DSS(US:DSS)2024-05-14 20:31Financial 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].