NEW YORK, May 22, 2025 (GLOBE NEWSWIRE) -- DSS, Inc. (NYSE American: DSS), a multinational company operating across diverse industries including packaging, real estate, and biomedical innovation, today announced financial results for the first quarter of 2025, highlighting meaningful progress in its financial repositioning and a strong foundation for corporate execution in the coming quarters. In a quarter focused on streamlining operations and financial discipline, DSS delivered significant improvements in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 001-32146 Commission file number DSS, INC. (Exact name of registrant as specified in its charter) (State or other Jurisdiction of incorporation- or Organization) (IRS Employer Identification No.) 275 Wir ...

IPO and Market Position - Impact BioMedical's IPO was priced at $3.00 per share with an initial offering of 1,500,000 shares, marking a significant milestone for DSS, Inc. and enhancing shareholder value[21] - Impact BioMedical's IPO has significantly enhanced DSS, Inc.'s market visibility and investor confidence, reflecting a robust market appetite for innovative biotech companies[46] - Impact BioMedical holds nine issued patents and over forty pending patents worldwide, with expiration dates for US patents ranging from 2029 to 2040, highlighting the company's commitment to innovation[59] Financial Performance - Total revenue for the year ended December 31, 2024, decreased by 26% to approximately $19.1 million compared to $25.9 million in 2023[142] - Operating loss improved to $(42,596,000) in 2024 compared to $(50,778,000) in 2023, a reduction of about 16.3%[213] - Net loss attributable to common stockholders decreased to $(46,896,000) in 2024 from $(60,627,000) in 2023, reflecting a 22.7% improvement[213] - Total current assets decreased to $63,817,000 in 2024 from $74,634,000 in 2023, a decline of approximately 14.6%[208] - Total liabilities increased to $73,737,000 in 2024 from $55,610,000 in 2023, an increase of about 32.6%[209] - Total stockholders' equity decreased to $32,716,000 in 2024 from $83,214,000 in 2023, a decline of about 60.7%[210] Cost Management and Efficiency - DSS aims to reduce costs by 15-20% in the upcoming fiscal year to improve profitability and strengthen its financial position[32] - The strategic focus includes optimizing operational efficiencies and realigning resources for sustainable long-term growth[26] - Total costs and expenses decreased by 20% in 2024, amounting to $61,693,000 compared to $76,711,000 in 2023[144] Research and Development - The Laetose™ technology platform received a U.S. patent, demonstrating potential in reducing caloric intake and glycemic index in foods, with the patent expiring in 2037[24] - The biotechnology segment is focused on developing solutions for urgent medical needs, including a breakthrough alternative sugar believed to lower glycemic index by 30% compared to regular sugar[56] - The company is focusing on advancing R&D capabilities in biomedical technologies and sustainable packaging to maintain its leadership in innovation[32] Management and Governance - DSS has appointed Jason Grady as Interim CEO, bringing over 25 years of experience in executive leadership and operations management[23] - DSS Wealth Management announced the election of three new independent directors to enhance its investment operations and risk management[22] - As of March 24, 2025, directors and principal stockholders own approximately 57% of the company's outstanding shares, potentially controlling significant corporate decisions[107] Market Strategy and Growth - DSS is committed to exploring high-growth markets to create scalable and recurring revenue streams across multiple sectors[32] - The company is implementing metrics-driven accountability systems across all business units to ensure consistent execution of high-priority opportunities[32] - The company plans to execute targeted strategies to improve operational efficiencies and attract new assets under management in the DSS AmericaFirst Funds[50] Risks and Challenges - The company has identified risks that could materially affect its financial condition, including potential losses from customer dependency and intellectual property claims[77][84] - The company faces potential government regulations that could negatively impact patent monetization efforts and revenue[72] - The company’s ability to compete effectively may be hindered by established competitors with greater resources and market presence[88] - The company may need to raise additional funds for growth and acquisitions, which could lead to dilution of existing shareholders' ownership[108] Cash Flow and Investments - Net cash used by operating activities was approximately $9.1 million in 2024, a decrease from $19.2 million in 2023[165] - Net cash provided by investing activities was approximately $8.8 million in 2024, slightly down from $8.9 million in 2023[166] - The company had cash of approximately $11.4 million as of December 31, 2024, sufficient to meet cash requirements for at least the next 12 months[164] Dividends and Shareholder Returns - The company does not intend to declare or pay cash dividends in the foreseeable future, opting to retain earnings for business investments[95] - The company has not paid dividends in 2023 or 2024, with the board of directors retaining discretion over future dividend payments[123][124]

