This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

DSS Announces Acquisition Of IP To Launch Hardware And Peripherals Business

TYSONS CORNER, Va., Oct. 14, 2013 /PRNewswire/ -- Document Security Systems, Inc. (NYSE MKT: DSS; "DSS"), a leading developer and integrator of security technologies, today announced that it has acquired two patent portfolios that will enable DSS to develop proprietary, patent-protected hardware and peripherals that incorporate core DSS security technologies.

The portfolios, which were acquired during the third quarter of 2013 from two different owners, cover key aspects of semiconductor manufacturing and the use of low-power Bluetooth peripherals.  The acquisitions support efforts by DSS's R&D and Digital groups to develop dedicated devices and peripherals that run AuthentiSuite, DSS's digital platform for brand protection.  

On September 23 rd, DSS announced its first sale of AuthentiSuite with MedTech Wristbands, a leading provider of wrist identification and access control solutions designed for the leisure and entertainment markets. DSS anticipates additional sales of AuthentiSuite by the end of 2013.

Robert Bzdick, President of DSS said, "These new portfolios will protect our AuthentiSuite franchise and provide us with flexibility to develop patent protected solutions that meet with some of our customers' needs.  It opens news doors and gives us a head start on our internal R&D."

The portfolio acquisitions represent new licensing opportunities for DSS and bring DSS closer to its stated goal of having at least seven technology management investments by the close of 2013.

Jeff Ronaldi, CEO of DSS stated, "These acquisitions reflect our interest to diversify our product suite and our technology licensing opportunities.   These assets provide us with immediate patent protection in areas where we are developing AuthentiGuard and the ability to license these technologies on their own or with our broader portfolio."

The portfolios were acquired for a total purchase price of approximately $2.5 million and a portion of the costs of acquiring and monetizing both portfolios was provided by private investors who were not previous equity owners of DSS or Lexington Technology Group, the predecessor of DSS Technology Management. DSS does not anticipate the need to raise additional capital to pursue monetization of these acquisitions.

DSS filed an S-3 on October 11 th, 2013 registering the common stock underlying approximately 4.9 million warrants to purchase DSS stock at a price of $4.80 which were issued to shareholders of Lexington Technology Group through the merger with DSS, completed on July 1 st 2013.  In addition to registering the stock underlying these warrants, DSS registered up to fifteen million shares of common stock which could be used to raise capital through the future sale of equity.  Once the shelf is made effective, DSS may seek strategically to sell its common stock by pulling shares off the shelf in one or more offerings, in amounts, and at prices, to be determined.  DSS has no immediate plans to do so based on current market prices.

Peter Hardigan, COO of DSS stated, "As a public company, we intend over the long term to use our balance sheet to fund all our acquisitions, however at this point in time, it makes sense to share risk with private investors focused on the monetization part of our business as we diversify our IP investments.  Raising capital at these levels is not something we want to do. We believe that the stock price will recover as we continue to execute on our goals."

Further details of the acquisitions will be reported during DSS's third quarter 2013 earnings call.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.05 -1.30%
FB $99.85 -1.10%
GOOG $672.64 -1.70%
TSLA $152.60 6.20%
YHOO $26.36 -2.70%


Chart of I:DJI
DOW 15,522.63 -392.11 -2.46%
S&P 500 1,819.51 -32.35 -1.75%
NASDAQ 4,238.3510 -45.2410 -1.06%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs