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Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

NOTE 15 - 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. A third operating segment, Digital, is comprised of DSS Digital Group, and DSS International, and is engaged in research, development, marketing and selling worldwide the Company’s digital products, including and primarily our AuthentiGuard® product, which is a brand authentication application that integrates the Company’s counterfeit deterrent technologies with proprietary digital data security-based solutions. The fourth operating segment, Technology Management, primary mission has been to monetize its various patent portfolios through commercial litigation and licensing. Except for investment in its social networking related patents, we have historically partnered with various third-party funding groups in connection with patent monetization programs.

As reported herein, DSS is in the process of establishing several new business lines, and we anticipate each of these new business division to be future operating segments. For instance, Direct Marketing is a newly added operating segment in December 2019 and focuses on direct marketing or network marketing engaged in the selling of products or services directly to the public, e.g., by online or telephone selling, rather than through retailers. But for the period ending December 31, 2019, these segments have either yet to be materially formed or to have generated any material revenues.

Approximate information concerning the Company’s operations by reportable segment for the years ended December 31, 2019 and 2018 is as follows. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein:

Year Ended December 31, 2019		Packaging and Printing				Plastics				Digital				Technology Management				Corporate				Total
Revenue		$	13,230,000			$	3,860,000			$	2,147,000			$	-			$	172,000			$	19,409,000
Depreciation and amortization			904,000				253,000				33,000				82,000				132,000				1,404,000
Interest expense			96,000				32,000				7,000				-				22,000				157,000
Amortized Debt Discount			2,000				-				-				-				-				2,000
Stock based compensation			17,000				-				81,000				-				324,000				422,000
Income tax benefit			-				-				-				-				(125,000	)			(125,000	)
Net Income (loss)			311,000				(294,000	)			(579,000	)			(475,000	)			(1,852,000	)			(2,889,000	)
Capital Expenditures			819,000				42,000				24,000				-				104,000				989,0000
Identifiable assets			10,425,000				3,934,000				924,000				58,000				4,804,000				20,145,000

Year Ended December 31, 2018		Packaging and Printing				Plastics				Digital				Technology Management				Corporate				Total
Revenue		$	12,957,000			$	3,983,000			$	1,543,000			$	32,000			$	-			$	18,515,000
Depreciation and amortization			775,000				159,000				8,000				338,000				2,000				1,282,000
Interest Expense			(89,000	)			(24,000	)							(13,000	)			(19,000	)			(145,000	)
Amortized Debt Discount			(2,000	)			-								(22,000	)			(22,000	)			(46,000	)
Stock based compensation			6,000				-				99,000				-				27,000				132,000
Income tax expense			-				-				-				-				17,000				17,000
Net Income (loss)			785,000				28,000				(1,267,000	)			3,028,000				(1,109,000	)			1,465,000
Capital Expenditures			643,000				305,000				54,000				-				1,000				1,003,000
Identifiable assets			9,643,000				3,492,000				955,000				130,000				1,060,000				15,280,000

International revenue, which consists of sales to customers with operations in Canada, Western Europe, Latin America, Africa, the Middle East and Asia comprised 2.0% of total revenue for 2019 (3.4% - 2018). Revenue is allocated to individual countries by customer based on where the product is shipped. The Company had no long-lived assets in any country other than the United States for any period presented.

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

Printed Products Revenue Information:

Twelve months ended December 31, 2019
Packaging Printing and Fabrication		$	12,307,000
Commercial and Security Printing			1,159,000
Technology Integrated Plastic Cards and Badges			1,262,000
Plastic Cards, Badges and Accessories			2,361,000
Total Printed Products		$	17,089,000

Twelve months ended December 31, 2018
Packaging Printing and Fabrication		$	11,741,000
Commercial and Security Printing			1,241,000
Technology Integrated Plastic Cards and Badges			1,354,000
Plastic Cards, Badges and Accessories			2,604,000
Total Printed Products		$	16,940,000

Technology Sales, Services and Licensing Revenue Information:

Twelve months ended December 31, 2019
Information Technology Sales and Services		$	189,000
Digital Authentication Products and Services			1,414,000
Royalties from Licensees			545,000
Total Technology Sales, Services and Licensing		$	2,148,000

Twelve months ended December 31, 2018
Information Technology Sales and Services		$	345,000
Digital Authentication Products and Services			772,000
Royalties from Licensees			458,000
Total Technology Sales, Services and Licensing		$	1,575,000