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].

Financial Performance - Total revenue for the three months ended March 31, 2024, was $3,871,000, a decrease of 67.6% compared to $11,926,000 for the same period in 2023[12]. - Operating loss for the first quarter of 2024 was $4,680,000, compared to a loss of $5,580,000 in the first quarter of 2023, reflecting an improvement of 16.1%[12]. - Net loss attributable to DSS common stockholders for the three months ended March 31, 2024, was $4,072,000, compared to a net loss of $8,035,000 in the same period of 2023, representing a 49.3% reduction[12]. - The company reported a loss from continuing operations of $5,109,000 for the first quarter of 2024, an improvement from a loss of $8,633,000 in the same quarter of 2023[14]. - The Company reported a net loss from continuing operations of $5,109,000 for the three months ended March 31, 2024, compared to a net loss of $8,633,000 for the same period in 2023, indicating an improvement of approximately 40.5%[107]. Cash and Assets - Cash and cash equivalents increased to $9,252,000 as of March 31, 2024, up from $6,615,000 at the end of 2023, marking a 39.4% increase[10]. - Total assets decreased to $148,500,000 as of March 31, 2024, down from $153,192,000 at the end of 2023, a decline of 3.1%[10]. - Total identifiable assets as of March 31, 2024, were $148,500,000, compared to $226,750,000 as of March 31, 2023, reflecting a decrease of approximately 34.5%[107]. - The company has approximately $34,881,000 in total cash, cash equivalents, and marketable securities as of March 31, 2024, compared to $33,919,000 as of December 31, 2023[73]. Liabilities and Reserves - Total current liabilities increased to $56,213,000 as of March 31, 2024, compared to $55,611,000 at the end of 2023, an increase of 1.1%[10]. - The reserve for credit losses was approximately $2,492,000 as of March 31, 2024, slightly down from $2,494,000 on December 31, 2023[30]. - The company recorded a loan loss reserve of approximately $249,000 for the three months ended March 31, 2024, compared to $0 for the same period in 2023[77]. - The company has identified credit weaknesses in several borrowers, with reserves of approximately $2,884,000 for Borrower 1, $1,045,000 for Borrower 12, and $884,000 for Borrower 3 as of March 31, 2024[80]. Inventory and Operations - The company’s inventory increased to $3,627,000 as of March 31, 2024, compared to $2,819,000 at the end of 2023, reflecting a 28.7% increase[10]. - The inventory includes health and beauty products and is stated at the lower of cost or net realizable value, with an allowance for obsolescence of approximately $15,000 as of March 31, 2024[40]. - As of March 31, 2024, total inventory was $3,627,000, an increase from $2,819,000 as of December 31, 2023[58]. Business Segments - DSS operates nine distinct business lines, including Product Packaging, Biotechnology, and Commercial Lending, with some divisions discontinued in 2023[20]. - The Biotechnology division targets urgent medical needs and is developing initiatives to curb airborne infectious diseases[21]. - The Commercial Lending division focuses on acquiring equity positions in undervalued banks and nonbanking financial companies across multiple regions[21]. - The Securities and Investment Management segment includes the Company's real estate investment trusts (REIT) aimed at acquiring hospitals and care centers[21]. - The Product Packaging segment generated revenue of $3,080,000 in Q1 2024, down from $6,130,000 in Q1 2023, representing a decline of approximately 49.7%[107]. Investments and Acquisitions - The Company has assets held for sale, including retail space in Lindon, Utah, valued at approximately $5,593,000, and medical facilities associated with AMRE LifeCare and AMRE Winter Haven totaling approximately $45,966,000[42]. - Impact BioMedical acquired 4.99% of BioMed Technologies Asia Pacific Holdings Limited for approximately $632,000[87]. - The exclusive distribution agreement allows Impact BioMedical to distribute BioMed products in the US, Canada, Singapore, Malaysia, and South Korea for ten years[88]. - The LifeCare Agreement supports the acquisition of three medical facilities for a total purchase price of $62,000,000, with a loan amount of $40,300,000[93]. Financial Outlook - The Company believes it can continue as a going concern due to its ability to generate operating cash through the sale of $8.5 million of marketable securities and anticipated receipts of approximately $723,000 on notes receivable through December 31, 2024[51]. - The Company has approximately $9.3 million in cash and has incurred operating losses and negative cash flows from operating and investing activities over the past two years[50]. Miscellaneous - Heng Fai Ambrose Chan serves as Chairman of DSS, Inc. and is also on the board of directors of Borrower 10[115]. - No subsequent events requiring financial statement recognition or disclosure were noted through May 14, 2024[116].

