What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-31 compared with 2021-03-31 · 993 added, 1075 removed, 39 unchanged (98% of the section changed)

Security Systems, Inc.

(together with its consolidated subsidiaries (unless the context otherwise requires), referred to herein

as “Document Security Systems,”

“DSS,”

“we,”

“us,”

“our”

or the “Company”)

currently operates nine distinct business lines which primarily operate and are located in North America and Asia.

(together with

its consolidated subsidiaries (unless the context otherwise requires), referred to herein as “Document Security Systems,”

“DSS,” “we,” “us,” “our” or the “Company”) currently operates nine

distinct business lines operate around the globe with primary operations in North America and Asia.

The nine divisions

Marketing/Online Sales Group,

and Fintech Group,

of these business lines are in different stages of development, growth, and income generation.

Because of these varying degrees

of business cycle growth, including the size of the revenues and assets acquired, the Company currently financially reports only

on four of these operating segments.

Marketing/Online Sales Group,

the other divisions grow and start generating significant income, those operating segments will be added to our financial segmental

Biotechnology,

and Investment Management,

Transformation,

of these business lines are in various stages of development, growth, and income generation.

Because of these varying degrees of business

cycle growth, including the size of the revenues and assets acquired, the Company currently financially reports only on five of these

operating segments.

Biotechnology,

Marketing, and

and Investment Management

the other divisions grow and start generating material operations and revenue, those operating segments will be added to our financial

segmental reporting .

divisions, their business lines, subsidiaries, and operating territories:

Marketing/Online Sales Group:

(“Direct”

or “DM”) Led by the holding corporation, Decentralize

Sharing Systems, Inc.

(“Decentralized”, this group provides services to assist companies in the emerging growth

gig business model of peer-to-peer decentralized sharing marketplaces.

Direct specializes in marketing and distributing its

products and services through its subsidiary and partner network, using the popular gig economic marketing strategy as a form

of direct marketing.

Direct marketing products include, among other things, nutritional and personal care products sold

throughout North America, Asia Pacific and Eastern Europe.

Over the past 12 months, Direct has made substantial investments

in acquiring marketing software, product opportunities, and operational capabilities in this marketplace.

Additionally, it

has acquired and developed an independent contractor sales force.

It has also made substantial investments into

other direct marketing companies, including its investment and partnership with Sharing Services Global Corporation (OTCQB:

SHRG) (“Sharing Services”

or “SHRG”), which at the end of 2020, Decentralized owned approximately 32%

of the outstanding shares of Sharing Services.

Currently, Direct and SHRG operate offices in USA, Canada, Hong Kong,

Singapore, S.

Korea, Australia, New Zealand, Malaysia, and Singapore, with additional offices or presence being added

Decentralized sharing systems’

mission is to become the leading direct sales platform, training, developing

and empowering leaders on a global scale to achieve maximum human and economic potential.

(“Premier”) The Company’s packaging and security printing group is coordinated by the wholly

owned subsidiary, Premier Packaging Corporation, a New York corporation.

Premier operates in the paper board folding carton, smart

Product Packaging:

The Company’s consumer packaging and security printing business is led by its wholly owned subsidiary, Premier Packaging Corporation,

(“Premier”), a New York corporation.

Premier operates in the paper board and fiber based folding carton, consumer product

packaging, and document security printing markets.

It markets, manufactures, and sells mailers, photo sleeves, sophisticated custom

folding cartons, and complex 3-dimensional direct mail solutions.

These products are designed to provide functionality and marketability

while also providing counterfeit protection.

Premier is currently located in Victor, NY and serves the US market.

(“Digital”) Digital researches, develops, markets, and sells the Company’s digital products worldwide.

As an industry leader in brand authentication services, our solutions leverage functional anti-counterfeiting features and

cutting-edge technologies to satisfy commercial and consumer product needs for branding, intelligent packaging, and marketing.

Digital’s primary product is AuthentiGuard®, which is a brand authentication application that integrates the Company’s

counterfeit deterrent technologies with proprietary digital data security-based solutions.

Digital Group is headquartered

in Rochester, NY, but it also has offices and staff in Hong Kong.

Technology Management:

(“IP”

or “DSS TM”) DSS TM manages, licenses, and acquires intellectual

property assets for the purpose of monetizing these assets through a variety of value-enhancing initiatives, including, but

not limited to, investments in the development and commercialization of patented technologies, licensing, strategic partnerships,

and commercial litigation.

DSS TM is currently headquartered in Houston, Texas.

(“BioHealth”) The BioHealth Group is our business line created to invest in, or acquire companies in the

biohealth and biomedical fields, including businesses focused on the advancement of drug discovery and prevention, inhibition,

and treatment of neurological, oncological, and immune related diseases.

This division is also developing open-air defense initiatives,

which curb transmission of air-borne infectious diseases, such as tuberculosis and influenza.

The BioHealth Group is also targeting

unmet, urgent medical needs.

Assets of this group are organized under the holding company, DSS BioHealth Security, Inc.

Its subsidiaries

are currently headquartered in Rochester, NY.

It markets, manufactures, and sells sophisticated custom folding cartons, mailers,

photo sleeves and complex 3-dimensional direct mail solutions.

Premier is currently located in its new facility in Rochester, NY, and

primarily serves the US market.

Biotechnology:

(“Biotech”) Biotechnology, a science-driven industry sector that uses living

organisms and molecular biology to produce healthcare-related products, progressed on multiple

fronts in 2021.

This business line was created to invest in or acquire companies in the BioHealth

and BioMedical fields, including businesses focused on the advancement of drug discovery

and prevention, inhibition, and treatment of neurological, oncological, and immune related

This division is also targeting unmet, urgent medical needs, and is developing

open-air defense initiatives, which curb transmission of air-borne infectious diseases, such

as tuberculosis and influenza.

We had a productive year including key patent awards, the

advancement of key programs, the release of positive study results, and several projects

now in global licensing discussions.

Assets of this group are organized under the holding

company, DSS BioHealth Security, Inc.

Its subsidiaries are currently operating in Houston,

TX and Rochester, NY.

The group also has a research facility in Winter Haven, Florida.

and Fintech Group:

(“Securities”) Securities was established to develop and/or acquire assets and investments

in the securities trading and/or funds management arena.

Further, Securities, in partnership with recognized global leaders

in alternative trading systems, intends to own and operate in the US a single or multiple vertical digital asset exchanges

for securities, tokenized assets, utility tokens, stablecoins and cryptocurrency via a digital asset trading platform using

blockchain technology.

The scope of services within this section is planned to include asset issuance and allocation (securities

and cryptocurrency), FPO, IPO, ITO, PPO, STO and UTO listings on a primary market(s), asset digitization/tokenization (securities,

currency and cryptocurrency), and the listing and trading of digital assets (securities and cryptocurrency) on a secondary

This group is led by its holding company, DSS Securities, Inc., (“DSS Securities”) and the group is

currently headquartered in Houston, Texas.

(“Alset Energy”) This group has been established to help lead the Company’s clean energy future

with a focus on environmental responsibility and sustainability measures.

Alset Energy, Inc, the holding company for this

group, recently organized, Alset Solar, Inc., a wholly owned subsidiary, to pursue utility-scale solar farms to serve US regional

power grids and to provide underutilized properties with small microgrids for independent energy.

But in addition to solar

farms and large-scale solar battery banks, Alset Energy will also look at other alternative energy opportunities for investment

and development.

Our goal is to be a powerful force in the mitigation of the negative effects of climate change by reducing

air pollution and expanding access to clean energy for all, while contributing to global economic well-being.

is currently headquartered in Houston, Texas and seeking market opportunities in the US sunbelt areas, but specifically in

Texas, Arizona, New Mexico and Florida.

(“Secure Living”), Secure Living has developed a plan for fully sustainable, secure, and healthy

living communities with homes incorporating advanced technology, energy efficiency, and quality of life living environments

both for new construction and renovations for single and multi-family residential housing.

(“Direct”) Led by the holding corporation, Decentralized Sharing

Systems, Inc.

(“Decentralized” provides services to assist companies in the emerging

growth “Gig” business model of peer-to-peer decentralized sharing marketplaces).

Direct specializes in marketing and distributing its products and services through its subsidiary

and partner network, using the popular gig economic marketing strategy as a form of direct

Direct’s products include, among other things, nutritional and personal

care products sold throughout North America, Asia Pacific, Middle East, and Eastern Europe.

Over the past 12 months, Direct has made substantial investments in acquiring marketing software,

product opportunities, and operational capabilities in this marketplace.

Additionally, it

has developed an independent contractor sales force and affiliate marketing program.

also made substantial investments into other direct marketing companies, including a December

2021 increased investment and controlling interest in Sharing Services Global (OTCQB:

with nearly 60 percent ownership.

The SHRG platform leverages the capabilities and expertise

of various companies that market and sell products direct to the consumer and generated over

$41 million in total revenue in 2021.

Currently, Direct and SHRG operate offices in USA,

Canada, Hong Kong, Singapore, S.

Korea, Australia, New Zealand, Malaysia, and Singapore.

Decentralized sharing systems’ mission is to become the leading direct sales platform

for training, development, and empowerment of leaders on a global scale to achieve maximum

human and economic potential.

American Pacific Bancorp (“APB”), is organized for the purposes

of being a financial network holding company, focused on acquiring equity positions in (i)

undervalued commercial bank(s), bank holding companies and nonbanking licensed financial

companies operating in the United States, South East Asia, Taiwan, Japan and South Korea,

and (ii) companies engaged in—nonbanking activities closely related to banking, including

loan syndication services, mortgage banking, trust and escrow services, banking technology,

loan servicing, equipment leasing, problem asset management, SPAC (special purpose acquisition

company) consulting services, and advisory capital raising services.

From this financial

platform, the Company shall provide an integrated suite of financial services for businesses

that shall include commercial business lines of credit, land development financing, inventory

financing, third party loan servicing, and services that address the financial needs of the

world Gig Economy.

and Investment Management:

In 2021, DSS expanded its DSS Securities, Inc.

business through

its wholly owned subsidiary DSS Financial Management Inc.’s launch of Liquid Value

Asset Management Limited (“LVAM”), a fund management company domiciled in Hong

LVAM’s algorithmic trading includes short- and long-term trades while offering

the unique attribute of being able to liquidate the portfolio into cash within minutes under

normal market conditions.

LVAM is positioned as a prime vehicle for private and institutional

investors seeking a highly liquid investment fund with extremely attractive risk adjusted

returns relative to the volatility and unpredictability of the markets.

We have also expanded

with strategic investments in three broker dealers;

WestPark Capital, BMICI, and Sentinel

Additionally, we have become the RIA for DSS AmericaFirst Quantitative Funds (DSS

AmericaFirst) family.

This group of businesses is led by its holding company, DSS Securities,

Inc., (“DSS Securities”) and the group is currently headquartered in Houston,

Texas, with operations in Chicago, Illinois, Sacramento, California, Los Angeles, California,

and New York, NY.

Also in this segment is the Company’s real estate investment trust

(“REIT”), organized for the purposes of acquiring hospitals and other acute or

post-acute care centers from leading clinical operators with dominant market share in secondary

and tertiary markets, and leasing each property to a single operator under a triple-net lease.

The REIT was formed to originate, acquire, and lease a credit-centric portfolio of licensed

medical real estate.

This group is headquartered in Houston, Texas.

Trading”) This Division was established to develop and/or

acquire assets and investments in the securities trading and/or funds management arena.

Trading, in partnership with recognized global leaders in alternative trading systems, intends

to own and operate in the US a single or multiple vertical digital asset exchanges for securities,

tokenized assets, utility tokens, and cryptocurrency via an alternative trading platform

using blockchain technology.

The scope of services within this section is planned to include

asset issuance and allocation (securities and cryptocurrency), FPO, IPO, ITO, PPO, and UTO

listings on a primary market(s), asset digitization/tokenization (securities, currency, and

cryptocurrency), and the listing and trading of digital assets (securities and cryptocurrency)

on a secondary market(s).

USX Holdings Company, Inc.

(“USX”), a subsidiary of

the DSS Blockchain, Inc., is a joint venture between the GSX Group, Coinstreet Partners and

and is comprised of 3 key subsidiary segments that include USX Securities, Inc.

(an Alternative Trading System or ATS), USX Digital, Inc.

(a Money Service Business or MSB)

and dedicated digital assets Broker Dealer.

This joint venture is currently in the planning

Trading division is currently headquartered in Houston, TX.

Transformation:

(“Digital”) This Division was established to be a Preferred

Technology Partner and Application Development Solution for mid cap brands in various industries

including the direct selling and affiliate marketing sector.

Digital improves marketing,

communications and operations processes with custom software development and implementation.

Digital utilizes data to determine the most effective technological tools such as cognitive

systems, predictive analytics, cloud-based applications, and online collaborative platforms

to build custom applications that automate and improve the everyday needs of the industries

Digital Transformation is currently headquartered in Hong Kong.

(“Secure Living”) This Division has developed a plan for fully sustainable,

secure, connected, and healthy living communities with homes incorporating advanced technology,

energy efficiency, and quality of life living environments both for new construction and

renovations for single and multi-family residential housing.

Secure Living is currently working

with several land development partners to develop entire fully sustainable, healthy living single-family subdivisions.

Living is currently headquartered in Houston, Texas.

(“Blockchain”) Blockchain specializes in the development of blockchain security technologies for

tracking and tracing solutions for supply chain logistics and cyber securities across global markets.

DSS Blockchain

leverages DSS’s early-to-market anticounterfeiting history in AuthentiChain©, which secures assets across

industries to benefit product developers, manufacturers, investors, and consumers.

AuthentiChain©, can be applied to

decentralize ledgers, help stabilize the token economy, and protect cryptocurrency from counterfeiting, and secure negotiable

legal documents and security exchanges.

is a summary of several DSS reported transactions and investments since January 2020 that confirm the active advancements and

investments in these business lines:

March 3, 2020, the Company, via its subsidiary DSS Securities Inc., entered into a share subscription agreement and loan arrangement

with LiquidValue Asset Management Pte Ltd., AMRE Asset Management, Inc., and American Medical REIT Inc.

under which it acquired

a 52.5% controlling ownership interest in AMRE Asset Management, Inc.

(“AAMI”) which currently has a 93% equity interest

in American Medical REIT Inc.

(“AMRE”) (see Note 4).

is a real estate investment trust (“REIT”) management company that sets the strategic vision and formulates investment

strategy for AMRE.

It manages the REIT’s assets and liabilities and provides recommendations to AMRE on acquisition and

divestments in accordance with the investment strategies.

American Medical REIT, Inc.

is a Maryland corporation, organized for

the purposes of acquiring hospitals and other acute or post-acute care centers from leading clinical operators with dominant market

share in secondary and tertiary markets, and leasing each property to a single operator under a triple-net lease.

AMRE was formed

to originate, acquire, and lease a credit-centric portfolio of licensed medical real estate.

AMRE is planned to qualify as a Real

Estate Investment Trust for federal income tax purposes, which will provide AMRE’s investors the opportunity for direct

ownership of Class A licensed medical real estate.

As of December 31, 2020, no revenue has been generated.

August 21, 2020, the Company, completed its acquisition of Impact BioMedical, Inc.

(“Impact BioMedical”), pursuant

to a Share Exchange Agreement by and among the Company, DSS BioHealth Security, Inc., Alset International Limited (formally Singapore

eDevelopment Ltd.), and Global Biomedical Pte Ltd.

(“GBM”), which was previously approved by the Company’s shareholders

(the “Share Exchange”).

Under the terms of the Share Exchange, the Company issued 483,334 shares of the Company’s

common stock, par value $0.02 per share, nominally valued at $6.48 per share, and 46,868 newly issued shares of the Company’s

Series A Convertible Preferred Stock (“Series A Preferred Stock”).

As a result of the Share Exchange, Impact BioMedical

is now a wholly owned subsidiary of DSS BioHealth, (see Note 4).

