posted
Sold at .022 now looking to re-enter on this dip, loving this stock, can't wait to see what it will do with PR
Posts: 210 | From: Seattle, Washington | Registered: Apr 2005
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posted
Explorer, how far do you think she'll dip, I think there is a little resistence at 16 but, she may fall below that. We are entering lunch time. Do you think she'll bounce a bit after lunch toward EOD? I do, but am a bit hesitant, only because its a pinkie. Other than that, she looks good up to 24 I believe.
Posts: 222 | Registered: Nov 2003
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posted
i think after news comes out thur or fri , won't beable to touch it at these lows
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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posted
By no means am I an expert in calling these things. Yesterday, I got in at 0.0015. Two things can happen right now: it can bounce back to 0.20+ or it can dip a little more. I think a lot of people are starting to believe in this stock, and shares are scarce. Some guy on RB is trying to scare holders out of their shares by saying there is dilution because we have a 10 billion AS. I hope his scare tactics don't work, but it is a good sign that we have been assigned a basher, which indicate the MM's plan to work DDSI for some time to come.
Posts: 1468 | Registered: Jul 2005
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posted
Yeah, you may be right. I noticed that as well. Hopfully it doesn't work, but you never know with those guys. She has come back up to 20 so thats good, I think after lunch we may touch levels near or at the high for the day. We'll see! Good luck all. I hope we can get some more posters to the board.
Posts: 222 | Registered: Nov 2003
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posted
You only lose if you sell at a loss. Consider this: the majority of trades occurred at or above 0.002. That means most of the OS is held at or above 0.002. The MM's might be sending her down because they don't want her to gain large percentages every day. We might keep on moving steadily up for some time now.
Posts: 1468 | Registered: Jul 2005
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posted
A shake and taming of the price. Buying pressure might have also decreased, but remember news is expected by the end of this week, and 10Q next week.
Posts: 1468 | Registered: Jul 2005
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posted
Explorer, I read thru some of the more recent PR's, where did you see about an expected P.R. by the end of this week? I was not able to find that; I guess maybe on a different board.
Posts: 222 | Registered: Nov 2003
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posted
It's just a guess since the seminar ended today. In my experience, I found companies usually PR prospects found at such gatherings. Plus I will give you a heads up. Although I would very much like it to go lower, I don't like people losing money. Here it is: the last 2nd quarter, the company reported only 74K in revenue!
Posts: 1468 | Registered: Jul 2005
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posted
NEWS NEWS NEWS out on DDSI Just released PR 3 hours ago...price should start going back up now tommorrow should be good. DDSI is parent to CGM The disaster training is an area they have had experience in in the criminal market and are begining to take advantage of in the now homeland security market
August 19, 2005 12:29:21 (ET) CGM Applied Security Technologies, Inc.`s President to Chair ICSC and TSA Conference on Planning for Disaster
SEA GIRT, N.J., Aug 19, 2005 (PRIMEZONE via COMTEX) -- Erik Hoffer, president of CGM Applied Security Technologies, a subsidiary of Digital Descriptor Systems, Inc. (Pink Sheets:DDSI), will chair the International Cargo Security Council and Transportation Security Administration August conference on Planning for Disaster. The conference will help businesses understand the importance of developing, exercising and validating a Business Continuity of Operations Plan (B-COOP) prior to a catastrophic event impacting the economic bottom line.
"The paradigm of business continuity planning is a reality for all companies large and small. No business owner or executive manager can challenge the need for strategic disaster planning as part of their future strategic focus," remarked Hoffer, a renowned expert in protective security technology for the global supply chain. Hoffer founded CGM in 1977. CGM manufactures security products in the homeland security market that seal and lock cargo, sea containers and trailers while they are unattended in the supply chain. Control of unattended assets is of paramount importance in moving any company's products or in any country's infrastructure homeland security plan.
The conference will take place on August 29-30 at The Rayburn Office Building in Washington, D.C.
About CGM Applied Security Technologies, Inc.
CGM Applied Security Technologies, Inc. is a leading manufacturer and distributor of homeland security products including indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers as well as a number of highly specialized authentication products. A complete description of the company's anti-theft and tamper-evident products can be found at www.cgmsecuritysolutions.com.