Financial Performance - Premier Packaging division reported a 72% increase in revenues for Q1 2023 compared to Q1 2022[25]. - Premier Packaging Corporation, Inc. reported a net income increase of 126% year over year, driven by strategic investments and operational improvements[37]. - Premier Packaging's new 105,000 sq. ft. facility in Western New York contributed to nearly 3% year-over-year revenue growth for the segment[47]. - A contract extension signed in 2023 with an existing client is expected to generate approximately $12 million in revenue over the next three years[49]. - In 2023, one customer accounted for approximately 20% of consolidated revenue, while a second customer accounted for about 11%[82]. Loans and Lending - American Pacific Bancorp issued over $14 million in new loans and $4 million in renewal loans in 2023, maintaining a managed loan portfolio of over $22 million[19]. - The commercial lending segment manages a loan portfolio exceeding $6 million, earning 1.25% annually in service charges[63]. - The commercial lending division's managed loan portfolio exceeds $22 million, earning 1.25% annually in service charges[19]. - Since September 2021, American Pacific Bancorp, Inc. has issued nearly $26 million in new loans to a diverse portfolio of businesses[83]. Stock and Dividends - DSS plans to distribute approximately 280 million shares of Sharing Services Global Corporation to its stockholders, with each share of DSS Common Stock entitling holders to receive two shares of SHRG[24]. - DSS announced a special stock dividend distribution of four shares of Impact Biomedical, Inc. for every one share of DSS, with the distribution date set for August 8, 2023[27]. - The company emphasizes a decentralized sharing model to distribute dividends from potential IPOs directly to shareholders[45]. - A reverse stock split of 1-for-20 was authorized, effective January 8, 2024, to comply with NYSE American listing requirements[33]. Business Developments - DSS is preparing for an Initial Public Offering (IPO) of its subsidiary Impact Biomedical, Inc., following the distribution of shares to DSS shareholders[35]. - Impact Biomedical executed a reverse stock split of its common stock by a ratio of 1 for 55, approved by its majority stockholder[30]. - The Digital Transformation division was discontinued in 2023, having previously enhanced marketing and operational processes for mid-cap brands[21]. - The Alternative Energy division was also wound down in 2023, focusing on clean energy initiatives and utility-scale solar farms[26]. - Sharing Services Global Corporation focuses on enhancing shareholder value through business development and acquisitions, targeting the direct-to-consumer product marketing sector[71]. Product Development and Innovation - Impact BioMedical is focused on developing innovative solutions for neurological, oncological, and immuno-related diseases, with several products in development[66]. - Impact BioMedical established licensing agreements with ProPhase Biopharma, recognizing the potential value of its Linebacker compounds in the multi-billion-dollar range for cancer therapies[54]. - The biotechnology division has nine patents issued and over forty patents pending, with expiration dates for US patents ranging from 2029 to 2040[74]. - Impact BioMedical's business model includes licensing patented technologies to pharmaceutical companies and utilizing a global distribution model through its sister companies[67][68]. - The company is developing several key products, including LineBacker, Equivir, and Laetose, which is believed to lower human glycemic indexes by 30% compared to sugar[66]. Market Conditions and Challenges - Raw material costs and availability have improved in late 2023, with one vendor accounting for approximately 25% of paper and paperboard purchases[84]. - The biotechnology business faces potential government regulations that could negatively impact patent monetization efforts and revenue[88]. - Changes in U.S. patent laws could increase costs and uncertainties surrounding patent enforcement actions[89]. - The company has a commitment to ongoing internal improvement in sustainability practices, ensuring compliance with environmental protection laws[86]. Management and Strategy - The management team at DSS Wealth Management, Inc. was enhanced to foster investment excellence and scale assets under management[38]. - AmericaFirst Quantitative Funds improved performance against benchmarks for three of four mutual funds since the new investment advisory team took over in May 2023[58]. - The company plans to launch a Total Return Bond Fund in the first half of 2024 to capitalize on higher interest rates[38]. - The company plans to transition away from certain industries like direct marketing and focus on growing its inventory/equipment loan portfolio[19]. - Customer diversification improvements are expected to continue in 2024, enhancing the overall customer base[82]. Employee Relations - As of December 31, 2023, DSS, Inc. had 95 employees worldwide, with good relations maintained with employees[91].

