Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 12, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | DOCUMENT SECURITY SYSTEMS INC | |
Entity Central Index Key | 771,999 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 51,881,948 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 1,049,535 | $ 1,440,256 |
Restricted cash | 282,889 | 293,043 |
Accounts receivable, net | 1,913,990 | 2,097,433 |
Inventory | 990,213 | 937,830 |
Prepaid expenses and other current assets | 435,211 | 313,528 |
Total current assets | 4,671,838 | 5,082,090 |
Property, plant and equipment, net | 4,885,521 | 5,003,818 |
Other assets | 45,823 | 44,050 |
Goodwill | 2,453,349 | 2,453,349 |
Other intangible assets, net | 2,894,959 | 3,017,544 |
Total assets | 14,951,490 | 15,600,851 |
Current liabilities: | ||
Accounts payable | 2,164,579 | 1,945,073 |
Accrued expenses and other current liabilities | 1,819,069 | 1,964,726 |
Short-term debt | 4,008,504 | 3,984,316 |
Current portion of long-term debt, net | 819,653 | 1,553,061 |
Total current liabilities | 8,811,805 | 9,447,176 |
Long-term debt, net | 2,772,167 | 2,240,596 |
Other long-term liabilities | 90,015 | 63,697 |
Deferred tax liability, net | $ 166,844 | $ 162,107 |
Commitments and contingencies (Note 5) | ||
Stockholders equity | ||
Common stock, $.02 par value; 200,000,000 shares authorized, 51,881,948 shares issued and outstanding (51,881,948 on December 31, 2015) | $ 1,037,639 | $ 1,037,639 |
Additional paid-in capital | 103,115,665 | 103,041,941 |
Accumulated other comprehensive loss | (90,015) | (63,697) |
Accumulated deficit | (100,952,630) | (100,328,608) |
Total stockholders equity | 3,110,659 | 3,687,275 |
Total liabilities and stockholders equity | $ 14,951,490 | $ 15,600,851 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 51,881,948 |
Common stock, shares outstanding | 51,881,948 | 51,881,948 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue | ||
Printed products | $ 3,975,018 | $ 3,019,886 |
Technology sales, services and licensing | 363,968 | 409,645 |
Total revenue | 4,338,986 | 3,429,531 |
Costs and expenses | ||
Cost of revenue, exclusive of depreciation and amortization | 2,610,948 | 1,986,301 |
Selling, general and administrative (including stock based compensation) | 1,909,695 | 2,608,115 |
Depreciation and amortization | 360,501 | 379,593 |
Total costs and expenses | 4,881,144 | 4,974,009 |
Operating loss | (542,158) | (1,544,478) |
Other expense: | ||
Interest expense | $ (77,127) | (78,382) |
Net loss on debt modification and extinguishment | (19,096) | |
Loss before income taxes | $ (619,285) | (1,641,956) |
Income tax expense | 4,737 | 4,737 |
Net loss | (624,022) | (1,646,693) |
Other comprehensive loss: | ||
Interest rate swap loss | (26,318) | (15,752) |
Comprehensive loss: | $ (650,340) | $ (1,662,445) |
Loss per common share: | ||
Basic and diluted | $ (0.01) | $ (0.04) |
Shares used in computing loss per common share: | ||
Basic and diluted | 51,881,948 | 46,239,404 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (624,022) | $ (1,646,693) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 360,501 | 379,593 |
Stock based compensation | 73,724 | 324,598 |
Paid in-kind interest | $ 19,500 | 20,000 |
Net loss on debt modification and extinguishment | 19,096 | |
Change in deferred tax provision | $ 4,737 | 4,737 |
Foreign currency transaction gain | (29,400) | |
Amortization of deferred financing costs | $ 5,290 | 5,290 |
Decrease (increase) in assets: | ||
Accounts receivable | 183,443 | 651,937 |
Inventory | (52,383) | (202,540) |
Prepaid expenses and other assets | (123,456) | (33,622) |
Restricted cash | 10,154 | 18,486 |
Increase (decrease) in liabilities: | ||
Accounts payable | 219,506 | 310,744 |
Accrued expenses and other liabilities | (145,657) | (351,167) |
Net cash used by operating activities | (68,663) | (528,941) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (51,827) | $ (27,791) |
Purchase of intangible assets | (67,792) | |
Net cash used by investing activities | (119,619) | $ (27,791) |
Cash flows from financing activities: | ||
Payments of long-term debt | (202,439) | (195,084) |
Net cash used by financing activities | (202,439) | (195,084) |
Net decrease in cash | (390,721) | (751,816) |
Cash beginning of period | 1,440,256 | 2,343,675 |
