DSS (DSS) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 12, 2017
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, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		13,652,903
Trading Symbol	DSS
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash	$ 4,866,070	$ 5,871,738
Restricted cash	421,671	177,609
Accounts receivable, net of $50,000 allowance for uncollectible accounts	2,024,970	1,890,981
Inventory	1,203,523	1,206,377
Prepaid expenses and other current assets	377,365	350,289
Total current assets	8,893,599	9,496,994
Property, plant and equipment, net	4,467,292	4,573,841
Other assets	45,821	45,821
Goodwill	2,453,349	2,453,349
Other intangible assets, net	1,730,948	1,896,018
Total assets	17,591,009	18,466,023
Current liabilities:
Accounts payable	1,793,627	2,212,653
Accrued expenses and deferred revenue	1,187,096	1,290,593
Other current liabilities	2,982,175	2,996,310
Short-term debt	3,538,129
Current portion of long-term debt, net	1,112,335	1,202,335
Total current liabilities	10,613,362	7,701,891
Long-term debt, net	1,651,079	5,249,569
Other long-term liabilities	2,035,444	2,184,843
Deferred tax liability, net	50,356	45,619
Commitments and contingencies (Note 6)
Stockholders’ equity
Common stock, $.02 par value; 200,000,000 shares authorized, 13,652,903 shares issued and outstanding (13,502,653 on December 31, 2016)	273,058	270,053
Additional paid-in capital	104,468,804	104,338,002
Accumulated other comprehensive loss	(38,444)	(45,343)
Accumulated deficit	(101,462,650)	(101,278,611)
Total stockholders’ equity	3,240,768	3,284,101
Total liabilities and stockholders’ equity	$ 17,591,009	$ 18,466,023

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for uncollectible accounts	$ 50,000	$ 50,000
Common stock, par value	$ .02	$ .02
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	13,652,903	13,502,653
Common stock, shares outstanding	13,652,903	13,502,653

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue
Printed products	$ 4,403,058	$ 3,975,018
Technology sales, services and licensing	367,533	363,968
Total revenue	4,770,591	4,338,986
Costs and expenses
Cost of revenue, exclusive of depreciation and amortization	2,788,350	2,605,660
Selling, general and administrative (including stock based compensation)	1,725,881	1,909,695
Depreciation and amortization	342,774	360,501
Total costs and expenses	4,857,005	4,875,856
Operating loss	(86,414)	(536,870)
Other expense:
Interest expense	(57,600)	(77,127)
Amortized debt discount	(35,288)	(5,288)
Loss before income taxes	(179,302)	(619,285)
Income tax expense	4,737	4,737
Net loss	(184,039)	(624,022)
Other comprehensive loss:
Interest rate swap gain (loss)	6,899	(26,318)
Comprehensive loss:	$ (177,140)	$ (650,340)
Loss per common share:
Basic and diluted	$ (0.01)	$ (0.05)
Shares used in computing loss per common share:
Basic and diluted	13,624,522	12,970,487

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (184,039)	$ (624,022)
Adjustments to reconcile net loss to net cash from (used by) operating activities:
Depreciation and amortization	342,774	360,501
Stock based compensation	133,807	73,724
Paid in-kind interest	18,000	19,500
Change in deferred tax provision	4,737	4,737
Amortization of deferred financing costs	35,288	5,290
Decrease (increase) in assets:
Accounts receivable	(133,989)	183,443
Inventory	2,854	(52,383)
Prepaid expenses and other current assets	(43,677)	(123,456)
Restricted cash	(244,062)	10,154
Increase (decrease) in liabilities:
Accounts payable	(419,482)	219,506
Accrued expenses and other liabilities	(243,077)	(145,657)
Net cash used by operating activities	(730,866)	(68,663)
Cash flows from investing activities:
Purchase of property, plant and equipment	(66,206)	(51,827)
Purchase of intangible assets	(4,949)	(67,792)
Net cash used by investing activities	(71,155)	(119,619)
Cash flows from financing activities:
Payments of long-term debt	(203,647)	(202,439)
Net cash used by financing activities	(203,647)	(202,439)
Net increase (decrease) in cash	(1,005,668)	(390,721)
Cash at beginning of period	5,871,738	1,440,256
Cash at end of period	$ 4,866,070	$ 1,049,535

