$ 718,601	$ 572,695
Work in process	167,779	123,611
Raw Materials	51,450	172,956
Inventory	$ 937,830	$ 869,262

Property Plant and Equipment -

Property Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total cost		$ 8,917,070	$ 8,676,306
Less accumulated depreciation		3,913,252	3,659,767
Property, plant, and equipment, net		5,003,818	5,016,539
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost		$ 5,615,562	5,156,060
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life		5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life		10 years
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost		$ 1,923,027	1,913,727
Property and equipment, estimated useful life		39 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost	[1]	$ 722,984	818,846
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life		3 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life		10 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost		$ 68,272	163,300
Property and equipment, estimated useful life		7 years
Software and Websites [Member]
Property, Plant and Equipment [Line Items]
Total cost		$ 402,225	439,373
Property and equipment, estimated useful life		3 years
Land [Member]
Property, Plant and Equipment [Line Items]
Total cost		$ 185,000	$ 185,000
[1]	(1) Expected lease term between 3 and 10 years.

Investments (Details Narrative)

Investments (Details Narrative) - USD ($)

Jul. 02, 2013

Jun. 30, 2015

May. 31, 2014

Feb. 28, 2014

Feb. 14, 2014

Jan. 31, 2014

Nov. 30, 2013

Aug. 31, 2013

May. 31, 2013

Sep. 30, 2015

Sep. 30, 2014

Dec. 31, 2015

Jun. 30, 2014

Related Party Transaction [Line Items]

Proceeesds from sale of equity interest

$ 1,100,000

Virtual Agility Technology Investments Llc [Member]

Related Party Transaction [Line Items]

Initial investment, non-recourse note

$ 200,000

Percent of outstanding common stock

7.00%

Total cash investment

$ 250,000

$ 250,000

$ 250,000

$ 250,000

$ 250,000

Preferred return on each non-recourse note

1,250,000

Aggregate investment

2,000,000

Additional quarterly investments

$ 250,000

Variable return percentage

1.875%

Cost of investment

$ 11,750,000

Investment owned shares

594,530

657,119

Aggregate preferred return

$ 10,750,000

Non-recourse notes

$ 1,600,000

Impairment of investment

$ 7,050,000

Proceeesds from sale of equity interest

$ 200,000

Document Security Systems Technology Management [Member]

Related Party Transaction [Line Items]

Percent of outstanding common stock

6.00%

7.00%

Total cash investment

$ 400,000

$ 100,000

Variable return percentage

15.00%

Cost of investment

$ 500,000

Aggregate preferred return

$ 10,000,000

Equity ownership percentage

60.00%

60.00%

Third Party Investor [Member]

Related Party Transaction [Line Items]

Total cash investment

$ 250,000

Equity ownership percentage

40.00%

Parent [Member]

Related Party Transaction [Line Items]

Impairment of investment

$ 11,750,000

Noncontrolling Interest [Member]

Related Party Transaction [Line Items]

Equity ownership percentage

40.00%

Impairment of investment

$ 4,700,000

Intangible Assets and Goodwil36

Intangible Assets and Goodwill (Details Narrative)	Jan. 05, 2015USD ($)	May. 23, 2014USD ($)Patents	Jul. 08, 2013USD ($)	Jul. 08, 2013USD ($)	Feb. 28, 2014USD ($)	Jan. 31, 2014USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jul. 08, 2014
Goodwill [Line Items]
Patent application costs							$ 5,000	$ 94,000
Patent and patent acquisition costs								1,150,000
Impairment of assets	$ 22,285,000						500,000	34,034,862
Amortization of intangibles							896,000	4,653,000
Amount received from investors							650,000	650,000
Impairment of goodwill							9,592,848	3,000,000
Accrued expenses from investors							551,000	$ 603,000
Impairment charge							$ 9,600,000
Patented Technology [Member]
Goodwill [Line Items]
Patent and patent acquisition costs			$ 500,000
Document Security Systems Technology Management [Member]
Goodwill [Line Items]
Total cash investment				$ 250,000
Return of investment in unconsolidated business				$ 750,000
Equity ownership percentage									40.00%
DSS Technology Management [Member]
Goodwill [Line Items]
Patent and patent acquisition costs		$ 1,150,000
Number of patents | Patents		115
Total cash investment					$ 400,000	$ 100,000