NEW YORK, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Impact Biomedical Inc. (IBIO), in which DSS Inc.(NYSE:DSS) has a significant investment, is thrilled to announce a milestone in its innovative Laetose™ technology platform. The U.S. Patent and Trademark Office (USPTO) has issued U.S. patent # 11,898,184, entitled "Low Glycemic Sugar Composition" developed within this platform. The Laetose™ technology demonstrates compelling potential in reducing caloric intake and glycemic index in foods, while also inhibiting tum ...

Financial Performance - Total revenue for Q3 2023 was $4,182,000, a decrease of 64.7% compared to $11,862,000 in Q3 2022[11] - Net loss for the nine months ended September 30, 2023, was $53,039,000, compared to a net loss of $39,161,000 for the same period in 2022, representing a 35.4% increase in losses[13] - Operating loss for Q3 2023 was $5,103,000, compared to an operating loss of $14,748,000 in Q3 2022, showing an improvement of 65.4%[11] - The company reported a loss per common share of $0.03 for Q3 2023, compared to a loss of $0.15 in Q3 2022[11] - Total revenue for the nine months ended September 30, 2023, was $23,245,000, a decrease from $35,927,000 in the same period of 2022, representing a decline of approximately 35%[135] - Net loss from operations for the nine months ended September 30, 2023, was $53,039,000, compared to a net loss of $39,161,000 for the same period in 2022, indicating an increase in losses of about 35%[135] Cash and Assets - Cash and cash equivalents decreased to $6,897,000 as of September 30, 2023, down from $19,290,000 at the end of 2022, a decline of 64.2%[9] - Total assets decreased to $196,551,000 as of September 30, 2023, from $248,916,000 at the end of 2022, a reduction of 21.0%[9] - Total stockholders' equity decreased to $127,747,000 as of September 30, 2023, from $156,681,000 at the end of 2022, a decline of 18.5%[9] - Identifiable assets as of September 30, 2023, totaled $196,551,000[134] - Identifiable assets as of September 30, 2023, were $196,551,000, down from $264,880,000 as of September 30, 2022, a reduction of about 26%[135] Operating Activities - The company experienced a net cash used by operating activities of $21,035,000 for the nine months ended September 30, 2023, compared to $23,251,000 in the same period of 2022[13] - The company incurred operating losses and negative cash flows from operating and investing activities over the past two years, raising concerns about its ability to continue as a going concern[45] - The company intends to control operating costs and reduce spending growth rates to return to profitability, while also exploring growth opportunities across its operating segments[47] Investments and Equity - The company reported a significant loss on investments of $30,490,000 for the nine months ended September 30, 2023, compared to a loss of $10,479,000 in the same period of 2022[13] - The fair value of the company's investment in Alset International Limited was approximately $3,726,000 as of September 30, 2023, with an unrealized gain of approximately $407,000 recorded during the nine months ended September 30, 2023[88] - The company impaired 100% of its investment in Vivacitas, amounting to $4,100,000, as of December 31, 2022[97] - The company has an equity position of approximately 16% in Vivacitas following the acquisition of shares for $2,480,000, with the largest shareholder being the Chairman of the company[140] Revenue Recognition and Inventory - The Company recognizes revenue based on when the title passes to the customer or when the service is completed, excluding sales and other taxes from revenue[49] - The Company had total inventory of $3,930,000 as of September 30, 2023, down from $7,721,000 as of December 31, 2022, reflecting a decrease in finished goods and work in process[55] - The allowance for obsolescence related to inventory was approximately $57,000 for the Premier subsidiary as of September 30, 2023, compared to $742,000 for the former SHRG subsidiary as of December 