What changed in this filing

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Item 1. Business

2023-03-31 compared with 2022-03-31 · 490 added, 821 removed, 211 unchanged (86% of the section changed)

(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

(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 are:

Biotechnology,

11 unchanged sentences

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

Product Packaging:

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

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

Packaging Corporation, Inc.

(“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 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.

Premier operates in the paper board and fiber based

folding carton, consumer product packaging, and document security printing markets.

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.

(“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.

(“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 diseases.

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

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.

(“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 marketing.

products include, among other things, nutritional and personal care products sold throughout North America, Asia Pacific, Middle

East, and Eastern Europe.

Our December 2021 investment in Sharing Services Global Corporation (“SHRG”) (OTCQB:

gave us controlling interest with nearly 65 percent ownership of the established direct selling business.

The SHRG platform

leverages the capabilities and expertise of various companies that market and sell products direct to the consumer and generated

$22.1 million in revenue in the twelve months ended December 31, 2022.

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.

Additionally, through its subsidiaries, HWH World,

(“HWH World”) and HWH Holdings, Inc., Decentralized Sharing Systems, Inc.

provides an array of products and

services via various direct to consumer models.

We are continuously adding products and services to this business to enhance its

portfolio of offerings and position its distribution team for continued growth and success.

Our products and services allow the HWH

World ecosystem to fulfill its corporate position of health, wealth, and happiness and helps its customers become the healthiest,

happiest versions of themselves.

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

In 2022, DSS continued to invest in Liquid Value Asset Management Limited (“LVAM”), a

DSS Financial Management Inc.

subsidiary and 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 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.

have also continued our strategic investments in three broker dealers;

WestPark Capital, BMI Capital Investments, and Sentinel Brokers

Company, Inc.

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

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,

Also in this segment is the Company’s real estate investment trusts (“REITs”), 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.

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).

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 obtain a broker-dealer license and launch an Alternative Trading System (“ATS”).

The ATS, focusing on financial

market inefficiencies, will utilize a blockchain based financial market infrastructure (‘FMI’) that will trade digital

asset securities exempt from registration, or ‘private securities’.

The digital FMI will allow for T+0 settlement, which

USX believes can be used to attract liquidity.

Th platform will generate trading liquidity for the ‘middle’ market –

companies that are seeking to raise under $150M USD, can pursue private placements, which have lower compliance costs that public

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.

(“USX”), a subsidiary of the DSS Blockchain, Inc., is a collaboration between the

GSX Group, Coinstreet Partners and DSS, Inc.

This collaboration is currently in the planning stages.

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”) 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 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.

Digital launched a few mobile applications

for direct sales business integrating back office and social networking functions.

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 throughout the U.S.

to develop entire fully sustainable, healthy living single-family subdivisions.

Living is currently headquartered in Houston, Texas.

(“Energy”) This group was established to help lead the Company’s future in the clean energy business

that focuses on environmentally responsible and sustainable measures.

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.

In addition 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 2022 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,

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.

January 10, 2022, DSS announced its USX Holdings Company, Inc.

(“USX Holdings”)

subsidiary has engaged a leading blockchain, digital assets, and custody law practice in connection with its broker-dealer and alternative

trading system (“ATS”) as it prepares to launch an innovative marketplace for trading digital assets based on actively traded

equity securities.

In addition to the ATS and broker-dealer registration, USX Holdings, in conjunction with its legal team, will

file regulatory submissions and registration statements for digital assets to be traded on the proprietary trading platform.

is also applying for money transmitter and virtual currency activity licenses in several states to offer trading in cryptocurrencies.

January 11, 2022, Impact Biomedical, Inc., a wholly owned subsidiary of DSS, Inc, along with

its scientific research partner Global Research and Discovery Group Sciences, (GRDG) announced today a project that is designed to take

plastics in a whole new direction with the development of what we call Bio-plastics.

Bio-plastics under development are designed to make

everyday objects resistant to viruses, and also gentler to the planet.

January 19, 2022, DSS announced that it entered into a stock purchase agreement (the “AIL Subscription Agreement”)

on January 18, 2022, with its shareholder Alset EHome International Inc.