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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 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, DSS Digital 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., 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 Company’s accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the fiscal year ended December 31, 2016. 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, 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 - As of March 31, 2017 the Company has an 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 $ 953,256 3.94 % 5.87 % August 30, 2021 Impairment of Long Lived Assets and Goodwill Contingent Legal Expenses - Earnings Per Common Share On August 26, 2016, the Company affected a one for four reverse stock split of the Company’s common stock. No fractional shares of the Company’s common stock were issued as a result of the reverse stock split. Instead, stockholders of record who otherwise would have been entitled to receive fractional shares were entitled to a rounding up of their fractional share to the nearest whole share, except in the case of any stockholder that owned less than four shares of the Company’s common stock immediately preceding the reverse stock split. In such case, such stockholder received cash for such fractional share in an amount equal to the product obtained by multiplying: (x) the closing sale price of the common stock on August 25, 2016 as reported on the NYSE MKT, by (y) the amount of the fractional share. As a result, the Company issued 1,166 common shares for shares due as a result of the rounding up feature and paid $92 to buy-out the fractional shares of holders with less than four shares immediately preceding the reverse stock split. As of March 31, 2017 and 2016, there were 3,668,127 and 2,644,227 (as adjusted to reflect the one-for-four reverse stock split that took effect on August 26, 2016) respectively, of common stock share equivalents potentially issuable 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 Company’s losses in the respective periods. Concentration of Credit Risk - During the three months ended March 31, 2017, two customers accounted for 31% and 12%, respectively, of the Company’s consolidated revenue and accounted for 20% and 12%, respectively, of the Company’s accounts receivable balance as of March 31, 2017. During the three months ended March 31, 2016 these two customers accounted for 27% and 12%, respectively, of the Company’s consolidated revenue and accounted for 24% and 4%, respectively, of the Company’s 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 Recent Accounting Pronouncements In February 2016, the FASB issued 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. Adoption of this new accounting standard resulted in the recognition of an increase in the Company’s gross deferred tax asset of approximately $350,000 and an offsetting increase in the valuation allowance. There was no impact to the Company’s retained earnings or other material impact to the financial statements as a result of adopting this new accounting standard. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments”, which clarifies the treatment of several types of cash receipts and payments for which there was diversity in practice. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. We anticipate that the adoption of this guidance will not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows”, regarding the presentation of restricted cash on the statement of cash flows. The standards update requires that the reconciliation of the beginning and end of period cash amounts shown in the statement of cash flows include restricted cash. When restricted cash is presented separately from cash and cash equivalents on the balance sheet, a reconciliation is required between the amounts presented on the statement of cash flows and the balance sheet. Also, the new guidance requires the disclosure of information about the nature of the restrictions. The standards update is effective retrospectively for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We anticipate that the adoption of this guidance will not have a material impact on our consolidated financial statements.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventory	2. Inventory Inventory consisted of the following: March 31, 2017 December 31, 2016 Finished Goods $ 941,819 $ 736,987 Work in process 114,329 314,353 Raw Materials 147,375 155,037 $ 1,203,523 $ 1,206,377

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	3. Intangible Assets Intangible assets are comprised of the following: March 31, 2017 December 31, 2016 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 1,742,883 254,417 1,997,300 1,721,357 275,943 Acquired intangibles-patents and patent rights Varied (1) 3,155,000 2,220,561 934,439 3,155,000 2,092,767 1,062,233 Patent application costs Varied (2) 1,141,415 599,323 542,092 1,136,465 578,623 557,842 $ 6,293,715 $ 4,562,767 $ 1,730,948 $ 6,288,765 $ 4,392,747 $ 1,896,018 (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, 2017, the weighted average remaining useful life of these assets in service was approximately 1.8 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, 2017, the weighted average remaining useful life of these assets in service was approximately 6.7 years. Intangible asset amortization expense for the three months ended March 31, 2017 amounted to $170,019 ($190,377 - March 31, 2016).