BioMedical strives to leverage its scientific know-how and intellectual property rights to provide solutions to issues that have

been plaguing the biomedical field for decades.

By tapping into the scientific expertise of its partners, Impact BioMedical has

undertaken a concerted effort in the research and development (R&D), drug discovery and development for the prevention, inhibition,

and treatment of neurological, oncological and immune related diseases.

August 2020, DSS Securities entered into a corporate venture to form and operate a real estate title agency, under the name and

flagging of Alset Title Company, Inc., a Texas corporation (“ATC”).

DSS Securities owns 70% of this venture with the

other two shareholders being attorneys necessary to the state application and permitting process.

October 7, 2020, DSS Securities took part in an initial public offering of Presidio Property Trust, Inc., a Maryland corporation,

that invests primarily in commercial properties, such as office, industrial and retail properties, as well as in residential across

the United States.

As part of this offering, we purchased 200,000 shares of Presidio’s Series A Common Stock at $5.00 per

share for a total purchase price of $1,000,000.

December 9, 2020, Impact BioMedical entered into an exclusive distribution agreement with BioMed Technologies Asia Pacific Holdings

Limited (“BioMed”), which is focused on manufacturing natural probiotics.

Under the terms of this distribution agreement,

h Impact BioMedical will directly market, advertise, promote, distribute and sell certain BioMed products to resellers.

to be distributed by Impact BioMedical include BioMed’s PGut Premium ProbioticsTM, PGut Allergy ProbioticsTM, PGut SupremeSlim

ProbioticsTM, PGut Kids ProbioticsTM, and PGut Baby ProbioticsTM.

Under the terms of the ten-year distribution agreement, Impact

BioMedical will have exclusive rights to distribute the products within the United States, Canada, Singapore, Malaysia, and South

Korea and non-exclusive distribution rights in all other countries.

February 8, 2021, DSS Securities announced that it entered into a joint venture (“JV”) with Coinstreet Partners (“Coinstreet”),

a global decentralized digital investment banking group and digital asset financial service firm, and GSX Group (“GSX”),

a global digital exchange ecosystem for the issuance, trading, and settlement of tokenized securities, using its proprietary blockchain

The JV leverages the operational strengths and assets of three key leaders in their field, combining traditional capital

market experience, Fintech innovations, and business networks from three continents, North America, Europe, and Asia, to capitalize

on unique digital asset opportunities.

The JV reported that it intended to first pursue a digital securities exchange license

Moving forward, this JV will be the key operational company building and operating a digital securities exchange that

utilizes the GSX STACS blockchain technology, serving corporate issuers and investors in the sector.

February 25, 2021, DSS Securities announced its acquisition of an equity interest in WestPark Capital, Inc.(“WestPark”)

and an investment in BMI Capital International LLC (“BMICI”).

DSS Securities executed two separate transactions that

were designed to grow the Securities division by signing a binding note and stock exchange letter of intent to own 7.5% of the

issued and outstanding shares of WestPark and acquiring 24.9% of BMICI through a purchase agreement.

WestPark is a full-service

investment banking and securities brokerage firm which serves the needs of both private and public companies worldwide, as well

as individual and institutional investors.

BMI is a private investment bank specializing in corporate finance advising, raising

equity, and venture services, providing a global “one-stop”

with several land development partners throughout the U.S.

to develop entire fully sustainable,

healthy living single-family subdivisions.

Secure Living is currently headquartered in Houston,

(“Energy”) This group was established to help lead the Company’s

future in the clean energy business that focuses on environmentally responsible and sustainable

Alset Energy, Inc, the holding company for this group, and its wholly owned subsidiary,

Alset Solar, Inc., pursue utility-scale solar farms to serve US regional power grids and

to provide underutilized properties with small microgrids for independent energy.

to solar farms, solar battery banks, and residential energy creation and storage, Alset Energy

also identifies alternative energy opportunities for investment and development.

is to be a powerful force in the mitigation of the negative effects of climate change by

reducing air pollution and expanding access to clean energy for all, while contributing to

global economic well-being.

Alset Energy is currently headquartered in Houston, Texas and

seeking market opportunities in the US sunbelt areas, but specifically in Texas, Arizona,

New Mexico, and Florida.

following is a summary of the DSS reported transactions and investments since January 2021 that reflect the active advancements

and investments in these business lines:

January 14, 2021, DSS announced its wholly owned subsidiary Impact BioMedical, Inc.

BioMedical”) received notice of allowance from the U.S.

Patent and Trademark Office (“USPTO”) for a [method/composition]

patent for its proprietary 3F Biofragrance.

3F Biofragrance is a unique formulation of specialized ingredients (e.g.

terpenes) from botanical

sources with demonstrated effect as an insect repellent and an antimicrobial.

The latest patent allowance (U.S.

Patent Application No.:

16/593,693) provides intellectual property protection for the method of use of 3F Biofragrance as an insect repellent.

3F Biofragrance

repellent contains botanical ingredients that mosquitoes avoid.

This can be utilized as a stand-alone repellent or as an additive in

detergents, lotions, shampoo, and other substances to provide mosquito protection.

January 19, 2021, Impact BioMedical entered into an investment and distribution agreement with Nano9

Labs, LLC (“Nano9”), an R&D and contract manufacturing company specializing in the development of nano-sized nutraceutical

products and ingredients.

Nano9’s proprietary three-stage process enables the creation of nano particles out of ingredients that

traditionally have low to no bioavailability.

Founded in 2018, and after two years of improving its technology, Nano9 launched its first

product to market in the spring of 2020.

Currently Nano9 produces products for 16 companies in four countries.

January 19, 2021, DSS announced the pricing of an upsized underwritten public offering with gross proceeds

to the Company expected to be approximately $24.0 million, before deducting underwriting discounts and commissions and other estimated

offering expenses payable by the Company.

The public offering equates to 6,666,666 shares of the Company’s common stock at a price

of $3.60 per share.

The Company intends to use the net proceeds from this offering, together with their existing cash, to fund the development

and growth of new business lines, acquisition opportunities, and general corporate and working capital needs.

January 28, 2021, DSS announced the underwriter of its previously announced public offering of 6,666,666

common shares, has exercised its full over-allotment option to purchase an additional 1,000,000 common shares of the Company.

to the public in the offering was $3.60 per share and the gross proceeds to the Company from the exercise of the over-allotment option

were $3,600,000 before deducting underwriting discounts and commissions and other estimated offering expenses.

The total gross proceeds,

including the full exercise of the over-allotment option, will be approximately $27.6 million from the public offering.

February 04, 2021, DSS announced the pricing of an upsized underwritten public offering with gross

proceeds to the Company expected to be approximately $34.5 million, before deducting underwriting discounts and commissions and other

estimated offering expenses payable by the Company.

The public offering equates to 12,319,346 shares of the Company’s common stock

at a price of $2.80 per share.

The Company intends to use the net proceeds from this offering, together with their existing cash, to

fund the development and growth of new business lines, acquisition opportunities, and general corporate and working capital needs.

Company has also granted the underwriters a 45-day option to purchase up to an additional 15% of shares of common stock offered in the

public offering to cover over-allotments, if any, which would increase the total gross proceeds of the offering to approximately $39.7

million, if exercised in full.

February 08, 2021, DSS announced it entered a joint venture (“JV”) with Coinstreet Partners

(“Coinstreet”), a global decentralized digital investment banking group and digital asset financial service firm, and GSX

Group (“GSX”), a global digital exchange ecosystem for the issuance, trading, and settlement of tokenized securities, using

its proprietary blockchain solution.

This JV collaboration forms a unique partnership of three key leaders in their field, combining

traditional capital market experience, Fintech innovations, and business networks from three continents, North America, Europe, and Asia,

to capitalize on unique digital asset opportunities.

The newly formed JV will first pursue a digital securities exchange license in the

Moving forward, this JV will be the key operational company building and operating a digital securities exchange that utilizes the

GSX STACS blockchain technology, serving corporate issuers and investors in the sector.

This JV is currently in the planning stages.

February 09, 2021, DSS announced the closing of an upsized underwritten public offering with gross

proceeds to the Company of approximately $34.5 million as well as the simultaneous exercise of the underwriter’s over-allotment

option for additional gross proceeds of approximately $5.2 million.

The Company expects to receive total gross proceeds of approximately

$39.7 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company.

The Company issued 14,167,247 shares of common stock at a price of $2.80 per share.

The Company intends to use the net proceeds from

this offering, together with existing cash, to fund the development and growth of new business lines, acquisition opportunities, and

general corporate and working capital needs.

February 25, 2021, DSS

announced the expansion of its DSS Securities, Inc.

business through an equity interest in WestPark Capital, Inc.(“WestPark”)

and an investment in BMI Capital International LLC (“BMI”).

DSS executed two separate transactions designed to grow its DSS

Securities division, signing a binding note and stock exchange letter of intent to own 7.5% of the issued and outstanding shares of WestPark

and acquiring 24.9% of BMI through a purchase agreement.

WestPark is a full-service investment banking and securities brokerage firm

which serves the needs of both private and public companies worldwide, as well as individual and institutional investors.

BMI is a private

investment bank specializing in corporate finance advising, raising equity, and venture services, providing a global “one-stop”

corporate consultancy to listed companies.

From corporate

finance to professional valuation, corporate communications to event management, BMICI services companies in the US, Hong Kong,

Singapore, Taiwan, Japan, Canada, and Australia.

From corporate finance to professional valuation, corporate communications to event management,

BMI services companies in the US, Hong Kong, Singapore, Taiwan, Japan, Canada, and Australia.

March 01, 2021, DSS announced an increased investment in Sharing Services Global Corporation (OTCQB:

SHRG) (“Sharing Services”), a publicly traded company dedicated to maximizing shareholder value through the acquisition and

development of innovative companies, products, and technologies in the direct selling industry, through a $30 million convertible promissory

Prior to this convertible promissory note investment, DSS owned 37% of the outstanding shares of Sharing Services.

Sharing Services

generated $98.4 million in revenue and $5.6 million net income in the trailing 12-month period ended September 30, 2020.

March 15, 2021, the Company, through one of its subsidiaries, entered into a Stock Purchase Agreement

(the “Vivacitas Agreement #1”) with Vivacitas Oncology Inc.

(“Vivacitas”), to purchase 500,000 shares of its

common stock at the per share price of $1.00, with an option to purchase 1,500,000 additional shares at the per share price of $1.00.

March 16, 2021, American Medical REIT, Inc.

received loan proceeds in the amount of approximately $110,000

under the Paycheck Protection Program (“PPP”) with a fixed rate of 1% and a 60-month maturity term.

The PPP, established

as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses

for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business.

These funds were used for payroll, benefits,

rent, mortgage interest, and utilities.

April 1, 2021, the Company entered into an additional stock purchase agreement with Vivacitas (“Vivacitas

Agreement #2”), whereas Vivacities wished to employee the service of the Chief Business Officer of Impact BioMedical, and in return

for the services of this individual, Vivacitas shall issue to the Company, the aggregate purchase price for the Class A Common Shares

of Vivacitas at the value of $1.00 per share shall be $120,000 to be paid in twelve (12) equal monthly installments for the period between

April 1, 2021 and March 31, 2022.

As of December 31, 2021, the Company has received 90,000 Common A Shares of Vivacitas.

April 5, 2021, Decentralized Sharing Systems, Inc., a subsidiary of the Company entered into a convertible

promissory note (“SHRG Note”) with Sharing Services Global Corporation (“SHRG”), a company registered in the

state of Nevada.

The Company loaned the principal sum of $30,000,000, with interest at a rate of 8%, and shall be due and payable in

full on demand by the Company, or if the demand is not sooner made, April 5, 2024.

The interest shall be prepaid annually in cash or

Class A Common Shares.

April 07, 2021, DSS announced the launch of Alset Solar, Inc.

(“Alset Solar”).

was formed to pursue development of utility-scale solar farms, providing a clean energy future to polluted or underutilized properties

to supplement the power grid or provide small microgrids for independent energy.

Alset Solar is a wholly owned subsidiary of Alset Energy,

(“Alset Energy”), the Company’s holding company for its energy group projects.

Alset Energy is headquartered in

Houston, Texas and is initially seeking market opportunities in the US sunbelt areas, including Texas, Arizona, New Mexico, and Florida.

April 08, 2021, DSS announced DSS BioMedical International, Inc.

(“DSS BioMedical”), a

subsidiary of Impact BioMedical, Inc., a wholly owned subsidiary of the Company, completed an equity investment in Vivacitas Oncology,

(“Vivacitas”), a clinical-stage company focused on difficult to treat cancers.

Vivacitas was co-founded in 2015 by Dr.

Joseph Rubinfeld and Infusion51a with an eye toward redesigning well-known chemotherapies that have already been demonstrated to have

beneficial effects, but which may also possess potency, toxicity, stability, and/or pharmacokinetic issues that limit their use.

to the impressive asset acquisition track record is Vivacitas’ partnership with International Infusion Advisors, LLC via its investment

arm, Infusion 51A, a relationship that is anchored in a common mission - to develop disruptive technologies aimed at improving the quality

of life of cancer patients.

As part of its equity investment in Vivacitas, DSS Biomedical received the right to appoint two members to

the board of directors of Vivacitas.

Separately, DSS BioMedical acquired Impact Oncology Pte Ltd (“Impact Oncology”) from

Alset EHome International Limited, Inc.

The principal assets of Impact Oncology consist of equity in Vivacitas.

April 21, 2021, DSS announced its wholly owned subsidiary, Premier Packaging Corporation (“Premier”),

would move its operations into a new 105,000 square-foot facility to meet growing customer demand.

Premier expects to be operational

in the new space, located in the Town of Henrietta, NY, approximately 15 miles from its current operations in Victor, NY, by the end

of 2021 (Premier relocated to this location in March 2022).

Empire State Development is assisting Premier by providing

up to $700,000 in Excelsior Tax Credits in exchange for job creation commitments, with additional assistance commitments to support continued

growth from Monroe County and Greater Rochester Enterprise.

May 7, 2021, the Company completed the sale of 100% of the capital stock of DSS Digital Inc.

Digital”), the Company’s wholly owned subsidiary, which researched, developed, marketed, and sold the Company’s digital

products worldwide.

Based on the magnitude of DSS Digital’s historical revenue to the Company and because the Company has exited

the brand authentication services, functional anti-counterfeiting technology and technologies to satisfy commercial and consumer product

needs for branding, intelligent packaging, and marketing, this sale represented a significant strategic shift that has a material effect

on the Company’s operations and financial results.

May 11, 2021, DSS announced Proof Authentication Corporation (“Proof”) signed a purchase

agreement pursuant to which Proof acquired 100% of the outstanding shares of DSS Digital, Inc., a wholly owned subsidiary of the Company

and a leader in innovative anti-counterfeit, authentication, and brand protection solutions.

Under the terms of the agreement, DSS will

retain and sell to certain key customers through a non-exclusive license granted by Proof to DSS, while continuing to use the innovative

anti-counterfeiting technology on consumer packaging for authentication and consumer engagement purposes under the Company’s Premier

Packaging Corp.

The terms of the deal with Proof include upfront cash and an earn-out provision that provides for potential

payments to DSS based on the achievement of certain revenue targets.

May 14, 2021, DSS Pure Air, Inc.

a subsidiary of the Company entered into a convertible promissory

note (“Puradigm Note”) with Puradigm, LLC (“Puradigm”), a company registered in the state of Texas.

Note has an aggregate principal balance up to $5,000,000, to be funded at request of Puradigm.

May 19, 2021, DSS announced the launch of DSS PureAir, Inc.

(“DSS PureAir”), the Company’s

new wholly owned subsidiary targeting commercial and residential air purification markets, following a significant investment into Puradigm

LLC, a manufacturer of proactive air and surface purification solutions that have proven to be safe, scalable and provide 24/7 protection

to all indoor environments.