(“AEI”), which at that time owned 15.24% of the

Company’s outstanding shares of common stock, pursuant to which AEI sold to the Company 877,248,065 ordinary shares, no par

value per share, of Alset International Limited for a purchase price of 59,979,582 newly issued shares of the Company’s common

On January 18, 2022, the Company entered into a stock purchase agreement (the

“True Partners Subscription Agreement”) with AEI, pursuant to which AEI sold to the Company 100% of the shares of common

stock of its wholly owned subsidiary True Partner International Limited (HK) (“TP”), and all of TP’s 62,122,908

ordinary shares of True Partner Capital Holding Limited (“True Partner”), for a purchase price of 11,397,080 newly

issued shares of the Company’s common stock.

The closings of these transactions were approved of the NYSE and the

Company’s stockholders.

Transaction details will be filed in an 8-K with the U.S.

Securities and Exchange

January 25, 2022, DSS announced that it entered into a stock purchase agreement with Alset EHome International, Inc.

pursuant to which the Company agreed to issue to up to 44,619,423 shares of the Company’s common stock (the “Shares”)

for a purchase price of $0.3810 per share.

If required by the rules and regulations of the NYSE American, LLC, the issuance of the shares

will be subject to the approval of the Company’s shareholders.

March 03, 2022, Impact Biomedical, Inc., a wholly owned subsidiary of DSS, Inc, along with its scientific research partner Global

Research and Discovery Group Sciences, (“GRDG”) announced it had received a positive report regarding the potential international

patentability of its proprietary compound Equivir to treat viral infections which has shown potential to limit the occurrence of, and

reduce, the risk or severity of viral outbreaks.

June 07, 2022, DSS announced that Global BioLife, Inc, a division of the Company’s wholly owned subsidiary Impact BioMedical,

was granted a patent from the China National Intellectual Property Administration (“CNIPA”) for 3F™, a Functional Fragrance

Formulation technology that is effective as a mosquito repellant through a fragrant compound derived from botanical oils.

This complements

the corresponding U.S.

patent granted (U.S.

3F™ is an extremely effective mosquito repellant.

The repellant is believed

to incapacitate two of the three receptors that mosquitoes use to find sources of nutrition.

During 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.

Impact Biomedical and GRDG announced a U.S.

(US 10,966,424) allowance for 3F™DB in June 2021.

June 28, 2022, Impact Biomedical, Inc, along with its scientific research partner GRDG, announced that it signed a license agreement

with ProPhase Labs, Inc.

PRPH) for Equivir, which has shown potential as a treatment to limit the occurrence of or reduce the

risk or severity of viral outbreaks.

Since 2019 Equivir as a treatment against viral infections has received two U.S.

patents and a positive

patentability report opening the door for international patent possibilities.

The composition is believed to work by potentially blocking

the entry of a virus into host cells, which prevents infection and replication in those host cells.

Equivir is a blend of FDA Generally

Recognized as Safe (GRAS) eligible polyphenols.

The composition is projected to come in capsule form and be taken much like a multivitamin.

July 13, 2022, DSS announced the expansion of its Board of Directors with the appointment of two independent directors, Shui Yeung

Frankie Wong, a 20-year veteran of public-company financial reporting, and Hiu Pan Joanne Wong, an investment manager with BMI Funds

Management Ltd., the leading financial advisor in Hong Kong.

July 21, 2022, DSS Inc, announced that Global BioLife, Inc, a subsidiary of the Company’s wholly owned subsidiary Impact BioMedical,

Inc, executed a license agreement with ProPhase BioPharma, Inc, a subsidiary of ProPhase Labs, Inc, a rapidly growing and diversified

diagnostics, genomics and biotech company, for Global BioLife’s Linebacker portfolio (LB-1 and LB-2), two patented small molecule

PIM kinase inhibitors with significant potential across multiple therapeutic indications.

LineBacker is anticipated to be effective in

crossing the blood-brain barrier and would be delivered orally.

Significant pre-clinical testing has been completed in neurology, anti-inflammatory,

oncology, anti-infective, and viral disease states to demonstrate response to LineBacker.

July 26, 2022, DSS Inc, announced that less than a year after successfully synthesizing its first Quantum-based compound, Impact

Biomedical, Inc.

and its research partner GRDG developed a Quantum antihistamine that could shift how medicine is administered while

moving the pharmaceutical industry away from an impending patent cliff.

October 19, 2022, GRDG, a scientific research partner of Impact BioMedical, Inc., a wholly owned subsidiary of DSS, Inc, announced

that it will be the subject of a documentary film highlighting the passion, the search, and the cutting-edge discoveries that push the

company behind a single-minded goal:

creating a healthier world quickly and naturally.

