DSS(US:DSS)2019-08-13 20:16Financial Performance - Total revenue for the three months ended June 30, 2019, was $4,106,829, a slight increase from $4,087,061 in the same period of 2018, representing a growth of 0.5%[11] - The company reported a net loss of $1,030,822 for the three months ended June 30, 2019, compared to a net income of $2,677,458 for the same period in 2018, indicating a significant decline[11] - Operating loss for the six months ended June 30, 2019, was $1,414,123, compared to a loss of $1,150,594 for the same period in 2018, indicating a worsening of 22.9%[11] - The company reported a comprehensive loss of $1,045,475 for the three months ended June 30, 2019, compared to a comprehensive income of $2,684,421 for the same period in 2018, indicating a significant decline[11] - The company reported a net loss of $1,481,272 in 2019, compared to a net income of $2,271,367 in 2018, indicating a significant decline in profitability[14] Assets and Liabilities - Total current assets increased to $9,463,947 as of June 30, 2019, up from $6,515,035 as of December 31, 2018, reflecting a growth of 45%[9] - The company's total assets reached $19,667,631 as of June 30, 2019, compared to $15,279,786 as of December 31, 2018, marking an increase of 29.5%[9] - Total liabilities decreased to $8,006,778 as of June 30, 2019, down from $7,704,462 as of December 31, 2018, showing a reduction of 3.8%[9] - The company’s accumulated deficit increased to $101,873,070 as of June 30, 2019, from $100,391,798 as of December 31, 2018, reflecting a rise of 1.5%[9] - The company recorded a significant increase in accounts payable and accrued expenses, totaling $216,496 in 2019, compared to $303,907 in 2018[14] Cash Flow and Investments - Net cash used by operating activities was $1,723,104 in 2019, a substantial increase from $449,843 in 2018[14] - The company invested $350,000 in intangible assets in 2019, a notable increase from $20,137 in 2018[14] - Cash and cash equivalents at the end of the period increased to $5,371,610 in 2019 from $3,192,944 in 2018, reflecting improved liquidity[14] - The company issued 11,200,000 shares of common stock, raising $4,662,637 in 2019, contributing to a total stockholder equity of $11,660,867[16] Revenue Breakdown - For the six months ended June 30, 2019, total revenue was $8,916,000, compared to $8,465,000 for the same period in 2018[106] - Total revenue from printed products for the three months ended June 30, 2019, was $3,623,000, a decrease of 2.7% compared to $3,725,000 for the same period in 2018[107] - Total revenue from technology sales, services, and licensing for the three months ended June 30, 2019, was $484,000, an increase of 33.7% compared to $362,000 for the same period in 2018[108] - Revenue from digital authentication products and services for the three months ended June 30, 2019, was $319,000, an increase of 83.1% compared to $174,000 for the same period in 2018[108] - Revenue from royalties from licensees for the three months ended June 30, 2019, was $133,000, an increase of 21.1% compared to $110,000 for the same period in 2018[108] Operational Developments - The company has expanded operations into the Asia Pacific market through its subsidiary DSS Asia Limited, formed in 2017[18] - The company’s subsidiary DSS Digital Inc. focuses on developing digital information services, including data hosting and security services[18] - The Company plans to continue international expansion of its AuthentiGuard product and control operating costs to return to profitability[44] Legal Matters - The company has ongoing patent litigation against Apple, seeking compensatory damages and injunctive relief, with a trial date set for February 24, 2020[80] - The company entered into a confidential settlement agreement with multiple defendants, including Intel and Dell, resolving patent infringement claims[83] - The company has filed multiple patent infringement lawsuits against various entities, including Seoul Semiconductor and Everlight, seeking damages and injunctive relief[85][87] Miscellaneous - The company entered into a Master Distributor Agreement with Advanced Cyber Security Corp, incurring an aggregate cost of $494,783 to be amortized over 36 months[60] - The weighted-average remaining lease term is 4.2 years, with a weighted-average discount rate of 5.4%[81] - The company has an additional operating lease for equipment valued at $118,219, expected to commence between 2019 and 2020 with a 4-year lease term[79]