Intangible Assets and Goodwil37

Intangible Assets and Goodwill - Schedule of Other Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 6,710,258	$ 6,706,133
Accumulated Amortization	3,692,714	2,797,734
Net Carrying Amount	3,017,544	3,908,399
Customer Llists and Non-compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,997,300	1,997,300
Accumulated Amortization	1,635,257	1,532,123
Net Carrying Amount	$ 362,043	465,177
Customer Llists and Non-compete Agreements [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years
Customer Llists and Non-compete Agreements [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life	10 years
Patents and Patent Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,650,000	3,650,000	[1]
Accumulated Amortization	1,562,526	852,343	[1]
Net Carrying Amount	$ 2,087,474	2,797,657	[1]
Useful Life	4 years 4 months 24 days
Patent Application Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,062,958	1,058,833	[2]
Accumulated Amortization	494,931	413,268	[2]
Net Carrying Amount	$ 568,027	$ 645,565	[2]
Useful Life	9 years 3 months 18 days
[1]	Acquired patents and patent rights are amortized over their expected useful life which is generally the remaining legal life of the patent. As of December 31, 2015, the weighted average remaining useful life of these assets in service was approximately 4.4 years.
[2]	Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of December 31, 2015, the weighted average remaining useful life of these assets in service was approximately 9.3 years.

Intangible Assets and Goodwil38

Intangible Assets and Goodwill - Schedule of Estimated Future Amortization of Intangible Assets (Details)	Dec. 31, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,016	$ 692,000
2,017	673,000
2,018	537,000
2,019	265,000
2,020	$ 193,000

Intangible Assets and Goodwil39

Intangible Assets and Goodwill - Schedule of Changes on Carrying Amount of Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Line Items]
Goodwill, net, Beginning balance	$ 12,046,197	$ 15,285,123
Accumulated impairment losses, Beginning balance	(3,238,926)	(238,926)
Goodwill, Beginning balance	15,285,123	$ 15,046,197
Goodwill acquired during the year
Impairment losses	(9,592,848)	$ (3,000,000)
Goodwill, net, Ending balance	2,453,349	12,046,197
Accumulated impairment losses, Ending balance	(12,831,774)	(3,238,926)
Goodwill, Ending balance	15,285,123	15,285,123
Document Security Systems Packaging Group [Member]
Goodwill [Line Items]
Goodwill, net, Beginning balance	$ 1,768,400	$ 1,768,400
Accumulated impairment losses, Beginning balance
Goodwill, Beginning balance	$ 1,768,400	$ 1,768,400
Goodwill acquired during the year
Impairment losses
Goodwill, net, Ending balance	$ 1,768,400	$ 1,768,400
Accumulated impairment losses, Ending balance
Goodwill, Ending balance	$ 1,768,400	$ 1,768,400
Document Security Systems Plastics Group [Member]
Goodwill [Line Items]
Goodwill, net, Beginning balance	$ 684,949	$ 684,949
Accumulated impairment losses, Beginning balance
Goodwill, Beginning balance	$ 684,949	$ 684,949
Goodwill acquired during the year
Impairment losses
Goodwill, net, Ending balance	$ 684,949	$ 684,949
Accumulated impairment losses, Ending balance
Goodwill, Ending balance	$ 684,949	$ 684,949
Document Security Systems Technology Management [Member]
Goodwill [Line Items]
Goodwill, net, Beginning balance	12,831,774	12,831,774
Accumulated impairment losses, Beginning balance	(3,238,926)	(238,926)
Goodwill, Beginning balance	$ 9,592,848	$ 12,592,848
Goodwill acquired during the year
Impairment losses	$ (9,592,848)	$ (3,000,000)
Goodwill, net, Ending balance	12,831,774	12,831,774
Accumulated impairment losses, Ending balance	$ (12,831,774)	(3,238,926)
Goodwill, Ending balance		$ 9,592,848

