CompoSecure, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CompoSecure, Inc. has filed its annual report for the fiscal year 2023.</b>

AI Summary

CompoSecure, Inc. (GPGI) filed a Annual Report (10-K) with the SEC on March 12, 2024. CompoSecure, Inc. filed its 2023 Form 10-K on March 12, 2024. The filing covers the fiscal year ending December 31, 2023. The company was formerly known as Roman DBDR Tech Acquisition Corp. CompoSecure, Inc. is incorporated in Delaware. The company's principal business address is in Somerset, New Jersey.

Why It Matters

For investors and stakeholders tracking CompoSecure, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of CompoSecure's financial performance, business operations, and risk factors for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's financial health, strategic direction, and potential future performance.

Risk Assessment

Risk Level: medium — CompoSecure, Inc. shows moderate risk based on this filing. The company operates in the finance services sector, which can be subject to market volatility and regulatory changes, as indicated by its SIC code 6199 and the nature of its business.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand CompoSecure's performance and outlook for 2024.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-12 — Filing Date (Date of submission)
• 001-39687 — SEC File Number (Company's SEC file number)

Key Players & Entities

• CompoSecure, Inc. (company) — Filer name
• Roman DBDR Tech Acquisition Corp. (company) — Former company name
• Delaware (company) — State of incorporation
• Somerset, NJ (company) — Business address
• 6199 (regulator) — Standard Industrial Classification

FAQ

Industry Context

CompoSecure, Inc. operates within the finance services sector, specifically classified under SIC code 6199.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit annual reports.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key metrics.
2. Review the risk factors section for potential challenges and uncertainties.
3. Examine management's discussion and analysis for insights into business strategy and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-12: Filing Date — Date CompoSecure, Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial 10-K filing for CompoSecure, Inc. under its current name, covering the fiscal year 2023. Previous filings may be under its former name, Roman DBDR Tech Acquisition Corp.

Key Financial Figures

• $0.0001 — which registered Class A Common Stock, $0.0001 par value per share CMPO The Nasdaq Glo
• $6.86 — of the common stock on June 30, 2023 of $6.86). As of March 4, 2024, there were appr
• $3 — the next five years, on pace to exceed $3 trillion by 2027. Ongoing payment card
• $43 billion — eports: Identity fraud losses totaled $43 billion in 2022, including fraud scams to obtai
• $34 billion — nt card fraud losses worldwide exceeded $34 billion in 2022, which is a 5% increase over th
• $72 million — tigation has reported that an estimated $72 million was stolen through SIM-swap attacks in
• $68 million — tacks in 2022, marking an increase from $68 million in 2021. Worldwide damages from SIM s
• $6.5 billion — om SIM swapping attacks estimated to be $6.5 billion in 2023 (a type of identity theft in wh
• $21.6 billion — oducts and services to be approximately $21.6 billion for 2024, and is estimated to grow to a
• $53.6 billion — d is estimated to grow to approximately $53.6 billion by 2030. Security attacks are increas
• $70 m — l payment card programs in 2023 totaled $70 million, nearly four times its 2018 net s
• $19 million — nearly four times its 2018 net sales of $19 million from non-U.S. programs. The Company bel