Puradigm’s patented, scalable purification products actively and safely purify both air and surfaces

They can be customized for indoor spaces of all sizes, including homes, offices, schools, restaurants, gyms, hospitals,

assisted living facilities, food processing facilities and more, and include free standing, wall mounted, HVAC and personal protection

Puradigm’s proactive technology has been shown to be effective against a wide variety of pathogens, including SARS-CoV-2,

coli, MRSA, Listeria, C.

difficile, staph, and many more.

It is the most validated purifier on the market.

May 20, 2021, Premier Packaging entered into master loan and security agreement (“BOA Note”)

with Bank of America, N.A.

(“BOA”) to secure financing in an amount not to exceed $3,700,000 to purchase a new Heidelberg

XL 106-7+L printing press.

The aggregate principal balance outstanding under the BOA Note shall bear interest at a variable rate on or

before the loan closing.

At closing, the interest rate shall be fixed for the duration of the Loan.

As of December 31, 2021, the

outstanding principal on the BOA Note was $3,339,000 and had an interest rate of 3.35%.

May 24, 2021, DSS announced the further expansion of its DSS Securities, Inc.

business through an acquisition

of 24.9% of Sentinel Brokers Company, Inc.

(“Sentinel”), a FINRA-registered broker-dealer.

Terms of the agreement include

the option to acquire an additional 50.1% of Sentinel.

Sentinel primarily operates as a financial intermediary, facilitating institutional

trading of municipal and corporate bonds as well as preferred stock.

DSS Securities completed its acquisition of 24.9% of Sentinel through

its wholly owned subsidiary, Sentinel Brokers, LLC.

June 14, 2021, DSS announced the pricing of an underwritten public offering with gross proceeds to

the Company expected to be approximately $43.5 million, before deducting underwriting discounts and commissions and other estimated offering

expenses payable by the Company.

The public offering equates to 29,000,000 shares of the Company’s common stock at a price of $1.50

The Company intends to use the net proceeds from this offering, together with their existing cash, to fund the development

and growth of new business lines, acquisition opportunities, and general corporate and working capital needs.

The Company has also granted

the underwriters a 45-day option to purchase up to an additional 15% of shares of common stock offered in the public offering to cover

over-allotments, if any, which would increase the total gross proceeds of the offering to approximately $50.0 million, if exercised in

June 16, 2021, DSS announced its wholly owned subsidiary Impact BioMedical, Inc.

(“Impact BioMedical”)

received notice of issuance (US 10,966,424) from the U.S.

Patent and Trademark Office (“USPTO”) for 3FDB, a Functional Fragrance

Formulation (3F) technology that increases the effectiveness of current mosquito repellants through a delightfully fragrant compound

derived from botanical oils.

3FDB is an efficacy booster for existing mosquito repellants such as DEET, Picaridin, and IR3535, among

The booster incapacitates two of the three receptors that mosquitos use to find sources of nutrition, in this case, that source

June 17, 2021, DSS announced the closing of an underwritten public offering as well as the simultaneous

exercise of the underwriter’s over-allotment option for total gross proceeds to the Company of $50.025 million, before deducting

underwriting discounts and commissions and other estimated offering expenses payable by the Company.

The Company issued 29,000,000 shares

of the Company’s common stock and 4,350,000 additional shares from the exercise of the underwriter’s option at the public

offering price of $1.50 per share.

The Company intends to use the net proceeds from this offering, together with their existing cash,

to fund the development and growth of new business lines, acquisition opportunities, and general corporate and working capital needs.

June 18, 2021, DSS Securities, entered into a stock purchase agreement with AMRE to acquire 264,525

Class A Common Shares of AMRE at a per share price of $10, for a total consideration of $2,645,250.

The additional 264,525 Class A Common

Shares acquired increases the Company’s total equity interest in AMRE to approximately 93%.

June 18, 2021, AMRE Shelton, LLC., (“AMRE Shelton”) a subsidiary of AMRE, financed the

purchase of a 40,000 square foot, 2.0 story, Class A+ multi-tenant medical office building located on a 13.62-acre site in Shelton, Connecticut

for the purchase price of $7,150,000.

June 30, 2021 , DSS announced the further expansion of its DSS Securities, Inc.

business through its

wholly owned subsidiary DSS Financial Management Inc.’s launch of Liquid Value Asset Management Limited (“LVAM”), a

fund management company domiciled in Hong Kong.

LVAM’s algorithmic trading includes short- and long-term trades while offering

the unique attribute of being able to liquidate the portfolio into cash within 5 to 10 minutes under normal market conditions.

with the strong performance track record of the team, these attributes position LVAM as a prime vehicle for private and institutional

investors seeking a highly liquid investment fund with extremely attractive risk adjusted returns relative to the volatility and unpredictability

of the markets.

July 06, 2021, Impact BioMedical Inc., a wholly owned subsidiary of DSS, Inc., announced updates to

several of its key research projects, including key collaborations, breakthroughs in treatment protocols and potential global licensing

opportunities as a way to begin planning the next phase of its research agenda and position itself as a global leader in the future of

July 12, 2021 , Impact BioMedical Inc., a wholly owned subsidiary of DSS, Inc., announced it was issued

a patent (Patent # 11,033,528) on June 15, 2021, from the U.S.

Patent and Trademark Office for its proprietary compound Equivir.

is a follow-up to the release on April 6, 2021, for the allowance of this patent.

The compound has displayed positive pre-clinical results

that reduce the risk and/or severity attributable to viral infections, specifically Ebola and Rhinovirus.

This patent is the second issued

to Impact BioMedical for Equivir;

the first (Patent # 10,383,842) was issued August 20, 2019, with claims directed to a method of limiting

the occurrence of, reducing the risk or severity of, or treating influenza infection.

Equivir is believed to function by impeding a virus’s

ability to infect and replicate in host cells.

Taken much like a multivitamin, Equivir was specifically designed for ease of rapid accessibility

and deployment.

Pre-clinical in-vitro success showed Equivir is potentially useful for pandemics and viral outbreaks against SARS-COV2,

Influenza, Ebola, Cholera, and Rhinovirus.

On July 22, 2021, the Company exercised 1,000,000

of the available options under the Vivacitas Agreement #1 for $1,000,000.

This, along with the shares received as part Vivacitas Agreement

#2 increased the Company’s equity position in Vivacitas, which as of December 31, 2021 approximates 16%.

July 27, 2021, Impact BioMedical, Inc., a wholly owned subsidiary of DSS, Inc.

announced with its scientific

research partner Global Research and Discovery Group Sciences, GRDG, a collaboration with Thomas Swan Co., to research its plant-based

preservation booster, Procombin was developed as a plant-derived preservation booster in an ongoing attempt to use plant-based solutions

to increase the effectiveness of antibiotics and antimicrobial agents.

The new collaborative research will study Procombin for use in

multiple different applications, including household, institutional and personal care products.

The research will focus on use in a wide

range of consumer products, ranging from household cleaning products to shampoos and conditioners.

August 02, 2021, DSS announced that its subsidiary, DSS BioMedical International, Inc.

BioMedical”), completed a $1 million equity investment in Vivacitas Oncology, Inc.

(“Vivacitas”), a clinical-stage

company focused on difficult-to-treat cancers.

Vivacitas Oncology Inc.

focuses on developing new treatment options to treat cancers resistant

to currently available therapies.

August 17, 2021, DSS promotes Todd D.

Macko to Chief Financial Officer effective August 16, 2021.

August 23, 2021, Impact BioMedical, Inc., a wholly owned subsidiary of DSS, Inc., along with its scientific

research partner Global Research and Discovery Group Sciences, GRDG, announced encouraging results from clinical tests of its 3FDB (“DEET

Booster”) technology.

These results suggest that 3FDB can boost the effectiveness of mosquito repellants, specifically DEET.

September 07, 2021, Impact BioMedical, Inc., a wholly owned subsidiary of DSS, Inc.

and GRDG Sciences

initiated the research project called Quantum in Summer 2020.

The purpose of the project was two-fold:

to forge a new frontier by exploring

new methods for developing medicinal protocols that work more efficiently, thereby encouraging further research and development across

the pharmaceutical industry, while at the same time mitigating a projected patent cliff crisis.

The Quantum technology is designed to

enhance existing therapeutics by looking beyond current molecular enhancement techniques such as molecular substitution, halogenation,

prenylation and other biological enhancement methods typical of present therapeutic development schema.

This marriage of quantum and

molecular mechanics essentially created a classic example of bionics that theoretically increases the efficacy against a variety of diseases.

September 08, 2021, DSS announced a $15 million investment in the Company by Alset EHome International,

(“Alset EHome”) (Nasdaq:

DSS will issue 12,155,591 shares of its common stock for a purchase price of $1.234 per

share for an aggregate amount of approximately $15 million.

September 09, 2021, DSS

announced it signed a subscription agreement for a $40 million investment in American Pacific Bancorp (“APB”).

the subscription agreement, APB will issue 6,666,700 shares of its common stock to DSS at $6.00 per share.

As a result of this investment,

DSS has acquired over 50% of APB’s outstanding shares of common stock, making DSS the majority-owner of APB.

As APB acquires equity

positions of commercial banks in the US, it targets to inject digital banking capabilities into the banks to provide global banking services

to global clients and increase efficiency.

September 20, 2021, DSS announced it is changing its name from Document Security Systems to DSS, Inc.,

reflecting sweeping organizational changes and ongoing business expansion The name change will become effective on September 30, 2021.

October 20, 2021, DSS announced an update on the launch and funding of Liquid Value Asset Management

Limited (“LVAM”), a Hong Kong-based investment management company engaging in proprietary algorithmic trading and majority

owned by the Company’s wholly owned DSS Financial Management, Inc.

(“DFMI”) subsidiary.

Under the terms of a shareholders’

agreement between DFMI and HR1 Holdings Limited (“HR1”), DFMI owns 60% of the shares of LVAM and has appointed three of the

five directors of LVAM.

The remaining two directors have been appointed by HR1, which owns the other 40% of LVAM.

November 04, 2021, DSS announced its majority-owned subsidiary, American Medical REIT Inc.

has acquired three hospitals (the “Hospitals”) located in Fort Worth, Texas, Plano, Texas and Pittsburgh, Pennsylvania.

aggregate purchase price for the Hospitals was $62 million.

The Hospitals are currently tenanted and operated by LifeCare Hospitals (together

with its affiliates, “LifeCare Hospitals”), a specialty hospital operator with a focus on long-term acute and critical care.

November 30, 2021, DSS announced the launch of DSS AmericaFirst Quantitative Funds.

DSS AmericaFirst

Quantitative Funds is a suite of mutual funds managed by DSS Wealth Management, Inc.

that expects to expand into numerous investment

platforms including additional mutual funds, exchange-traded funds, unit investment trusts, and closed-end funds.

DSS AmericaFirst Quantitative

Funds currently consists of four mutual funds:

The DSS AmericaFirst Income Trends Fund (Nasdaq:

AFPIX), DSS AmericaFirst

Defensive Growth Fund (Nasdaq:

DGQIX), DSS AmericaFirst Risk-On Risk-Off Fund (Nasdaq:

ABRWX), and DSS AmericaFirst

Large Cap Buyback Fund (Nasdaq:

The funds seek to outperform their respective benchmark indices by applying a quantitative

rules-based approach to security selection.

DSS American Quantitative Funds was established through the shareholder approval of DSS Wealth

Management as the registered investment advisor (“RIA”) to all the funds within the AmericaFirst Quantitative Funds Trust

In September of 2021, with the approval of the Trust’s Board of Trustees and its shareholders DSS Securities.

(“DSSS”) became the new RIA to the Trust.

Upon the completion of the transfer, the Trust was renamed the DSS AmericaFirst

Quantitative Trust.

DSSS, in its role as RIA, earns fees for each fund calculated as a percentage of the average daily net assets.

December 15, 2021, DSS announced the opening of a new office in Sacramento, California to serve as

the home office for DSS Wealth Management Inc.

(“DSS Wealth Management”) and DSS AmericaFirst Quantitative Funds (“DSS

AmericaFirst”).

December 20, 2021 , DSS announced its American Pacific Bancorp, Inc.

(“APB”) subsidiary

has issued nearly $20 million in new loans since September 2021.

DSS is the majority-owner of APB, holding more than 50% of its outstanding

shares of common stock.

APB intends to continue to develop and expand its lending platform to serve the small to mid-size commercial

borrower and to continue to acquire equity positions of commercial banks in the US to develop its lending network and to provide global

banking services to clients worldwide, including servicing markets with limited access to traditional US banking services.

target customers are businesses with annual revenues of $5 million to $50+ million, including manufacturers, wholesalers, retailers,

distributors, importers, and service companies.

APB has expertise in, and services tailored for, specific industries, including beverage,

food and agribusiness, technology, healthcare, government, higher education, clean technology, and environmental services.

BUSINESS PLAN AND 2021 PROGRESSION

we began executing on our current strategy of restructuring and recapitalization, the Company had approximately $16.2 million in assets

and only a handful of struggling or undercapitalized businesses.

In just over two years, we divested underperforming assets, added eight

distinct business lines, and grew assets to more than $285 million, which includes a significant amount of cash to leverage our

ongoing business plan.

We believe 2022 will be a breakout year for DSS.

The tireless work of our dedicated team since embarking on our

strategy to transform the Company in late 2019 has led to significant value creation and placed us on a solid trajectory for accelerated

continue to revitalize the company by focusing on strengthening the organization by (i) exiting unprofitable business lines, (ii) investing

in and reviving the Company’s core businesses, (iii) improving top line revenues and net margins, (iv) controlling costs and (v)

creating new long-term scalable, recurring revenue streams.

2020, we made the decision to divest the DSS Plastics Group and sold the primary assets of DSS Plastics Group to a subsidiary of Bristol

Graphics for $683,000 at closing, and a contingency payment (earnout) of $517,000 that may be earned over the following 12-month period,

$390,000 of which was recognized in 2020.

The remaining asset and liability of this division is its lease space located in Brisbane,

In April 2021, the Company terminated this lease with the landlord effective March 31, 2021.

Early in 2021, the company

was formally dissolved.

May 2021, DSS, Inc.

and Proof Authentication Corporation (“Proof”) signed a purchase agreement pursuant to which Proof acquired

100% of the outstanding shares of DSS Digital, Inc., a wholly owned subsidiary of DSS and the Company’s anti-counterfeit, authentication,

and brand protection technology.

DSS retained certain key customers through a non-exclusive licensing agreement while continuing to use

the innovative anti-counterfeiting technology on consumer packaging for authentication and consumer engagement purposes under the Company’s

Premier Packaging Corp.

ONE OF OUR CORE BUSINESSES

2020, management made substantial adjustments to revive and improve the productivity and operating revenue of our Premier Packaging

Corporation, Inc.

(Premier) subsidiary.

We have invested in operations, state-of-the-art manufacturing equipment, people, and processes

to increase its capacity, improve quality and delivery, and to ensure it has the resources to support its growing customer base and their

evolving supply chain demands.

We have completed its facility expansion with operations beginning at the new 105,000 sq.

in early March 2022, where DSS, Inc.’s Headquarters will also be located.

will continue to add capabilities in key areas that increase operational efficiencies to strengthen our foundation and offerings to our

customers, while continuing to provide world-class customer service to the customers we serve.

BUSINESS DIVERSIFICATION INITIATIVES

of the most important objectives of our strategic business plan is the commitment to diversify the Company’s operating revenue.

Management believes it imperative to transition the Company’s revenue into new business lines which generate scalable and reoccurring

revenue, preferably in contemporary and emerging growth business opportunities.

To achieve this goal, we continue to acquire,

invest in, or start-up new business lines that meet this criterion.

Adding additional products and assets to existing business

lines is essential so that current operations can continue on their growth trajectory and further transition toward scalable,

recurring revenue streams.

the past year, we have had three successful public offerings and have put this capital to work in several ways.

Our diverse book

of clients and investments has given us strong competitive advantages globally in many industries;

we intend to aggressively capitalize

on these advantages moving forward.