Short-Term and Long-Term Debt

Short-Term and Long-Term Debt	3 Months Ended
	Mar. 31, 2017
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 Company’s wholly-owned subsidiary, Secuprint Inc., and carries an interest rate of 9% per annum. The note is secured by the assets of Company’s wholly-owned subsidiary, Secuprint Inc. 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. 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. The Company expects to extend the maturity date of the note. As of March 31, 2017, the balance of the term loan was $460,000 ($505,000 at December 31, 2016). Term Loan Debt 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 until April 28, 2020. Premier Packaging used the proceeds of the term note to acquire a HP Indigo 7800 Digital press. The loan is secured by the printing press. As of December 31, 2016, the loan had a balance of $335,024 ($360,611 at December 31, 2016). 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% (3.93% at March 31, 2017), 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, 2017, the note had a balance of $367,500 ($375,000 – December 31, 2016). 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 quarter ended March 31, 2017 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. On May 23, 2016, DSSTM remitted $495,000 in proceeds received from the sale of patent assets (Note 5) to Fortress under the terms of the Agreement. On September 20, 2016, DSSTM remitted $125,250 in proceeds received from a settlement to Fortress as repayment of the note principal balance under the terms of the Agreement. The Agreement defines certain events as Events of Default, one of which is the failure by DSSTM, on or before the second anniversary of the Effective Date, to make payments to the Investors equal to the outstanding Advances. On February 13, 2016, being the second anniversary date of the Effective Date, DSSTM had failed to make these payments and was therefore in default of the Agreement. On December 2, 2016, the parties entered into a First Amendment to Investment Agreement and Certain Other Documents (the “Amendment”). The purpose of the Amendment was to vacate DSSTM’s ongoing non-payment default under the Agreement, and to amend certain provisions of the Agreement. The Agreement was amended to add expenses in the amount of $150,000 to DSSTM’s payment obligation, payable on the Maturity Date. This amount was recorded as debt issuance costs and is being amortized on a straight line basis through the amended maturity date of February 13, 2018. The Amendment added a provision whereby DSSTM is required to deposit $300,000 on or before March 2, 2017 and (ii) a further sum of $300,000 on or before March 2, 2018, into a deposit account (collectively, the “Deposit”). The March 2, 2017 deposit was made in a timely manner. The Deposit funds will be restricted to pay certain expenses, consisting of out-of-pocket expenses incurred in connection with certain existing patent litigation matters and other patent litigation matters which may occur after the Amendment Effective Date (the “Qualified Expenses”). In the Event of Default, the Investors may apply the then remaining Deposit to the then outstanding Obligations, if any. Additionally per the Amendment, DSSTM agrees to pay to the Investors an amount equal to 25% of any amounts received by DSSTM for any and all types of monetization activities related to certain of its patents covering systems and methods of using low power wireless peripheral devices (collectively, “BlueTooth Patents”), but only until the Investors have received payments under the Agreement totaling the sum of (i) the Capitalized Expenses plus (ii) payments of principal and interest on the Notes totaling the sum of (x) $4,500,000 (consisting of the previously made Advances) plus (y) additional amounts, if any, advanced by the Investors pursuant to the Agreement. In addition to the monetization interest granted the Investors in the BlueTooth Patents, DSSTM also granted the Collateral Agent and the Investors a security interest in certain of DSSTM’s unencumbered semiconductor patents to further collateralize the amounts owed under the Agreement. As of March 31, 2017, DSSTM has made aggregate principal payments of $770,250 on the notes. As of March 31, 2017, $3,538,129 is recorded as a short-term debt under the arrangement, which includes $227,500 of accrued interest, less unamortized debt issuance costs of $139,943. In addition, as of March 31, 2017, $459,000 of fixed and contingent equity interests are recorded in other short-term liabilities. The Company will reduce the liability upon payment to the Investor from available proceeds from litigation, or if none by the maturity date of February 13, 2018, then such amounts will be settled by the Company by the transfer and assignment of certain of the Company’s patent assets.