Filing Documents

• cmpo-20231231.htm (10-K) — 1959KB
• exhibit1010composecure-a.htm (EX-10.10) — 48KB
• exhibit211-listofsubsidiar.htm (EX-21.1) — 3KB
• exhibit231-csincx10kconsent.htm (EX-23.1) — 2KB
• exhibit311-sox302certifica.htm (EX-31.1) — 10KB
• exhibit312-sox302certifica.htm (EX-31.2) — 10KB
• exhibit321-section1350cert.htm (EX-32.1) — 4KB
• exhibit322-section1350cert.htm (EX-32.2) — 4KB
• exhibit971composecureinc.htm (EX-97.1) — 17KB
• cmpo-20231231_g1.jpg (GRAPHIC) — 15KB
• cmpo-20231231_g2.jpg (GRAPHIC) — 615KB
• exhibit1010composecure-a001.jpg (GRAPHIC) — 239KB
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• exhibit1010composecure-a013.jpg (GRAPHIC) — 245KB
• exhibit1010composecure-a014.jpg (GRAPHIC) — 50KB
• exhibit971composecureinc001.jpg (GRAPHIC) — 48KB
• exhibit971composecureinc002.jpg (GRAPHIC) — 247KB
• exhibit971composecureinc003.jpg (GRAPHIC) — 286KB
• exhibit971composecureinc004.jpg (GRAPHIC) — 243KB
• exhibit971composecureinc005.jpg (GRAPHIC) — 284KB
• 0001823144-24-000002.txt (&nbsp;) — 17740KB
• cmpo-20231231.xsd (EX-101.SCH) — 72KB
• cmpo-20231231_cal.xml (EX-101.CAL) — 92KB
• cmpo-20231231_def.xml (EX-101.DEF) — 351KB
• cmpo-20231231_lab.xml (EX-101.LAB) — 767KB
• cmpo-20231231_pre.xml (EX-101.PRE) — 578KB
• cmpo-20231231_htm.xml (XML) — 1298KB

Risk Factors

Item 1A. Risk Factors 21

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 45

Cybersecurity

Item 1C. Cybersecurity 45

Properties

Item 2. Properties 47

Legal Proceedings

Item 3. Legal Proceedings 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 47 Part II 48

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 48

Selected Financial Data

Item 6. Selected Financial Data 49

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 65

Audited Financial Statements

Item 8. Audited Financial Statements 67

Changes in and Disagreements With Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 110

Controls and Procedures

Item 9A. Controls and Procedures 110

Other Information

Item 9B. Other Information 111 Part III 112

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 112

Executive Compensation

Item 11. Executive Compensation 112

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 112

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 112

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 113 Part IV 114

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 114

Form 10-K Summary

Item 16. Form 10-K Summary 118

Signatures

Signatures 119 3 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This report, and the documents incorporated by reference herein, may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although the Company believes that its plans, intentions, and expectations reflected in or suggested by these forward- looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events, or results of operations, are forward- looking statements. In some instances, these statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates" or "intends" or the negatives of these terms or variations of them or similar terminology. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, among others, could affect the Company's future results and could cause those results or other outcomes to differ materially from those expressed or implied in the Company's forward-looking statements: the ability of the Company to grow and manage growth profitably, maintain relationships with customers, compete within its industry and retain its key employees; the possibility that the Company may be adversely impacted by other economic, business, and/or competitive factors; the outcome of any legal proceedings that may be instituted against the Company or others;

BUSINESS

BUSINESS Unless the context otherwise requires, all references in this subsection to the "Company," "we," "us," "our," and similar terms refer to CompoSecure, Inc. and its consolidated subsidiaries. Overview 4 Founded in 2000, the Company is a technology partner to market leaders, fintechs and consumers enabling trust for millions of people around the globe. The Company's innovative metal payment card technology and Arculus security and authentication capabilities deliver unique, premium branded experiences, enable people to access and use their assets, protect their digital identities and ensure trust at the point of a transaction. Mission and Values The Company's mission is to combine elegance, simplicity, and security to deliver exceptional experiences and peace of mind in the physical and digital world. The Company's values are embodied in the following key concepts: Key Product Overview The Company led the creation and growth of the metal card form factor through its expertise in material science and has been at the forefront of emerging embedded payment card technology (e.g., the evolution of " tap to transact "). For more than two decades, through its combination of large-scale, advanced manufacturing capabilities and deep technological expertise, the Company has driven key payment card industry innovations in materials science, metal form factor design, dual interface functionality, and security. The distinct value proposition of the Company's products has resulted in widespread adoption by major banks, financial institutions and fintech innovators to support their acquisition and retention of consumer and business card customers. From 2010 through 2023, the Company produced and sold approximately 175 million metal payment cards worldwide (i.e., credit and debit cards issued primarily on one of the Visa, MasterCard, American Express, Discover payment networks). In 2023 alone, the Company provided metal payment card solutions for more than 150

View Full Filing

View this 10-K filing on SEC EDGAR