Core Insights - DSS, Inc. has sold its Celios® air purification asset to Impact BioMedical Inc. for approximately $1.15 million in an all-equity transaction, aligning with its strategy to optimize its portfolio and focus on core growth areas [1][3] - The Celios® technology features a patented three-stage filtration system that removes ultrafine particles as small as 10 nanometers, enhancing indoor air quality and reducing airborne health risks [2][5] - The CEO of DSS, Inc. stated that the sale is part of a strategic effort to streamline holdings and concentrate on key business objectives, allowing Impact BioMedical to leverage the technology effectively [3] Company Overview - DSS, Inc. operates across multiple high-growth sectors, focusing on creating, acquiring, and investing in innovative companies that provide sustainable value for shareholders [4] - Celios® is dedicated to improving indoor air quality through advanced filtration solutions, designed for efficiency and portability, meeting high standards of cleanliness and safety [5]

Core Insights - DSS, Inc. has appointed a new Interim Chief Executive Officer, Jason Grady, who brings over 25 years of leadership experience across various sectors [2] - The company is focused on optimizing operational efficiencies and positioning itself for sustainable long-term growth [3] Financial Performance - For the nine months ended September 30, 2024, DSS reported a decrease in operating loss by approximately $1.3 million (8%) compared to the same period in 2023 [6] - The net loss for the same period declined by $17.3 million (52%) year-over-year, with a reduction of $1.0 million (15%) for the three-month period [6] - Cash flow from operations improved significantly, increasing by $11.8 million (56%) for the nine months ended September 30, 2024 [6] - The net cash position strengthened from $6.9 million to $11.6 million [6] Strategic Initiatives - The company is focusing on the strategic expansion of promising business units, such as Premier Packaging, to fuel continued growth [6] - DSS is committed to identifying and investing in high-growth markets to create scalable and recurring revenue streams [6] - A comprehensive review of all business units is underway to identify underperforming segments for restructuring or divestment [6] - Targeted cost reduction aims to achieve a 15-20% decrease in costs in the upcoming fiscal year [6] Innovation and Partnerships - DSS plans to leverage research and development capabilities to drive solutions in emerging sectors like biomedical technologies and sustainable packaging [10] - The company is actively forging alliances with key industry players to accelerate the market introduction of innovative products [10] Shareholder Engagement - DSS is exploring initiatives designed to directly reward shareholders for their continued trust and support [10] - The company commits to providing regular, transparent updates on progress and strategic objectives to keep shareholders informed [10]

Revenue Performance - Total revenue for the three months ended September 30, 2024, increased by 34% to $5,599,000 compared to $4,182,000 for the same period in 2023[152] - Revenue from Printed Products rose by approximately 46% to $4,828,000, driven by new customer orders[152] - Rental income surged by 110% to $496,000, attributed to new tenants at the AMRE LifeCare Pittsburg facility[152] - For the nine months ended September 30, 2024, total revenue decreased by 28% to $13,681,000 compared to $18,920,000 for the same period in 2023[153] - Revenue from Printed Products for the nine months decreased by 12% due to delayed shipments and reduced orders from existing customers[153] - Rental income for the nine months fell by 61% as tenants at AMRE LifeCare struggled to make payments[153] - Biotechnology revenue surged by 150% to $10,000 for the three months ended September 30, 2024, compared to $4,000 in the same period last year[155] - Commission revenue reached $230,000, a significant increase from zero in the previous year[152] - Direct marketing revenue dropped to zero, reflecting a strategic shift from maintaining a sales force to licensing products[152] Costs and Expenses - Total costs and expenses increased by 11% to $10,270,000 for the three months ended September 30, 2024, compared to $9,285,000 for the same period in 2023[155] - Other operating expenses increased by 1123% to $783,000 for the three months ended September 30, 2024, compared to $64,000 in the same period last year[155] - Professional fees decreased by 32% to $2,206,000 for the nine months ended September 30, 2024, compared to $3,248,000 for the same period in 2023[158] Investment and Cash Flow - Net investment income decreased by 58% to $45,000 due to several loans going on non-accrual[152] - Cash used by operating activities was $9,181,000 for the nine months ended September 30, 2024, down from $21,035,000 for the same period in 2023[173] - Net cash provided by investing activities was $9,916,000 for the nine months ended September 30, 2024, compared to $11,885,000 for the same period in 2023[174] - Interest income decreased by 96% to $28,000 for the three months ended September 30, 2024, compared to $682,000 for the same period in 2023[165] - The company had cash of approximately $11.6 million as of September 30, 2024, sufficient to meet cash requirements for at least the next 12 months[172] Financial Performance - Net loss for the nine months ended September 30, 2024, was $15,762,000, a 52% improvement from a net loss of $33,061,000 in the same period in 2023[170] Internal Controls and Compliance - As of September 30, 2024, the company's disclosure controls and procedures were not effective, as disclosed material weaknesses from the Annual Report on Form 10-K for the year ended December 31, 2023 remained[177] - The company has a remediation plan in place to address material weaknesses, with ongoing implementation steps that may take time to fully integrate and confirm effectiveness[179] - There were no changes in the company's internal control over financial reporting during the quarter ended September 30, 2024, that materially affected its internal controls[180] Corporate Changes - The company deconsolidated Sharing Services Global Corporation (SHRG) effective May 1, 2023, resulting in a significant impact on the Direct Marketing segment[139] Research and Development - Research and development costs decreased by 93% to $50,000 for the nine months ended September 30, 2024, compared to $684,000 for the same period in 2023[161]