About Digital Descriptor Systems, Inc.
DDSI develops and markets integrated enterprise-wide image applications designed especially for criminal justice organizations. The company's customers include states, cities, counties, corrections, justice and public safety agencies. Digital Descriptor Systems, Inc. is headquartered in Sea Girt, N.J.
-------------------- ....always learning Posts: 18 | From: New Hampshire | Registered: Aug 2005
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posted
yeah, a little concerned about the timing of it..Monday morning may have been better, but with how it popped back to life in the last few minutes, I think she'll run at least back up to .002 monday, maybeeeeee more....Good Luck
Posts: 222 | Registered: Nov 2003
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posted
This is really very good news for the stock. This combined with the earnings report due and DDSI's confrence just being completed should send this to .01 IMO
-------------------- It's only money..We'll make more tomorrow! Posts: 788 | From: Tx. | Registered: Jun 2005
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posted
there should be a PR comming out for the Marine seminar that ended on the 17th along with the 10Q ,, this should be a good week,
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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posted
If we get a PR tomorrow morning, this thing should really pop. As mentioned we had a fairly good close Friday after a few disapointing days. I'm not sure about .01, maybe, but then again I tend to be to conservative. I certainly think its possible, I guess it's just my pessamistic side. I would say should all of these things happen, good PR regarding the seminar, and good 10Q, this will def. be a gainer. Just watch your entry and exit points. Hope everyone has a great week!
Posts: 222 | Registered: Nov 2003
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posted
nothing really new here...just wanted to bring this to the top. She may gap a bit this morning.
Posts: 222 | Registered: Nov 2003
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posted
Interested in someone's opinion on how to look at this stock. Thought we'd be looking at mid .0025 by now. Anybody heard anything new?
Posts: 59 | From: Georgia | Registered: Aug 2005
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posted
i hear the 10Q is out now, and is pretty good, sales up 1100% , some dilution should be interesting tomorrow, i haven't read the report yet hoping a good PR is comming..
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is management's discussion and analysis of certain significant factors that will have affected our financial condition and results of operations. Certain statements under this section may constitute "forward-looking statements". The following discussion should be read in conjunction with our financial statements and notes thereto included in this report.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
CRITICAL ACCOUNTING POLICIES
No material changes have occurred in the disclosure with respect to our critical accounting policies set forth in our Annual Report form 10-KSB for the fiscal year ended December 31, 2004.
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2005 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2004
Revenues for the three months ended June 30, 2005, of $875,513 increased $801,423 or 1,182% from the three months ended June30, 2004. The Company generates its revenues through software licenses, hardware, post customer support arrangements security tape and other security related items and other services. The increase in the Company's revenue is directly attributed to the acquisition of CGM, on March 1, 2005. DDSI is still experiencing a decrease in software maintenance contract dollar amount, a loss in client base, and the lack of new product offerings to their clients. Cost of goods sold increased by $447,441 due to the higher cost of sales in CGM Sub.
General and Administrative expenses for the three month period ending June 30, 2005, was $555,080 versus $132,608 for the same period prior year for an increase of $422,472. This increase was mainly attributable to the acquisition of CGM which added costs in all areas, and an increase in accounting and legal costs related to the acquisition.
Selling and Marketing expenses increased $41,922 for the three months period ended June 30, 2005 to $60,585 from $18,663 for the same period in 2004, which represents a 225% increase. This increase was mainly attributable to costs associated with CGM Sub where the Company is ramping up its advertising, trade shows attendance and the addition of sales reps.
Research and development for the three months ended June 30, 2005, was $26,513 compared to $2,855 for the same period prior year for a increase of $23,658. The increase was due to the expansion in development expenses as the Company looks for ways to expand its revenue base by upgrading it products .
The net loss for the Company increased 225% for the three months ended June, 2005, to $651,557 from $290,145 for the three months ending June 30, 2004. This was principally due to the increase in expenses in the cost of sales, general & administrative and interest expense on the Company's debt.
