$DSS has conducted successful AuthentiGuard tests with several potential customers and expects to implement large deployments shortly. Company executives believe that AuthentiGuard will be a significant revenue generator.
The most near-term catalyst for potential pps appreciation is the start of Markman hearings in the company's lawsuit against AAPL on November 6, 2014.
DSS has secured $1.5 million in non-dilutive milestone payments from an IP investor by achieving milestones in the company's lawsuit against Taiwan Semiconductor Manufacturing Company, Samsung Electronics, and NEC.
The recent slide in Document Security Systems Inc. (NYSEMKT:DSS) shares provides patient value investors a significant upside potential. As the September 29, 2014 Operational Update suggested, DSS is poised for a significant rebound once investors give proper credit to the progress being made on the commercial side of the business, the strength of its non-software patent disputes, and growing IP licensing opportunities.
On September 25, 2014, I wrote an article on DSS suggesting that the 60% reduction in market cap in just a few weeks was accelerated due to 1) an overreaction caused by the decision by the PTAB to invalidate VirtualAgility's patent on September 16, and 2) the blow received by VirnetX (NYSEMKT:VHC) on September 15 when the Court of Appeals for the Federal Circuit threw out a $368.2 million royalty award against Apple (NASDAQ:AAPL).
During the Operational Update, DSS' CEO Jeff Ronaldi (see transcript), stated:
"Last week we issued a press release that provide an update of our IP IP enforcement activity. Based on a feedback we've received, this disclosure was welcomed by our investors who were seeking more clarity on our position on our asset disputes, particularly Virtual Agility, which generated additional questions about the IP marketplace, our company's financial position, and our progress on the commercial side of our business."
I've listened the CC several times, and the more I hear, the more I am convinced that DSS is actually doing better fundamentally now than when it traded above $2/share early this year. This in turn suggests that investors are only concentrating on the potential adverse consequences of the Supreme Court's June decision on the Alice v. CLS Bank patent dispute.
One encouraging bit of information from the update was knowing that DSS had received $1.5 million of non-dilutive capital from an IP investor after achieving certain milestones on the company's dispute with Taiwan Semiconductor Manufacturing Company (NYSE:TSM), Samsung Electronics Co. (OTC:SSNLF) and NEC Corporation of America. The CEO also stated that they had a large pool of IP investors and that they intend to use non-dilutive financing to acquire high-quality IP assets now that patents are at historic lows in Alice's aftermath.
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