31, 2022[36] Financing and Debt - The Company issued 15,389,995 shares of common stock to Mr. Heng Fai Ambrose Chan for $5,848,000 under his employment agreement[124] - The Company issued a Convertible Promissory Note of $50,000 to HWH International, convertible into 333,333 shares of Common Stock[146] - Scheduled principal payments of long-term debt after September 30, 2023, total approximately $46,952,000 for 2024[116] - The Company recorded a loan loss reserve of approximately $1,179,000 for Q3 2023 and $4,936,000 for the nine months ended September 30, 2023[81] Business Operations - DSS operates nine distinct business lines, including Product Packaging, Biotechnology, and Alternative Energy, indicating a diversified operational strategy[18] - The Biotechnology division is focused on addressing urgent medical needs and developing initiatives to curb airborne infectious diseases[19] - The Digital Transformation division aims to improve marketing and operations for mid-cap brands through custom software development[19] - The Alternative Energy group is pursuing utility-scale solar farms to support regional power grids, reflecting a commitment to sustainable energy solutions[19] Shareholder Actions - Shareholders approved the issuance of up to 21,366,177 shares to Alset International to purchase a Convertible Promissory Note with a principal amount of $8,350,000[125] - The acquisition of 62,122,908 shares of True Partners Capital Holdings was completed in exchange for 17,570,948 shares of DSS stock valued at approximately $0.41 per share[126]

Financial Performance - Total revenue for Q2 2023 was $7.233 million, a decrease of 38.5% compared to $11.771 million in Q2 2022[15]. - Net loss for Q2 2023 was $37.923 million, compared to a net loss of $4.652 million in Q2 2022, representing an increase in loss of 715.5%[15]. - The company reported a basic loss per share of $0.27 for Q2 2023, compared to a loss of $0.05 per share in Q2 2022[15]. - The company’s total costs and expenses for Q2 2023 were $13.683 million, a decrease of 40.4% from $22.953 million in Q2 2022[15]. - The net loss from continuing operations for the first half of 2023 was $46.36 million, compared to a net loss of $14.36 million in the same period of 2022, indicating a significant increase in losses[17]. - Direct Marketing Internet Sales decreased significantly to $1,572,000 in Q2 2023 from $6,070,000 in Q2 2022, reflecting a decline of about 74%[134]. - Net loss from continuing operations for the six months ended June 30, 2023, was $46,357,000, compared to a loss of $14,361,000 for the same period in 2022, indicating a deterioration of approximately 224%[133]. Assets and Liabilities - Total current assets decreased to $29.793 million as of June 30, 2023, down 37.9% from $47.994 million as of December 31, 2022[10]. - Total liabilities decreased to $70.898 million as of June 30, 2023, down 25.5% from $95.870 million as of December 31, 2022[11]. - Cash and cash equivalents decreased to $10.033 million as of June 30, 2023, down 48.0% from $19.290 million as of December 31, 2022[10]. - The company’s accumulated deficit increased to $221.529 million as of June 30, 2023, compared to $194.343 million as of December 31, 2022[12]. - The total stockholders' equity decreased to $134.429 million as of June 30, 2023, down 14.2% from $156.681 million as of December 31, 2022[12]. - Cash and cash equivalents at the end of the period were $10.03 million, down from $43.95 million at the end of the previous year, indicating a decrease in liquidity[17]. - Identifiable assets as of June 30, 2023, were $202,744,000, a decrease from $282,948,000 as of June 30, 2022, representing a decline of approximately 28%[133]. Cash Flow and Investments - Cash flows used in operating activities totaled $19.72 million for the first half of 2023, up from $13.95 million in the same period of 2022, reflecting increased operational challenges[17]. - The company reported a net cash provided by investing activities of $13.38 million in the first half of 