What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-03-27 compared with 2023-03-31 · 491 added, 541 removed, 160 unchanged (87% 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 are:

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

“we,” “us,” “our” or the “Company”, currently operates five distinct business lines

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

The six divisions are:

Biotechnology,

and Investment Management,

Transformation,

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

Because of these varying degrees of business

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

operating segments.

and Investment Management, and

Direct Marketing,

Each of these business lines are in various

stages of development, growth, and income generation.

Due to these variations in the business cycle, including differences in revenue

and assets acquired, the company is currently reporting financial information for five of these operating segments:

Biotechnology,

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and Investment Management

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

segmental reporting .

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

As the other divisions grow and start

generating material operations and revenue, those operating segments will be added to our financial segmental reporting .

Our divisions, their business lines,

subsidiaries, and operating territories:

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

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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.

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.

American Pacific Bancorp, Inc.

(“APB”) represents our banking and financing

business line.

During 2023, APB issued more than $14 million in new loans, and over $4 million in renewal loan to customers with

strong credit quality across a diverse portfolio of businesses.

Looking ahead, to better meet the needs of the current financial

market, the company is looking to transition away from certain industries like direct marketing and focus more on growing its inventory

/ equipment loan portfolio as well as engaging in more specialized areas of lending like broker/dealer loans.

We will continue to

monitor our managed loan portfolio of more than $22 million, which earns 1.25% annually in service charges, and explore future opportunities.

Importantly, the equity portfolio as a bank holding company is anticipated to remain relatively stable, regardless of stock market

fluctuations.

and Investment Management:

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.

This group is headquartered in Houston, Texas.

In 2023, DSS continued our strategic investments in three broker dealers;

WestPark Capital, BMI Capital

Investments, and Sentinel Brokers Company, Inc.

Additionally, we have become the Registered Investment Advisor (“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 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.

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

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USX believes can be used to attract liquidity.

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

The 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

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currently headquartered in Houston, TX.

Transformation:

(“Digital”) This Division was established to be a Preferred Technology Partner and Application Development

Solution for mid cap brands in various industries including the direct selling and affiliate marketing sector.

Digital improves marketing,

communications and operations processes with custom software development and implementation.

Digital 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 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.

Transformation (Legacy) :

This division was established to serve as a Preferred Technology Partner and Application Development

Solution for mid-cap brands across various industries, including the direct selling and affiliate marketing sector.

Digital Transformation

enhanced marketing, communications, and operational processes through tailored software development and implementation.

It successfully

launched several mobile applications for direct sales businesses, seamlessly integrating back-office and social networking functions.

Please note that Digital Transformation was headquartered in Hong Kong until its discontinuation in 2023.

Living (Legacy) :

This division had embarked on a mission to create fully sustainable, secure, connected, and health-focused

living communities, featuring homes equipped with advanced technology, energy-efficient solutions, and high-quality living environments,

catering to both new construction and renovation projects for single and multi-family residential housing.

Secure Living had been

actively collaborating with various land development partners across the United States to develop complete, fully sustainable single-family

subdivisions promoting healthy living.

Secure Living was headquartered in Houston, Texas, until it was wound down

Energy (Legacy) :

This group was established with the vision to lead the company into the clean energy sector, focusing

on environmentally responsible and sustainable initiatives.

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

owned subsidiary, Alset Solar, Inc., were dedicated to the development of utility-scale solar farms to support regional power grids

in the United States and provide small microgrids for independent energy on underutilized properties.

In addition to solar farms,

solar battery banks, and residential energy creation and storage, Alset Energy also explored alternative energy investment and development

opportunities.

Our overarching goal was to make a significant impact in mitigating the negative effects of climate change by reducing

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

was headquarters in Houston, Texas until its discontinuation in 2023.

Direct Marketing:

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

licensing its products and services through its subsidiary HWH World, Inc.

(“HWH World”) using the popular gig economic

marketing strategy as a form of direct marketing.

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

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

The following is a summary of the DSS

reported transactions and investments since January 2023 that reflect the active advancements and investments in these business lines:

April 17, 2023, DSS, Inc..

announced today that Jason

Grady, Chief Operating Officer of DSS, will be presenting at the Emerging Growth Virtual Conference on Wednesday, April 19 from 1:45-2:15

April 19, 2023, DSS, Inc.

announced that the Company plans to distribute to its stockholders common stock of Sharing Services

Global Corporation (“ Sharing Services ”

or “ SHRG ”) that is beneficially held

by DSS, directly and through its subsidiary, Decentralized Sharing Systems, Inc.