2021, the Company made substantial investments in the following new and existing business lines:

ESTATE INVESTMENT TRUST (REIT) - A portion of this capital has been deployed into American Medical

REIT (AMRE), a subsidiary of DSS Securities, Inc., which acquired its first four medical facilities in 2021, totaling approximately 360,000

of quality healthcare assets across the US and more than $74 million in assets.

This division is now generating average yields

of approximately eight percent, and we have a massive pipeline of opportunities to further grow AMRE in the quarters ahead – including

an LOI for a property that could more than double its total assets.

other areas within commercial real estate have been impacted by the ongoing pandemic, medical real estate has demonstrated considerable

resiliency and demand.

With a now formidable foundation in place, we are in a great position to further pursue opportunities to expand

AMRE as we continue to execute on our strategic growth plans.

Ultimately, this is a business we intend to spinoff in an IPO at an optimal

time, enabling us to further share our success with our shareholders.

LENDING - The

expansion of our medical real estate holdings is in part supported by our lending and financing business line, primarily through

our majority-owned American Pacific Bancorp, Inc.

(APB) subsidiary.

APB issued nearly $20 million in new loans since September

2021 and has assembled a diversified portfolio of strong credit quality.

In addition to commercially licensed medical real estate financing,

APB’s portfolio includes governmental bond anticipation note financing, C&I inventory and equipment financing, and land development

$40 million 2021 third quarter investment in APB has been extremely successful, driving the expansion of our reoccurring scalable business

income model in multiple ways.

We now have nearly half of the fresh funds we injected generating interest and fee income, and we expect

to have another $15 million loaned out in the near-term as we build our portfolio of high-quality commercial loans.

BIOHEALTH SECURITY, INC.

Impact BioMedical progressed on multiple fronts in

2021, including key patent awards, the advancement of key programs, the release of positive study results, and furthering of global

manufacturing and pharmaceutical licensing discussions.

We anticipate announcing our first licensing deal in the near future.

July 2021, Impact BioMedical entered a collaboration to research its plant-based preservation booster, Procombin.

Personal care as well

as household and institutional cleaning formulators are dealing with a dwindling set of options for safe and effective preservatives

and preservation boosters.

Procombin was developed to address this challenge by using plant-based solutions to increase the effectiveness

of antibiotics and antimicrobial agents.

Major contract negotiations are underway for the potential use of Procombin in a wide range

of consumer products, ranging from household cleaning products to shampoos and conditioners.

the past year, Impact BioMedical has laid the groundwork

for a future that is focused on scientifically tested, high-impact solutions to global problems that humans are facing from food preservation

to antibiotics to creating new ways to develop medicines.

addition to Impact BioMedical, we expanded our BioHealth business in 2021 through investments in Vivacitas Oncology, Inc.

and Puradigm, LLC.

These investments give us positions in both the oncology space as well as the air purification and pathogen

prevention market.

March 2021 investment in Vivacitas, a clinical-stage company focused on difficult-to-treat cancers, further demonstrated our commitment

to addressing unmet needs in healthcare.

With a rich pipeline of promising assets, Vivacitas provides significant upside potential.

May 2021, we launched DSS PureAir, Inc.

with our investment in Puradigm, the developer of innovative proactive air and surface purifications solutions.

Even before COVID-19,

the market for air purifiers was strong, and now growth is accelerating even more.

Our partnership with Puradigm enables us to rapidly

enter this growing global market with best-in-class products and distribution rights in North America, as well as exclusive distribution

rights in Singapore, Hong Kong, Taiwan, Korea, Malaysia, and other Asian markets.

DECENTRALIZED

SHARING SYSTEMS - The Direct Marketing / Online Sales industry is a market that will help us diversify and meet our scalable reoccurring

revenue target in an exponential growth industry with high profit margins.

The direct marketing, network marketing, or online sales is

designed to sell products or services directly to the public through independent distributors, rather than selling through the traditional

retail market.

We believed that with the transition of a significant sector of retail sales now converting to the now popular “gig

economy”, an investment in this business model would meet our strategic business plan objective and vision.

March 1, 2021, Decentralized Sharing Systems, Inc.

announced that it increased its investment in Sharing Services Global Corporation,

a publicly traded company dedicated to maximizing shareholder value through the acquisition and development of innovative companies,

products, and technologies in the direct selling industry, through a $30 million convertible promissory note.

Decentralized’s

financing was made as an investment that would help accelerate Sharing Services sales and growth, as well as international expansion,

with the expectation that such capital reserves would help make Sharing Services a dominant player in the global marketplace over

the next two years.

It was reported that the new $30 million investment would have the potential to exponentially increase Sharing

Services sales channels and substantially expand its product portfolio, and to position Sharing Services to capitalize on consolidation

and roll up opportunities of other direct selling companies.

In the joint announcement, Sharing Services reported that the additional

funding would now allow it to accelerate its global expansion with a direct focus on the Asian markets, and specifically in countries

such as South Korea, Japan, Hong Kong, China, Singapore, Taiwan, Thailand, Malaysia, and the Philippines.

The announcement also

noted that prior to this convertible promissory note investment, DSS owned 37% of the outstanding shares of Sharing Services,

and that Sharing Services generated $98.4 million in revenue and $5.6 million net income in the trailing 12-month period ended

September 30, 2020.

March 15, 2021, the Company, through one of its subsidiaries, DSS BioMedical International, Inc.

entered into a Stock Purchase

Agreement (the “Agreement”) with Vivacitas Oncology Inc.

(“Vivacitas”), to purchase 500,000 shares of

its common stock at the per share price of $1.00, with an option to purchase 1,500,000 additional shares a the per share price

In addition, under the terms of the Agreement, the Company will be allocated two seats on the board of Vivacitas.

March 18, 2021, the Company entered into an agreement to with Alset EHome International, Inc.

(“Seller”) indirectly

the Seller’s wholly owned subsidiary Impact Oncology PTE Ltd.

to effectively purchase ownership of 2,480,000 shares of common

stock of Vivacitas for a purchase price $2,480,000.

This agreement includes an option to purchase an additional 250,000 shares

of common stock.

As a result of these two transactions, which were closed on March 21, 2021 and March 29, 2021, respectively,

the Company owns approximate 10.2% equity position in Vivacitas.

Operationing Segments:

we have reported above, we financially report business operating results on only four operating segments, which we believe will

certainly increase and transition as the newer lines of business develop.

However, the four business lines that we are reporting

on in 2020 are as follows:

Packaging - Operating under the name Premier Packaging Corporation (a New York corporation), produces custom consumer packaging

serving clients in the pharmaceutical, nutraceutical, beverage, specialty foods, photo packaging, and direct marketing industries,

(“Decentralized”) announced that it increased its investment in Sharing

Services Global Corporation (“Sharing Services” or “SHRG”), a publicly traded company dedicated to maximizing

shareholder value through the acquisition and development of innovative companies, products, and technologies in the direct selling industry,

through a $30 million convertible promissory note dated April 5, 2021.

Through this investment in Sharing Services Global, we gained

controlling interest with nearly 60 percent ownership.

The SHRG platform leverages the capabilities and expertise of various companies

that market and sell products direct to the consumer and generated nearly $28 million in revenue in the nine months ended

December 31, 2021.

SHRG now officially part of the DSS family, we believe we are in a great position to accelerate its customer acquisition, new product

development, and portfolio of offerings as we capitalize on a wealth of growth opportunities and potential synergies in this exciting,

multi-billion-dollar industry.

Building upon the success already achieved by the SHRG team, we plan to explore opportunities to enter

new markets while continuing to expand SHRG’s independent representative network, both domestically and globally, which currently

stands at more than 14,000 active distributors.

In addition to capitalizing on organic growth opportunities, we are actively

exploring some very exciting potential acquisitions to further accelerate our growth in this attractive and sizeable global market.

our increased position and majority ownership of SHRG, its financials will be consolidated moving forward.

Based on historical performance,

this alone places DSS on a solid trajectory to generate potential revenue in excess of $50 million in 2022, representing potentially

more than a 150 percent increase in revenue growth year-over-year.

AND INVESTMENT MANAGEMENT GROUP - The Securities business line was organized in 2019 as part of the strategic business plan

to establish or acquire assets positioned for long-term and scalable, recurring fee income.

These targeted investments include REITs,

broker/dealers, mutual funds management, ETFs, and other fund management platforms.

rapidly growing securities business line achieved strong footholds achieved in 2021 – including strategic investments in broker

dealers WestPark Capital and Sentinel Brokers;

the formation of Liquid Value Asset Management Limited (LVAM), and the launch of our DSS

AmericaFirst Quantitative Funds (DSS AmericaFirst) family.

is a proprietary algorithmic trading firm majority owned by our wholly owned subsidiary, DSS Financial Management, Inc.

Led by Wilson

Lee, former co-head of Societe Generale’s equity derivatives in Asia, and Jackson Kwan, a former portfolio manager at Citadel in

Chicago, LVAM aims to include short- and long-term trades while offering the unique attribute of being able to liquidate the portfolio

into cash within five to ten minutes under normal market conditions.

Together with the strong performance track record of the team, these

attributes position LVAM as a prime vehicle for private and institutional investors seeking a highly liquid investment fund with extremely

attractive risk adjusted returns relative to the volatility and unpredictability of the markets.

AmericaFirst, launched in the fourth quarter of 2021, is a suite of mutual funds managed by DSS Wealth Management, Inc.

DSS AmericaFirst

currently consists of four mutual funds and expects to expand into numerous investment platforms including additional mutual funds, exchange-traded

funds, unit investment trusts, and closed-end funds.

Operating Segments:

As we have reported above, we

financially report business operating results on only five operating segments, which we believe will certainly increase and transition

as the newer lines of business develop and mature.

However, the five business segments that we are reporting on in 2021

are as follows:

(“Premier”) Premier Packaging Corporation provides custom packaging services and serves clients in the

pharmaceutical, nutraceutical, consumer goods, beverage, specialty foods, confections, photo packaging and direct marketing industries,

among others.

The group also provides active and intelligent packaging and document security printing services for end-user customers.

along with technical support for our technology licensees.

The division produces a wide array of printed materials, such as folding

cartons and paperboard packaging, security paper, vital records, prescription paper, birth certificates, receipts, identification

materials, entertainment tickets, secure coupons, and parts tracking forms.

The division also provides resources and production

equipment for our ongoing research and development of security printing and related technologies.

Group - This division researches, develops, markets, and sells worldwide the Company’s digital products, including and

primarily our AuthentiGuard®

product, which is a brand authentication application and consumer engagement product that integrates

the Company’s counterfeit deterrent technologies with proprietary digital data security-based solutions.

The AuthentiGuard®

product allows our customers to implement a security mark utilizing conventional printing methods that is copy- and counterfeit-resistant

and that can be read and recorded utilizing smartphones and other digital image capture devices, which can be utilized by that

customer’s suppliers, field personnel and customers throughout its global product supply and distribution chains.

Technology - Since its acquisition in 2013, DSS Technology Management Inc.’s primary mission has been to monetize its

various patent portfolios through commercial litigation and licensing.

Except for investment in its social networking related

patents, we have historically partnered with various third-party funding groups in connection with patent monetization programs.

As management announced in its 2019 shareholder meeting, management intended to de-emphasize and ultimately wind down this business

Management reported that while it would continue to assert and defend the existing patents and purse potential infringements

as they are identified, it did not intend to seek out new patent portfolios.

As the 2020 financial reporting confirms, management

implemented that business plan IP is currently focused on managing two remaining patent portfolios.

Marketing/Online Sales Group - Direct marketing or network marketing is designed to sell products or services directly

to the public through independent distributors, rather than selling through the traditional retail channels.

We believe this business

has significant growth potential in the now popular “gig economy”.

Consistent with the Company’s strategic business

plan and vision, we have entered into the direct marketing or network marketing industry and plan to take advantage of the opportunities

that exist in the industry.

We are engaging in partnerships with existing direct marketing companies to access U.S., Canadian,

Asian, and Pacific Rim markets.

In addition, we have, and/or are acquiring various domestic and international operating licenses

to further the growth of this division.

But in addition, we have developed or procured product licenses, formulas, sales networks,

patents, web sites, and other resources to help us accelerate our sales and revenue generation initiatives for this line, and

we have launched our HWHGIG and HWH Marketplace direct selling platforms.

Strategic Business Plan, and its 2021 Progression:

November 2019, management announced that the Company’s 2019-2020 strategic business plan was to revitalize the company by

focusing on strengthening the organization by (i) exiting unprofitable business lines, (ii) investing in and reviving the Company’s

core businesses, (iii) improving top line revenues and net margins, (iv) controlling costs and (v) creating new long-term scalable,

recurring revenue streams.

To realize those goals, management announced that it would execute the strategic plan by:

Unprofitable Business Lines :

2019, the Company had 4 business lines:

Premier Packaging, Digital Group, the IP Technology, and DSS Plastics Printing.

time, only the Premier Packaging division was generating reoccurring revenue and positive cash flow with annual revenues of $13.5

million and a net EBIDA of approximately $742,000.

Conversely, the other 3 business units lost approximately $1,348,000, with

the IP Technology group accounting for $475,000, and DSS Plastic Printing accounting for an additional $294,000.

To preserve capital

and stop further cash drain, the decision was made to exit both business lines, whether by sale, wind down, closure, or by no

longer pursuing business opportunities in this area.

Down IP Monetization Program :

entering the intellectual property monetization business in July 2013, we have invested substantial capital and resources into

purchasing, maintaining, and enforcing our patents.

We have also invested substantial resources in the research and development

of internally generated intellectual property for our own use, and/or for potential profitable licensing opportunities.

However, the costs

of funding a patent pool, including patent maintenance fees, litigation (costs for legal counsel, discovery, consultants, expert

witnesses, and travel), and overhead costs associated with the IP business line, had placed a significant financial strain upon

During 2019, our corporate cash burn exceeded approximately $200,000 per month, primarily due to recurring costs

related to the IP monetization line of business, which reduced resources for our other lines of business, as well as our own patent

research and development projects.

Further, because the related IP legal costs are expensed in the year incurred with no corresponding

revenue generation, the financial impact to the Company caused us to routinely report negative operating income year over year.

Moreover, as a result of the IP monetization line’s high capital demand, the Company did not have the capital to initiate

and sustain IP litigation against potential major infringers of DSS patents.

as a result of several court decisions and statutory changes, the patent laws in the United States have changed significantly

since our entry into this business.

Consequently, the enforcement of patents has become more costly and more difficult for DSS

and other patent holders, and the likelihood of successful litigation has significantly decreased.

In addition, depending upon

the type of IP involved and the parties who are the alleged patent infringers, the legal enforcement and recovery process can

take five or more years before the matter goes to trial.

For instance, the Apple litigation, which we have previously disclosed,

and which is described in more detail herein, was initiated in September 2013 and was scheduled to go to trial in late February

a period of approximately 6 ½

a result of the considerable financial, working capital, and resource allocation to the IP monetization program, we executed a

critical review of the program.

We examined all elements and factors related to the operations of this business line, including

what we hold in inventory of patents, the potential of that patent portfolio, the timetables involved to monetize those patents,

the cost of capital to maintain the patents to monetization, and the probability of successful monetization.

As a result of that

extensive review, we determined that it was in the best interest of DSS and its stockholders to de-emphasize and ultimately exit

the IP monetization line of business.

2020, management discontinued making any further patent acquisitions in this business line, and, more importantly, was able to

renegotiate all of its previous contracts with its lenders, attorneys, and other professionals to eliminate most, if not all,

of the historical losses and cash burn from this division.

We will continue to manage the existing patent portfolio and work to

maximize those assets.

After the conclusion of these pending matters, we intend to close this business line.

DSS PLASTICS :

2020, we also made the decision to divest the DSS Plastics Group.

