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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information

14. Segment Information

 

The Company’s eight businesses lines are organized, managed and internally reported as four operating segments. One of these operating segments, Premier Packaging, is the Company’s packaging and security printing group. Premier Packaging operates in the paper board folding carton, smart packaging, and document security printing markets. It markets, manufactures, and sells mailers, photo sleeves, sophisticated custom folding cartons, and complex 3-dimensional direct mail solutions. These products are designed to provide functionality and marketability while also providing counterfeit protection. A second, BioHealth Group, invests in, or acquires companies in the biohealth and biomedical fields, including businesses focused on the advancement of drug discovery and prevention, inhibition, and treatment of neurological, oncological, and immune related diseases. This division is also developing open-air defense initiatives, which curb transmission of air-borne infectious diseases, such as tuberculosis and influenza. The BioHealth Group is also targeting unmet, urgent medical needs. A third operating segment, Digital Group, researches, develops, markets, and sells the Company’s digital products worldwide. As an industry leader in brand authentication services, our solutions leverage functional anti-counterfeiting features and cutting-edge technologies to satisfy commercial and consumer product needs for branding, intelligent packaging, and marketing. Digital’s primary product is AuthentiGuard®, which is a brand authentication application that integrates the Company’s counterfeit deterrent technologies with proprietary digital data security-based solutions (subsequent to March 31, 2021, this segment will be discontinued as the Company’s subsidiary DSS Digital, which constitutes the majority of the activity in this segment was disposed of See Note 15). The fourth segment, Direct Marketing/Online Sales Group, provides services to assist companies in the emerging growth gig business model of peer-to-peer decentralized sharing marketplaces. It specializes in marketing and distributing its products and services through its subsidiary and partner network, using the popular gig economic marketing strategy as a form of direct marketing. Direct marketing products include, among other things, nutritional and personal care products sold throughout North America, Asia Pacific and Eastern Europe.

 

Our segment structure presented below represents a change from the prior year for the inclusion of our BioHealth Group and the removal of our Plastics segment and IP Technology Management segment as the Plastics segment was discontinued in 2020 and activities surrounding our IP Technology Management segment have significantly decreased. The amounts for these segments have been included in the Corporate reporting segment for the three months ended March 31, 2021 and 2020 below. Also, the investment in SHRG, recorded in the Corporate segment at December 31, 2020 is accounted for in the Direct Marketing segment for the three months ended March 31, 2021. Each of our segments employs consistent accounting policies.

 

Approximate information concerning the Company’s operations by reportable segment for the three months ended March 31, 2021 and 2020 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, 2021   Packaging and Printing     Digital     Direct Marketing     Biohealth Group     Corporate     Total  
Revenue   $ 3,846,000     $ 489,000     $ 608,000     $ -     $ -     $ 4,943,000  
Depreciation and amortization     116,000       10,000       44,000       278,000       70,000       518,000  
Interest expense     19,000       -       -       -       1,000       20,000  
Stock based compensation     1,000       8,000       -       -       6,000       15,000  
Net income (loss) from continuing operations     218,000       54,000       (1,799,000 )     (698,000 )     (1,673,000 )     (3,898,000 )
Capital expenditures     66,000       -       6,000       -       -       72,000  
Identifiable assets     22,567,000       980,000       18,892,000       51,158,000       49,206,000       142,803,000  

 

Three Months Ended March 31,2020   Packaging and Printing     Digital     Direct Marketing     Biohealth Group     Corporate     Total  
Revenue   $ 3,158,000     $ 490,000     $ 573,000     $       -     $ -     $ 4,221,000  
Depreciation and amortization     223,000       9,000       -       -       71,000       303,000  
Interest expense     27,000       4,000       -       -       -       31,000  
Stock based compensation     4,000       20,000       -       -       66,000       90,000  
Net income (loss) from continuing operations     22,000       (46,000 )     204,000       -       (1,101,000 )     (921,000 )
Capital expenditures     63,000       4,000       -       -       1,000       68,000  
Identifiable assets     10,626,000       757,000       865,000       -       7,093,000       19,341,000  

 

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

 

Printed Products Revenue Information:

 

Three months ended March 31, 2021      
Packaging Printing and Fabrication   $ 3,688,000  
Commercial and Security Printing     158,000  
Total Printed Products   $ 3,846,000  

 

Three months ended March 30, 2020      
Packaging Printing and Fabrication   $ 2,966,000  
Commercial and Security Printing     203,000  
Total Printed Products   $ 3,169,000  

 

Technology Sales, Services and Licensing Revenue Information:

 

Three months ended March 31, 2021      
Information Technology Sales and Services   $ 38,000  
Digital Authentication Products and Services     367,000  
Royalties from Licensees     84,000  
Total Technology Sales, Services and Licensing   $ 489,000  

 

Three months ended March 30, 2020      
Information Technology Sales and Services   $ 11,000  
Digital Authentication Products and Services     331,000  
Royalties from Licensees     137,000  
Total Technology Sales, Services and Licensing   $ 479,000  

 

Direct Marketing

 

Three months ended March 31, 2021      
Direct Marketing Internet Sales   $ 608,000  
Total Direct Marketing   $ 608,000  

 

Three months ended March 30, 2020      
Direct Marketing Internet Sales   $ 573,000  
Total Direct Marketing   $ 573,000