Other Liabilities

Other Liabilities	3 Months Ended
	Mar. 31, 2017
Other Liabilities Disclosure [Abstract]
Other Liabilities	5. Other Liabilities On November 14, 2016, the Company entered into a Proceeds Investment Agreement (the “Agreement”) with Brickell Key Investments LP (“BKI”). Pursuant to the Agreement, BKI financed an aggregate of $13,500,000 in a patent purchase and monetization program to be implemented and managed by the Company (the “Financing”). Pursuant to Agreement, $3,000,000 of the Financing was used to cover the Company’s purchase of a portfolio of U.S. and foreign LED patents and a license from Intellectual Discovery Co., Ltd., a Korean company (collectively, the “LED Patent Portfolio”), resulting in a basis in these assets of $0. A total of $6,000,000 of the Financing was directed by BKI to attorneys to cover anticipated attorneys’ fees and out-of-pocket expenses for legal proceedings that may transpire relating to enforcement of the LED Patent Portfolio. This amount is not included in the Company’s financial statements as the Company has no control over these funds, which are segregated and escrowed in the attorneys’ trust account. In addition, the Company received $4,500,000 of the Financing, which is required to be used by the Company to pay for the defense of Inter Partes Review Inter Partes Review Inter Partes Review Inter Partes Review 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 March 31, 2017, the Company had received an aggregate of $650,000 from the investors pursuant to the agreement of which approximately $453,000 was in other liabilities in the consolidated balance sheets ($467,000 as December 31, 2016). The Company will reduce the liability as it pays legal and other expenses related to its litigation involving the Bluetooth patents, for which the amount is available to be used for 50% of all such expenses. As described in Note 4, On February 13, 2014, the Company’s subsidiary, DSSTM entered into an Investment Agreement with Fortress pursuant to which DSSTM contracted to receive a series of advances up to $4,500,000. Under the terms of the Agreement, on the Effective Date, DSSTM issued and sold a promissory note in the amount of $1,791,000, fixed return equity interests in the amount of $199,000, and contingent equity interests in the amount of $10,000. 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. The $459,000 of aggregate fixed and contingent equity interests received are recorded in other liabilities. The Company will reduce the liability upon payment to the Investor from available proceeds from litigation, or if none by the maturity date of February 13, 2018, then such amounts will be reversed from other liabilities and recorded as other income as of the maturity date.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. 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 Management’s patents that relate to systems and methods of using low power wireless peripheral devices DSS Technology Management is seeking a judgment 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, Apple’s motion to transfer the case to the Northern District of California was granted. On December 30, 2014, Apple filed two Inter Partes Review 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. Intel’s IPRs were instituted by PTAB on June 8, 2016. The Intel litigation has been stayed by the District Court pending final determination 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., In addition to the foregoing, we may become subject to other legal proceedings that arise in the ordinary course of business and have not been finally adjudicated. Adverse decisions in any of the foregoing may have a material adverse effect on our results of operations, cash flows or our financial condition. The Company accrues for potential litigation losses when a loss is probable and estimable. Contingent Litigation Payments Contingent Payments

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Equity	7. Stockholders’ Equity On August 26, 2016, the Company affected a one-for-four reverse stock split of the Company’s common stock. All references in this report to the number of shares of our common stock and to related per-share prices (including references to periods prior to the effective date of the reverse stock split) reflect this reverse stock split. Restricted Stock Stock-Based Payments and Compensation -

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	8. Supplemental Cash Flow Information Supplemental cash flow information for the three months ended March 31, 2017 and 2016 is approximately as follows: 2017 2016 Cash paid for interest $ 44,000 $ 58,000 Non-cash investing and financing activities: Gain (loss) from change in fair value of interest rate swap derivatives $ 7,000 $ (26,000 )

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	9. Segment Information 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, DSS Digital Group and DSS Technology Management, 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 three months ended March 31, 2017 and 2016 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 31, 2017 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 3,246,000 1,157,000 368,000 — $ 4,771,000 Depreciation and amortization 159,000 30,000 153,000 1,000 343,000 Stock based compensation — — 24,000 110,000 134,000 Loss before income taxes 392,000 163,000 (310,000 ) (424,000 ) (179,000 ) Identifiable assets 9,331,000 2,339,000 1,998,000 3,923,000 17,591,000 Three Months Ended March 31, 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 Loss before income taxes 244,000 111,000 (565,000 ) (409,000 ) (619,000 ) Identifiable assets 9,345,000 2,178,000 2,767,000 661,000 14,951,000