The DSS Plastics Group manufactured laminated and surface printed

cards which included magnetic stripes, bar codes, holograms, signature panels, invisible ink, micro fine printing, biometric,

radio frequency identification (RFID), and watermarks for printed plastic documents such as ID cards, event badges, and driver’s

As a result of continued historical downward trends of the plastic printing business, mostly due to deteriorating margins

due to international competition primarily from China, and increasing operating costs of this San Francisco based company, long

term major restructure changes and retooling had been planned to return the company to profitability.

But the impact of COVID-19

pandemic and resulting economic shut-down had a major impact on revenues.

The impact of Covid, coupled with the negative long-term

trend of the plastic card industry being replaced by facial recognition, digital licenses, and identification by individual cell

phones, forced us to expedite and ultimately divest the business in 2020

August 2020, the Company sold the primary assets of DSS Plastics Group to a subsidiary of Bristol Graphics for $683,000 at closing,

and a contingency payment (earnout) of $517,000 that may be earned over the following 12-month period, $390,000 of which was recognized in 2020.

The remaining asset and

liability of this division is its lease space located in Brisbane, California.

We are in the process of subleasing that facility

and expect to consummate a transaction in the 2 nd quarter which we expect will release the Company from that trailing

lease liability, and thereafter expected final closure.

the Company’s Core Businesses :

2018, the Premier Packaging and the Digital Group collectively accounted for 78% of the Company’s operating revenues.

while, the two business lines accounted for the lion’s share of the Company’s operating revenue, they were doing so

on minimal marketing and operating budgets, and in the case of Premier Packaging, with aged and obsolete equipment with limited

remaining life.

Management reviewed the business lines of both Premier Packaging and the Digital Group and believed that the core

business of each was sound, that DSS held a market niche and/or growth opportunity in each, and that long-term profitability could

be achieved with additional investments and changes.

In 2020, management made substantial adjustments to revive and improve the

productivity and operating revenue of these two divisions.

In 2018, Premier Packaging

and Digital collectively reported $14,500,000 in operating revenue, $12,957,000 and $1,543,000 respectively, or approximately

78% of the company’s operating revenue that year.

In 2019, after initial revitalization efforts, operating revenues grew

a combined 5%, and in 2020, after a reduction in sales to each of their two largest customers by 26%, the two divisions reported

$15.3 million in revenues, during a harsh pandemic impacted economic period.

Substantially

Reducing Corporate Overhead and Cash Burn :

the spring of 2019, we have reduced the Company’s monthly cash burn by eliminating non-essential layers of management and

redundant operating expenses, as well as by renegotiating vendor contracts.

The goal was, and is, to continue to reduce overhead

operating costs, redundancy, improve operating efficiencies, and reduce cash burn through a continuing series of new management

Business Diversification Initiatives :

of the most important initiatives of the 2019 strategic business plan was the goal, and commitment, to diversify the Company’s

operating revenue.

Management believed it imperative to transition the Company’s revenue into new business lines which generated

scalable and reoccurring revenue, preferably in exponential and emerging growth business opportunities.

To achieve this goal,

management sought to acquire, to invest in, or to start-up new business lines that met this criterion.

We also planned to add

additional products to existing business lines so that existing operations could further transition more toward scalable reoccurring

revenue streams.

that initiative, in 2019 and continuing through 2020 the Company either acquired, invested in, or started-up new businesses in

the biohealth, direct marketing, blockchain, and securities trading fields.

In 2020, the Company made substantial investments

in the following new business lines:

DSS BIOHEALTH SECURITY, INC.

This business line was intended to be principally involved in the bio-medical sector, including

investing in companies that hold bio-medical intellectual property and/or have, or are securing, strategic alliances, partnerships,

and distribution rights for bio-medical and security products, technologies, or enterprises.

This new division was also organized

to seek out investment and growth opportunities in on open-air defense initiatives that seek to curb transmission of airborne

infectious diseases such as tuberculosis and influenza, among others, in open areas, and to seek investments in the oncological

cures for various forms of cancer.

2019, the Company made a substantial commitment to this division by acquiring Impact BioMedical, Inc.

in an approximate $50 million

all stock acquisition.

The Impact Bio acquisition, which was rich with assets, has a foundation of products with international

market opportunities and demand, and which can be structured into long- term scalable, reoccurring license revenue.

By leveraging

technology and new science with strategic partnerships, Impact BioMedical drives mission-oriented research, development, and commercialization

of solutions for medical advances in human wellness and healthcare.

Direct Marketing/Online Sales Group, The Direct Marketing / Online Sales

industry was a market that we believed would help us diversify and meet our scalable reoccurring revenue target in an exponential

growth industry with high profit margins.

The direct marketing, network marketing, or online sales is designed to sell products

or services directly to the public through independent distributors, rather than selling through the traditional retail market.

We believed that with the transition of a significant sector of retail sales now converting to the now popular “gig economy”,

an investment in this business model would meet our strategic business plan objective and vision.

We believed that we could profitably

serve this market through lending opportunities, acquisition opportunities, and global partnership ventures.

this objective, we made substantial investments in loans and investments into several direct marketing companies in 2019 and

Notable in this area was our $8+ million investment into Sharing Services Global Corporation, located in Dallas, Texas,

and the Company’s start-up of HWH World, Inc.

and its national and international sales network.

Further, on March 1,

2021, Decentralized announced that a binding letter of intent had been executed in which it increased its investment in

Sharing Services through a $30 million convertible promissory note.

The $30 million is planned to exponentially increase

Sharing Services sales channels, substantially expand its product portfolio, and to position Sharing Services to capitalize

on consolidation and roll up opportunities.

BLOCKCHAIN TECHNOLOGY, This corporate business line was organized in 2019 to specialize in the development of blockchain

security technologies for tracking and tracing solutions for supply chain logistics and cyber security across global markets.

While no significant acquisitions were made over the past 18 months, this business line is still deemed to be an important business

line for our long-term diversification goals.

SECURITIES AND FINTECH GROUP The Securities business line was be organized as part of the 2019 strategic business plan

to establish or acquire investments in long-term growth and sustainable scalable reoccurring management fee income.

The businesses

that were to be targeted in this business plan included investments in alternative trading systems and related platforms, REITs,

brokerage and other trading fund management platforms that would create recurring fee income.

business goal for 2021 is continue many of the 2019-2020 Strategic Goals, including to continue to grow the company with sound

acquisitions, to develop and to grow Premier Packaging with major capital investments, and to place a heavy emphasis improving

top line revenue and top line revenue diversification and profitability.

But special attention, effort, and resources will be

made to further the following 2021 business initiatives:

Continue to revitalize and grow Premier Packaging.

Make further investments in the Direct Securities and BioHealth groups in the form of growth and investments.

Focused effort to double top line revenue and bottom- line profitability.

Core Products:

Packaging Corporation provides custom packaging services and serves clients in the pharmaceutical, nutraceutical, consumer goods,

beverage, specialty foods, confections, photo packaging and direct marketing industries, among others.

The group also provides

active and intelligent packaging and document security printing services for end-user customers.

In addition, the division produces

a wide array of printed materials, such as folding cartons and paperboard packaging, security paper, vital records, prescription

paper, birth certificates, receipts, identification materials, entertainment tickets, secure coupons and parts tracking forms.

The division also provides resources and production equipment for our ongoing research and development of security printing, brand

protection, consumer engagement and related technologies.

Counterfeit Prevention and Brand Services

Digital Group specializes in counterfeit prevention, brand protection, consumer engagement technology development.

offer platforms for authentication and validation of authentic print media, consumer goods and negotiable instruments, including

government-issued documents, retail and consumer packaging, labelling, and identification systems.

We are a leader in the research

and development of optical deterrent technologies and have commercialized these technologies with a suite of products that offer

our customers an array of brand security solutions.

In addition, we provide document security technology to security printers,

corporations, consumer product companies and governments for protection of vital records, certifications, travel documents, consumer

products, pharmaceutical packaging and school transcripts.

primary anti-counterfeiting products and technologies have evolved from a traditional analog product to a highly advanced digital

system and are marketed under our AuthentiGuard®

registered trademark.

In October 2012, we introduced AuthentiGuard®,

a smartphone application for authentication, targeted to major Fortune 500 companies worldwide.

The application is a cloud-enabled

solution that permits efficient and cost-effective counterfeit deterrence, authentication and consumer engagement.

Our solutions

leverage functional anti-counterfeiting features and cutting-edge technology to satisfy commercial and consumer product needs

for branding, intelligent packaging, and marketing.

2012, the AuthentiGuard®

product has grown to annual sales of approximately $1.5 million, and we project that over the next

three years annual sales of AuthentiGuard®

will increase by an annualized growth rate of approximately 17%.

Today, our mission

is to make world-class authentication, counterfeit prevention and consumer engagement technology that is assessable and scalable

to an expanding customer base.

We intend to bring our technology-laden packaging, labelling, and document solutions to a broader

range of clients including small businesses, develop long-term relationships with those who use them and grow our business organically.

Decentralized

Sharing Systems, Inc.

and its subsidiaries and partners, including Sharing Services Global Corporation provide an array of products

and services, through an independent contractor network.

example, Decentralized’s wholly owned subsidiary, HWH World, Inc.

promotes products and services that fulfill its corporate

position of health, wealth, and happiness.

The HWH Marketplace through its brands desires to help its customers become the healthiest,

happiest versions of themselves.

For the health component , the company offers herbal alternatives of nutraceutical, consumables

and topicals, dietary supplements, beauty and skin care products, personal care, gut health products, aloe vera based supplements,

and other wellness products.

As to the wealth component , the company is developing educational tools to its users to better

manage individual finances and savings programs to help its consumers find each consumer’s individual financial goal.

to the happiness component , the company is working with other partners to either acquire or partner in products and/or

services to allow its consumers to enjoy and healthy living, including a global travel membership network.

Sharing Services, through its subsidiary Elevacity, markets and distributes health and wellness products under the “Elevate”

brand, primarily in the United States and Canada.

Sharing Services markets its products and services through its independent contractor

distribution system and using its proprietary website:

www.elevacity.com.

In February 2021, the Company launched its new business

brand, “The Happy Co.,”

at its Elevacity division.

Elevacity has several well-known and signature products, including

its top product lines of “Happy Coffees”

and “Nootropic Beverages”.

Elevacity also sells a “healthy

shake”, a “Keto Coffee Booster”, “Energy Caps”, “XanthoMax©

Happy Caps”,“Wellness

Vitamin Patches”, various beauty and skin care products, and other wellness products.

through its subsidiary Impact Bio Medical, Inc.

targets unmet, urgent medical needs and expands the borders of medical and pharmaceutical

Impact drives mission-oriented research, development, and commercialization of solutions for medical advances in human

wellness and healthcare.

By leveraging technology and new science with strategic partnerships, Impact Bio provides advances in

drug discovery for the prevention, inhibition, and treatment of neurological, oncology and immuno-related diseases.

Other exciting

technologies include a breakthrough alternative sugar aimed to combat diabetes and functional fragrance formulations aimed at

the industrial and medical industry.

and Impact Medical have several important and valuable products, technology or compounds that are in continuing development and/or

licensing stages:

A polyphenol compound that is believed to be successful in neurological and inflammatory disorders.

LineBacker is a platform

of small molecule X-bonded polyphenols.

X-bonding is a molecular tuning technique that modifies a natural compound to induce

potency, efficacy, bioavailability, and trans-membrane permeability while maintaining safety, toxicity, and tolerability.

Natural polyphenols have demonstrated strong potential in treating and preventing a range of diseases by inhibiting TNF-α

and indication specific causes ( e.g.

neurology, anti-inflammatory, oncology).

Two novel discrete LineBacker molecules

have been synthesized and characterized including in vitro efficacy testing, pharmacokinetics, and maximum tolerated dose

In addition, the division produces a wide array of printed materials, such as folding cartons and paperboard packaging, security paper,

vital records, prescription paper, birth certificates, receipts, identification materials, entertainment tickets, secure coupons and

parts tracking forms.

The division also provides resources and production equipment for our ongoing research and development of security

printing, brand protection, consumer engagement and related technologies.

Premier is nearing completion of its facility expansion

with operations expected to begin at the new 105,000 sq.

facility in early March 2022.

over 25 years, Premier has been a market leader in providing solutions for paperboard packaging from consumer retail packaging and heavy

mailing envelopes, to sophisticated custom folding cartons and complex three-dimensional direct mail solutions.

Premier’s innovative

products and design team delivers packaging that provides functionality, marketability, and sustainability, with its fiber-based packing

solutions providing an alternative to traditional plastic packaging.

2019, we have accelerated the transformation of Premier’s operations, investing in state-of-the-art manufacturing equipment, people,

and processes to increase its capacity, improve quality and delivery, and to ensure it has the resources to support its growing customer

base and their evolving supply chain demands.

will continue to add capabilities in key areas that increasing operational efficiencies to strengthen our foundation and offerings to

our customers while continuing to provide world-class customer service to the customers we serve.

(“Commercial Lending”) through its operating company, American Pacific Bancorp (“APB”) provides

an integrated suite of financial services for businesses that include commercial business lines of credit, land development financing,

inventory financing, third party loan, servicing, and services that address the financial needs of the world Gig Economy.

to continue to develop and expand its lending platform to serve the small to mid-size commercial borrower and to continue to acquire

equity positions of commercial banks in the US to develop its lending network and to provide global banking services to clients worldwide,

including servicing markets with limited access to traditional US banking services.

APB’s target customers are businesses with

annual revenues of $5 million to $50+ million, including manufacturers, wholesalers, retailers, distributors, importers, and service

APB has expertise in, and services tailored for, specific industries, including beverage, food and agribusiness, technology,

healthcare, government, higher education, clean technology, and environmental services

Biotechnology:

(“Biotech”) This sector, through its subsidiary Impact BioMedical, Inc.

targets unmet, urgent medical needs and expands

the borders of medical and pharmaceutical science.

Impact drives mission-oriented research, development, and commercialization of solutions

for medical advances in human wellness and healthcare.

By leveraging technology and new science with strategic partnerships, Impact Bio

provides advances in drug discovery for the prevention, inhibition, and treatment of neurological, oncology and immuno-related diseases.

Other exciting technologies include a breakthrough alternative sugar aimed to combat diabetes and functional fragrance formulations aimed

at the industrial and medical industry.

Biotech and Impact BioMedical

have several important and valuable products, technology or compounds that are in continuing development and/or licensing stages:

Multi-faceted therapeutic platform for metabolic, neurologic, cancer, and infectious diseases.

A polyphenol compound that is believed to be successful in antiviral infection treatments.

Equivir/Nemovir technology is a

novel blend of FDA Generally Recognized as Safe (GRAS) eligible polyphenols ( e.g., Myricetin, Hesperetin, Piperine)

Equivir/Nemovir technology is a novel

blend of FDA Generally Recognized as Safe (“GRAS”) eligible polyphenols ( e.g., Myricetin, Hesperetin, Piperine)

which have demonstrated antiviral effects with additional potential application as health supplements or medication.

are sourced from fruits, vegetables, and other natural substances.

Myricetin is a member of the flavonoid class of polyphenolic

compounds with antioxidant properties.

Myricetin is a member of the flavonoid class of polyphenolic compounds

with antioxidant properties.

Hesperitin is a flavanone and Piperine is an alkaloid, commonly found in black pepper.

Laetose technology is derived from a unique combination of sugar and inositol, which demonstrates the ability to inhibit the

inflammatory and metabolic response of sugar alone.

A sugar alternative which is believed to lower human glycemic indexes

and is believed to be a breakthrough alternative sugar aimed to combat diabetes.

The use of Laetose in a daily diet, compared

to sugar, could result in 30% lower sugar consumption and lower glycemic index/load.

Applications as food additive, and natural preservative for beauty and person care products as well as natural food preservative.

Food preservative booster made up of polyphenols that extend the shelf life.

Advanced bio-compatible plastics that mitigate accumulation

of plastics in oceans and landfills and provide UVA and UVB protection for many types of material for including containers, hard surfaces,

and fibers for clothing.