Short Term and Long Term Debt40

Short Term and Long Term Debt (Details Narrative) - USD ($)	Sep. 24, 2015	Apr. 28, 2015	Sep. 05, 2014	Feb. 13, 2014	Jul. 19, 2013	Feb. 12, 2010	Oct. 21, 2015	Sep. 30, 2015	May. 02, 2015	Feb. 23, 2015	Jan. 31, 2015	May. 31, 2014	May. 24, 2013	Dec. 30, 2011	Oct. 31, 2011	Aug. 31, 2011	Jul. 26, 2011	Dec. 31, 2015	Dec. 31, 2014	Mar. 27, 2014	Dec. 06, 2013	Oct. 08, 2010
Debt Instrument [Line Items]
Amortization of note discount and premium																			$ 22,707
Stock options issued, exercise price per share	$ 0.22						$ 0.22				$ 0.60							$ 0.60	$ 1.96
Sale of investment units, shares issuable per warrant	863,638						227,273
Sale of investment units, warrant exercise price per share	$ 0.40						$ 0.40
Cash payment for real estate																		$ 157,098	$ 280,902
Long-term debt, net																		2,258,115	7,439,036
Payments of long-term debt																		939,151	$ 616,393
Short-term debt																		$ 4,023,379
Collateral Agent [Member] | February 13, 2016 [Member]
Debt Instrument [Line Items]
Maximum unpaid interest rate																		2.00%
Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Debt instrument, face amount														$ 575,000
Debt instrument, maturity date																		Dec. 30, 2016
Debt interest rate														10.00%
Shares to be issued upon conversion of convertible note, shares														260,180
Beneficial conversion feature recorded as a debt discount														$ 88,000
Debt instrument, carrying amount														$ 650,000				$ 410,000	$ 604,000
Periodic installments amount																		15,000
Debt instrument, final balloon payment																		230,000
Promissory Notes [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding																		$ 4,089,000
Debt instrument, face amount													$ 850,000
Debt instrument, maturity date																		May 31, 2016
Debt interest rate													9.00%
Shares to be issued upon conversion of convertible note, shares													60,000
Long-term debt, unamortized discount									$ 29,000				$ 69,000
Debt instrument, carrying amount																		$ 685,000	850,000
Periodic installments amount										$ 15,000
Debt instrument, final balloon payment										$ 610,000
Fair value of notes payable									$ 29,000				$ 69,000
Interest accrued in the period																		$ 15,000
Stock options issued, exercise price per share													$ 3
Expected volatility									70.00%				60.00%
Risk-free interest rate per annum									1.53%				0.89%
Expected dividend yield									0.00%				0.00%
Sale of investment units, shares issuable per warrant									40,000
Sale of investment units, warrant exercise price per share									$ 1.50
Term Loan [Member]
Debt Instrument [Line Items]
Interest rate additional rate above LIBOR																		3.24%
Debt instrument, carrying amount					$ 1,303,900													$ 8,874	19,522
Credit facility agreement, monthly principal payment					$ 24,511
Interest rate on outstanding term loan					4.84%
Debt instrument, term					60 months
Rbs Citizens [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing amount																		$ 800,000
Interest rate additional rate above LIBOR																		3.99%
Credit facility, amount outstanding																		$ 0	0
Credit facility agreement, monthly principal payment																	$ 25,000
Rbs Citizens [Member] | Promissory Notes [Member]
Debt Instrument [Line Items]
Interest rate additional rate above LIBOR																3.15%		3.39%
Debt interest rate																		5.87%
Debt instrument, carrying amount																		$ 1,021,926	$ 1,078,220
Periodic installments amount																$ 7,658
Rbs Citizens [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing amount																						$ 450,000
Interest rate additional rate above LIBOR						3.75%									3.00%				3.99%
Debt instrument, face amount						$ 1,500,000
Debt interest rate																			5.70%
Debt instrument, carrying amount															$ 42,594			$ 0	$ 50,000
Periodic installments amount															$ 887
Debt instrument, term															60 months
Rbs Citizens [Member] | Permanent Loan [Member]
Debt Instrument [Line Items]
Interest rate additional rate above LIBOR												3.15%						3.39%
Debt instrument, maturity date												Jul. 31, 2019
Debt instrument, carrying amount																		$ 405,247	435,000		$ 450,000
Periodic installments amount												$ 450,000
Debt instrument, term												5 years
Interest accrued in the period												$ 2,500
Debt instrument, final balloon payment												$ 300,000
Rbs Citizens [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate additional rate above LIBOR																		3.75%
Peoples Capital [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument, carrying amount																		$ 819,681	1,067,586
Citizens [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument, carrying amount		$ 525,000																460,448
Credit facility agreement, monthly principal payment		$ 9,591
Interest rate on outstanding term loan		3.61%
Debt instrument, term		60 months
Bzdick Properties Limited Liability Company [Member] | Promissory Notes [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date																Aug. 31, 2021
Purchase price for Real Estate acquired																$ 1,500,000
Purchase price for Real Estate acquired, loan obtained																$ 1,200,000
DSS Technology Management [Member] | Investment Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, carrying amount																				$ 1,000,000
Interest accrued in the period																		132,000	$ 48,000
Advances				$ 4,500,000														4,350,000
Fixed return equity interests			$ 100,000	199,000														459,000		100,000
Long-term debt, net			900,000	1,791,000														$ 3,891,000		$ 900,000
Fair value of contingent consideration				10,000
Proceeds from return received			$ 1,500,000	$ 2,000,000
Payments of long-term debt								$ 150,000