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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, 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 - As of March 31, 2017 the Company has an 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 $ 953,256 3.94 % 5.87 % August 30, 2021
Impairment of Long Lived Assets and Goodwill	Impairment of Long Lived Assets and Goodwill
Contingent Legal Expenses	Contingent Legal Expenses -
Earnings Per Common Share	Earnings Per Common Share On August 26, 2016, the Company affected a one for four reverse stock split of the Company’s common stock. No fractional shares of the Company’s common stock were issued as a result of the reverse stock split. Instead, stockholders of record who otherwise would have been entitled to receive fractional shares were entitled to a rounding up of their fractional share to the nearest whole share, except in the case of any stockholder that owned less than four shares of the Company’s common stock immediately preceding the reverse stock split. In such case, such stockholder received cash for such fractional share in an amount equal to the product obtained by multiplying: (x) the closing sale price of the common stock on August 25, 2016 as reported on the NYSE MKT, by (y) the amount of the fractional share. As a result, the Company issued 1,166 common shares for shares due as a result of the rounding up feature and paid $92 to buy-out the fractional shares of holders with less than four shares immediately preceding the reverse stock split. As of March 31, 2017 and 2016, there were 3,668,127 and 2,644,227 (as adjusted to reflect the one-for-four reverse stock split that took effect on August 26, 2016) respectively, of common stock share equivalents potentially issuable 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 Company’s losses in the respective periods.
Concentration of Credit Risk	Concentration of Credit Risk - During the three months ended March 31, 2017, two customers accounted for 31% and 12%, respectively, of the Company’s consolidated revenue and accounted for 20% and 12%, respectively, of the Company’s accounts receivable balance as of March 31, 2017. During the three months ended March 31, 2016 these two customers accounted for 27% and 12%, respectively, of the Company’s consolidated revenue and accounted for 24% and 4%, respectively, of the Company’s 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
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued 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. Adoption of this new accounting standard resulted in the recognition of an increase in the Company’s gross deferred tax asset of approximately $350,000 and an offsetting increase in the valuation allowance. There was no impact to the Company’s retained earnings or other material impact to the financial statements as a result of adopting this new accounting standard. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments”, which clarifies the treatment of several types of cash receipts and payments for which there was diversity in practice. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. We anticipate that the adoption of this guidance will not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows”, regarding the presentation of restricted cash on the statement of cash flows. The standards update requires that the reconciliation of the beginning and end of period cash amounts shown in the statement of cash flows include restricted cash. When restricted cash is presented separately from cash and cash equivalents on the balance sheet, a reconciliation is required between the amounts presented on the statement of cash flows and the balance sheet. Also, the new guidance requires the disclosure of information about the nature of the restrictions. The standards update is effective retrospectively for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We anticipate that the adoption of this guidance will not have a material impact on our consolidated financial statements.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of Derivative Instruments	As of March 31, 2017 the Company has an 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 $ 953,256 3.94 % 5.87 % August 30, 2021

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following: March 31, 2017 December 31, 2016 Finished Goods $ 941,819 $ 736,987 Work in process 114,329 314,353 Raw Materials 147,375 155,037 $ 1,203,523 $ 1,206,377

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets are comprised of the following: March 31, 2017 December 31, 2016 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 1,742,883 254,417 1,997,300 1,721,357 275,943 Acquired intangibles-patents and patent rights Varied (1) 3,155,000 2,220,561 934,439 3,155,000 2,092,767 1,062,233 Patent application costs Varied (2) 1,141,415 599,323 542,092 1,136,465 578,623 557,842 $ 6,293,715 $ 4,562,767 $ 1,730,948 $ 6,288,765 $ 4,392,747 $ 1,896,018 (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, 2017, the weighted average remaining useful life of these assets in service was approximately 1.8 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, 2017, the weighted average remaining useful life of these assets in service was approximately 6.7 years.

Supplemental Cash Flow Inform19

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Information [Abstract]
Schedule of Supplemental Cash Flow Information	Supplemental cash flow information for the three months ended March 31, 2017 and 2016 is approximately as follows: 2017 2016 Cash paid for interest $ 44,000 $ 58,000 Non-cash investing and financing activities: Gain (loss) from change in fair value of interest rate swap derivatives $ 7,000 $ (26,000 )

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Operations by Reportable Segment	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 31, 2017 Packaging and Printing Plastics Technology Corporate Total Revenues from external customers $ 3,246,000 1,157,000 368,000 — $ 4,771,000 Depreciation and amortization 159,000 30,000 153,000 1,000 343,000 Stock based compensation — — 24,000 110,000 134,000 Loss before income taxes 392,000 163,000 (310,000 ) (424,000 ) (179,000 ) Identifiable assets 9,331,000 2,339,000 1,998,000 3,923,000 17,591,000 Three Months Ended March 31, 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 Loss before income taxes 244,000 111,000 (565,000 ) (409,000 ) (619,000 ) Identifiable assets 9,345,000 2,178,000 2,767,000 661,000 14,951,000