SIX MONTHS ENDED JUNE 30, 2005 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2004
Revenues for the six months ended June 30, 2005, of $1,024,388 increased $847,196 or 478% from the six months ended June30, 2004. The Company generates its revenues through software licenses, hardware, post customer support arrangements security tape and other security related items and other services. The increase in the Company's revenue is directly attributed to the acquisition of CGM, on March 1, 2005. DDSI is still experiencing a decrease in software maintenance contract dollar amount, a loss in client base, and the lack of new product offerings to their clients. Cost of goods sold increased by $487,194 due to the higher cost of sales in CGM Sub.
General and Administrative expenses for the six month period ending June 30, 2005, was 775,453 versus $247,401 for the same period prior year for an increase of $528,052. This increase was mainly attributable to the acquisition of CGM which added costs in all areas, and an increase in accounting and legal costs related to the acquisition.
Selling and Marketing expenses increased $41,600 for the six months period ended June 30, 2005 to $79,070 from $37,470 for the same period in 2004, which represents a 111% increase. This increase was mainly attributable to costs associated with CGM Sub where the Company is ramping up its advertising and trade shows attendance and the addition of sales reps.
Research and development for the six months ended June 30, 2005, was $51,606 compared to $12,173 for the same period prior year for a increase of $39,433. The increase was due to the expansion in development expenses as the Company looks for ways to expand its revenue base by upgrading it products.
The net loss for the Company increased 139% for the six months ended June, 2005, to $1,294,575 from $542,481 for the six months ending June 30, 2004. This was principally due to the increase in expenses in the cost of sales, general & administrative, and interest expense on the Company's debt.
PLAN OF OPERATIONS
ACQUISITION OF CGM
On March 1, 2005, DDSI and CGM Sub acquired substantially all of the assets of CGM, for (i) $1,500,000 in cash and (ii) a 2.86% promissory note (the "Note") in the principal amount of $3,500,000, subject to adjustment (the "Acquisition"). The assets of CGM were acquired pursuant to an Asset Purchase Agreement among DDSI, CGM Sub and CGM dated as of February 25, 2005.
The principal amount of the Note is subject to adjustment based upon the average of (i) the gross revenues of CGM Sub for the fiscal year ending December 31, 2007 and (ii) an independent valuation of CGM Sub based upon the consolidated audited financial statements of the Company and CGM Sub for the fiscal years ending December 31, 2006 and 2007. In addition, the Company has granted CGM a secondary security interest in substantially all of its assets and intellectual property.
In connection with the Acquisition, the Company entered into a letter agreement with certain of its investors (the "Investors") which extended the maturity date of debt instruments issued on November 30, 2004 until March 1, 2008, and amended the conversion price of the debt that is held by the Investors to the lower of (i) $0.0005 or (ii) 60% of the average of the three lowest intraday trading prices for the Company's common stock during the 20 trading days before, but not including, the conversion date. In addition, the exercise price of the warrants held by the Investors was amended to $.001 per share.
The short-term objective of DDSI is the following:
The Company plans to spend the majority of it time and efforts on increasing the revenue and marketplace of its wholly owned subsidiary, CGM Applied Security Technologies, as it feels that there is a much greater potential for growth of the product line of CGM. In order to accomplish this the Company has hired additional sales people and is increasing its marketing budget in order to expand the awareness of CGM's product line. In addition the Company has begun a complete revamping of the company's infrastructure in order to make it better able to respond to the need of its customers and to give management the reporting it needs on a timely basis.
To continue to expand the sale and acceptance of its core solutions by offering new and synergistic biometric (a measurable, physical characteristic or personal behavioral trait used to recognize the identity, or verify the claimed identity, of an individual) (i.e. FMS) security products to its installed base in the criminal justice market. DDSI's objective is to expand with these, and additional products, into much larger commercial and federal markets.
Additionally, DDSI plans to execute an acquisition strategy based upon the availability of financing.
We also plan to add additional product lines as a Value Added Reseller. Technologies related to DDSI's core business can bring additional cash flow with relatively small internal development capital outlay.
DDSI's long-term objective is as follows:
To enhance its sales of the product line acquired with the acquisition of CGM both domestically and internationally, though the addition of sales representative and distributors
To seek additional products to sell into its basic business market - Criminal Justice - so that DDSI can generate sales adequate enough to allow for profits. New products include biometric devices such as FMS (Fingerprint Matching System) and our integrated digital image and fingerprint package, Identify on Demand.