Short Term and Long Term Debt -

Short Term and Long Term Debt - Schedule of Notes Payable and Long-Term Debt (Details)	Dec. 31, 2015USD ($)
Debt Disclosure [Abstract]
2,016	$ 1,553,061
2,017	467,727
2,018	486,599
2,019	491,618
2,020	104,691
Thereafter	707,480
Total future principal payment	$ 3,811,176

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Sep. 24, 2015	Aug. 15, 2015	Mar. 13, 2014	Mar. 05, 2014	Nov. 30, 2015	Oct. 21, 2015	Feb. 23, 2015	Jan. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2013
Number of shares of common stock sold	4,318,181						100,000
Value of common stock sold	$ 950,000					$ 250,000	$ 41,000		$ 1,128,336	$ 1,550,667
Sale of stock price per share	$ 0.22
Stock options issued						1,136,363		53,550
Stock options issued, exercise price per share	$ 0.22					$ 0.22		$ 0.60	$ 0.60	$ 1.96
Fair value of options issued	$ 105,000					$ 28,000		$ 6,000
Volatility	81.40%					81.40%		72.60%	72.60%	67.10%
Risk free return								1.66%	1.70%	0.90%
Dividend yield						0.00%		0.00%	0.00%	0.00%
Number of common stock shares authorized									450,000
Stock based compensation									$ 974,137	$ 1,355,430
Share-based compensation, earnings per share									$ 4.50
Unrecognized compensation costs									$ 147,000
Stock based compensation expense, employee stock options									$ 536,000
Restricted stock, shares					125,000			30,000		243,750
Restricted stock, value		$ 11,000			$ 27,500					$ 117,000
Number of shares exchanged for warrants exercised	863,638					227,273
Exercise price	$ 0.40					$ 0.40
Term	4 years					4 years			2 years 10 months 24 days	3 years 6 months
Fair value of earn-out options									$ 594,000
Weighted-average grant date fair value of options granted									$ 0.12	$ .71
Aggregate grant date fair value of options that vested									$ 6,000
Fair value of options vested during the year									$ 988,000	$ 1,145,000
Stock compensation expense									$ 974,000	$ 1,355,000
Stock compensation expense, description									the Company had stock compensation expense of approximately $974,000 or $0.02 basic earnings per share ($1,355,000; $0.03 basic earnings per share - 2014).
2013 Plan [Member]
Number of common stock shares authorized											6,000,000
Accredited Investors [Member]
Number of shares exchanged for warrants exercised						1,090,911
Exercise price						$ 0.40
Employee [Member]
Number of shares of common stock sold			84,025
Value of common stock sold			$ 134,000
Fair value of options issued		$ 6,643		$ 833,000
Volatility		72.60%		67.00%
Risk free return		1.66%		0.92%
Dividend yield		0.00%
Number of shares exchanged for warrants exercised				1,138,697						33,500
Exercise price				$ 2						$ 0.60
Term										5 years
Minimum [Member]
Risk free return	1.45%					1.35%
Maximum [Member]
Risk free return	1.60%					1.36%