The technology is presently in development and testing antimicrobial plastics for consumer products that control

the spread of active pathogens such as SARS-CoV-2, Influenza, E.

coli, Staph, and Rhinovirus, by exploiting key strategies found in the

biological realm.

These new plastics are specifically focused on solutions for common products such as cups, plates, utensils, plastic

bags, and countertops.

The first prototypes are currently undergoing antimicrobial resistance testing.

Laetose technology is derived from a unique combination of sugar and inositol, which demonstrates the ability to inhibit the inflammatory

and metabolic response of sugar alone.

A sugar alternative which is believed to lower human glycemic indexes and is believed to be

a breakthrough alternative sugar aimed to combat diabetes.

The use of Laetose in a daily diet, compared to sugar, could result in

30% lower sugar consumption and lower glycemic index/load.

A botanical compound believed to serve as an insect repellent and anti-microbial agent.

4 unchanged sentences

3F repellent contains botanical ingredients that mosquitos avoid.

These ingredients are scientifically

proven1 to affect the mosquito’s receptors, essentially making the insect blind to a human’s presence.

be utilized as a stand-alone repellent or as an additive in detergents, lotions, shampoo, and other substances to provide

mosquito protection.

These ingredients are scientifically proven1

to affect the mosquito’s receptors, essentially making the insect blind to a human’s presence.

This can be utilized as

a stand-alone repellent or as an additive in detergents, lotions, shampoo, and other substances to provide mosquito protection.

Antimicrobial:

3F antimicrobial contains botanical ingredients known to kill viruses.

These ingredients are scientifically

proven to inhibit viral replication.

This can be utilized as a stand-alone antimicrobial or as an additive in detergents,

lotions, shampoo, fabrics, and other substances.

BioHealth has a license for cannaniboid technology for neurological pain, sleep apnoea disorders with RX/OTC potential.

These ingredients are scientifically proven

to inhibit viral replication.

This can be utilized as a stand-alone antimicrobial or as an additive in detergents, lotions, shampoo,

fabrics, and other substances.

The solution to the Patent Cliff accomplished by creating a new class of medicinal chemistry that uses advanced methods to increase

effectiveness and persistence of natural compounds and existing drugs.

The safety attributes of the original molecules are maintained.

Typically, drug discovery processes modify functional groups.

Quantum’s new techniques alter behavior of molecules at the sub-molecular

It is estimated that 65% of the World Health Organization Essential Medicines List can be improved and re-patented using Quantum

and these methods can be used to enhance and patent natural compounds including many substances used in traditional medicines around

Advanced adjuvant for next generation vaccine applications.

Sugar that prevents muscular atrophy.

Oral capsule able to prevent sun damage to human skin.

BioHealth has a license for cannabinoid technology for neurological pain, sleep apnea disorders with RX/OTC

Med (license):

1 unchanged sentence

and cognitive processes to toxin neutralization and immunity against pathogens.

business model of BioHelath and Impact BioMedical revolves around two methodologies –

Licensing and Sales Distribution.

business model of BioHealth and Impact BioMedical revolves around two methodologies – Licensing and Sales Distribution.

Impact develops valuable and unique patented technologies which will be licensed to pharmaceutical, large consumer package goods

1 unchanged sentence

Impact utilizes the DSS ecosystem to leverage its sister companies that have in place distribution networks on a global scale.

Impact will engage in branded and private labelling of its products for sales generation through these channels.

will engage in branded and private labelling of certain products for sales generation through these channels.

This global distribution

model will give direct access to end users of Impact’s nutraceutical and health related products.

was established to develop and/or acquire assets in the securities trading or management arena, and to pursue, among other product

and service lines, real estate investment funds, digital asset exchanges, security and utility tokens and other forms of crypto

This business sector has already started or made the following business lines and associated products and services:

model will give direct access to end users of Impact’s nutraceutical and health related products.

and Investment Management:

(“Securities”) Securities was established to develop and/or acquire assets in

the securities trading or management arena, and to pursue, among other product and service lines, real estate investment funds, broker

dealers, and mutual funds management.

This business sector has already established the following business lines and associated

products and services:

Management Fund:

In March 2020, DSS Securities formed AMRE (“American Medical REIT”) and its management company

AAMI (“AMRE Asset Management, Inc.) Through AAMI/AMRE, a medical real estate investment trust, fulfills community needs

for quality healthcare facilities while enabling care providers to allocate their capital to growth and investment in their

contemporary clinical and critical care businesses.

Urban and suburban communities are in need of modern healthcare facilities

that provide a range of medical outpatient services.

The funds ultimate product is an investor opportunity in a managed medical

real estate investment trust.

In March 2020, DSS Securities formed AMRE (“American Medical REIT”) and its management company

AAMI (“AMRE Asset Management, Inc.) Through AAMI/AMRE, a medical real estate investment trust, fulfills community needs for

quality healthcare facilities while enabling care providers to allocate their capital to growth and investment in their contemporary

clinical and critical care businesses.

Urban and suburban communities are in need of modern healthcare facilities that provide a

range of medical outpatient services.

The funds ultimate product is an investor opportunity in a managed medical real estate investment

Estate Title Services:

Alset Title Company, Inc.

provides buyers, sellers, and brokers alike confidence during big real

estate transactions, not just in a transaction, but in the property itself.

Through bundled services, Alset Title Company,

provides it all from title searches and insurance to escrow agent assistance.

Trading Systems :

Currently in development to operate in the US vertical digital asset exchanges for securities, tokenized

assets, utility tokens, stablecoins and cryptocurrency via a digital asset trading platform using blockchain technology.

ability to compete effectively depends largely upon our ability to maintain the proprietary nature of our technology, products

and manufacturing processes.

Across the DSS ecosystem of companies, we principally rely upon patent, trademark, trade secrets

and contract law to establish and protect our proprietary rights.

it applies to our digital division’s product line development,

we have expended significant resources on research and development in an effort to become a market leader with the ability to

provide our customers effective solutions against an ever-changing array of counterfeit risks.

Our position in the security print

market is based on our technologies and products.

The Company recognized a credit in 2019 of approximately $12,000 primarily due

to receipt of a refund on development costs for the development of proprietary blockchain solutions for the Company’s AuthentiGuard

product line.

In comparison, the Company spent approximately $146,000 on research and development during 2018, primarily toward

the development of the Company’s AuthentiGuard product line.

to out Impact BioMedical Division we have key patents that we will use as the foundation for foster product development and licensing.

provides buyers, sellers, and brokers alike confidence during big real estate

transactions, not just in a transaction, but in the property itself.

Through bundled services, Alset Title Company, Inc.

it all from title searches and insurance to escrow agent assistance.

Sentinel primarily operates as

a financial intermediary, facilitating institutional trading of municipal and corporate bonds as well as preferred stock, and accelerates

the trajectory of the DSS digital securities business.

WestPark is a full-service investment banking and securities brokerage firm which serves

the needs of both private and public companies worldwide, as well as individual and institutional

BMI is a private investment bank specializing in corporate finance advising, raising

equity, and venture services, providing a global “one-stop” corporate consultancy

to listed companies.

From corporate finance to professional valuation, corporate communications

to event management, BMI services companies in the US, Hong Kong, Singapore, Taiwan, Japan,

Canada, and Australia.

DSS AmericaFirst:

DSS AmericaFirst is a suite

of mutual funds managed by DSS Wealth Management.

DSS AmericaFirst expects to expand into numerous investment platforms including

additional mutual funds, exchange-traded funds, unit investment trusts, and closed-end funds.

DSS AmericaFirst currently consists

of four mutual funds that seek to outperform their respective benchmark indices by applying a quantitative rules-based approach to

security selection.

(“Direct”) Through its holding company, Decentralized Sharing Systems, Inc.

and its subsidiaries

and partners, including Sharing Services Global Corporation provide an array of products and services, through an independent contractor

example, Decentralized’s wholly owned subsidiary, HWH World, Inc.

promotes products and services that fulfill its corporate position

of health, wealth, and happiness.

The HWH Marketplace through its brands desires to help its customers become the healthiest, happiest

versions of themselves.

For the health component , the company offers herbal alternatives of nutraceutical, consumables and topicals,

dietary supplements, beauty and skin care products, personal care, gut health products, aloe vera based supplements, and other wellness

As to the wealth component , the company is developing educational tools to its users to better manage individual finances

and savings programs to help its consumers find each consumer’s individual financial goal.

As to the happiness component ,

the company is working with other partners to either acquire or partner in products and/or services to allow its consumers to enjoy and

healthy living, including a global travel membership network.

Sharing Services, through its subsidiary Elevacity, markets and distributes health and wellness products under the “Elevate”

brand, primarily in the United States and Canada.

Sharing Services markets its products and services through its independent contractor

distribution system and using its proprietary website:

www.elevacity.com.

In February 2021, the Company launched its new business brand,

“The Happy Co.,” at its Elevacity division.

Elevacity as several well-known and signature products, including its top product

lines of “Happy Coffees” and “Nootropic Beverages”.

Elevacity also sells a “healthy shake”, a “Keto

Coffee Booster”, “Energy Caps”, “XanthoMax© Happy Caps”, “Wellness Vitamin Patches”, various

beauty and skin care products, and other wellness products.

to our Impact BioMedical Division we have key patents that we will use as the foundation for foster product development and licensing.

We have 5 patents for some of our key products including Linebacker, Equivir/Nemovir, Laetose and 3F.

Our intellectual property

will enable us to be protected as we further these technologies and pave the road to commercialization.

own patents covering semiconductor, light emitting diode, anti-counterfeiting and document authentication, and wireless peripheral

technologies, respectively.

We also have several patent applications in process, including provisional and Patent Cooperation

Treaty (“PCT”) patent applications in various jurisdictions including the United States, Canada, and Europe.

applications cover our anti-counterfeiting technologies, including AuthentiGuard®, AuthentiGuard®

Prism™, and AuthentiGuard®

VeriGlow™, and several other anti-counterfeiting and authentication technologies in development.

Our issued patents have

remaining durations ranging from 1 to 16 years.

several trademarks related to our Digital Group business.

We have registered our “AuthentiGuard®”

as well as our “Survivor 21®”

electronic check icon and “VeriGlow®”

with the U.S.

Patent and Trademark

A trademark application is pending in Canada for “AuthentiGuard.”

AuthentiGuard®

is registered in several

European countries including the United Kingdom.

We have also applied to register AuthentiSite TM, AuthentiShare TM, AuthentiSuiteTM,

AuthentiBlockTM, and AuthentiChainTM in the U.S.

primary corporate website we maintain is www.dsssecure.com , which describes our Company, our history, our patented document

security solutions, our major product offerings, and our targeted vertical markets across all of our business segments.

we operate www.hwhmarketplace.com which is an online retail site that is centreed around our health and wellness nutraceutical

products, www.impbio.com which is the primary site for our product information on that company.

In addition to the active

websites, the Company owns several other domain names reserved for future use or for strategic competitive reasons.

on our websites or any other website does not constitute a part of this annual report.

Our intellectual property will

enable us to be protected as we further these technologies and pave the road to commercialization.

own patents covering semiconductor, light emitting diode, and wireless peripheral technologies, respectively.

We also have several patent

applications in process, including provisional and Patent Cooperation Treaty (“PCT”) patent applications in various jurisdictions

including the United States, Canada, and Europe.

Our issued patents have remaining durations ranging from 1 to 16 years.

We several trademarks related to our related to

our HWH, SHRG, Impact BioMedical, and DSS, Inc.

primary corporate website we maintain is www.dssworld.com,

which describes our Company, our

https://www.dssworld.com, Our parent company.

Pacific Bancorp (“APB”):

https://www.ampacbancorp.com – Our commercial

lending company.

Medical REIT, Inc:

http://www.americanmedreit.com – our medical real estate investment trust company.

https://www.impactbiomedinc.com - our human wellness and healthcare company.

https://www.shrginc.com - Our majority owned technology, eCommerce, and gig economy opportunities company.

(Health, Wealth & Happiness) Marketplace:

https://www.hwhmarketplace.com - an online retail site that is centered around

our health and wellness nutraceutical products.

AmericaFirst:

https://www.afcm-quant.com - a suite of mutual funds managed by DSS Wealth Management, Inc.

Premier Packaging :

https://www.premiercustompkg.com

- our printing and packaging company.

addition to the active websites, the Company is building multiple new sites and owns several other domain names reserved for future

use or for strategic competitive reasons.

Information on our websites or any other website does not constitute a part of this annual

and Competition

to the security printing business, the security print market

is comprised of a few very large companies and an increasing number of small companies with specific technology niches.

The expansion

of this market is primarily due to the significant expansion of counterfeiting as advancing technologies in digital duplication

and scanning combined with increasingly sophisticated design software has enabled easier reproduction of original documents, vital

records and IDs, packaging, and labels.

Our competitors include Standard Register Company, which specializes in printing security

technologies for the check and forms and medical industries;

and De La Rue Plc, that specializes in printing secure currency,

tickets, labels, lottery tickets and vital records for governments and Fortune 500 companies.

Large office equipment manufacturers,

called OEMs, such as Sharp, Xerox Canon, Ricoh, Hewlett Packard and Eastman Kodak are developing “smart copier”

that recognizes particular graphical images and produces warning words or distorted copies.

Some of the OEMs are also developing

user assigned and variable pantograph “hidden word”

technologies in which users can assign a particular hidden word

in copy, such as “void”

that is displayed when a copy of such document is made.

In addition, other competing hidden

word technologies are being marketed by competitors such as NoCopi Technologies which sells and markets secure paper products,

and Graphic Security Systems Corporation, which markets Scrambled Indicia.

packaging division competes with a significant number of national, regional and local companies, many of which are independent

and privately-held.

The largest competitors in this market are primarily focused on the long-run print order market.

large integrated paper companies such as West Rock Company, Caraustar Industries, Inc., Graphic Packaging Holding Company

and Mead Westvaco.

Our printing division competes primarily with locally-based printing companies in the Rochester and Western

New York markets.

Most of our competitors in these markets are privately-held, single location operations.

to our Digital Group, our technology division also faces competition in the area of patent acquisitions and enforcement.

such as Acacia, RPX, AST, Intellectual Ventures, Wi-LAN, MOSAID, Round Rock Research LLC, IPvalue Management Inc., Vringo Inc.

and Pendrell Corporation compete in acquiring rights to patents and product authentication from companies like Authentix, Opsec,

and Alpvision that have similar technology to help protect against fraud and authenticate consumer packaged goods.

to the Direct Marketing Group, the network marketing or direct marketing industry is a very competitive marketplace.

directly competing with HWH and SHRG, the following companies are significant players in the global network marketing business

and as a result an indirect competitor of HWH and SHRG:

Amay, Avon, Herbalife, Natura, Vorwerk, Mary Kay, Infinitus, Perfect,

Forever Living, Nu Skin, Young Living, and New Era, among others.

2020, two customers accounted for 38% of our consolidated revenue.

As of December 31, 2020, these two customers accounted

for 60% of our consolidated trade accounts receivable balance.

As of December 31, 2019, these two customers accounted for 45%

of our consolidated revenue and 48% of the Company’s consolidated trade accounts receivable balance.

Our packaging division competes with a significant number of national, regional companies, many of which are independent and

privately held.

The largest competitors in this market are primarily focused on the long-run consumer package goods and health and beauty

They include large integrated paper companies such as West Rock Company, and Graphic Packaging Holding Company.

Our commercial lending company, American Pacific Bancorp (“APB”) provides an integrated suite of financial

services for businesses that include commercial business lines of credit, land development financing, inventory financing, third

party loan, servicing, and services that address the financial needs of a variety of diversified businesses lines.

These efforts

compete with a wide variety of traditional commercial banks and investment banking companies including.

Biotechnology:

Our biotechnology companies including Impact Biomedical Inc., are focused on the discovery, development, and commercialization of products

and technologies to address unmet needs in human healthcare and wellness.

