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DSS(DSS) - 2024 Q4 - Annual Report
DSSDSS(DSS)2025-03-31 17:16

IPO and Market Position - Impact BioMedical's IPO was priced at 3.00persharewithaninitialofferingof1,500,000shares,markingasignificantmilestoneforDSS,Inc.andenhancingshareholdervalue[21]−ImpactBioMedical′sIPOhassignificantlyenhancedDSS,Inc.′smarketvisibilityandinvestorconfidence,reflectingarobustmarketappetiteforinnovativebiotechcompanies[46]−ImpactBioMedicalholdsnineissuedpatentsandoverfortypendingpatentsworldwide,withexpirationdatesforUSpatentsrangingfrom2029to2040,highlightingthecompany′scommitmenttoinnovation[59]FinancialPerformance−TotalrevenuefortheyearendedDecember31,2024,decreasedby263.00 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 25.9millionin2023[142]−Operatinglossimprovedto25.9 million in 2023[142] - Operating loss improved to (42,596,000) in 2024 compared to (50,778,000)in2023,areductionofabout16.3(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)in2023,reflectinga22.7(60,627,000) in 2023, reflecting a 22.7% improvement[213] - Total current assets decreased to 63,817,000 in 2024 from 74,634,000in2023,adeclineofapproximately14.674,634,000 in 2023, a decline of approximately 14.6%[208] - Total liabilities increased to 73,737,000 in 2024 from 55,610,000in2023,anincreaseofabout32.655,610,000 in 2023, an increase of about 32.6%[209] - Total stockholders' equity decreased to 32,716,000 in 2024 from 83,214,000in2023,adeclineofabout60.783,214,000 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 76,711,000in2023[144]ResearchandDevelopment−TheLaetose™technologyplatformreceivedaU.S.patent,demonstratingpotentialinreducingcaloricintakeandglycemicindexinfoods,withthepatentexpiringin2037[24]−Thebiotechnologysegmentisfocusedondevelopingsolutionsforurgentmedicalneeds,includingabreakthroughalternativesugarbelievedtolowerglycemicindexby3076,711,000 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 19.2millionin2023[165]−Netcashprovidedbyinvestingactivitieswasapproximately19.2 million in 2023[165] - Net cash provided by investing activities was approximately 8.8 million in 2024, slightly down from 8.9millionin2023[166]−Thecompanyhadcashofapproximately8.9 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]