DSS(US:DSS)2024-03-27 20:31Financial 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].