Basis of Presentation and Sig21

Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($)	Aug. 26, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Significant Accounting Policies [Line Items]
Restricted cash		$ 421,671		$ 177,609
Accumulated other comprehensive loss		$ 38,444		$ 45,343
Antidilutive securities		3,668,127	2,644,227
Reverse stock split	one for four
Number of common stock shares issued	1,166
Number of common stock shares issued value	$ 92
Deferred tax asset gross		$ 350,000
Customer One [Member] | Sales Revenue, Goods, Net [Member]
Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage		31.00%	27.00%
Customer One [Member] | Accounts Receivable [Member]
Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage		20.00%	24.00%
Customer Two [Member] | Sales Revenue, Goods, Net [Member]
Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage		12.00%	12.00%
Customer Two [Member] | Accounts Receivable [Member]
Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage		12.00%	4.00%

Summary of Significant Accoun22

Summary of Significant Accounting Policies - Schedule of Derivative Instruments (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Accounting Policies [Abstract]
Notional Amount	$ 953,256
Variable Rate	3.94%
Fixed Cost	5.87%
Maturity Date	Aug. 30, 2021

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished Goods	$ 941,819	$ 736,987
Work in process	114,329	314,353
Raw Materials	147,375	155,037
Inventory	$ 1,203,523	$ 1,206,377

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 170,019	$ 190,377

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)		3 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		$ 6,293,715	$ 6,288,765
Accumulated Amortization		4,562,767	4,392,747
Net Carrying Amount		1,730,948	1,896,018
Customer Lists and Non-compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		1,997,300	1,997,300
Accumulated Amortization		1,742,883	1,721,357
Net Carrying Amount		$ 254,417	275,943
Customer Lists and Non-compete Agreements [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life		5 years
Customer Lists 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]
Useful life, description	[1]	Varied
Gross Carrying Amount		$ 3,155,000	3,155,000
Accumulated Amortization		2,220,561	2,092,767
Net Carrying Amount		$ 934,439	1,062,233
Patent Application Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life, description	[2]	Varied
Gross Carrying Amount		$ 1,141,415	1,136,465
Accumulated Amortization		599,323	578,623
Net Carrying Amount		$ 542,092	$ 557,842
[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, 2017, the weighted average remaining useful life of these assets in service was approximately 1.8 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, 2017, the weighted average remaining useful life of these assets in service was approximately 6.7 years.

Intangible Assets - Schedule 26

Intangible Assets - Schedule of Intangible Assets (Details) (Parenthetical)	3 Months Ended
	Mar. 31, 2017
Patents and Patent Rights [Member]
Weighted average remaining useful life	1 year 9 months 18 days
Patent Application Costs [Member]
Weighted average remaining useful life	6 years 8 months 12 days

Short Term and Long Term Debt (

Short Term and Long Term Debt (Details Narrative) - USD ($)

Feb. 23, 2017

Sep. 20, 2016

May 23, 2016

Apr. 12, 2016

Apr. 28, 2015

Sep. 05, 2014

Feb. 13, 2014

Jul. 19, 2013

May 02, 2015

Feb. 23, 2015

May 31, 2014

May 24, 2013

Dec. 30, 2011

Aug. 30, 2011

Mar. 31, 2017

Dec. 31, 2016

Mar. 27, 2014

Dec. 06, 2013

Aug. 31, 2011

Debt Instrument [Line Items]

Long-term debt, net

$ 1,651,079

$ 5,249,569

Short-term debt

3,538,129

Accrued interest

227,500

Unamortized debt issuance costs

139,943

Convertible Notes Payable [Member]

Debt Instrument [Line Items]

Debt instrument, maturity date

Dec. 30, 2016

Debt instrument, face amount

$ 575,000

Debt interest rate

10.00%

Beneficial conversion feature recorded as a debt discount

$ 88,000

Debt instrument, carrying amount

$ 650,000

185,000

230,000

Debt instrument, final balloon payment

230,000

Promissory Notes [Member]

Debt Instrument [Line Items]

