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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information

12. Segment Information

 

The Company’s eight businesses lines are organized, managed and internally reported as four operating segments. Packaging and Printing is engaged in the printing and production of paper, and cardboard 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 second 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 third 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. The fourth segment, Direct Marketing, direct marketing or network marketing is the business of selling products or services directly to the public, e.g., by online or telephone selling, rather than through retailers. We believe this business has significant growth potential in the blossoming “gig economy” with comparisons to the growth that is being realized in parallel businesses such as ride sharing.

  

Approximate information concerning the Company’s operations by reportable segment for the three and six months ended June 30, 2020 and 2019 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 June 30, 2020   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 2,264,000     $ -     $ 359,000     $ -     $ 506,000     $ -     $ 3,129,000  
Depreciation and amortization     195,000       -       9,000       14,000       -       57,000       275,000  
Interest expense     28,000       -       4,000       -       -       10,000       42,000  
Stock based compensation     4,000       -       10,000       -       -       (21,000 )     (7,000 )
Net Income (loss) from continuous operations     64,000       -       (155,000 )     (49,000 )     (25,000 )     (507,000 )     (672,000 )
Capital expenditures     31,000       (22,000 )     4,000       -       -       2,000       15,000  
Identifiable assets     9,715,000       2,579,000       686,000       -       1,411,000       13,022,000       27,413,000  
                                                         
Three Months Ended June 30, 2019   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 3,000,000     $ -     $ 484,000     $ -     $ -     $ -     $ 3,484,000  
Depreciation and amortization     223,000       -       8,000       21,000       -       41,000     $ 293,000  
Interest expense     (29,000 )     -       (2,000 )     -       -       -     $ (31,000 )
Stock based compensation     4,000       -       -       20,000       -       4,000     $ 28,000  
Net Income (loss) from continuous operations     (21,000 )     -       (258,000 )     (160,000 )     -       (293,000 )   $ (732,000 )
Capital expenditures     -       -       -       -       -       -     $ -  
Identifiable assets     9,381,000       4,129,000       198,000       -       -       5,960,000       19,668,000  
                                                         
Six Months Ended June 30, 2020   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 5,422,000     $ -     $ 848,000     $ -     $ 1,078,000     $ -     $ 7,348,000  
Depreciation and amortization     418,000       -       19,000       27,000       -       114,000       578,000  
Interest expense     55,000       -       7,000       -       -       11,000       73,000  
Stock based compensation     8,000       -       30,000       -       -       46,000       84,000  
Net Income (loss) from continuous operations     86,000       -       (202,000 )     (290,000 )     179,000       (1,368,000 )     (1,595,000 )
Capital expenditures     94,000       14,000       8,000       -               4,000       120,000  
Identifiable assets     9,715,000       2,579,000       686,000       -       1,411,000       13,022,000       27,413,000  
                                                         
Six Months Ended June 30, 2019   Packaging and Printing     Plastics     Digital     Technology Management     Direct Marketing     Corporate     Total  
Revenue   $ 6,314,000     $ -     $ 927,000     $ -     $ -     $ -     $ 7,241,000  
Depreciation and amortization     448,000       -       16,000       41,000       -       41,000     $ 546,000  
Interest expense     50,000     -       5,000     -       -       -     $ 55,000  
Stock based compensation     9,000       -       42,000       -       -       8,000     $ 59,000  
Net Income (loss) from continuous operations     68,000       -       (579,000 )     (216,000 )     -       (437,000 )   $ (1,164,000 )
Capital expenditures     -       -       -       -       -       -     $ -  
Identifiable assets     9,381,000       4,129,000       198,000       -       -       5,960,000       19,668,000  

 

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

 

Printed Products Revenue Information:

 

Three months ended June 30, 2020      
Packaging Printing and Fabrication   $ 2,098,000  
Commercial and Security Printing     168,000  
Total Printed Products   $ 2,266,000  
         
Three months ended June 30, 2019        
Packaging Printing and Fabrication   $ 2,775,000  
Commercial and Security Printing     225,000  
Total Printed Products   $ 3,000,000  
         
Six months ended June 30, 2020        
Packaging Printing and Fabrication   $ 5,063,000  
Commercial and Security Printing     371,000  
Total Printed Products   $ 5,434,000  
         
Six months ended June 30, 2019        
Packaging Printing and Fabrication   $ 5,737,000  
Commercial and Security Printing     577,000  
Total Printed Products   $ 6,314,000  

 

Technology Sales, Services and Licensing Revenue Information:

 

Three months ended June 30, 2020      
Information Technology Sales and Services   $ 30,000  
Digital Authentication Products and Services     258,000  
Royalties from Licensees     70,000  
Total Printed Products   $ 358,000  
         
Three months ended June 30, 2019        
Information Technology Sales and Services   $ 32,000  
Digital Authentication Products and Services     319,000  
Royalties from Licensees     133,000  
Total Printed Products   $ 484,000  
         
Six months ended June 30, 2020        
Information Technology Sales and Services   $ 41,000  
Digital Authentication Products and Services     589,000  
Royalties from Licensees     207,000  
Total Printed Products   $ 837,000  
         
Six months ended June 30, 2019        
Information Technology Sales and Services   $ 105,000  
Digital Authentication Products and Services     550,000  
Royalties from Licensees     272,000  
Total Printed Products   $ 927,000  

 

Direct Marketing

 

Three months ended June 30, 2020      
Direct Marketing Internet Sales   $ 506,000  
Total Direct Marketing   $ 506,000  
         
Three months ended June 30, 2019        
Direct Marketing Internet Sales   $ -  
Total Direct Marketing   $ -  
         
Six months ended June 30, 2020        
Direct Marketing Internet Sales   $ 1,078,000  
Total Direct Marketing   $ 1,078,000  
         
Six months ended June 30, 2019        
Direct Marketing Internet Sales   $ -  
Total Direct Marketing   $ -