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Discontinued Operations

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

10. Discontinued Operations

As a result of the insufficient cash flows from the operations of Plastic Printing Professionals, Inc. as well as the disruption of our business from the COVID-19 pandemic, on April 20, 2020, the Company executed a nonbinding letter of intent with a perspective buyer for substantially all the assets of this business line. As a result of insufficient cash flows, the disruption of our business from the Covid-19 pandemic, and with the intent to exit this business line, the Company terminated its production and office personnel and maintained only a few employees to assist in and facilitate the sale of its assets. The financial results for these subsidiaries have been presented as discontinued operations in the accompanying consolidated financial statements.

The following tables show the major classes of assets and liabilities held for sale and results of operations of the discontinued operation.

DOCUMENT SECURITY SYSTEMS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets - Assets Held For Sale

		June 30, 2020				December 31,
		unaudited				2019

ASSETS
Current assets:
Inventory		$	236,000			$	342,000
Total current assets			236,000				342,000

Property, plant and equipment, net			656,000				732,000
Right-of-use assets			952,000				1,081,000

LIABILITIES

Current liabilities:
Current portion of lease liability			274,000				274,000
Total current liabilities			274,000				274,000

Long term lease liability			678,000				807,000

DOCUMENT SECURITY SYSTEMS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Loss - Discontinued Operations

(unaudited)

		For the Three Months Ended								For the Six Months Ended
		June 30,								June 30,
		2020				2019				2020				2019
Revenue:
Printed products		$	603,000			$	623,000			$	1,383,000			$	1,675,000
Total revenue			603,000				623,000				1,383,000				1,675,000

Costs and expenses:
Cost of revenue, exclusive of depreciation and amortization			484,000				514,000				1,113,000				1,140,000
Selling, general and administrative (including stock based compensation)			286,000				355,000				733,000				751,000
Depreciation and amortization			58,000				44,000				115,000				85,000
Impairment of goodwill			-				-				685,000				-
Total costs and expenses			828,000				913,000				2,646,000				1,976,000
Operating loss			(225,000	)			(290,000	)			(1,263,000	)			(301,000	)

Other income (expense):
Interest expense			(7,000	)			(9,000	)			(15,000	)			(15,000	)
Income (loss) before income taxes			(232,000	)			(299,000	)			(1,278,000	)			(316,000	)

Income tax expense (benefit)			-				-				-				-
Income (loss) from discontinued operations			(232,000	)			(299,000	)			(1,278,000	)			(316,000	)