Specific areas of focus include specialty biopharmaceuticals,

antivirals, antimicrobials, and consumer healthcare and wellness products, often derived from naturally sourced elements.

These efforts

compete with established and start-up companies, university research and development efforts, and individual inventors and scientists.

Examples of competitors include Ipsen Pharmaceuticals, Conagen Inc., Mylan Consumer Healthcare, Klaire Labs, Vertex Pharmaceuticals,

and the National Center of Natural Product Development at the University of Mississippi.

The network marketing or direct marketing industry is a very competitive marketplace.

While not directly competing with HWH

and SHRG, the following companies are significant players in the global network marketing business and as a result an indirect competitor

of HWH and SHRG:

Amway, Avon, Herbalife, Natura, Vorwerk, Mary Kay, Perfect, Forever Living, Nu Skin, Young Living, and New Era, among

and Investment Management:

Was established to develop and/or acquire assets in the securities trading or management arena.

These efforts

and established business lines compete with individual money managers, companies or organizations that engage in the business of trading

securities and derivatives for the benefit of their customers.

Traditional RIA’s, Brokers Dealers, REIT’s and other personal

investment companies would also be considered competition.

During 2021, two customers accounted

for approximately 41% of our consolidated revenue.

As of December 31, 2021, these two customers accounted for approximately

48% of our consolidated trade accounts receivable balance.

As of December 31, 2020, these two customers accounted for 38% of our

consolidated revenue and 60% of the Company’s consolidated trade accounts receivable balance.

This customer

diversification improvement was driven by addition of several new customers to our overall customer base.

to the packaging business, the primary raw materials the Company

uses in its businesses are paper, paperboard, corrugated board and ink.

The Company negotiates with leading suppliers to

maximize its purchasing efficiencies and uses a wide variety of paper grades, formats, ink formulations and colors.

paperboard prices continued to increase in 2020, and we believe increases in future years are expected.

Except for certain packaging

customers where the Company enters into annual contracts, for which changes in paperboard pricing is absorbed by the Company,

the Company has historically passed substantially all increases and decreases to its customers, although there can be no assurances

that the Company will continue to do so in the future.

Commercial Lending:

2021, American Pacific Bancorp, Inc.

has issued nearly $26 million in new loans

since September 2021 to customers with strong credit quality across a diverse portfolio of businesses.

We anticipate another 15M + of

new commercial loans in the near term.

Top customers include Harris-Montgomery Counties Management District, American Medical REIT, Inc.,

and ASILI, LLC.

Direct Marketing:

our direct marketing companies HWH World, SHRG and its subsidiary, The Happy Co.

continued to build their customer bases and brand recognition

on a global basis.

These businesses utilize person-to-person sales by independent representatives through direct communication and distribution

to individual consumers and their networks.

Mail, email, social media, influencers or affiliates, and texting campaigns are among the

delivery systems used to communicate and sell to our thousands of customers.

and Investment Management:

Since October of 2021, our Securities and Investment Management division has a mixture of retail

and institutional investors.

Product Packaging:

raw materials the Company uses in its businesses are paper, paperboard, corrugated board and ink.

The Company negotiates with leading

suppliers to maximize its purchasing efficiencies and uses a wide variety of paper grades, formats, ink formulations and colors.

and paperboard prices continued to increase in 2022, and we believe increases in future years are expected.

Except for certain

packaging customers where the Company enters into annual contracts, for which changes in paperboard pricing is absorbed by the Company,

the Company has historically passed substantially all increases and decreases to its customers, although there can be no assurances that

the Company will continue to do so in the future.

Sources its products from 3 rd party suppliers for nutritional, performance, and health and beauty product ingredients.

We rely on our extensive supplier network for availability of an extensive range of vitamins, minerals, botanicals, plant and herb extracts,

as well as nutritional supplements.

We are expecting continue price pressure and supply chain issues into 2022 and have put significant

risk mitigation strategies in place to avoid dramatic P&L effects based on this anticipated and continued volatility.

passes any substantial increase of its raw materials or finished goods on to its customers to limit any significant margin impact.

Environmental

is the Company’s policy to conduct its operations in accordance with all applicable laws, regulations and other requirements.

While it is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly

remediation and other compliance efforts that the Company may undertake in the future, in the opinion of management, compliance

with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have

a material adverse effect on the Company’s consolidated annual results of operations, financial position or cash flows.

play an active role with the Document Security Alliance group, as one of our research and development management members sits

on various committees of that group and has been involved in design recommendations for important U.S.

This group of

security industry specialists was formed by the U.S.

Secret Service to evaluate and recommend security solutions to the federal

government for the protection of credentials and vital records.

patent monetization business is also faced with potential government regulations.

If new legislation, regulations or rules are

implemented either by Congress, the U.S.

Patent and Trademark Office (the “USPTO”), or the courts that impact the

patent application process, the patent enforcement process or the rights of patent holders, these changes could negatively affect

our patent monetization efforts and, in turn, our assets, expenses and revenue.

United States patent laws have been amended by

the Leahy-Smith America Invents Act.

is the Company’s policy to conduct its operations in accordance with all applicable laws, regulations, and other requirements.

While it is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation

and other compliance efforts that the Company may undertake in the future, in the opinion of management, compliance with the present

environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material adverse effect

on the Company’s consolidated annual results of operations, financial position or cash flows.

biotechnology business is faced with potential government regulations.

If new legislation, regulations, or rules are implemented

either by Congress, the U.S.

Patent and Trademark Office (the “USPTO”), or the courts that impact the patent application

process, the patent enforcement process or the rights of patent holders, these changes could negatively affect our patent monetization

efforts and, in turn, our assets, expenses and revenue.

United States patent laws have been amended by the Leahy-Smith America Invents

The America Invents Act includes several significant changes to U.S.

the legislation attempts to address issues surrounding the enforceability of patents and the increase in patent litigation by,

among other things, establishing new procedures for patent litigation.

For example, the America Invents Act changes the way that

parties may be joined in patent infringement actions, increasing the likelihood that such actions will need to be brought against

individual parties allegedly infringing by their respective individual actions or activities.

In general, the legislation attempts to address

issues surrounding the enforceability of patents and the increase in patent litigation by, among other things, establishing new procedures

for patent litigation.

For example, the America Invents Act changes the way that parties may be joined in patent infringement actions,

increasing the likelihood that such actions will need to be brought against individual parties allegedly infringing by their respective

individual actions or activities.

In addition, the U.S.

of Justice (“DOJ”) has conducted reviews of the patent system to evaluate the impact of patent assertion entities,

such as our Company, on industries in which those patents relate.

It is possible that the findings and recommendations of the

DOJ could adversely impact our ability to effectively license and enforce standards-essential patents and could increase the uncertainties

and costs surrounding the enforcement of any such patented technologies.

new rules regarding the burden of proof in patent enforcement actions could significantly increase the cost of our enforcement

actions, and new standards or limitations on liability for patent infringement could negatively impact our revenue derived from

such enforcement actions.

Company was incorporated in 1984 and changed its name to Document Security Systems, Inc.

See, the “Overview”

section above for further details about our acquisitions.

of March 26, 2021, all of the Company’s 93 employees were full time.

It is important that we continue to retain

and attract qualified management and technical personnel.

Our employees are not covered by any collective bargaining agreement,

and we believe that our relations with our employees are generally good.

website address is www.dsssecure.com .

Department of Justice (“DOJ”) has conducted reviews of the patent

system to evaluate the impact of patent assertion entities, such as our Company, on industries in which those patents relate.

It is possible

that the findings and recommendations of the DOJ could adversely impact our ability to effectively license and enforce standards-essential

patents and could increase the uncertainties and costs surrounding the enforcement of any such patented technologies.

new rules regarding the burden of proof in patent enforcement actions could significantly increase the cost of our enforcement actions,

and new standards or limitations on liability for patent infringement could negatively impact our revenue derived from such enforcement

Company, incorporated in the state of New York in May 1984 has formally conducted business in the name of Document Security Systems,

On September 16, 2021, the board of directors approved an agreement and plan of merger with a wholly owned subsidiary, DSS,

(a New York corporation, incorporated in August 2020), for the sole purpose of effecting a rebranding from Document Security

Systems, Inc.

This change became effective on September 30, 2021.

maintained the same trading symbol “DSS”

and updated its CUSIP number to 26253C-102.

See the “Overview” section above for further details about our acquisitions.

As of December 31, 2021, all

had 113 employees worldwide.

We continue to retain and attract qualified management and technical personnel.

Our employees

are not covered by any collective bargaining agreement, and we believe that our relations with our employees are in good standing.

website address is www.dssworld.com .

Information on our website is not incorporated herein by reference.

available free of charge through our website our press releases, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current

Reports on Form 8-K and all amendments to those reports as soon as reasonably practicable after electronically filed with or furnished

to the Securities and Exchange Commission.

in our common stock involves risk.

Before deciding whether to invest in our common stock, you should consider carefully the risks

and uncertainties described below.

There may be other unknown or unpredictable economic, business, competitive, regulatory or

other factors that could have material adverse effects on our future results.

If any of these risks actually occur, our business,

business prospects, financial condition or results of operations could be seriously harmed.

This could cause the trading price

of our common stock to decline, resulting in a loss of all or part of your investment.

Please also read carefully the section

contained in Part II, Item 7, below, entitled “Cautionary Statement Regarding Forward-Looking Statements.”

have identified the following risks and uncertainties that may have a material adverse effect on our business, financial condition

or results of operations in the future.

Additional risks not presently known to us or that we currently believe are immaterial

may also significantly impair our business operations.

If any of these risks occur, our business, results of operations or financial

condition could suffer, the market price of our common stock could decline, and you could lose all or part of your investment

in our common stock.

Impact of COVID-19 Pandemic.

COVID-19 pandemic has created global economic turmoil and has potentially permanently impacted how many businesses operate and

how individuals will socialize and shop in the future.

The Company continues to feel the effect of the COVID-19 business shutdowns

and consumer stay-at-home protections.

But the effect of the economic shutdown has impacted our business lines differently, some

more severely than others.

In most cases we believe the negative economic trends and reduced sales will recover over time.

management determined that one of its business lines, DSS Plastics, had been more severely impacted by the pandemic than

our other divisions and we did not believe this was a short-term phenomenon.

As a result, management decided to

fully impair its goodwill related to DSS Plastics.

The impact to DSS’s 2020 first quarter earnings of this impairment

was approximately $685,000.

value of our intangible assets and investments may not be equal to their carrying values .

of December 31, 2020, we had approximately $23.4 million of net intangible assets.

Approximately $22.3 million is associated with

the acquisition of Impact Biomedical, Inc.

The Company has completed valuations for certain developed technology assets

acquired in the transaction as well the non-controlling interest portion of Impact BioMedical, Inc.

and its subsidiaries.

Approximately $267,000 of this amount are intangible assets which derive their value from patents or patent rights.

efforts and litigation are not successful, the values of these assets could be reduced.

We are required to evaluate the carrying

value of such intangibles and goodwill and the fair value of investments whenever events or changes in circumstances indicate

that the carrying value of an intangible asset, including goodwill, and investment may not be recoverable.

If any of our intangible

assets, goodwill or investments are deemed to be impaired then it will result in a significant reduction of the operating results

in such period.

As noted above, management has determined that the goodwill of DSS Plastics has been permanently and materially

impaired due to the global pandemic and other market factors.

have secured indebtedness, and a potential risk exists that we may be unable to satisfy our obligations to pay interest and principal

thereon when due or negotiate acceptable extensions or settlements.

have outstanding indebtedness (described below), most of which is secured by assets of various DSS subsidiaries and guaranteed

by the Company.

Given our history of operating losses and our cash position, there is a risk that we may not be able to repay

indebtedness when due.

If we were to default on any of our other indebtedness that require payments of cash to settle such default

and we do not receive an extension or a waiver from the creditor and the creditor were to foreclose on the secured assets, it

could have a material adverse effect on our business, financial condition and operating results.

of December 31, 2020, we had the following significant amounts of outstanding indebtedness:

due under a promissory note with Citizens Bank used to purchase our packaging division facility.

We are required to pay monthly

instalments of $7,000 with interest fixed at 4.22% until June 2029, at which time a balloon payment of the remaining principal

balance will be due.

The promissory note is secured by a first mortgage on our packaging division facility.

in a term note non-revolving line of credit with Citizens Bank used by Premier Packaging Corporation to purchase equipment.

Effective on the Conversion Date, the interest shall be adjusted to a fixed rate equal to 2% above the bank’s cost

of funds, as determined by Citizens.

The note had no borrowings against it as of December 31, 2020.

in a term note non-revolving line of credit with Citizens Bank used by Premier Packaging Corporation to purchase equipment.

The note is amortized over a 48-month period and payable in monthly instalments of $13,000.

Interest accrues at 1 Month LIBOR

revolving credit line with Citizens Bank by Premier Packaging payable in monthly instalments of interest only.

The revolving

credit line bears interest at 1 Month LIBOR plus 2.0% and had no borrowings against it at as of December 31, 2020.

unsecured promissory note between AMRE and LiquidValue Asset Management Pte Ltd.

The note calls for interest to be paid annually

on March 2 with interest fixed at 8.0% and matures on March 2, 2022.

The holder is a related party owned by the Chairman of

the Company’s board of directors.

under the Paycheck Protection Program, which was established as part of CARES Act, and provides for loans to qualifying businesses

for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business.

As of December 31, 2020, pursuant

to the terms of the SBA PPP program, the Company submitted an application for AAMI for a requested 100% loan forgiveness.

In January 2021, AAMI received notification that the loan was forgiven under the guidelines of the CARES Act.

Citizens credit facilities for the Company’s subsidiary, Premier Packaging, contain various covenants including fixed charge

coverage ratio, tangible net worth and current ratio covenants which are tested annually as of December 31.

ended December 31, 2020, Premier Packaging was in compliance with the annual covenants.

significant amount of our revenue is derived by two customers.

2020, two customers accounted for approximately 38% of our consolidated revenue.

As of December 31, 2020, these two customers

accounted for 60% of our trade accounts receivable balance.

During 2019, these two customers accounted for approximately 45% of

our consolidated revenue.

As of December 31, 2019, these two customers accounted for 49% of our trade accounts receivable balance.

If we were to lose these customers or if the amount of business we do with these two customers declines significantly, our business

would be adversely affected.

may face intellectual property infringement or other claims against us, our customers or our intellectual property that could

be costly to defend and result in our loss of significant rights.

we have received patents with respect to certain of our core business technologies, there can be no assurance that these patents

will afford us any meaningful protection.

Although we believe that our use of the technology and products we have developed, and

other trade secrets used in our operations do not infringe upon the rights of others, our use of the technology and trade secrets

we developed may infringe upon the patents or intellectual property rights of others.

In the event of infringement, we could,

under certain circumstances, be required to obtain a license or modify aspects of the technology and trade secrets we developed

or refrain from using the same.

We may not be able to successfully terminate any infringement in a timely manner, upon acceptable

terms and conditions or at all.

Failure to do any of the foregoing could have a material adverse effect on our operations and

our financial condition.

Moreover, if the patents, technology or trade secrets we developed or use in our business are deemed

to infringe upon the rights of others, we could, under certain circumstances, become liable for damages, which could have a material

adverse effect on our operations and our financial condition.

As we continue to market our products, we could encounter patent

barriers that are not known today.

A patent search may not disclose all related applications that are currently pending in the

United States Patent Office, and there may be one or more such pending applications that would take precedence over any or all

of our applications.

third parties may assert that our intellectual property rights are invalid, which could result in significant expenditures by

us to refute such assertions.

If we become involved in litigation, we could lose our proprietary rights, be subject to damages

and incur substantial unexpected operating expenses.

Intellectual property litigation is expensive and time-consuming, even if

the claims are subsequently proven unfounded, and could divert management’s attention from our business.

If there is a successful

claim of infringement, we may not be able to develop non-infringing technology or enter into royalty or license agreements on

acceptable terms, if at all.