The documentary project comes on the heels of

GRDG’s completion of Sombrero, a five-year multi-pronged project that yielded multiple patents and potentially billions of dollars

in licensing opportunities.

BUSINESS PLAN AND 2022 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.

was forecasted to be a breakout year for DSS.

The DSS team delivered on this objective as the Company excelled under the first year of

the rebranded DSS, Inc., driving strong top-line growth across our diverse business lines and fortifying our foundation for accelerated

growth and value creation moving forward.

The Company and team of employees around the world have achieved great progress, collectively

and individually.

This forward movement is a function of continual investments in our people, systems, and companies, in good and bad

times, to build the Company’s capabilities.

as of December 31, 2022, have more than doubled from the end of 2021, and the total assets, now at nearly $249 million, have grown

more than 1,000%, up from under $20 million, since the start of transforming DSS just over three years ago in late 2019.

the acquisition of new assets, whether entire businesses, new technologies, or other innovations, is an integral part of the unique development

process the Company employs to create value and drive long-term growth.

Development for Exponential Growth

each acquisition completed, subject to market and other restrictions, there is a three-stage development process applied to maximize value creation and provide the engine for

growth through increased bandwidth, horsepower, and scale.

The first stage of this process begins with the asset acquisition itself,

where we identify and acquire the right vehicles and asset structures, as well as the organizations and people capable of building revenue

and scaling operations.

The second stage of our development process focuses on revenue generation, creating revenue streams, license

streams, and other reoccurring, scalable revenue.

We seek to build highly functional businesses during this stage of development, businesses

that we transform into well-oiled machines built for efficiency and operational excellence.

As evidenced by the revenue growth mentioned

earlier, the Company has delivered well on this stage in 2022.

And as we continue to grow revenue, we enter the third and final stage

of development where the focus turns toward positive EBITDA and profitability driven by scale and efficiencies.

While each of our business

lines are in various stages of this development process, ultimately as we reach our internal goals and expectations and these businesses

reach an optimal point for the most effective leverage, we intend to pursue IPOs that enable us to share our success with our shareholders.

As a holder of DSS Common Stock, you will receive a dividend of four Impact BioMedical Shares for every share of DSS Common Stock you

Giving back to our shareholders in this way has been part of our vision since the beginning days of our transformation, and we

could potentially see two or even three such IPOs over the next 12 months.

We believe our decentralized sharing model, the culmination

of our three-stage development process, is unique and will drive shareholder value as we distribute dividends from these potential IPOs,

directly benefiting each of our shareholders.

Capacity Added to Consumer Packaging Business

Premier Packaging Corporation, Inc.

(“Premier”) subsidiary provides a clear example of the second stage of our development

process as it began operations at its new 105,000 sq.

facility in Western New York in the first half of 2022.

The increased production

capacity at the new facility, which has enabled us to meet growing customer demand, was a key driver behind our nearly 15% year-over-year

revenue growth for this segment in the most recently reported quarter.

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 and sustainable folding cartons and complex three-dimensional direct to customer packaging

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.

Utilizing these investments, we design and manufacture folding cartons that attract the

consumer’s attention when and where it matters most at the point of sale.

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

while continuing to provide world-class service to our customers.

Agreements Add Value to Impact BioMedical Ahead of Planned IPO

BioMedical, the cornerstone of our BioHealth group, continued to progress on multiple fronts in 2022, including promising early testing

results on new bioplastics, strengthened intellectual property protections, and licensing agreements with ProPhase Biopharma, a wholly

owned subsidiary of ProPhase Labs, Inc.

PRPH), for its proprietary Linebacker and Equivir compounds.

ProPhase Labs, a diversified

diagnostic company with over three decades of enhancing wellness and improving health with OTC and prescription products, believes Impact

BioMedical’s Linebacker compounds have multi-billion-dollar potential as cancer co-therapies and expects to commercialize Equivir

as an OTC supplement in late 2023.

Additionally, ProPhase BioPharma expects to file an IND with the US FDA for Equivir G as a prescription

a strengthened foundation now in place, we expect Impact BioMedical to provide us with the first opportunity to clearly demonstrate a

core tenant of our vision – sharing our success with our shareholders.