Core Points - Impact BioMedical Inc. has successfully priced its initial public offering (IPO) at $3.00 per share, with an initial offering of 1,500,000 shares, set to begin trading on the NYSE American Market on September 16, 2024 [1][2] - The IPO represents a significant milestone for DSS, enhancing shareholder value and reflecting the company's commitment to providing substantial returns to investors [2][5] - DSS previously distributed shares of Impact BioMedical to its shareholders as a stock dividend, with shareholders receiving four shares of Impact BioMedical for every one share of DSS held [3] Financial Details - The IPO is expected to close on September 17, 2024, subject to customary closing conditions [2] - Underwriters have been granted warrants to purchase up to 75,000 shares of Impact BioMedical's common stock, or 86,250 shares if the over-allotment option is fully exercised, at 125% of the IPO price per share [4] Company Background - DSS, Inc. is a multinational company with interests in various sectors, including Product Packaging, Biotechnology, and Investment Management, and has been strategically growing its portfolio through IPO spin-offs and acquisitions since 2019 [6]

Company Changes - AmericaFirst Funds announced the resignation of three independent directors effective August 9, 2024 [1] - The Trust elected three new independent directors through a shareholder proxy vote: Dr. Prabir Datta, Darryl Robinson, and Mark Gronet [2] New Directors' Backgrounds - Dr. Prabir Datta has extensive experience in asset management, operations, risk management, and regulatory compliance, previously serving as COO at Constellation Capital Management [3] - Darryl Robinson is a Managing Principal at NewQuest Crosswell, with a background in commercial real estate development and management of a portfolio exceeding $2 billion [4] - Mark Gronet has a strong finance background, previously a managing director at Buckingham Research, and has experience in human resources [5] Future Outlook - The Trust anticipates that the new directors will enhance its expertise and provide valuable insights to support growth and success [3][6]

Core Insights - DSS, Inc. has appointed Jason Grady as Interim CEO effective August 23, 2024, succeeding Frank D. Heuszel who is transitioning to a leadership role at Impact Biomedical [1][4][5] - Jason Grady brings over 25 years of experience in executive leadership and has held key positions within DSS, contributing to its strategic evolution and growth across various sectors [2][3] Company Leadership Transition - The leadership transition is seen as pivotal for DSS, positioning the company for continued growth and enhanced shareholder value under Grady's interim leadership [5] - Grady aims to focus on operational efficiency, revenue generation, and exploring new business areas while addressing existing challenges [4][5] Company Background - DSS operates in four diversified market sectors: Product Packaging, Biotechnology, Commercial Lending, and Securities and Investment Management, among others [6] - Since 2019, DSS has built a diversified portfolio aimed at driving profitability in high-growth sectors through strategic acquisitions and periodic IPO spinoffs [6]