2023, contrasting with a net cash used of $6.41 million in the same period of 2022, highlighting a positive shift in investment activities[17]. - The company recorded an unrealized loss on its investment in Alset International Limited of approximately $1,945,000 for the six months ended June 30, 2023[136]. - The investment in Alset International Limited was valued at approximately $1,501,000 as of June 30, 2023, down from $3,319,000 as of December 31, 2022, reflecting an unrealized loss of approximately $1,945,000 during the six months ended June 30, 2023[89]. Debt and Financing - The company incurred $5.52 million in payments of long-term debt during the first half of 2023, compared to only $169,000 in the same period of 2022, showing a significant increase in debt repayment[17]. - The Company is negotiating with Pinnacle Bank to extend a note payable of approximately $40.2 million, which is currently in default[48]. - The outstanding principal and interest for Note 2 as of June 30, 2023, approximated $5,544,000, with a reserve of $2,884,000 against the principal and interest outstanding[60]. - The Company has a current portion of long-term debt approximating $83,000 classified under Note 17, with a total outstanding principal and interest of $127,000[77]. - Scheduled principal payments of long-term debt after June 30, 2023, total approximately $47,206,000 for 2023 and $3,801,000 for 2024[117]. Operational Strategy - The company operates nine distinct business lines, including Product Packaging and Biotechnology, indicating a diversified operational strategy[22]. - The company is focused on expanding its presence in the clean energy sector through its Alternative Energy group, which aims to develop utility-scale solar farms[23]. - The Company operates in five segments, including Product Packaging and Biotechnology, focusing on diverse markets such as drug discovery and packaging solutions[131]. - The Company relies on intersegment cooperation, and the results reported may not reflect independent operations of the segments[132]. Reserves and Provisions - As of June 30, 2023, the Company established a reserve for doubtful accounts of approximately $3,390,000, an increase from $29,000 as of December 31, 2022[32]. - The company recorded a loan loss reserve of approximately $3,757,000 for the three and six months ended June 30, 2023, indicating a proactive approach to managing credit risk[82]. - Specific loan reserves included a full reserve of $884,000 for Borrow 4 and an additional reserve of approximately $2,884,000 for borrower 2 as of June 30, 2023[85]. - The total inventory allowance for obsolescence decreased from $742,000 as of December 31, 2022, to $57,000 as of June 30, 2023[58]. Acquisitions and Investments - The acquisition of Impact Oncology PTE Ltd. was completed for a purchase price of $2,480,000, classified as an asset acquisition[138]. - The company completed the acquisition of 62,122,908 shares of True Partners Capital Holdings in exchange for 17,570,948 shares of DSS stock, valued at $0.34 per share[144]. - SHRG invested $1.4 million in Stemtech Corporation, receiving a Convertible Promissory Note and a detachable Warrant to purchase shares of GNTW common stock[98]. - The company sold its subsidiary HWH World, Inc. for gross proceeds of $711,000 on July 1, 2023, which included total assets of $2,004,000 and total liabilities of $1,188,000 as of June 30, 2023[87][88]. Future Outlook - The Company intends to continue as a going concern by controlling operating costs and reducing spending growth rates to return to profitability[49]. - The Company has recognized revenue based on when the title passes to the customer or when the service is completed and accepted, excluding sales and other taxes[51]. - The Company had no unsatisfied performance obligations for contracts with an original expected duration of greater than one year as of June 30, 2023[52]. - No subsequent events requiring financial statement recognition or disclosure were noted through August 14, 2023[146].

