$DSS

DOCUMENT SECURITY SYSTEMS INC

CIK:0000771999|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 3,604,000	$ 5,285,000	$ 7,934,000	$ 10,237,000
Costs and expenses:
Cost of revenue	4,519,000	5,489,000	10,052,000	10,665,000
Selling, general and administrative (including stock-based compensation)	2,871,000	3,221,000	7,156,000	6,723,000
Total costs and expenses	7,390,000	8,710,000	17,208,000	17,388,000
Operating loss	(3,786,000)	(3,425,000)	(9,274,000)	(7,151,000)
Other income (expense):
Interest income	2,000	13,000	3,000	17,000
Interest income on note receivable, related party	6,000	12,000	12,000	16,000
Dividend income	5,000		16,000
Other income (expense)	21,000	4,000	7,000	10,000
Interest expense	(89,000)	(123,000)	(128,000)	(156,000)
Loss on equity method investment	(364,000)	(2,000)	(367,000)	(5,000)
(Loss) gain on investments	(830,000)	1,557,000	(1,531,000)	627,000
Impairment of intangible assets		(600,000)		(600,000)
Loss on sale of real estate		(43,000)		(727,000)
Loss from continuing operations before income taxes	(5,035,000)	(2,607,000)	(11,262,000)	(7,969,000)
Income tax benefit				67,000
Net loss	(5,035,000)	(2,607,000)	(11,262,000)	(7,902,000)
Loss from operations attributed to noncontrolling interest	246,000	455,000	873,000	973,000
Net loss attributable to DSS common stockholders	$ (4,789,000)	$ (2,152,000)	$ (10,389,000)	$ (6,929,000)
Loss per common share attributable to common stock holders
Basic	$ (0.48)	$ (0.24)	$ (1.06)	$ (0.78)
Diluted	$ (0.48)	$ (0.24)	$ (1.06)	$ (0.78)
Shares used in computing loss per common share:
Basic	10,042,518	9,092,518	9,847,214	8,889,221
Diluted	10,042,518	9,092,518	9,847,214	8,889,221
Printed Products [Member]
Revenue:
Total revenue	$ 3,258,000	$ 4,272,000	$ 7,405,000	$ 8,255,000
Rental [Member]
Revenue:
Total revenue	245,000	715,000	392,000	1,429,000
Commercial Lending [Member]
Revenue:
Total revenue	6,000	9,000	12,000	29,000
Commission [Member]
Revenue:
Total revenue	92,000	282,000	115,000	503,000
Biotechnology [Member]
Revenue:
Total revenue	$ 3,000	$ 7,000	$ 10,000	$ 21,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (11,262,000)	$ (7,902,000)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	1,278,000	1,058,000
Issuance of common stock for bonus		870,000
Stock-based payments for professional services rendered		190,000
Stock-based payments to employees and directors	1,440,000	4,000
Loss on equity method investment	367,000	5,000
Unrealized loss on investments	818,000	303,000
Change in ROU assets	315,000	330,000
(Loss) gain on allowance for obsolescence of inventory	2,000	(21,000)
Provision for loan loss recoveries		235,000
Impairment of intangible asset		600,000
Amortization of debt discount	32,000
Loss on sale of real estate		250,000
Decrease (increase) in assets:
Accounts receivable	968,000	380,000
Inventory	18,000	(80,000)
Assets held for sale		(38,000)
Prepaid expenses and other current assets	182,000	241,000
Investments in trading securities	1,984,000	(884,000)
Other assets	6,000	(802,000)
Increase (decrease) in liabilities:
Accounts payable	590,000	(287,000)
Accrued expenses	334,000	(26,000)
ROU liabilities	(313,000)	(313,000)
Accrued interest on notes payable	1,208,000	1,884,000
Other liabilities	48,000	3,549,000
Net cash (used) provided by operating activities	(1,985,000)	(454,000)
Cash flows from investing activities:
Purchase of property, plant and equipment	(214,000)	(144,000)
Purchase of convertible bond - related party	(2,450,000)
Sale of real estate		9,500,000
Sale of investment, related party		1,500,000
Issuance of new notes receivable, net origination fees	(50,000)
Payments received on notes receivable	7,000	163,000
Net cash (used) provided by investing activities	(2,707,000)	11,019,000
Cash flows from financing activities:
Payments of long-term debt	(628,000)	(9,443,000)
Borrowings of long-term debt, net	73,000	109,000
Payment on margin loans	(1,152,000)	(3,178,000)
Borrowings of convertible note payable - related party	3,450,000
Issuances of common stock, net of issuance costs	703,000
Net cash provided (used) by financing activities	2,446,000	(12,512,000)
Net decrease in cash	(2,246,000)	(1,947,000)
Cash, cash equivalents and restricted cash at beginning of period	6,314,000	11,431,000
Cash and cash equivalents at end of period	$ 4,068,000	$ 9,484,000

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 4,068,000	$ 6,214,000
Restricted cash		100,000
Accounts receivable, net	1,286,000	2,254,000
Inventory	1,978,000	1,998,000
Investments in trading securities	1,090,000	2,694,000
Prepaid expenses and other current assets	467,000	649,000
Total current assets	9,368,000	14,345,000
Property, plant and equipment, net	4,610,000	4,819,000
Investment in real estate, net	16,357,000	16,637,000
Investment, cost method	500,000	500,000
Investment, equity method	11,994,000	113,000
Investment in equity securities	1,719,000	6,517,000
Other assets	65,000	71,000
Right-of-use assets	5,510,000	5,825,000
Goodwill	1,769,000	1,769,000
Other intangible assets, net	16,459,000	17,034,000
Total assets	68,351,000	67,630,000
Current liabilities:
Accounts payable	3,187,000	2,597,000
Accrued expenses and deferred revenue	2,060,000	1,725,000
Other current liabilities	3,185,000	4,367,000
Accrued interest on long-term debt	8,332,000	7,162,000
Current portion of lease liability	603,000	611,000
Total current liabilities	49,242,000	47,496,000
Long-term debt, net	5,272,000	5,727,000
Long term lease liability	5,387,000	5,692,000
Total liabilities	59,901,000	58,915,000
Commitments and contingencies (Note 13)
Stockholders’ equity (deficit)
Preferred stock, $.02 par value; 47,000 shares authorized, zero shares issued and outstanding on June 30, 2026 (zero on December 31, 2025)
Common stock, $.02 par value; 200,000,000 shares authorized, 10,042,518 shares issued and outstanding on June 30, 2026 (9,092,518 on December 31, 2025)	200,000	182,000
Additional paid-in capital	336,808,000	325,987,000
Accumulated deficit	(337,390,000)	(327,001,000)
Total stockholders’ equity of the Company	(382,000)	(832,000)
Non-controlling interest in subsidiaries	8,832,000	9,547,000
Total stockholders’ equity	8,450,000	8,715,000
Total liabilities and stockholders’ equity	68,351,000	67,630,000
Nonrelated Party [Member]
Current assets:
Current portion of notes receivable	248,000	198,000
Current liabilities:
Current portion of long-term debt	30,321,000	30,343,000
Related Party [Member]
Current assets:
Current portion of notes receivable	231,000	238,000
Current liabilities:
Current portion of long-term debt	178,000	188,000
Convertible note payable - related party, net	$ 1,376,000	$ 503,000