Cash end of period | $ 1,049,535 | $ 1,591,859 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 1. Basis of Presentation and Significant Accounting Policies 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 Companys 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 Companys subsidiary, DSS Technology Management, Inc., acquires intellectual property (IP) assets and interests in companies owning intellectual property assets, or assists others in managing their intellectual property monetization efforts, 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 8.03 of Regulation S-X for smaller reporting companies. Accordingly, these statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying balance sheets and related interim statements of operations and comprehensive loss and cash flows include all adjustments, considered necessary for their fair presentation in accordance with U.S. GAAP. All significant intercompany transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results expected for the full year. For further information regarding the Companys accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in the Companys Form 10-K for the fiscal year ended December 31, 2015. Use of Estimates - Restricted Cash 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. Derivative Instruments - The Company has a notional amount of approximately $1,008,000 as of March 31, 2016 on its interest rate swap agreement for its debt with RBS Citizens, N.A. (Citizens Bank) (see Note 4) which changes a variable rate into a fixed rate on a term loan as follows: Notional Variable Amount Rate Fixed Cost Maturity Date $ 1,008,156 3.59 % 5.87 % August 30, 2021 Impairment of Long Lived Assets and Goodwill Contingent Legal Expenses - Earnings Per Common Share As of March 31, 2016 and 2015, there were 10,576,908 and 11,468,047 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. These shares are excluded from the calculation of diluted earnings per share in periods in which the Company had a net loss because their inclusion would be anti-dilutive to the Companys losses in the respective periods. Concentration of Credit Risk - During the three months ended March 31, 2016 and 2015, one customer accounted for 27% and 14%, respectively, of the Companys consolidated revenue and accounted for 24% and 8%, respectively, of the Companys accounts receivable balance as of March 31, 2016 and March 31, 2015. In addition, during the three months ended March 31, 2016, an additional customer accounted for 12% of the Companys consolidated revenue and accounted for 4% of the Companys accounts receivable balance as of March 31, 2016. The risk with respect to accounts receivables is mitigated by credit evaluations the Company performs on its customers, the short duration of its payment terms for the significant majority of its customer contracts and by the diversification of its customer base. Reclassifications 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 Entitys 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 entitys 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, Simplifying the Presentation of Debt Issuance Costs 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 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 will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the Company on January 1, 2017 and the Company is currently evaluating the impact that ASU 2016-09 will have on its consolidated financial statements and related disclosures. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | 2. Inventory Inventory consisted of the following: March 31, 2016 December 31, 2015 Finished Goods $ 696,462 $ 718,601 Work in process 202,935 167,779 Raw Materials 90,816 51,450 $ 990,213 $ 937,830 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 3. Intangible Assets Intangible assets are comprised of the following: March 31, 2016 December 31, 2015 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired intangibles- customer lists and non-compete agreements 5 -10 years 1,997,300 1,656,782 340,518 1,997,300 1,635,257 362,043 Acquired intangibles-patents and patent rights Varied (1) 3,650,000 1,711,878 1,938,122 3,650,000 1,562,526 2,087,474 Patent application costs Varied (2) 1,130,750 514,431 616,319 1,062,958 494,931 568,027 $ 6,778,050 $ 3,883,091 $ 2,894,959 $ 6,710,258 $ 3,692,714 $ 3,017,544 (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 March 31, 2016, the weighted average remaining useful life of these assets in service was approximately 4.1 years. (2) Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of March 31, 2016, the weighted average remaining useful life of these assets in service was approximately 9.0 years. Intangible asset amortization expense for the three months ended March 31, 2016 amounted to $190,377 ($241,275 - March 31, 2015). |