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Warrant Activity (Details) - $ / shares	Sep. 24, 2015	Oct. 21, 2015	Jan. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Outstanding, Beginning balance			4,928,291	4,928,291	4,073,898
Granted during the year				53,550	1,172,197
Exercised/transferred
Outstanding, Ending balance				4,424,559	4,928,291
Exercisable				3,628,495	2,806,696
Outstanding Beginning balance, Weighted Average Exercise Price			$ 2.92	$ 2.92	$ 3.25
Granted, Weighted Average Exercise Price	$ 0.22	$ 0.22	$ 0.60	$ 0.60	$ 1.96
Exercised, Weighted Average Exercise Price
Outstanding, Ending balance, Weighted Average Exercise Price				$ 2.89	$ 2.92
Exercisable Weighted Average Exercise Price				$ 2.77	$ 2.94
Warrant [Member]
Outstanding, Beginning balance			6,566,385	6,566,385	6,875,586
Granted during the year				1,090,911	100,000
Exercised/transferred					(80,645)
Lapsed/terminated				(207,235)	(328,556)
Outstanding, Ending balance				7,450,061	6,566,385
Exercisable				6,359,150	6,535,274
Outstanding Beginning balance, Weighted Average Exercise Price			$ 4.70	$ 4.70	$ 4.64
Granted, Weighted Average Exercise Price				$ 0.40	1.56
Exercised, Weighted Average Exercise Price					3.10
Lapsed, Weighted Average Exercise Price				$ 3.52	2.91
Outstanding, Ending balance, Weighted Average Exercise Price				4.10	4.70
Exercisable Weighted Average Exercise Price				4.10	4.71
Weighted average months remaining				$ 34.3	$ 40

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Option Activity Under Stock Option and Incentive Plans (Details) - USD ($)	Sep. 24, 2015	Oct. 21, 2015	Jan. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Stockholders Equity - Summary Of Stock Option Activity Under Stock Option And Incentive Plans Details
Outstanding, Beginning balance			4,928,291	4,928,291	4,073,898
Granted				53,550	1,172,197
Exercised
Lapsed/terminated				(557,282)	(317,804)
Outstanding, Ending balance				4,424,559	4,928,291
Exercisable				3,628,495	2,806,696
Expected to vest at December 31				346,064	1,660,169
Outstanding Beginning balance, Weighted Average Exercise Price			$ 2.92	$ 2.92	$ 3.25
Granted, Weighted Average Exercise Price	$ 0.22	$ 0.22	$ 0.60	$ 0.60	$ 1.96
Exercised, Weighted Average Exercise Price
Lapsed/terminated, Weighted Average Exercise Price				$ 2.95	$ 3.56
Outstanding, Ending balance, Weighted Average Exercise Price				2.89	2.92
Exercisable Weighted Average Exercise Price				2.77	2.94
Expected to vest at December 31, Weighted Average Exercise Price				$ 2	$ 2.46
Oustanding, Weighted Average Life Remaining				4 years	4 years
Exercisable, Weighted Average Life Remaining				4 years 7 months 6 days	5 years
Expected to vest, Weighted Average Life Remaining				3 years 2 months 12 days	5 years 9 months 18 days
Aggregate intrinsic value of outstanding options at December 31
Aggregate intrinsic value of exercisable options at December 31
Aggregate intrinsic value of options expected to vest at December 31

Stockholders' Equity - Schedu45

Stockholders' Equity - Schedule of Assumptions Used to Compute the Share-based Compensation Expense for Stock Options and Warrants (Details)	Sep. 24, 2015	Oct. 21, 2015	Jan. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Stockholders Equity - Summary Of Stock Option Activity Under Stock Option And Incentive Plans Details
Volatility	81.40%	81.40%	72.60%	72.60%	67.10%
Expected option term	4 years	4 years		2 years 10 months 24 days	3 years 6 months
Risk-free interest rate			1.66%	1.70%	0.90%
Expected forfeiture rate				0.00%	0.00%
Expected dividend yield		0.00%	0.00%	0.00%	0.00%

Stockholders' Equity - Summar46

Stockholders' Equity - Summary of Restricted Stock (Details) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Restricted shares outstanding, Beginning balance, Shares	264,338	41,176
Restricted shares granted, Shares	155,000	243,750
Restricted shares vested, Shares	(359,338)	(20,588)
Restricted shares outstanding, Ending balance, Shares	60,000	264,338
Restricted shares outstanding, Beginning balance, Weighted-average Grant Date Fair Value	$ 0.70	$ 3.33
Restricted shares granted, Weighted-average Grant Date Fair Value	0.25	0.48
Restricted shares vested, Weighted-average Grant Date Fair Value	0.59	3.33
Restricted shares outstanding, Ending balance, Weighted-average Grant Date Fair Value	$ 0.22	$ 0.70

