Slide 1: Document Security Systems (NYSE MKT: DSS)
www.dsssecure.com Document Security Systems (NYSE MKT: DSS)
Slide 2: Cautionary Note Regarding Forward-Looking Statements
1 Cautionary Note Regarding Forward - Looking Statements Statements in this presentation regarding the proposed transaction between Document Security Systems, Inc . ("DSS") and Lexington Technology Group, Inc . ("Lexington Technology Group") ; the expected timetable for completing the transaction ;
Slide 3: Important Additional Information Will Be Filed with the SEC
2 Important Additional Information Will Be Filed with the SEC This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities of DSS or Lexington Technology Group or the solicitation of any vote or approval . In connection with the proposed transaction,
Slide 4: About Document Security Systems (NYSE MKT: DSS)
3 About Document Security Systems (NYSE MKT: DSS) ▪ Leader in the document anti - counterfeiting field with customers world - wide . ▪ Protects many famous brands with patented technology and know how, including products manufactured by 25 Fortune 200 companies. Clients include P&G, Pfizer, HSBC, Ke
Slide 5: DSS Announces Merger With Lexington Technology Group (LTG)
4 Document Security Systems (DSS) Announces Merger With Lexington Technology Group (LTG) October 2, 2012 ▪ Upon shareholder approval from both companies, the combined company will be known as Document Security Systems, Inc. ▪ The strategic combination with Lexington Technology Group will enable DSS
Slide 6: Document Security Systems, Inc. Overview
5 Document Security Systems, Inc. (“DSS”) Overview DSS : A history of protecting famous brands from counterfeiting … …is moving to a future of protecting them in the “cloud.” Evolving its expertise in optical security technology, trusted for securing some of the world’s most important documents, to
Slide 7: AuthentiGuard Prism
6 AuthentiGuard® Prism Covert Authentication that does not reproduce on copiers and scanners . • Copy/scan resistant - valid image only appears on originals • Hides confidential information from naked eye • Hidden words or images are revealed using simple authenticator lens
Slide 8: Product Authentication with Real-Time Insight into Supply Chains
7 Product Authentication with Real - Time Insight into Supply Chains. Validate products from production to store shelf with this covert marking system and smart phone application . • A product authentication solution that’s more efficient and cost effective over commonly used methods such as hologra
Slide 9: Variably Secure Document (VSD)
8 Variably Secure Document(VSD) Variable Data Authentication Feature Point of Issuance Security Document content encoded utilizing AuthentiGuard Prism as a variable data authentication feature that can be sent via email or printed at point of issuance .
Slide 10: AuthentiGuard DX
AuthentiGuard® DX User oicitatty GREATES DOCUMENTS ADX Ciouo Service AND SENDS To ADX GENERATES OYNAMIC. BLOMUS BEvieer Ano PAPER DODUMENTS. ENCRYPTED DOCUMENTS ARE DIGITALLY STORED ANYWHERE.
Slide 11: DSS 3Q 2012 Earnings Highlights
10 DSS 3Q 2012 Earnings Highlights ▪ Sales up 15% in Q3 2012, Sales up 27% for the first nine months of 2012 compared to 2011. ▪ Gross profit up 20% in Q3 2012, Gross Profit up 36% for the first nine months of 2012 compared to 2011 . ▪ Operating expenses flat, except for significant Merger related c
Slide 12: About Lexington Technology Group (LTG)
11 About Lexington Technology Group (LTG) ▪ Intellectual Property (IP) Asset Company that invests both expertise and capital in the development and monetization of pioneering technologies ▪ Experienced management team who have demonstrated success in generating returns from patent monetization. ▪ In
Slide 13: LTG Litigation and Licensing Model
12 ▪ High - Stakes Litigation: Each case designed to have high potential upside, but with risk of trial and appeal ▪ Broad Licensing: Often 25+ licensees in an effort, typical payment size <$1MM ▪ Build portfolio of >5 high - stakes claims & 5 ongoing licensing efforts to generate cash flow ▪ Partne
Slide 14: LTG Initial Investment: Bascom Research, LLC
13 LTG Initial Investment: Bascom Research, LLC ▪ Bascom Research is a wholly owned subsidiary of LTG, based in McLean, Va. ▪ The patented technology covers the data structure used by social networking sites and web 2.0 corporate intranets ▪ Bascom Research filed patent infringement lawsuits against
Slide 15: Bascom Research Patents Disclose Relationships with Attributes
14 Bascom Research Patents Disclose “Relationships with Attributes” ▪ Establishing a relationship between two or more objects (e.g., user profiles, documents, articles, data entries, etc.) ▪ With the ability to describe / customize and display the characteristics of the relationship Exemplary Use of
Slide 16: Combined Company – Management
15 Combined Company – Management ▪ Lexington Tech Group Management will lead new DSS ▪ Sharing of key resources ▪ Licensing team will also oversee existing litigation EXISTING OPERATIONS LICENSING Peter Hardigan CIO John Cronin Special Advisor Philip Jones CFO Jeff D’Angelo General Counsel David Wic
Slide 17: DSS Management & Experience
16 DSS Management & Experience 1. www.ipnav.com; interviews with company management (8/2012) Will Rosellini, Chief Executive Officer Robert Bzdick Acting Chief Executive Officer, President and Chief Operating Officer Phillip Jones, Chief Financial Officer ▪ Jointed the Company in 2005 as Controller
Slide 18: LTG Management & Experience
17 LTG Management & Experience 1. www.ipnav.com; interviews with company management (8/2012) Will Rosellini, Chief Executive Officer Jeff Ronaldi Chief Executive Officer Peter Hardigan, Chief Operating Officer ▪ CFO / Head of Investment Management at IPNav 1 Responsible for financial assessment of a
Slide 19: Combined Company – Board of Directors
18 Combined Company – Board of Directors Independent Directors Company Directors Peter Hardigan CIO Warren Hurwitz Altitude Capital Partners Jonathon Perelli FortifyVC Richard Cohen Chord Advisors Jeff Ronaldi CEO Robert Bzdick President David Klein Constellation Brands Ira Greenstein IDT Robert Fag
Slide 20: Financial Snapshot: NYSE MKT: DSS
19 Financial Snapshot: NYSE MKT: DSS Share Price as of 1/11/2013 $2.75 Average Volume(3months) 97,277 52 Week Low - High $2.11 - $5.12 Market Cap $58.39million Shares Outstanding (Fully - Dilluted as of 11/21/2012) 21.7million Float 19.12million Cash On Hand (as of 9/30/2012) $1.omillion
Slide 21: DSS Key Milestones
20 DSS Key Milestones ▪ Improved earnings in upcoming 4rth quarter and full year results based on positive guidance and strong uptrend for first three quarters ▪ Completion of DSS and LTG Merger ▪ Further development and monetization of DSS intellectual property through LTG relationship ▪ Favorable