Short Term and Long Term Debt
Short Term and Long Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short Term and Long Term Debt | 4. 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 Companys wholly-owned subsidiary, Secuprint Inc., and carries an interest rate of 9% per annum. Interest is payable quarterly, in arrears. 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. On April 12, 2016, the Company entered into Promissory Note Amendment No. 3 to extend the maturity date to May 31, 2017 and change the balloon payment to $430,000 due on the extended maturity date. As of March 31, 2016, the balance of the term loan was $640,000 ($685,000 at December 31, 2015). Term Loan Debt On July 19, 2013, Premier Packaging entered into an equipment loan with Peoples 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 March 31, 2016, the loan had a balance of $755,812 ($819,681 at December 31, 2015). On April 28, 2015, Premier Packaging entered into a term note with Citizens Bank 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 March 31, 2016, the loan had a balance of $435,810 ($460,448 at December 31, 2015). 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 Companys 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% (3.59% at March 31, 2016), 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 March 31, 2016, the note had a balance of $397,747 ($405,247 December 31, 2015). Under the Citizens Bank credit facilities, the Companys subsidiary, Premier Packaging, is subject to various covenants including fixed charge coverage ratio, tangible net worth and current ratio covenants. For the quarter ended March 31, 2016, 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. Other Debt On March 27, 2014, DSSTM received an additional $1,000,000 under the Agreement comprised of a promissory note for $900,000 and fixed and contingent equity interests of $100,000. On September 5, 2014, DSSTM received the remaining $1,500,000 under the Agreement comprised of a promissory note for $1,350,000 and fixed and contingent return interests of $150,000. As of March 31, 2016, DSSTM has made aggregate payments of $150,000 on the notes. As of March 31, 2016, total net advances equaled $4,350,000, which consisted of $4,041,000 in notes and an aggregate of $459,000 of fixed and contingent equity interests, less aggregate payments of $150,000. Aggregate accrued interest totaled $151,500 as of March 31, 2016 ($132,000 as of December 31, 2015). The Agreement defines certain Events of Default, one of which is the failure by DSSTM, 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, DSSTM 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 DSSTM. 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 DSSTM 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, DSSTM 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 $4,043,000 as short-term debt as of March 31, 2016. The balance on the condensed consolidated balance sheet is presented net of approximately $34,000 of debt issuance costs. 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies 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 Managements 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 Apples 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 Inter Partes Review ( 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 TSMCs 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. A Markman hearing was held in the Eastern District of Texas. Based on the District Courts 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 Managements right to appeal the courts 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 April 1, 2016, TSMC and DSS Technology Management reached a confidential settlement, which included a transfer of certain of the Companys patent assets, to TSMC, ending the litigation with TSMC. 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., Conns 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 DSSTMs 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 Intels 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., Samsung Electronics et al., and Qualcomm Incorporated. Each respective complaint alleges patent infringement and seeks judgment for infringement, injunctive relief and money damages. On November 12, 2015, SK Hynix filed an IPR petition with PTAB for review of the patent at issue in their case. On March 18, 2016, Samsung filed an IPR petition as well. As of the date of this Report, PTAB has not yet made a determination whether those IPRs will be instituted. 