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income tax benefit	$ (16,348)	$ 995,365
Net operating loss carryforwards	51,958,000
Excess tax benefits associated with stock option exercises included in net operating loss carryforwards but not reflected in deferred tax assets	$ 1,019,000	$ 1,019,000
Minimum [Member]
Net operating loss carryforwards, expiration date	Dec. 31, 2022
Minimum [Member] | Excess Tax Benefits [Member]
Net operating loss carryforwards, expiration date	Dec. 31, 2022
Maximum [Member]
Net operating loss carryforwards, expiration date	Dec. 31, 2034
Maximum [Member] | Excess Tax Benefits [Member]
Net operating loss carryforwards, expiration date	Dec. 31, 2030

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Provision (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
State	$ 5,836	$ 6,735
Total currently payable	5,836	6,735
Federal	(990,745)	(13,939,671)
State	(147,674)	488,406
Total deferred	(1,138,419)	(13,451,265)
Less: (decrease) increase in allowance	1,154,767	12,455,900
Net deferred	16,348	(995,365)
Total income tax provision (benefit)	$ 22,184	$ (988,630)

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Deferred tax assets: Net operating loss carryforwards	$ 17,383,770	$ 16,104,083
Deferred tax assets: Equity issued for services	855,139	1,050,348
Deferred tax assets: Goodwill and other intangibles	692,470	773,019
Deferred tax assets: Investment in pass-through entity	268,476	268,476
Deferred tax assets: Other	681,889	591,259
Deferred tax assets: Gross deferred tax assets	19,881,744	18,787,185
Deferred tax liabilities: Goodwill and other intangibles	291,706	312,277
Deferred tax liabilities: Depreciation and amortization	289,534	312,823
Deferred tax liabilities: Gross deferred tax liabilities	581,240	625,100
Deferred tax liabilities: Less valuation allowance	(19,462,611)	(18,307,844)
Deferred tax liabilities: Net deferred tax liabilities	$ (162,107)	$ (145,759)

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Statutory United States federal rate	34.00%	34.00%
State income taxes net of federal benefit	0.70%	(0.70%)
Noncontrolling interest in pass-through entity	0.00%	(3.40%)
Permanent difference	(23.30%)	(2.30%)
Other	(3.50%)	1.10%
Change in valuation reserves	(8.10%)	(26.60%)
Effective tax rate	(0.20%)	2.10%

Defined Contribution Pension 51

Defined Contribution Pension Plan (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Employee's contribution maximum percentage	50.00%
Employer match percentage	3.00%
Contributions by company	$ 109,000	$ 107,000

Commitments and Contingencies52

Commitments and Contingencies (Details Narrative)	12 Months Ended
	Dec. 31, 2015USD ($)ft²	Dec. 31, 2014USD ($)
Severance payment amount	$ 1,011,000
Minimum [Member]
Lease equipment term	36 months
Maximum [Member]
Lease equipment term	60 months
Patrick White [Member]
Consulting fees paid to related party	$ 35,000	$ 145,000
Document Security Systems Corporate Offices And Digital Division [Member]
Area of square feet | ft²	5,700
Rent expense	$ 6,100
Paid of rent	$ 133,000
Lease expiration date	Dec. 31, 2020
Document Security Systems Plastics Group [Member]
Area of square feet | ft²	15,000
Rent expense	$ 13,000
Lease expiration date	Dec. 31, 2018
Document Security Systems Packaging Group [Member]
Area of square feet | ft²	40,000
DSS Technology Management [Member]
Rent expense	$ 600
Paid of rent	$ 1,100
Lease expiration date	Dec. 31, 2016