DDSI believes that it will not reach profitability until the year 2006. Over the next twelve months, management is of the opinion that sufficient working capital will be obtained from operations and external financing to meet DDSI's liabilities and commitments as they become payable. DDSI has in the past successfully relied on private placements of common stock securities, bank debt, loans from private investors and the exercise of common stock warrants in order to sustain operations. If DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations.
DDSI is doing the following in its effort to reach profitability:
o Cutting costs in areas that add the least value to DDSI.
o Deriving funds through investigating business alliances with other companies who may wish to license the FMS SDK (software developer's kit).
o Increasing revenues through the introduction of Compu-Capture(R), specifically towards kindergarten through twelfth grades, for the creation of ID cards.
o Increasing revenues through the introduction of a scaled down version of our Compu-Capture(R) product.
o Increasing revenues through the addition of innovative technologies as a Value Added Seller.
o Acquiring and effectively adding management support to profitable companies complementary to its broadened target markets.
LIQUIDITY AND CAPITAL RESOURCES
We had net losses of $1,294,575 and $542,481 during the six months ended June 30, 2005 and 2004, respectively. As of June 30, 2005, we had a cash balance in the amount of $569,058 and current liabilities of $1,741,348 which includes $3,000 due to officers and directors. The total amount of notes payable and debentures is $9,115,577. We may not have sufficient cash or other assets to meet our current liabilities. In order to meet these obligations, we may need to raise cash from the sale of securities or from borrowings.
The Company's revenues have been insufficient to cover the cost of revenues and operating expenses. Therefore, the Company has been dependent on private placements of its Common Stock and issuance of convertible notes in order to sustain operations. In addition, there can be no assurances that the proceeds from private placements or other capital will continue to be available, or that revenues will increase to meet the Company's cash needs, or that a sufficient amount of the Company's Common Stock or other securities can or will be sold or that any Common Stock purchase options/warrants will be exercised to fund the operating needs of the Company.
The Company has contractual obligations of $10,698,281 as of June 30, 2005. These contractual obligations, along with the dates on which such payments are due are described below:
Contractual Obligations Total One Year or Less More Than One Year ------------------------------------- ----------- ---------------- ------------------ Due to Related Parties $3,000 $3,000 $0 Accounts Payable and Accrued Expenses 502,827 502,827 0 Accrued interest on loans 1,076,877 1,076,877 0 Note payable 3,500,000 0 3,500,000 Convertible Debentures 5,615,577 0 5,615,577 Total Contractual Obligations $10,698,281 $ 1,582,704 $9,115,577
The Company is currently in default on several of the convertible debentures above but considers them to be long term since they will not be settled within one year even though they may have earlier redemption dates.
Below is a discussion of our sources and uses of funds for the six months ended June 30, 2005 and 2004.
NET CASH FROM OPERATING ACTIVITIES
Net cash used in operating activities for the six months ended June 30, 2005 and 2004 was $444,915 and $120,062, respectively. The increase in cash used from operating activities in the six months ended June 30, 2005 versus 2004 of $324,853 was principally due to the increase in net operating costs associated with CGM.
NET CASH FROM INVESTING ACTIVITIES
Net cash used in investing activities for the six months ended June 30, 2005 was $1,550,492 which reflects the cash paid for the acquisition of CGM's assets.
NET CASH FROM FINANCING ACTIVITIES
Net cash used in financing activities was $515,871 for the six months ended June 30, 2005. $220,245 was provided by financing activities for the six months ended June 30, 2004.
OFF BALANCE SHEET ARRANGEMENTS
We do not have any off balance sheet arrangements as of June 30, 2005 or as of the date of this report
Posts: 222 | Registered: Nov 2003
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posted
quarterly report looks pretty grim!. increased revenues 1,183% yet still managed to increase losses 225% for the second quarter, year to date shows increased revenues of 478% with a loss increase of 139% year over year to date. the 1,183% percent gain part looks good on the surface, but taken in context with the rest of the statement it`s actually not impressive at all. increased revenues almost five times and still more than doubled losses!. like i said the report looks pretty grim!!. to bad, i thought this would move. oh well! maybe next time.
Posts: 2503 | From: connecticut | Registered: Mar 2005
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