Financial Performance - Total revenue for Q1 2023 was $11.926 million, a decrease of 3% from $12.304 million in Q1 2022[14] - Operating loss for Q1 2023 was $5.580 million, improved from a loss of $7.319 million in Q1 2022[14] - Net loss attributable to common stockholders for Q1 2023 was $8.035 million, compared to a net loss of $8.048 million in Q1 2022[14] - The company reported a basic loss per common share of $0.06 for Q1 2023, an improvement from a loss of $0.10 in Q1 2022[14] - The company reported a net loss of $8,048,000 for the quarter ending March 31, 2022, compared to a net loss of $8,951,000 for the same period in 2023, indicating a slight improvement in performance year-over-year[18] - Net income from continuing operations for Q1 2023 was a loss of $8,633,000 compared to a loss of $8,951,000 in Q1 2022, showing a slight improvement[131] Cash and Assets - Cash and cash equivalents decreased to $13.732 million as of March 31, 2023, down from $19.290 million at the end of 2022[9] - Total assets decreased to $226.750 million as of March 31, 2023, from $248.916 million at the end of 2022[9] - Total stockholders' equity decreased to $148.048 million as of March 31, 2023, from $156.681 million at the end of 2022[11] - Cash used in operating activities for Q1 2023 was $14.199 million, compared to $6.070 million in Q1 2022[16] - Cash provided by investing activities was $11.537 million in Q1 2023, contrasting with cash used of $5.359 million in Q1 2022[16] - The Company has approximately $13.7 million in cash and anticipates receipts of principal and interest on its notes receivable of approximately $12 million through March 31, 2024[54] - The Company has marketable securities valued at $13,391,000 as of March 31, 2023, down from $27,307,000 as of December 31, 2022, representing a decrease of approximately 50.8%[78] Investments and Acquisitions - The company made a significant investment of $40,000,200 in American Pacific Bancorp, acquiring 6,666,700 shares at $6.00 per share, resulting in majority ownership[23] - DSS increased its ownership in Sharing Services Global Corporation from approximately 47% to 58% after purchasing 50,000,000 shares at $0.06 per share[25] - The company finalized a transaction to acquire 62,122,908 shares of True Partners Capital Holdings Limited in exchange for 17,570,948 shares of DSS stock, valued at $0.34 per share[30] - The Company acquired a 30.75% equity interest in MojiLife, LLC for $1,537,000, which was fully impaired in March 2022 due to non-recoverability[101] - The Company increased its equity position in Sentinel Brokers Company, Inc. to 75% after investing a total of $1,050,000, with the acquisition meeting the definition of a business under Topic 805[102] Business Segments - DSS, Inc. operates nine distinct business lines, including Product Packaging, Biotechnology, and Digital Transformation, each at different stages of development and growth[21] - The Biotechnology division is focused on investing in companies addressing urgent medical needs, including drug discovery and treatment of various diseases[22] - The Digital Transformation division aims to enhance marketing and operational processes for mid-cap brands through custom software development[22] - The Securities segment aims to establish digital asset exchanges for securities and cryptocurrencies using blockchain technology[130] Liabilities and Debt - The company’s current liabilities decreased to $64.606 million as of March 31, 2023, from $73.689 million at the end of 2022[10] - The Company intends to negotiate with Pinnacle Bank to extend its note payable of approximately $40.2 million through November 2024[54] - The outstanding principal on the Bank of America loan was $3,290,000 as of March 31, 2023, down from $3,406,000 as of December 31, 2022, with an interest rate of 4.63%[109] - The outstanding principal and interest of the LifeCare agreement was approximately $40,486,000 as of March 31, 2023[114] Revenue Recognition and Accounting - The Company recognizes revenue based on when the title passes to the customer or when the service is completed and accepted[58] - The Company has no unsatisfied performance obligations for contracts with an original expected duration of greater than one year as of March 31, 2023[59] - The Company recorded stock-based compensation expense of approximately $4,000 for the three months ended March 31, 2022[127] Inventory and Allowances - Inventory as of March 31, 2023, totaled $7,319,000, a decrease from $8,463,000 as of December 31, 2022, with an allowance for obsolescence of $57,000[64] - The Company recorded an allowance for obsolescence of approximately $742,000 associated with inventory at its SHRG subsidiary as of December 31, 2022[43] - As of March 31, 2023, the Company established a reserve for doubtful accounts of approximately $29,000, unchanged from December 31, 2022[36] Future Outlook - The Company plans to continue growth among its operating segments while tightly controlling operating costs to return to profitability[55] - Future minimum lease payments total $10,616,000, with a present value of remaining lease payments at $8,573,000 as of March 31, 2023[120]