Revenue Performance - Total revenue for Q2 2024 was $4.211 million, a decrease of 41.8% compared to $7.233 million in Q2 2023[7]. - Total revenue for the six months ended June 30, 2024, was $8,082,000, a decrease from $19,064,000 in the same period of 2023, representing a decline of approximately 57.6%[97]. - Revenue from printed products for the three months ended June 30, 2024, was $3,528,000, a slight decrease from $3,626,000 in the same period of 2023, representing a decline of approximately 2.7%[99]. - For the six months ended June 30, 2024, total revenue decreased by 58% to $8,082,000 compared to $19,064,000 for the same period in 2023[128]. - Direct marketing revenues decreased 100% to $0 due to the deconsolidation of SHRG[127]. Expenses and Losses - Total costs and expenses for Q2 2024 were $9.146 million, down from $13.683 million in Q2 2023, a reduction of 33.5%[7]. - Costs and expenses for the six months ended June 30, 2024, decreased by 43% to $17,698,000 compared to $31,189,000 for the same period in 2023[130]. - The operating loss for Q2 2024 was $(4.935) million, an improvement from $(6.450) million in Q2 2023[7]. - Net loss from continuing operations for the six months ended June 30, 2024, was $10,063,000, compared to a loss of $46,357,000 in the same period of 2023, showing an improvement of approximately 78.3%[98]. - Net loss for the three months ended June 30, 2024, was $4,954,000, an improvement of 87% compared to a net loss of $37,723,000 for the same period in 2023[136]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to $10.719 million from $10.033 million in the previous year[9]. - As of June 30, 2024, the Company had cash of approximately $10.7 million, sufficient to meet cash requirements for at least the next 12 months[138]. - Net cash used by operating activities for the first half of 2024 was $(5.574) million, an improvement from $(19.715) million in the same period of 2023[9]. - Net cash provided by investing activities was $8,776,000 for the six months ended June 30, 2024, compared to $13,376,000 for the same period in 2023, influenced by the sale of marketable securities[140]. - Net cash provided by financing activities was $902,000 for the six months ended June 30, 2024, a turnaround from net cash used of $2,918,000 in 2023, due to reduced payments toward long-term debt[141]. Asset Management - Identifiable assets as of June 30, 2024, were $144,448,000, compared to $202,744,000 as of June 30, 2023, reflecting a decrease of approximately 28.7%[98]. - The fair value of the investment in Alset International Limited was approximately $2,912,000 as of June 30, 2024, down from $3,269,000 as of December 31, 2023, indicating a decrease of about 10.9%[104]. - The company recognized an impairment of approximately $7,418,000 related to intangible assets for AMRE LifeCare and AMRE Winter Haven as of December 31, 2023[34]. - The company has identified real estate assets held for sale totaling approximately $46.0 million, including properties associated with AMRE LifeCare and Winter Haven[39]. Strategic Changes - The company has discontinued its Digital Transformation, Secure Living, and Alternative Energy business lines in 2023, indicating a strategic shift in focus[14]. - The company operates nine distinct business lines, with the Biotechnology division focusing on unmet medical needs and drug discovery[13]. - The Direct Marketing segment, which was significantly impacted by the deconsolidation of Sharing Services, previously represented a substantial portion of the company's operations[16]. - DSS increased its ownership in Sharing Services Global Corporation from approximately 47% to 65% through share purchases and warrants[116]. Shareholder Equity and Stock Information - As of June 30, 2024, the total stockholders' equity was $73,150,000, a decrease from $83,213,000 on December 31, 2023, reflecting a net loss of $10,063,000 for the period[11]. - The total shares outstanding increased from 6,950,858 on December 31, 2022, to 7,066,772 on December 31, 2023[10]. - A reverse stock split of 1 for 20 was executed on January 4, 2024, reducing the number of shares from 140,264,240 to 7,066,772[91]. - The Company increased the total number of shares of Common Stock to 4,000,000,000 on May 10, 2023, following a forward split[93]. Loans and Debt Management - The Company has accrued $152,000 and $200,000 for the Equivir License development costs as of June 30, 2024, and December 31, 2023, respectively[90]. - Scheduled principal payments of long-term debt after June 30, 2024, total approximately $49,130,000 for 2024, with subsequent payments of $831,000 in 2025 and $902,000 in 2026[86]. - The outstanding principal on the BOA Note was $2,687,000 as of June 30, 2024, with an interest rate of 4.63% and interest expense of $66,000 for the six months ended June 30, 2024[78]. - The LifeCare Agreement had an outstanding principal and interest of approximately $43,776,000 as of June 30, 2024, with interest expense of approximately $1,954,000 for the six months ended June 30, 2024[82].