Interesting conference call.
#1 - Its loud and clear that management feels the stock price decline is temporary. They, like us, do not know why its happening but they made it known that there is NO BAD NEWS causing the price slide.
#2 - Management also said that their balance sheet is strong and that they took on no new debt and they are comfortable with their cash position.
#3 - Management confirmed there is no desire, need or intention for a reverse split and they CLEARLY confirmed that they meet all listing requirements. I was very happy that they put to rest that the listing requirement is NOT stock price. According to the call, DSS met all requirements as they clearly went through all of the benchmarks.
#4 - Really glad to hear that they are looking for additional undervalued, revenue generating intellectual property to acquire and that they have investors looking to fund any of these acqusitions. I would assume, Barry Honig (Hundreds of $ millions), Dr. Phil Frost (Billinaire - 40th richest man in USA per Forbes list) and Mark Cuban (billionaire) are the angel investors since they have a history of working together on these opportunities and Honig and Frost are both heavy shareholders in DSS.
#5 - Management revealed who the new board member (Number 9) is. He is a Cyber security expert and is heavily involved in start up funding and turnarounds. His name is Jonathon Perrelli who is the founder of Fortify Ventures. Also founded SecureForce. A excellent, well connected addition to the board who can help DSS grow.
#6 - Litigation is on track with 3 big targets, Facebook, LinkedIn and Saleforce.com all billion $ revenues. 4-5% royalties will be huge.
#7 - Management informed us that they have 46 million shares outstanding which includes 7.1 million shares held in escrow that disappear and go away if they do not meet a $5 share price for 40 trading days out of a 90 day quarter during the first year. Also, they said they are about 3.5 million 2 cent warrants out there to replace the preferred share that failed in the vote. Management also alluded that there investors wanted the warrants to avoid 10% ownership reporting requirements.
#8 - One caller alluded to some major entities may report 5% ownership in DSS soon.
Bottom line: After we weather the initial merger share price storm, we should bottom out and then its up up and away for DSS. I'm long and strong.