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. Contingent Litigation Payments Contingent Payments |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 6. Stockholders Equity Stock Options Stock-Based Payments and Compensation - As of March 31, 2016, there was $536,000 of potential stock based compensation for stock options that vest upon the occurrence of certain events which the Company does not believe are likely. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 7. Supplemental Cash Flow Information Supplemental cash flow information for the three months ended March 31, 2016 and 2015 is approximately as follows: 2016 2015 Cash paid for interest $ 58,000 $ 58,000 Non-cash investing and financing activities: Loss from change in fair value of interest rate swap derivatives $ (26,000 ) $ (16,000 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 8. Segment Information The Companys 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 Companys 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 Companys operations by reportable segment for the three months ended March 31, 2016 and 2015 is as follows. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein: Three Months Ended March 30, 2016 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 2,927,000 1,048,000 364,000 - $ 4,339,000 Depreciation and amortization 153,000 29,000 178,000 1,000 361,000 Stock based compensation 17,000 10,000 13,000 34,000 74,000 Net income (loss) to common shareholders 244,000 111,000 (565,000 ) (414,000 ) (624,000 ) Identifiable assets 9,345,000 2,178,000 2,767,000 661,000 14,951,000 Three Months Ended March 30, 2015 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 2,082,000 938,000 410,000 - $ 3,430,000 Depreciation and amortization 128,000 34,000 216,000 2,000 380,000 Stock based compensation 17,000 10,000 33,000 265,000 325,000 Net income (loss) to common shareholders 41,000 87,000 (1,055,000 ) (720,000 ) (1,647,000 ) Identifiable assets 8,654,000 2,132,000 13,894,000 1,457,000 26,137,000 |
Basis of Presentation and Sig14
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates - |
Restricted Cash | Restricted Cash |
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. |
Derivative Instruments | Derivative Instruments - The Company has a notional amount of approximately $1,008,000 as of March 31, 2016 on its interest rate swap agreement for its debt with RBS Citizens, N.A. (Citizens Bank) (see Note 4) which changes a variable rate into a fixed rate on a term loan as follows: Notional Variable Amount Rate Fixed Cost Maturity Date $ 1,008,156 3.59 % 5.87 % August 30, 2021 |
Impairment of Long Lived Assets | Impairment of Long Lived Assets and Goodwill |
Contingent Legal Expenses | Contingent Legal Expenses - |
Earnings Per Common Share | Earnings Per Common Share As of March 31, 2016 and 2015, there were 10,576,908 and 11,468,047 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. These shares are excluded from the calculation of diluted earnings per share in periods in which the Company had a net loss because their inclusion would be anti-dilutive to the Companys losses in the respective periods. |
Concentration of Credit Risk | Concentration of Credit Risk - During the three months ended March 31, 2016 and 2015, one customer accounted for 27% and 14%, respectively, of the Companys consolidated revenue and accounted for 24% and 8%, respectively, of the Companys accounts receivable balance as of March 31, 2016 and March 31, 2015. In addition, during the three months ended March 31, 2016, an additional customer accounted for 12% of the Companys consolidated revenue and accounted for 4% of the Companys accounts receivable balance as of March 31, 2016. The risk with respect to accounts receivables is mitigated by credit evaluations the Company performs on its customers, the short duration of its payment terms for the significant majority of its customer contracts and by the diversification of its customer base. |
Reclassifications | Reclassifications |
