Here is another one: If the St. Louis Cardinals win tonite, tomorrow will be a big day for DDSI. This one's for Fairly_New.
Posts: 785 | From: la | Registered: May 2005
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What do you know..........AB lists this as a buy confirmed and it still goes down. These clowns at DDSI will continue to let this go down if all they ever do is give us PR's that tell where they are showing their products and not the ones letting us know if anyone is actually interested in buying their products. I mean c'mon I have seen the last 3 PR's say the same thing.........we are going to a trade show! Well What about the sales from the Trade shows, if you have been to 3 trade shows and not gotten a single contract from them then something is wrong!
Posts: 333 | From: Cullman, Al | Registered: Sep 2005
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I love this chart. DDSI is timed to explode to .002 imho.
Boy I hope you are right! Soon as it hits that I am going to take the rest of the year off!
Posts: 333 | From: Cullman, Al | Registered: Sep 2005
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So, why did this drop down so low? Was it the lack of solid news or any dilution spec? This seems to be a bargain but I have a buy of 10 mil at .0001 Would love to see it fill and run back to .002
Posts: 421 | From: Florida | Registered: Mar 2005
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Can this stock make another run, without a major contract? The PR has been consistant over the last 3 months and only once has it had a major run up, that happened when the first batch of seminar news came out. Has anyone talked to the ceo about contracts or new products?
Posts: 59 | From: Georgia | Registered: Aug 2005
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what are you guys talking about - no pr. Look at what the released this week. It's everything and anything you could ever ask for:
10QSB: DIGITAL DESCRIPTOR SYSTEMS INC
By Edgar Online - (EDG = 10Q, 10K) Last Update: 11/14/2005 12:37:00 PM Data provided by
(EDGAR Online via COMTEX) -- 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 SEPTEMBER 30, 2005 COMPARED TO THE THREE MONTHS ENDED
Revenues for the three months ended September 30, 2005, of $1,118,922 increased $1,047,854 or 1,474% from the three months ended September 30, 2004. The Company generates its revenues through software licenses, hardware, post customer support arrangements, security tape, labels 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 revenue sold increased by $298,054 due to the increase of sales attributed to the CGM subsidiary.
General and Administrative expenses for the three month period ending September 30, 2005, was $635,911 versus $58,355 for the same period prior year for an increase of $577,556. This increase was mainly attributable to the acquisition of CGM which added costs in all areas, but mainly in the area of payroll due to the added personnel acquired with the CGM subsidiary.
Selling and Marketing expenses increased $12,052 for the three months period ended September 30, 2005 to $22,903 from $10,851 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, trade shows attendance and the addition of sales reps.
Research and development for the three months ended September 30, 2005, was $25,725 compared to $4,864 for the same period prior year for a increase of $20,861. The increase was due to the expansion in development expenses as the Company looks for ways to expand its revenue base by upgrading its products.
The net loss for the Company increased 155% for the three months ended September, 2005, to $444,509 from $174,231 for the three months ending September 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.
NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER
Revenues for the nine months ended September 30, 2005, of $2,143,310 increased $1,895,051 or 763% from the nine months ended September 30, 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 revenue increased by $785,248 due to the higher sales in CGM Sub.
General and Administrative expenses for the nine month period ending September 30, 2005, was $1,411,364 versus $305,756 for the same period prior year for an increase of $1,105,608. This increase was mainly attributable to the acquisition of CGM which added costs in all areas, areas but mainly in the area of payroll due to the added personnel acquired with the CGM subsidiary.
Selling and Marketing expenses increased $53,653 for the nine months period ended September 30, 2005 to $101,973 from $48,320 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, trade show attendance and the addition of sales reps.
Research and development for the nine months ended September 30, 2005, was $77,331 compared to $17,037 for the same period prior year for a increase of $60,294. The increase was due to the expansion in development expenses as the Company looks for ways to expand its revenue base by upgrading its products.
The net loss for the Company increased 142% for the nine months ended September, 2005, to $1,739.084 from $716,712 for the nine months ending September 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
THE SHORT-TERM OBJECTIVE OF DDSI IS THE FOLLOWING:
The Company plans to spend the majority of it's 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 The Company is putting a great deal of effort to increase the sales of the CGM subsidiary. The Company believes at this time that the most significant growth in revenue will come from CGM and its product lines.
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 $1,739,084 and $716,712 during the nine months ended September 30, 2005 and 2004, respectively. As of September 30, 2005, we had a cash balance in the amount of $280,434 and current liabilities of $2,080,167 which includes $3,000 due to officers and directors. The total amount of notes payable and debentures is $9,112,577. 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 $11,015,541 as of September 30, 2005. These contractual obligations, along with the dates on which such payments are due are described below:
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 nine months ended September 30, 2005 and 2004.
NET CASH FROM OPERATING ACTIVITIES
Net cash used in operating activities for the nine months ended September 30, 2005 and 2004 was $629,519 and $229,017, respectively. The increase in cash used from operating activities in the nine months ended September 30, 2005 versus 2004 of $400,502 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 nine months ended September 30, 2005 was $1,604,512 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 nine months ended September 30, 2005. $220,845 was provided by financing activities for the nine months ended September 30, 2004. This increase in cash used of $736,716 is mainly reflected in the note payable to CGM and Erik Hoffer for the purchase of CGM.
OFF BALANCE SHEET ARRANGEMENTS
We do not have any off balance sheet arrangements as of September 30, 2005 or as of the date of this report.
Nov 14, 2005
-------------------- You can't afford to risk, what you can't afford to loose. Posts: 2422 | From: dc | Registered: Jun 2005
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Chart says that it is on the bottom to me, but I hope you are correct because I am holding a bag on this pile of doooooo!
Posts: 333 | From: Cullman, Al | Registered: Sep 2005
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I hope that it's at the bottom, because looking at pps, it can't go any lower! Has anyone filled at .0001 or sold at .0002 over the last month?
Posts: 59 | From: Georgia | Registered: Aug 2005
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How do you know that this is not being diluted? The pps has not gotten off .0002 buy / sell in over 6 weeks.
Posts: 59 | From: Georgia | Registered: Aug 2005
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Digital Descriptor Systems, Inc. Announces Third Quarter Results Sales Rise 28 Percent Over Previous Quarter
SEA GIRT, N.J., Nov 28, 2005 (PRIMEZONE via COMTEX) -- Digital Descriptor Systems, Inc. (DDSI) (Pink Sheets:DDSI) today announced results (un-audited) for its fiscal third quarter, which ended September 30. Net sales for DDSI, an industry leader in the development of Homeland Security-related products, rose to $1,118,922 -- a 28 percent increase over results for the previous quarter ($875,513). For the nine-month-period which ended September 30, the company's net sales reached $2,143,310.
"For the second consecutive quarter, we've seen a strong increase in our net sales," says Anthony Shupin, CEO of Digital Descriptor Systems. "These very favorable third quarter results clearly indicate the continued effectiveness of business strategies we implemented upon acquiring our subsidiary CGM Applied Security Technologies."
DDSI's acquisition of Somerset County, N.J.-based CGM, a leading manufacturer and distributor of various Homeland Security products, took place in March 2005.
About Digital Descriptor Systems, Inc.
The company, based in New Jersey, develops and markets integrated enterprise-wide image applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice and public safety agencies.
Its subsidiary, 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.
Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of the Company could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors associated with our Company, review our SEC filings.