Workflow
DSS(DSS) - 2024 Q2 - Quarterly Report
DSSDSS(DSS)2024-08-13 20:31

Revenue Performance - Total revenue for Q2 2024 was 4.211million,adecreaseof41.84.211 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,adecreasefrom8,082,000, 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,aslightdecreasefrom3,528,000, 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 8,082,000comparedto8,082,000 compared to 19,064,000 for the same period in 2023[128]. - Direct marketing revenues decreased 100% to 0duetothedeconsolidationofSHRG[127].ExpensesandLosses−TotalcostsandexpensesforQ22024were0 due to the deconsolidation of SHRG[127]. Expenses and Losses - Total costs and expenses for Q2 2024 were 9.146 million, down from 13.683millioninQ22023,areductionof33.513.683 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 31,189,000forthesameperiodin2023[130].−TheoperatinglossforQ22024was31,189,000 for the same period in 2023[130]. - The operating loss for Q2 2024 was (4.935) million, an improvement from (6.450)millioninQ22023[7].−NetlossfromcontinuingoperationsforthesixmonthsendedJune30,2024,was(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 46,357,000inthesameperiodof2023,showinganimprovementofapproximately78.346,357,000 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 37,723,000forthesameperiodin2023[136].CashFlowandLiquidity−Cashandcashequivalentsattheendoftheperiodincreasedto37,723,000 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 10.033millioninthepreviousyear[9].−AsofJune30,2024,theCompanyhadcashofapproximately10.033 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,animprovementfrom(5.574) million, an improvement from (19.715) million in the same period of 2023[9]. - Net cash provided by investing activities was 8,776,000forthesixmonthsendedJune30,2024,comparedto8,776,000 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 902,000forthesixmonthsendedJune30,2024,aturnaroundfromnetcashusedof902,000 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,comparedto144,448,000, 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 2,912,000asofJune30,2024,downfrom2,912,000 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 7,418,000relatedtointangibleassetsforAMRELifeCareandAMREWinterHavenasofDecember31,2023[34].−Thecompanyhasidentifiedrealestateassetsheldforsaletotalingapproximately7,418,000 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,adecreasefrom73,150,000, a decrease from 83,213,000 on December 31, 2023, reflecting a net loss of 10,063,000fortheperiod[11].−Thetotalsharesoutstandingincreasedfrom6,950,858onDecember31,2022,to7,066,772onDecember31,2023[10].−Areversestocksplitof1for20wasexecutedonJanuary4,2024,reducingthenumberofsharesfrom140,264,240to7,066,772[91].−TheCompanyincreasedthetotalnumberofsharesofCommonStockto4,000,000,000onMay10,2023,followingaforwardsplit[93].LoansandDebtManagement−TheCompanyhasaccrued10,063,000 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 200,000fortheEquivirLicensedevelopmentcostsasofJune30,2024,andDecember31,2023,respectively[90].−Scheduledprincipalpaymentsoflong−termdebtafterJune30,2024,totalapproximately200,000 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 831,000in2025and831,000 in 2025 and 902,000 in 2026[86]. - The outstanding principal on the BOA Note was 2,687,000asofJune30,2024,withaninterestrateof4.632,687,000 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 43,776,000asofJune30,2024,withinterestexpenseofapproximately43,776,000 as of June 30, 2024, with interest expense of approximately 1,954,000 for the six months ended June 30, 2024[82].