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 Entitys 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 entitys 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, Simplifying the Presentation of Debt Issuance Costs 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 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 will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the Company on January 1, 2017 and the Company is currently evaluating the impact that ASU 2016-09 will have on its consolidated financial statements and related disclosures. |
Basis of Presentation and Sig15
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Derivative Instruments | The Company has a notional amount of approximately $1,008,000 as of March 31, 2016 on its interest rate swap agreement for its debt with RBS Citizens, N.A. (Citizens Bank) (see Note 4) which changes a variable rate into a fixed rate on a term loan as follows: Notional Variable Amount Rate Fixed Cost Maturity Date $ 1,008,156 3.59 % 5.87 % August 30, 2021 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following: March 31, 2016 December 31, 2015 Finished Goods $ 696,462 $ 718,601 Work in process 202,935 167,779 Raw Materials 90,816 51,450 $ 990,213 $ 937,830 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Intangible assets are comprised of the following: March 31, 2016 December 31, 2015 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired intangibles- customer lists and non-compete agreements 5 -10 years 1,997,300 1,656,782 340,518 1,997,300 1,635,257 362,043 Acquired intangibles-patents and patent rights Varied (1) 3,650,000 1,711,878 1,938,122 3,650,000 1,562,526 2,087,474 Patent application costs Varied (2) 1,130,750 514,431 616,319 1,062,958 494,931 568,027 $ 6,778,050 $ 3,883,091 $ 2,894,959 $ 6,710,258 $ 3,692,714 $ 3,017,544 |
Supplemental Cash Flow Inform18
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information for the three months ended March 31, 2016 and 2015 is approximately as follows: 2016 2015 Cash paid for interest $ 58,000 $ 58,000 Non-cash investing and financing activities: Loss from change in fair value of interest rate swap derivatives $ (26,000 ) $ (16,000 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | Approximate information concerning the Companys operations by reportable segment for the three months ended March 31, 2016 and 2015 is as follows. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein: Three Months Ended March 30, 2016 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 2,927,000 1,048,000 364,000 - $ 4,339,000 Depreciation and amortization 153,000 29,000 178,000 1,000 361,000 Stock based compensation 17,000 10,000 13,000 34,000 74,000 Net income (loss) to common shareholders 244,000 111,000 (565,000 ) (414,000 ) (624,000 ) Identifiable assets 9,345,000 2,178,000 2,767,000 661,000 14,951,000 Three Months Ended March 30, 2015 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 2,082,000 938,000 410,000 - $ 3,430,000 Depreciation and amortization 128,000 34,000 216,000 2,000 380,000 Stock based compensation 17,000 10,000 33,000 265,000 325,000 Net income (loss) to common shareholders 41,000 87,000 (1,055,000 ) (720,000 ) (1,647,000 ) Identifiable assets 8,654,000 2,132,000 13,894,000 1,457,000 26,137,000 |
Basis of Presentation and Sig20
Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 282,889 | $ 293,043 | |
Net gain (loss) attributable to cash flow hedge | 90,000 | 64,000 | |
Notional amount | $ 1,008,000 | ||
Antidilutive securities | 10,576,908 | 11,468,047 | |
Proceeds from sale of equity | $ 1,100,000 | ||
Unrestricted cash | 1,050,000 | ||
Maximum borrowing capacity | 800,000 | ||
Reclassified from other assets | $ 51,000 | $ 57,000 | |
Sales Revenue, Goods, Net [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration of credit risk, percentage | 27.00% | 14.00% | |
Sales Revenue, Goods, Net [Member] | Customer [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration of credit risk, percentage | 12.00% | ||
Accounts Receivable [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration of credit risk, percentage | 24.00% | 8.00% | |
Accounts Receivable [Member] | Customer [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration of credit risk, percentage | 4.00% |
Basis of Presentation and Sig21
Basis of Presentation and Significant Accounting Policies - Schedule of Derivative Instruments (Details) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |
Notional Amount | $ 1,008,156 |
Variable Rate | 3.59% |