Debt instrument, maturity date

May 31, 2016

May 31, 2017

Debt instrument, face amount

$ 850,000

Debt interest rate

9.00%

Debt instrument, carrying amount

460,000

505,000

Periodic installments amount

$ 15,000

Debt instrument, final balloon payment

$ 155,000

$ 610,000

Shares to be issued upon conversion of convertible note, shares

60,000

Stock options issued, exercise price per share

$ 3

Fair value of notes payable

$ 29,000

$ 69,000

Expected volatility

70.00%

60.00%

Risk-free interest rate per annum

1.53%

0.89%

Expected dividend yield

0.00%

0.00%

Long-term debt, unamortized discount

$ 29,000

$ 69,000

Sale of investment units, shares issuable per warrant

40,000

Sale of investment units, warrant exercise price per share

$ 1.50

Interest accrued in the period

$ 15,000

Promissory Notes One [Member]

Debt Instrument [Line Items]

Debt instrument, maturity date

May 31, 2017

Debt instrument, final balloon payment

$ 430,000

Term Loan [Member]

Debt Instrument [Line Items]

Debt instrument, carrying amount

$ 1,303,900

Debt instrument, term

60 months

Interest rate on outstanding term loan

4.84%

Credit facility agreement, monthly principal payment

$ 24,511

RBS Citizens [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing amount

$ 800,000

Interest rate additional rate above LIBOR

4.64%

Debt instrument, maturity date

May 31, 2017

Credit facility, amount outstanding

$ 0

0

RBS Citizens [Member] | Promissory Notes [Member]

Debt Instrument [Line Items]

Interest rate additional rate above LIBOR

3.94%

Debt interest rate

5.87%

Debt instrument, carrying amount

$ 953,256

966,786

Periodic installments amount

$ 7,658

RBS Citizens [Member] | Permanent Loan [Member]

Debt Instrument [Line Items]

Interest rate additional rate above LIBOR

3.93%

Debt instrument, maturity date

Jul. 31, 2019

Debt instrument, carrying amount

$ 367,500

375,000

$ 450,000

Periodic installments amount

$ 450,000

Interest accrued in the period

$ 2,500

Debt instrument, term

5 years

Debt instrument, final balloon payment

$ 300,000

RBS Citizens [Member] | LIBOR [Member]

Debt Instrument [Line Items]

Interest rate additional rate above LIBOR

3.75%

RBS Citizens [Member] | LIBOR [Member] | Promissory Notes [Member]

Debt Instrument [Line Items]

Interest rate additional rate above LIBOR

3.15%

RBS Citizens [Member] | LIBOR [Member] | Permanent Loan [Member]

Debt Instrument [Line Items]

Interest rate additional rate above LIBOR

3.15%

Peoples Capital [Member] | Term Loan [Member]

Debt Instrument [Line Items]

Debt instrument, carrying amount

$ 492,578

559,609

Citizens [Member] | Term Loan [Member]

Debt Instrument [Line Items]

Debt instrument, carrying amount

$ 525,000

$ 335,024

$ 360,611

Debt instrument, term

60 months

Interest rate on outstanding term loan

3.61%

Credit facility agreement, monthly principal payment

$ 9,591

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]

Debt Instrument [Line Items]

Debt instrument, maturity date

Feb. 13, 2018

Short-term debt

$ 770,250

Fixed and contingent equity interests

$ 459,000

DSS Technology Management [Member] | Investment Agreement [Member]

Debt Instrument [Line Items]

Debt instrument, carrying amount

$ 1,000,000

Advances

$ 4,500,000

Long-term debt, net

$ 1,350,000

1,791,000

900,000

Fixed return equity interests

150,000

199,000

$ 100,000

Fair value of contingent consideration

10,000

Proceeds from return received

$ 1,500,000

2,000,000

Proceeds from sale of intangible assets

$ 125,250

$ 495,000

Payment of obligation

$ 150,000

Straight line basis maturity date

Feb. 13, 2018

Received percentage

25.00%

Short-term debt

$ 4,500,000

DSS Technology Management [Member] | Investment Agreement [Member] | March 2, 2017 [Member]

Debt Instrument [Line Items]

Deposits

300,000

DSS Technology Management [Member] | Investment Agreement [Member] | March 2, 2018 [Member]

Debt Instrument [Line Items]