If we are unsuccessful in defending claims that our intellectual property rights are invalid, we

may not be able to enter into royalty or license agreements on acceptable terms, if at all.

Moreover, if we are unsuccessful in

our pending patent infringement litigation, we could lose certain patents that have been collateralized by third party funding

This could prohibit us from providing our products and services to customers, which could have a material adverse effect

on our operations and our financial condition.

of our recently developed products are not yet commercially accepted and there can be no assurance that those products will be

accepted, which would adversely affect our financial results.

the past several years, we have spent significant funds and time to create or acquire new products by applying our technologies

onto media other than paper, including plastic and cardboard packaging, and delivery of our technologies digitally.

also acquired several patents in the bio-health field through our acquisition if Impact Biomedical, Inc.

Our business plan includes

plans to incur significant marketing, intellectual property development and sales costs for these newer products, particularly

the bio-health related products.

If we are not able to develop and sell these new products, our financial results will be adversely

results of our research and development efforts are uncertain and there can be no assurance of the commercial success of our products.

believe that we will need to continue to incur research and development expenditures to remain competitive.

The products we are

currently developing or may develop in the future may not be technologically successful.

In addition, the length of our product

development cycle may be greater than we originally expected, and we may experience delays in future product development.

resulting products are not technologically successful, they may not achieve market acceptance or compete effectively with our

competitors’

in document security technology and standards could render our applications and services obsolete.

market for document security products, applications, and services is fast moving and evolving.

Identification and authentication

technology is constantly changing as we and our competitors introduce new products, applications, and services, and retire old

ones as customer requirements quickly develop and change.

In addition, the standards for document security are continuing to evolve.

If any segments of our market adopt technologies or standards that are inconsistent with our applications and technology, sales

to that market segments could decline, which could have a material adverse effect on our operations and our financial condition.

markets in which we operate is highly competitive, and we may not be able to compete effectively, especially against established

industry competitors with greater market presence and financial resources.

markets are highly competitive and characterized by rapid technological change and product innovations.

Our competitors may have

advantages over us because of their longer operating histories, more established products, greater name recognition, larger customer

bases, and greater financial, technical and marketing resources.

As a result, they may be able to adapt more quickly to new or

emerging technologies and changes in customer requirements and devote greater resources to the promotion and sale of their products.

Competition may also force us to decrease the price of our products and services.

We cannot assure you that we will be successful

in developing and introducing new technology on a timely basis, new products with enhanced features, or that these products, if

introduced, will enable us to establish selling prices and gross margins at profitable levels.

we are unable to respond to regulatory or industry standards effectively, our growth and development could be delayed or limited.

future success will depend in part on our ability to enhance and improve the functionality and features of our products and services

in accordance with regulatory or industry standards.

Our ability to compete effectively will depend in part on our ability to

influence and respond to emerging industry governmental standards in a timely and cost-effective manner.

If we are unable to influence

these or other standards or respond to these or other standards effectively, our growth and development of various products and

services could be delayed or limited.

in security, whether cyber or physical, and other disruptions and/or our inability to prevent or respond to such breeches, could

diminish our ability to generate revenues or contain costs, compromise our assets, and negatively impact our business in other

face certain security threats, including threats to our information technology infrastructure, attempts to gain access to our

proprietary or classified information, and threats to physical and cyber security.

Our information technology networks and related

systems are critical to the operation of our business and essential to our ability to successfully perform day-to-day operations.

The risks of a security breach, cyber-attack, cyber intrusion, or disruption, particularly through actions taken by computer hackers,

foreign governments and cyber terrorists, have increased as the number, intensity and sophistication of attempted attacks and

intrusions from around the world have increased.

Although we have acquired and developed systems and processes designed to protect

our proprietary and/or classified information, they may not be sufficient and the failure to prevent these types of events could

disrupt our operations, require significant management attention and resources, and could negatively impact our reputation among

our customers and the public, which could have a negative impact on our financial condition, and weaken our results of operations

and liquidity.

operations in Asia are subject to unique risks and uncertainties, including tariffs and trade restrictions.

operating facility in Asia, in addition to our investment in Alset International Limited, presents risks including, but

not limited to, changes in share price of investments, changes in local regulatory requirements, changes in labor laws, local

wage laws, environmental regulations, taxes and operating licenses, compliance with U.S.

regulatory requirements, including the

Foreign Corrupt Practices Act, uncertainties as to application and interpretation of local laws and enforcement of contract and

intellectual property rights, currency restrictions, currency exchange controls, fluctuations of currency, and currency revaluations,

eminent domain claims, civil unrest, power outages, water shortages, labor shortages, labor disputes, increase in labor costs,

rapid changes in government, economic and political policies, political or civil unrest, acts of terrorism, or the threat of boycotts,

other civil disturbances and the possible impact of the imposition of tariffs as a result of the tariff dispute between the U.S.

and China as well as any retaliating trade policies or restrictions.

Any such disruptions could depress our earnings and have

other material adverse effects on our business, financial condition and results of operations.

growth in our business could make it difficult to manage our resources.

business expansion could place a significant strain on our management, administrative and financial resources.

Significant growth

in our business may require us to implement additional operating, product development and financial controls, improve coordination

among marketing, product development and finance functions, increase capital expenditures and hire additional personnel.

can be no assurance that we will be able to successfully manage any substantial expansion of our business, including attracting

and retaining qualified personnel.

Any failure to properly manage our future growth could negatively impact our business and operating

we fail to retain certain of our key personnel and attract and retain additional qualified personnel, we might not be able to

remain competitive, continue to expand our technology or pursue growth.

future success depends upon the continued service of certain of our executive officers and other key sales and research personnel

who possess longstanding industry relationships and technical knowledge of our products and operations.

Although we believe that

our relationship with these individuals is positive, there can be no assurance that the services of these individuals will continue

to be available to us in the future.

There can be no assurance that these persons will agree to continue to be employed by us

after the expiration dates of their current contracts.

have identified weaknesses in our internal control over financial reporting structure;

any material weaknesses may cause errors

in our financial statements that could require restatements of our financial statements and investors may lose confidence in our

reported financial information, which could lead to a decline in our stock price.

404 of the Sarbanes-Oxley Act of 2002 requires us to evaluate the effectiveness of our internal control over financial reporting

as of the end of each year, and to include a management report assessing the effectiveness of our internal control over financial

reporting in each Annual Report on Form 10-K.

We have had previously identified weaknesses in our internal control over financial

reporting following management’s annual assessment of internal controls over financial reporting and, as a result of that

assessment, management had concluded our controls associated may not prevent or detect misstatements.

Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because

of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

All internal control

systems, no matter how well designed, have inherent limitations.

Therefore, even those systems determined to be effective can

provide only reasonable assurance with respect to financial statement preparation and presentation.

do not intend to pay cash dividends.

do not intend to declare or pay cash dividends on our common stock in the foreseeable future.

We anticipate that we will retain

any earnings and other cash resources for investment in our business.

The payment of dividends on our common stock is subject

to the discretion of our board of directors and will depend on our operations, financial position, financial requirements, general

business conditions, restrictions imposed by financing arrangements, if any, legal restrictions on the payment of dividends and

other factors that our board of directors deems relevant.

may seek to develop additional new inventions and intellectual property, which would take time and would be costly.

the failure to obtain or maintain intellectual property rights for such inventions would lead to the loss of our investments in

such activities.

of our business may include the development of new inventions and intellectual property that we would seek to monetize.

this aspect of our business would likely require significant capital and would take time to achieve.

Such activities could also

distract our management team from our present business initiatives, which could have a material and adverse effect on our business.

There is also the risk that these initiatives would not yield any viable new inventions or technology, which would lead to a loss

our investments in time and resources in such activities.

addition, even if we are able to develop new inventions, in order for those inventions to be viable and to compete effectively,

we would need to develop and maintain, and we would heavily rely on, a proprietary position with respect to such inventions and

intellectual property.

However, there are significant risks associated with any such intellectual property we may develop principally

including the following:

applications we may file may not result in issued patents or may take longer than we expect to result in issued patents;

may be subject to interference proceedings;

may be subject to opposition proceedings in the U.S.

or foreign countries;

patents that are issued to us may not provide meaningful protection;

may not be able to develop additional proprietary technologies that are patentable;

companies may challenge patents issued to us;

companies may design around technologies we have developed;

of our patents may be complex, uncertain and very expensive.

cannot be certain that patents will be issued as a result of any future applications, or that any of our patents, once issued,

will provide us with adequate protection from competing products.

For example, issued patents may be circumvented or challenged,

declared invalid or unenforceable, or narrowed in scope.

In addition, since publication of discoveries in scientific or patent

literature often lags behind actual discoveries, we cannot be certain that it will be the first to make our additional new inventions

or to file patent applications covering those inventions.

It is also possible that others may have or may obtain issued patents

that could prevent us from commercializing our products or require us to obtain licenses requiring the payment of significant

fees or royalties in order to enable us to conduct our business.

As to those patents that we may license or otherwise monetize,

our rights will depend on maintaining our obligations to the licensor under the applicable license agreement, and we may be unable

Our failure to obtain or maintain intellectual property rights for our inventions would lead to the loss of our investments

in such activities, which would have a material and adverse effect on our business.

patent application delays could cause delays in recognizing revenue from our internally generated patents and could cause us to

miss opportunities to license patents before other competing technologies are developed or introduced into the market.

in the laws and regulations to which we are subject may increase our costs.

are subject to numerous laws and regulations, including, but not limited to, environmental and health and welfare benefit regulations,

as well as those associated with being a public company.

These rules and regulations may be changed by local, state, provincial,

national or foreign governments or agencies.

Such changes may result in significant increases in our compliance costs.

with changes in rules and regulations could require increases to our workforce, and could result in increased costs for services,

compensation and benefits, and investment in new or upgraded equipment.

in general economic conditions or acts of war and terrorism may adversely impact our business.

for printing services is typically correlated with general economic conditions.

The prolonged decline in United States economic

conditions associated with the great recession adversely impacted our business and results of operations and may do so again.

The overall business climate of our industry may also be impacted by domestic and foreign wars or acts of terrorism, which events

may have sudden and unpredictable adverse impacts on demand for our products and services.

we fail to comply with the continued listing standards of the NYSE American LLC Exchange, it may result in a delisting of our

common stock from the exchange.

common stock is currently listed for trading on the NYSE American LLC Exchange (“NYSE American”), and the continued

listing of our common stock on the NYSE American is subject to our compliance with a number of listing standards.

our common stock were no longer listed on the NYSE American, investors might only be able to trade our shares on the OTC Bulletin

or in the Pink Sheets ®

(a quotation medium operated by Pink Sheets LLC).

This would impair the liquidity of our

common stock not only in the number of shares that could be bought and sold at a given price, which might be depressed by the

relative illiquidity, but also through delays in the timing of transactions and reduction in media coverage.

we are delisted from the NYSE American, your ability to sell your shares of our common stock may be limited by the penny stock

restrictions, which could further limit the marketability of your shares.

our common stock is delisted from the NYSE American, it could come within the definition of a “penny stock”

in the Exchange Act and could be covered by Rule 15g-9 of the Exchange Act.

That rule imposes additional sales practice requirements

on broker-dealers who sell securities to persons other than established customers and accredited investors.

For transactions covered

by Rule 15g-9, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser’s

written agreement to the transaction prior to the sale.

Consequently, Rule 15g-9, if it were to become applicable, would affect

the ability or willingness of broker-dealers to sell our securities, and accordingly would affect the ability of stockholders

to sell their securities in the public market.

These additional procedures could also limit our ability to raise additional capital

in the future.

our common stock is not listed on a national securities exchange, compliance with applicable state securities laws may be required

for certain offers, transfers and sales of the shares of our common stock.

our common stock is listed on the NYSE American, we are not required to register or qualify in any state the offer, transfer or

sale of the common stock.

If our common stock is delisted from the NYSE American and is not eligible to be listed on another national

securities exchange, sales of stock pursuant to the exercise of warrants and transfers of the shares of our common stock sold

by us in private placements to U.S.

holders may not be exempt from state securities laws.

In such event, it will be the responsibility

of us in the case of warrant exercises or the holder of privately placed shares to register or qualify the shares for any offer,

transfer or sale in the United States or to determine that any such offer, transfer or sale is exempt under applicable state securities

securities or industry analysts do not publish research or reports about our business, or if they change their recommendations

regarding our stock adversely, our stock price and trading volume could decline.

trading market for our common stock will be influenced by the research and reports that industry or securities analysts publish

about us or our business.

Our research coverage by industry and financial analysts is currently limited.

Even if our analyst coverage

increases, if one or more of the analysts who cover us downgrade our stock, our stock price would likely decline.

If one or more

of these analysts cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial

markets, which in turn could cause our stock price or trading volume to decline.

certain of our stockholders control a significant number of shares of our common stock, they may have effective control over actions

requiring stockholder approval.

of March 16, 2021, our directors, executive officers and principal stockholders (those beneficially owning in excess of

5%), and their respective affiliates, beneficially own approximately 32.2% of our outstanding shares of common stock.

a result, these stockholders, acting together, could have the ability to control the outcome of matters submitted to our stockholders

for approval, including the election of directors and any merger, consolidation or sale of all or substantially all of our assets.

As such, these stockholders, acting together, could have the ability to exert influence over the management and affairs of our

Accordingly, this concentration of ownership might harm the market price of our common stock by:

delaying, deferring

or preventing a change in corporate control;

impeding a merger, consolidation, takeover or other business combination involving

discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of us.

financing or future equity issuances may result in future dilution to our shareholders.

expect that we will need to raise additional funds in the future to finance our internal growth, our merger and acquisition plans,

investment activities, continued research and product development, and for other reasons.

Any required additional financing may

not be available on terms acceptable to us, or at all.

If we raise additional funds by issuing equity securities, you may experience

significant dilution of your ownership interest and the newly issued securities may have rights senior to those of the holders

of our common stock.

The price per share at which we sell additional securities in future transactions may be higher or lower

than the price per share in this offering.

Alternatively, if we raise additional funds by obtaining loans from third parties,

the terms of those financing arrangements may include negative covenants or other restrictions on our business that could impair

our operational flexibility and would also require us to fund additional interest expense.

If adequate additional financing is

not available when required or is not available on acceptable terms, we may be unable to successfully execute our business plan.

UNRESOLVED STAFF COMMENTS

We make available

free of charge through our website our press releases, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on

Form 8-K and all amendments to those reports as soon as reasonably practicable after electronically filed with or furnished to the Securities

and Exchange Commission.

AHEAD IN 2022

believe 2022 will be a breakout year for DSS.

Spurred by innovation,

industry needs, and timely acquisitions, in 2022 we will focus on improving top line revenue and top line revenue diversification and

profitability.

Through our expertly cultivated processes and industry research, we can ensure the success of our projects across diverse

sectors and business environments.

The opportunities within our business lines and high-growth markets have unlimited potential, and

our entities within these sectors are contemporary, scalable, and offer recurring revenue opportunities.

we began executing on our current strategy of restructuring and recapitalization, the Company had approximately $16.2 million in assets

and only a handful of struggling or undercapitalized businesses.

In just two years, we divested underperforming assets, added eight distinct

business lines, and grew assets to more than $285 million, which includes $57 million in cash as of our December 31,

2021 filing with the SEC.

Today, we have approximately 40 subsidiaries operating across nine attractive market business

lines, with five of those business lines now with significant operations and generating revenue.

have been fortunate to have attracted tremendous talent to lead each of our business units.

When building out our businesses, we look

for established, industry leaders with long track records and the expertise to add meaningful value to our DSS ecosystem and create a

foundation for success.

diverse book of clients and investments has given us strong competitive advantages globally in many industries;

we intend to aggressively

capitalize on these advantages moving forward.

We believe the momentum of our success and ongoing evolution will continue to be unabated

in 2022 based on the multitude of major successes in 2021 that are key drivers and the catalyst of new value creation in the coming

year and beyond.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business