Fixed Cost | 5.87% |
Maturity Date | Aug. 30, 2021 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 696,462 | $ 718,601 |
Work in process | 202,935 | 167,779 |
Raw Materials | 90,816 | 51,450 |
Inventory | $ 990,213 | $ 937,830 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangibles | $ 190,377 | $ 241,275 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 6,778,050 | $ 6,710,258 | |
Accumulated Amortization | 3,883,091 | 3,692,714 | |
Net Carrying Amount | 2,894,959 | 3,017,544 | |
Customer Llists and Non-compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,997,300 | 1,997,300 | |
Accumulated Amortization | 1,656,782 | 1,635,257 | |
Net Carrying Amount | $ 340,518 | 362,043 | |
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 | [1] | $ 3,650,000 | 3,650,000 |
Accumulated Amortization | [1] | 1,711,878 | 1,562,526 |
Net Carrying Amount | [1] | $ 1,938,122 | 2,087,474 |
Useful life, description | [1] | Varied | |
Patent Application Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [2] | $ 1,130,750 | 1,062,958 |
Accumulated Amortization | [2] | 514,431 | 494,931 |
Net Carrying Amount | [2] | $ 616,319 | $ 568,027 |
Useful life, description | [2] | Varied | |
[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 March 31, 2016, the weighted average remaining useful life of these assets in service was approximately 4.1 years. | ||
[2] | Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of March 31, 2016, the weighted average remaining useful life of these assets in service was approximately 9.0 years. |
Intangible Assets - Schedule 25
Intangible Assets - Schedule of Other Intangible Assets (Details) (Parenthetical) | 3 Months Ended |
Mar. 31, 2016 | |
Patents and Patent Rights [Member] | |
Weighted average remaining useful life | 4 years 1 month 6 days |
Patent Application Costs [Member] | |
Weighted average remaining useful life | 9 years |
Short Term and Long Term Debt (
Short Term and Long Term Debt (Details Narrative) - USD ($) | Apr. 12, 2016 | Apr. 28, 2015 | Sep. 05, 2014 | Feb. 13, 2014 | Jul. 19, 2013 | Aug. 30, 2011 | Aug. 30, 2011 | Sep. 30, 2015 | Feb. 23, 2015 | May. 31, 2014 | Dec. 30, 2011 | Oct. 31, 2011 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Feb. 13, 2016 | Mar. 27, 2014 | Dec. 06, 2013 | May. 24, 2013 | Oct. 08, 2010 |
Debt Instrument [Line Items] | |||||||||||||||||||||
Long-term debt, net | $ 2,772,167 | $ 2,240,596 | $ 2,772,167 | ||||||||||||||||||
Payments of long-term debt | 202,439 | $ 195,084 | |||||||||||||||||||
Short-term debt | 4,008,504 | 3,984,316 | 4,008,504 | ||||||||||||||||||
Debt issuance costs | 34,000 | 34,000 | |||||||||||||||||||
Collateral Agent [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt interest rate | 2.00% | ||||||||||||||||||||
Convertible Notes Payable [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, face amount | $ 575,000 | ||||||||||||||||||||
Debt interest rate | 10.00% | ||||||||||||||||||||
Shares to be issued upon conversion of convertible note, shares | 260,180 | ||||||||||||||||||||
Debt conversion, price per share | $ 2.21 | ||||||||||||||||||||
Principal payment amount per month | $ 15,000 | ||||||||||||||||||||
Debt instrument, final balloon payment | $ 230,000 | ||||||||||||||||||||
Debt instrument, carrying amount | $ 365,000 | 410,000 | 365,000 | ||||||||||||||||||
Convertible Notes Payable [Member] | April 12, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, maturity date | May 31, 2017 | ||||||||||||||||||||
Debt instrument, final balloon payment | $ 155,000 | 155,000 | |||||||||||||||||||
Promissory Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, face amount | $ 850,000 | ||||||||||||||||||||
Debt instrument, maturity date | May 31, 2017 | ||||||||||||||||||||
Debt interest rate | 9.00% | ||||||||||||||||||||
Principal payment amount per month | $ 15,000 | ||||||||||||||||||||
Debt instrument, final balloon payment | $ 430,000 | 610,000 | |||||||||||||||||||
Debt instrument, carrying amount | $ 640,000 | 685,000 | 640,000 | ||||||||||||||||||
Periodic installments amount | $ 15,000 | ||||||||||||||||||||
Term Loan [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest rate additional rate above LIBOR | 3.44% | ||||||||||||||||||||
Debt instrument, carrying amount | $ 1,303,900 | $ 6,212 | 8,874 | 6,212 | |||||||||||||||||
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 | 800,000 | |||||||||||||||||||
Interest rate additional rate above LIBOR | 4.19% | ||||||||||||||||||||