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Payments Under Operating Leases (Details)	Dec. 31, 2015USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Aggregate payments made 2015	$ 383,483
2,016	282,436
2,017	282,060
2,018	286,260
2,019	83,239
2,020	68,820
Total future minimum lease commitments	1,002,815
Building and Improvements [Member]
Property Subject to or Available for Operating Lease [Line Items]
Aggregate payments made 2015	45,745
2,016	48,499
2,017	44,131
2,018	43,258
2,019	$ 14,419
2,020
Total future minimum lease commitments	$ 150,307
Equipment [Member]
Property Subject to or Available for Operating Lease [Line Items]
Aggregate payments made 2015	337,738
2,016	233,937
2,017	237,929
2,018	243,002
2,019	68,820
2,020	68,820
Total future minimum lease commitments	$ 852,508

Supplemental Cash Flow Inform54

Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 251,000	$ 298,000
Accrued liabilities with related parties settled with equity		134,000
Financing of building improvements		$ 200,000
Financing of equipment purchases	$ 525,000
Change in non-controlling interest		$ (4,700,000)
Loss from change in fair value of interest rate swap derivative	$ (2,500)	(34,000)
Escrow shares retired		$ 150,000

Segment Information (Details Na

Segment Information (Details Narrative) - Segment	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Number of operating segment	4
International Revenue [Member]
Segment Reporting Information [Line Items]
Concentration of credit risk, percentage	2.00%	2.00%

Segment Information - Schedule

Segment Information - Schedule of Operations by Reportable Segment (Details) - USD ($)	Jan. 05, 2015	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenues from external customers		$ 17,505,109	$ 18,287,496
Depreciation and amortization		1,558,899	5,274,323
Interest expense		334,738	317,191
Stock based compensation		974,137	1,355,430
Impairment of goodwill		9,592,848	3,000,000
Impairment of intangible assets and investments	$ 22,285,000	$ 500,000	34,034,862
Loss attributable to noncontrolling interest			(4,700,000)
Income tax benefit (Expense)		$ 22,184	(988,630)
Net income (loss) to common stockholders		(14,309,480)	(41,157,052)
Capital expenditures		(157,098)	2,092,000
Identifiable assets		15,657,433	27,750,119
Document Security Systems Packaging Group [Member]
Segment Reporting Information [Line Items]
Revenues from external customers		11,797,000	12,926,000
Depreciation and amortization		584,000	567,000
Interest expense		137,000	156,000
Stock based compensation		$ 69,000	$ 121,000
Impairment of goodwill
Impairment of intangible assets and investments
Loss attributable to noncontrolling interest
Income tax benefit (Expense)
Net income (loss) to common stockholders		$ 1,070,000	$ 842,000
Capital expenditures		621,000	717,000
Identifiable assets		9,571,000	8,873,000
Document Security Systems Plastics Group [Member]
Segment Reporting Information [Line Items]
Revenues from external customers		3,904,000	3,552,000
Depreciation and amortization		$ 120,000	171,000
Interest expense			7,000
Stock based compensation		$ 39,000	$ 69,000
Impairment of goodwill
Impairment of intangible assets and investments
Loss attributable to noncontrolling interest
Income tax benefit (Expense)
Net income (loss) to common stockholders		$ 166,000	$ (106,000)
Capital expenditures		52,000	131,000
Identifiable assets		2,131,000	1,872,000
Document Security Systems Technology Management [Member]
Segment Reporting Information [Line Items]
Revenues from external customers		1,804,000	1,809,000
Depreciation and amortization		847,000	4,532,000
Interest expense		84,000	54,000
Stock based compensation		112,000	155,000
Impairment of goodwill		9,593,000	3,000,000
Impairment of intangible assets and investments		$ 500,000	34,035,000
Loss attributable to noncontrolling interest			$ (4,700,000)
Income tax benefit (Expense)
Net income (loss) to common stockholders		$ (12,944,000)	$ (38,843,000)
Capital expenditures		9,000	1,244,000
Identifiable assets		$ 3,299,000	$ 14,872,000
Corporate [Member]
Segment Reporting Information [Line Items]
Revenues from external customers
Depreciation and amortization		$ 8,000	$ 4,000
Interest expense		114,000	100,000
Stock based compensation		$ 754,000	$ 1,010,000
Impairment of goodwill
Impairment of intangible assets and investments
Loss attributable to noncontrolling interest
Income tax benefit (Expense)		$ 22,000	$ (989,000)
Net income (loss) to common stockholders		$ (2,601,000)	$ (3,050,000)
Capital expenditures
Identifiable assets		$ 656,000	$ 2,133,000