Deposits

$ 300,000

Other Liabilities (Details Narr

Other Liabilities (Details Narrative) - USD ($)	Nov. 14, 2016	Sep. 05, 2014	Mar. 27, 2014	Feb. 13, 2014	Jul. 08, 2013	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Payment to acquire intangible assets						$ 4,949	$ 67,792
Intangible assets book value						6,293,715		$ 6,288,765
Other liabilities short term						2,982,175		2,996,310
Selling, general and administrative costs						1,725,881	$ 1,909,695
DSS Technology Management [Member]
Payment to acquire intangible assets					$ 500,000
Proceeds from financing amount					250,000
Payment milestones amount					$ 750,000
Milestones description					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.
Reduction the liability pays legal and other expense percentage					50.00%
Proceeds Investment Agreement [Member] | Brickell Key Investments LP [Member]
Finance amount	$ 13,500,000
Other liabilities						4,067,000
Other liabilities short term						2,982,000
Payment of estimated future inter parts review costs						2,500,000
Allocation to working capital						1,709,000
Selling, general and administrative costs						47,500
Reduction of the liability						$ 142,500
Warrants to purchase of common stock shares						750,000
Warrants exercise price per share						$ 1
Proceeds Investment Agreement [Member] | Intellectual Discovery Co. Ltd [Member] | LED Patent Portfolio [Member]
Payment to acquire intangible assets	3,000,000
Intangible assets book value	0
Attorneys' fees and out-of-pocket expenses	6,000,000
Proceeds from financing amount	$ 4,500,000
Proceed Right Agreement [Member] | Investors [Member]
Other liabilities						$ 453,000		$ 467,000
Proceeds from related party debt						650,000
Investment Agreement [Member] | DSS Technology Management [Member]
Proceeds from related party debt		$ 1,500,000	$ 1,000,000	$ 4,500,000
Proceeds from issued and sold promissory note		1,350,000	900,000	1,791,000
Fixed return equity interests				199,000
Contingent equity interests				$ 10,000
Fixed and contingent equity interests		$ 150,000	$ 100,000			$ 495,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jan. 12, 2017	Aug. 26, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Reverse stock split		one for four
Number of restricted common stock issued	200,000
Restricted stock, value	$ 50,000			$ 74,000
Stock compensation expense			$ 132,000
Stock compensation expense, description			Company had stock compensation expense of approximately $132,000 or less than $0.01 basic and diluted earnings per share ($74,000; less than $0.01 basic and diluted earnings per share for the corresponding three months ended March 31, 2016).
Basic and diluted earnings per share			$ 0.01	$ 0.05
Restricted Stock [Member]
Number of restricted common stock issued	150,000				224,750
Restricted shares vested date	May 17, 2017
Restricted stock, value	$ 126,000				$ 124,000
EBITDA [Member] | Restricted Stock [Member]
Restricted stock, value	$ 500,000
Sale of stock price per share	$ 1

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 44,000	$ 58,000
Gain (Loss) from change in fair value of interest rate swap derivative	$ 7,000	$ (26,000)

Segment Information (Details Na

Segment Information (Details Narrative)	3 Months Ended
	Mar. 31, 2017Segment
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, 2017	Mar. 31, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenues from external customers	$ 4,770,591	$ 4,338,986
Depreciation and amortization	342,774	360,501
Stock based compensation	133,807	73,724
Loss before income taxes	(179,302)	(619,285)
Identifiable assets	17,591,009		$ 18,466,023
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	4,771,000	4,339,000
Depreciation and amortization	343,000	361,000
Stock based compensation	134,000	74,000
Loss before income taxes	(179,000)	(619,000)
Identifiable assets	17,591,000	14,951,000
Operating Segments [Member] | Packaging and Printing Group [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	3,246,000	2,927,000
Depreciation and amortization	159,000	153,000
Stock based compensation		17,000
Loss before income taxes	392,000	244,000
Identifiable assets	9,331,000	9,345,000
Operating Segments [Member] | Document Security Systems Plastics Group [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	1,157,000	1,048,000
Depreciation and amortization	30,000	29,000
Stock based compensation		10,000
Loss before income taxes	163,000	111,000
Identifiable assets	2,339,000	2,178,000
Operating Segments [Member] | Technology Management [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	368,000	364,000
Depreciation and amortization	153,000	178,000
Stock based compensation	24,000	13,000
Loss before income taxes	(310,000)	(565,000)
Identifiable assets	1,998,000	2,767,000
Operating Segments [Member] | Corporate [Member]
Segment Reporting Information [Line Items]
Revenues from external customers
Depreciation and amortization	1,000	1,000
Stock based compensation	110,000	34,000
Loss before income taxes	(424,000)	(409,000)
Identifiable assets	$ 3,923,000	$ 661,000