DSS(US:DSS)2025-11-14 20:48Financial Performance - Total revenue for Q3 2025 was $6,392,000, a 14.15% increase from $5,599,000 in Q3 2024[15] - Printed products revenue increased to $4,994,000 in Q3 2025, up from $4,828,000 in Q3 2024, representing a growth of 3.44%[15] - Net loss for Q3 2025 was $2,299,000, compared to a net loss of $5,283,000 in Q3 2024, indicating a 56.45% improvement[15] - Operating loss for Q3 2025 was $3,234,000, an improvement from an operating loss of $4,671,000 in Q3 2024, reflecting a 30.83% reduction in losses[15] - The company reported a total cost of revenue of $6,068,000 for Q3 2025, a decrease from $6,603,000 in Q3 2024, representing an 8.09% reduction[15] - Net loss for Q3 2025 was $10,087,000, a decrease from a net loss of $15,762,000 in Q3 2024, representing a 36% improvement[17] - Gross profit for the three months ended September 30, 2025, was $324,000, compared to a loss of $1,004,000 in the same period of 2024, indicating a significant improvement[129] - Operating income for the nine months ended September 30, 2025, was a loss of $10,384,000, compared to a loss of $14,287,000 for the same period in 2024, reflecting a reduction in losses by approximately 27.5%[130] - The net loss from operations for the nine months ended September 30, 2025, was $10,154,000, an improvement from a loss of $15,925,000 in the same period of 2024, reflecting a reduction in losses by approximately 36.5%[130] Assets and Liabilities - Total assets decreased to $92,123,000 as of September 30, 2025, down from $106,453,000 at the end of 2024, a decline of 13.39%[10][13] - Current liabilities decreased to $54,194,000 as of September 30, 2025, down from $65,028,000 at the end of 2024, a reduction of 16.36%[11] - Cash and cash equivalents decreased to $7,019,000 as of September 30, 2025, compared to $11,431,000 at the end of 2024, a decline of 38.36%[10] - Total stockholders' equity decreased to $26,108,000 as of September 30, 2025, down from $32,716,000 at the end of 2024, a decrease of 20.19%[13] - Cash and cash equivalents at the end of Q3 2025 were $7,119,000, down from $11,631,000 at the end of Q3 2024, reflecting a 39% decrease[18] - The Company established a reserve for credit losses of approximately $1,014,000, down from $1,613,000 as of December 31, 2024[31] - The Company established a reserve for credit losses of approximately $7,478,000 as of September 30, 2025, down from $9,406,000 as of December 31, 2024[36] - The Company has a reserve of $5,544,000 against the principal and interest outstanding on a convertible promissory note with Puradigm, which is currently in default[67] - The Company has fully reserved for various promissory notes totaling approximately $2,000,000 as of September 30, 2025, indicating significant credit risk[67][70][71][72][74] Cash Flow - Cash flows from operating activities showed a net cash used of $7,576,000 in Q3 2025, compared to $5,889,000 in Q3 2024, indicating a 29% increase in cash outflow[17] - The company recorded a loan loss reserve of approximately $908,000 for the nine months ended September 30, 2025, compared to $9,406,000 for the year ended December 31, 2024[83] - Cash paid for interest increased to $1,502,000 in the nine months ended September 30, 2025, compared to $631,000 in the same period of 2024[127] Investments and Acquisitions - The biotechnology division is focused on acquiring companies in the BioHealth and BioMedical fields, targeting urgent medical needs and developing initiatives against airborne infectious diseases[22] - The company is actively pursuing a merger with Impact BioMedical Inc., with the closing date pending regulatory approval[24] - The fair value of the investment in Alset International Limited was approximately $2,467,000 as of September 30, 2025, with an unrealized loss of approximately $51,000 recorded during the nine months ended September 30, 2025[88] - The company owns 81,836,908 shares of True Partners Capital Holding Limited, with a fair value of approximately $5,679,000 as of September 30, 2025, reflecting an unrealized gain of approximately $864,000 during the nine months ended September 30, 2025[89] - Impact BioMedical entered into a Royalty Agreement with Chemia Corporation, covering costs for patent applications and intellectual property related to 3F technology, with a 50% revenue share from sales and licensing[109] Revenue Recognition and Segments - The Company recognizes revenue based on when the title passes to the customer or when the service is completed, excluding sales and other taxes billed[60] - The Company operates five segments, including Biotechnology, which focuses on drug discovery and treatment of diseases, and Commercial Banking, aimed at providing integrated financial services[128] Stock and Equity - The number of shares used in computing loss per common share increased to 9,092,518 in Q3 2025, compared to 7,066,772 in Q3 2024, an increase of 28.63%[15] - DSS, Inc. executed a reverse stock split of 1 for 20, reducing outstanding shares from 140,264,240 to 7,066,772 as of December 31, 2023[110] - DSS completed a private placement selling 820,597 shares for approximately $803,000 to Alset Inc. on December 10, 2024[111] - IBO's initial public offering on September 16, 2024, raised approximately $3,726,000 in net proceeds from selling 1,500,000 shares at $3.00 each[122] - IBO issued 880,000 option grants with a purchase price of $3.00 per share on October 1, 2024, with potential proceeds of $2,640,000[126] - IBO's Articles of Incorporation were amended to increase the total number of shares of Common Stock to 4,000,000,000, with a forward split resulting in 3,877,282,251 shares[120] Operational Challenges - The Company incurred operating losses and negative cash flows from operating and investing activities over the past two years, raising substantial doubt about its ability to continue as a going concern[52] - The Company has assessed its operating segments and realigned its segment reporting to reflect management's evaluation of performance, with no change to the segment structure[56]