Although the uniqueness of our planned dividend strategy

has required overcoming numerous regulatory challenges that have delayed the planned spinoff of Impact BioMedical, we anticipate we could

receive the long-awaited approval to move forward with the first tranche of the dividend in early 2023.

Impact BioMedical is just one of multiple assets we believe can have liquidity events in 2023 as we continue to diligently move our growing

portfolio of businesses through our unique and strategic value creation process.

Portfolio Growth for American Medical REIT’s High-Quality Healthcare Assets

expanded our medical real estate operations to more than 380,000 sq.

of high-quality healthcare assets across the US,

providing a formidable foundation for our operations as we seek to further accelerate growth and build long-term value for our

shareholders.

attractive business line operates as American Medical REIT (AMRE), a subsidiary of our DSS Securities division, and acquired its first

properties in 2021.

It’s now generating average yields of approximately eight percent, and we have a massive pipeline of opportunities

to further grow AMRE in the quarters ahead.

other areas within commercial real estate have been impacted by the ongoing effects from the pandemic and changing interest rate environments,

medical real estate has demonstrated considerable resiliency and demand.

We are in a great position to further pursue opportunities to

expand our medical REIT business line as we continue to execute our strategic growth plans.

Loan Portfolio Generating 10.6% Average Return

expansion of our medical real estate holdings is in part supported by our banking 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.

(“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.

APB issued more than $40 million in new loans since our third quarter

2021 acquisition, assembling a diversified portfolio of strong credit quality that is generating an average 10.6% return.

Looking ahead,

as the Company prepares to file an S-1 for APB’s IPO, we expect to expand our managed loan portfolio, which earns 1.25% annually

in service charges, to more than $63 million.

Importantly, the equity portfolio as a bank holding company is anticipated to remain relatively

stable, regardless of stock market fluctuations.

Holdings to Launch Innovative Marketplace for Trading Digital Assets

the near-term, the Company anticipates new developments from the 70% ownership of USX Holdings Company Inc.

(“USX Holdings”),

a collaboration with GSX Group Limited, a global digital exchange ecosystem for the issuance, trading, and settlement of tokenized securities,

and Coinstreet Partners, a global decentralized digital investment banking group and digital asset financial service firm.

Company is taking the necessary steps to prepare USX Holdings to launch an innovative marketplace for trading digital ADRs based on US

equity securities.

The transformative potential of digital securities is extremely exciting, and the Company believes USX Holdings can

be a major player in the space as it pursues the massive opportunity in the US for a secondary market in securities tokens.

Holdings is part of our larger securities business line.

In addition to the investment made in USX Holdings in 2021, the Company also

completed strategic investments in broker dealers WestPark Capital and Sentinel Brokers and formed Liquid Value Asset Management Limited,

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

As the Company moves

into 2023, the Company plans to add market making to our securities business line and to pursue additional initiatives to drive further

strong growth.

PureAir Positioned for Global Rollout

expects the foundation laid for our DSS PureAir, Inc.

(“DSS PureAir”) business, first launched in mid-2021, to gain significant

new traction across the Asia Pacific region in the quarters ahead.

The primary assets of DSS PureAir include the investment in the Celios

air purification system, Puradigm air purification product distribution license, and an array of other healthcare-related product licenses.

With a growing portfolio of solutions, this division will continue to generate sales for the innovative proactive air and surface purifications

solutions through the Company’s expanding direct selling business.

Expanding Direct Selling Business Line

December 2021 investment in Sharing Services Global gave DSS controlling interest with nearly 59 percent ownership of the established

direct selling business.

The SHRG platform leverages the capabilities and expertise of various companies that market and sell products

direct to the consumer and generated nearly $18.9 million in revenue for the twelve months ended December 31, 2022.

Upcoming Milestone for AmericaFirst Quantitative Funds

Quantitative Funds, part of our Securities and Investment Management segment, continued to generate net asset inflows in 2022 despite

the negative market environment, thanks to a combination of peer-group outperformance and great marketing by our team.

operations around the world, DSS has a unique visibility of global economic conditions, and based on the view of the increasing likelihood

of recession, the Company has shifted our near-term focus toward cost cutting initiatives and preserving cash while maintaining preparations

for potential significant liquidity events in 2023.

DSS will take advantage of the strong performing assets, and, alongside these efforts,

will continue to apply the three-stage value creation process across the diversified portfolio of holdings.

the Company has tremendous confidence in the future of DSS, and believes the best days are ahead.