Credit facility, amount outstanding | $ 0 | 0 | $ 0 | ||||||||||||||||||
Rbs Citizens [Member] | Promissory Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest rate additional rate above LIBOR | 3.15% | 3.59% | |||||||||||||||||||
Debt interest rate | 5.87% | 5.87% | |||||||||||||||||||
Debt instrument, carrying amount | $ 1,008,156 | 1,021,926 | $ 1,008,156 | ||||||||||||||||||
Periodic installments amount | $ 7,658 | ||||||||||||||||||||
Debt issuance costs | 17,000 | 18,000 | $ 17,000 | ||||||||||||||||||
Rbs Citizens [Member] | Term Loan [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit, maximum borrowing amount | $ 450,000 | ||||||||||||||||||||
Interest rate additional rate above LIBOR | 3.00% | ||||||||||||||||||||
Debt instrument, carrying amount | $ 42,594 | ||||||||||||||||||||
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% | 3.59% | |||||||||||||||||||
Debt instrument, maturity date | Jul. 31, 2019 | ||||||||||||||||||||
Debt instrument, final balloon payment | $ 300,000 | ||||||||||||||||||||
Debt instrument, carrying amount | $ 397,747 | 405,247 | $ 397,747 | $ 450,000 | |||||||||||||||||
Periodic installments amount | $ 450,000 | ||||||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||||||
Interest accrued in the period | $ 2,500 | ||||||||||||||||||||
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 | $ 755,812 | 819,681 | 755,812 | ||||||||||||||||||
Citizens [Member] | Term Loan [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, carrying amount | $ 525,000 | 435,810 | 460,448 | $ 435,810 | |||||||||||||||||
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 | $ 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 | $ 151,000 | 132,000 | |||||||||||||||||||
Advances | $ 4,500,000 | 4,350,000 | |||||||||||||||||||
Fixed return equity interests | $ 150,000 | 199,000 | 459,000 | 100,000 | |||||||||||||||||
Long-term debt, net | 1,350,000 | 1,791,000 | $ 4,041,000 | $ 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 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Number of options cancelled an aggreagete options to purchase shares | 166,667 | |
Stock compensation expense | $ 74,000 | $ 325,000 |
Basic and diluted | $ (0.01) | $ (0.04) |
Stock based compensation for stock options | 536,000 | |
Senior Management [Member] | ||
Number of options cancelled an aggreagete options to purchase shares | 1,200,000 | |
Exercise prices | $ 3 |
Supplemental Cash Flow Inform28
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest | $ 58,000 | $ 58,000 |
Non-cash investing and financing activities: Loss from change in fair value of interest rate swap derivative | $ (26,000) | $ (16,000) |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 4 |
Segment Information - Schedule
Segment Information - Schedule of Operations by Reportable Segment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 4,338,986 | $ 3,429,531 | |
Depreciation and amortization | 360,501 | 379,593 | |
Stock based compensation | 73,724 | 324,598 | |
Net income (loss) to common stockholders | (624,022) | (1,646,693) | |
Identifiable assets | 14,951,490 | 26,137,000 | $ 15,600,851 |
Document Security Systems Packaging Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 2,927,000 | 2,082,000 | |
Depreciation and amortization | 153,000 | 128,000 | |
Stock based compensation | 17,000 | 17,000 | |
Net income (loss) to common stockholders | 244,000 | 41,000 | |
Identifiable assets | 9,345,000 | 8,654,000 | |
Document Security Systems Plastics Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 1,048,000 | 938,000 | |
Depreciation and amortization | 29,000 | 34,000 | |
Stock based compensation | 10,000 | 10,000 | |
Net income (loss) to common stockholders | 111,000 | 87,000 | |
Identifiable assets | 2,178,000 | 2,132,000 | |
Document Security Systems Technology Management [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 364,000 | 410,000 | |
Depreciation and amortization | 178,000 | 216,000 | |
Stock based compensation | 13,000 | 33,000 | |
Net income (loss) to common stockholders | (565,000) | (1,055,000) | |
Identifiable assets | $ 2,767,000 | $ 13,894,000 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | |||
Depreciation and amortization | $ 1,000 | $ 2,000 | |
Stock based compensation | 34,000 | 265,000 | |
Net income (loss) to common stockholders | (414,000) | (720,000) | |
Identifiable assets | $ 661,000 | $ 1,457,000 |