The Company remains steadfastly committed

to new value creation and has laid the necessary foundation for years of future success.

successes the Company has experienced over the past year and the growth opportunities anticipated for 2023 and beyond have been made

possible by the diligent efforts of the team and the support of the shareholders.

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:

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 2022 are as follows:

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

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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.

Premier is nearing completion of its facility expansion with

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

facility in early March 2022.

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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

(“Commercial Lending”) through its operating company, American Pacific Bancorp, Inc.

(“APB”) provides

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

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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:

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.

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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.

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,

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

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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

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

Med (license):

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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:

(“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

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.

Estate Title Services:

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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.

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 investors.

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

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

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

and its subsidiaries and partners,

including Sharing Services Global Corporation, this business line provides an array of products and services, through an independent

contractor network.

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

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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

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, 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.

Services Global Corporation (“Sharing Services”), a company incorporated in the State of Nevada on April 24, 2015, aims

to build shareholder value by developing or acquiring businesses and technologies that increase its product and services portfolio,

business competencies, and geographic reach.

Sharing Services’ combined platform currently leverages the capabilities and

expertise of various companies that market and sell products direct to the consumer through independent contractors.

Its new shared

service platform is designed to serve the direct selling “gig economy” sector by providing needed services (such as

equity and inventory financing, advisory services, mobile application tools, merchant processing services, commercial insurance, and

event planning) to smaller direct sales companies.

Sharing Services, through its subsidiaries, currently markets and distributes its

health and wellness and other products (such as its subscription-based travel services) in the U.S., Canada and Mexico using a

direct selling business model.

It intends to continue to grow its business both organically and by making strategic acquisitions

from time to time of businesses and technologies that augment its product portfolio, complement its business competencies, and fit

its growth strategy.

to our Impact BioMedical Division that maintains important key patents and patent applications that we will use as the

foundation for foster product development and licensing.

We currently have 5 patents with claims directed to compositions, the

manufacture of, and/or the use of use and for some of our key products including compositions referred to as 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 with claims directed to covering semiconductors, light emitting diodes, 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

have several trademarks 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.

http://www.americanmedreit.com

DSS AmericaFirst:

https://www.afcm-quant.com

Pacific Bancorp (“APB”):

https://www.ampacbancorp.com

DSS PureAir, Inc.:

https://dsspureair.com/

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

HWH (Health, Wealth & Happiness) Marketplace:

https://www.hwhmarketplace.com

Life International, Inc.:

https://rbclife.com

https://www.shrginc.com

https://www.impactbiomedinc.com

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 report.

and Competition

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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.

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:

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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.

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.

During 2022, one customer accounted for approximately 14% of our consolidated revenue.

Customer diversification improvements

have produced several new customers to our overall customer base and will continue to do so in 2023.

During 2022, American Pacific Bancorp, Inc.

has issued a little over $3 million in new loans to customers with strong credit

quality across a diverse portfolio of businesses.

We anticipate another $10M+ of new commercial loans in the near term.

During 2022 our direct marketing companies HWH World, HWH World Holdings, 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.

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.

Our Securities and Investment Management division has a mixture of retail and institutional investors.

The primary raw materials the Company uses in its businesses are paper, paperboard, corrugated board and ink.

negotiates with leading suppliers to maximize its purchasing efficiencies and uses a wide variety of paper grades, formats, ink formulations

Paper and paperboard prices continued to increase in 2022, and we believe increases in future years are expected.

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.

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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.

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.

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.

America Invents Act includes several significant changes to U.S.

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.

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.

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,

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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.

On September 16, 2021, the board of directors approved an agreement and plan of merger with a wholly owned subsidiary, DSS, Inc.

(a New York corporation, incorporated in August 2020), for the sole purpose of effecting a rebranding from Document Security Systems,

This change became effective on September 30, 2021.

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See the “Overview” section above for further details about our acquisitions .

As of December 31, 2021, all

of December 31, 2022, all DSS, Inc.

had 119 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.

We continue to retain and attract qualified management and technical

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 .

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AHEAD IN 2023

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.

believe 2023 will be a successful year for DSS.

Spurred by innovation, industry needs, and timely acquisitions, in 2023 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.

In just three years, we divested underperforming assets, added eight

distinct business lines, and grew assets to more than $249 million, which includes $19 million in cash as of our December 31, 2022 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.

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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.

in 2023 we will create the catalyst for 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