Sharing Services is a diversified direct marketing company that is currently listed on the OTC (OTC:

SHRG) and is in the process of up-listing

May 1, 2023, DSS, Inc.

announced today the distribution date for the common stock of Sharing Services Global Corporation (“Sharing

Services” or “SHRG”) that is beneficially held by DSS, directly and through its subsidiary, Decentralized Sharing Systems,

As previously announced, DSS Inc., together with its subsidiary DSSI, distributed (the “Distribution”)

approximately 280 million shares of Sharing Services’ common stock beneficially held by DSS and DSSI in a distribution to holders

of DSS common stock, par value $0.02 per share (“DSS Common Stock”) as of April 28, 2023.

Each share of DSS Common Stock

outstanding as of 5:00 p.m., New York City time, held on April 28, 2023, will entitle the holder thereof to receive two (2) SHRG common

stock shares to be distributed on May 4, 2023.

May 16, 2023, DSS, Inc reported earnings results for the First Quarter Ended March 31, 2023.

Premier Packaging division

had a stellar quarter in booking a 72% increase in revenues in the first quarter compared to the First Quarter of 2022 as a result

of our capital investments completed over the past year.”

June 26, 2023, DSS, Inc Announces Record and Distribution Date for Impact BioMedical Spin-Off Special Dividend.

has filed for the distribution of a special stock dividend to DSS Inc.

shareholders of record on June 30th for distribution on July 14,

DSS shareholders of record as of 4:00 p.m.

ET on June 30, 2023 (the “record date”) will receive four (4) shares of

Impact Biomedical, Inc.

for every one (1) share of DSS.

June 30, 2023, DSS, Inc announced updated shareholder of record date for Spin-Off of Impact BioMedical, Inc.

the distribution of a special stock dividend of Impact Biomedical Inc.

shareholders of record on July 10, 2023, pending SEC

DSS shareholders of record as of 5:00 p.m.

ET on July 10, 2023 (the “record date”) were entitled to four (4) shares

of Impact Biomedical Inc.

for every one (1) share of DSS on the distribution date.

July 31, 2023, DSS, Inc.

announced today the distribution date for the previously announced stock dividend of Impact BioMedical

shareholders of record on July 10, 2023 will be entitled to four (4) shares of Impact Biomedical Inc.

for every one (1)

share of DSS to be distributed on August 8, 2023.

October 23, 2023, DSS, Inc.

announced that a registration statement on Form S-1 was filed with the U.S.

Securities and Exchange Commission

(“SEC”) relating to the proposed initial public offering of DSS’s wholly-owned subsidiary, Impact Biomedical.

October 26, 2023, DSS, Inc.

announced that the Company received a letter (the “Letter”) from the staff of

NYSE American LLC (the “Exchange”) stating that the Company’s securities have been selling for a low price per

share for a substantial period of time and, pursuant to Section 1003(f)(v) of the NYSE American Company Guide.

The Company’s

continued listing is predicated on it effecting a reverse stock split of its common stock or otherwise demonstrating sustained price

improvement within a reasonable period of time, which the Exchange has determined to be no later than April 20, 2024.

November 8, 2023, Impact BioMedical Inc.

filed a Current Report on Form 8-K with the Securities and Exchange Commission on November 6, 2023, disclosing that Impact effected a

reverse stock split of its issued and outstanding common stock by a ratio of 1 for 55.

Impact did not effectuate a reverse split of its

authorized capital stock and no amendment to the articles of incorporation or bylaws was made.

Impact received approval from its majority

stockholder and the Company’s Board of Directors to effectuate the reverse split.

November 14, 2023, DSS, Inc.

announced that, in a unanimous

decision, the Court of Appeals for the Federal Circuit (CAFC) rejected Nichia Corp.’s challenge to U.S.

(the ‘040 Patent).

Chief Circuit Judge Kimberly Moore, who authored the opinion, and U.S.

Circuit Judges Kara Stoll and

Tiffany Cunningham sat on the panel for the Federal Circuit.

November 28, 2023, Premier Packaging, a Wholly-Owned Subsidiary of DSS, Inc., Secures Contract Extension with Major

Retailer Worth Up to $15 Million over Four Years.

announced today that its wholly-owned subsidiary, Premier Packaging

signed a contract extension with an existing client for the next three years totaling a minimum of $12 Million

with a fourth year extension option bringing the potential total revenue to over $15 Million.

December 22, 2023, DSS, Inc.

announced that

it will proceed with a 1-for-20 reverse stock split (the “Reverse Split”) of its issued and outstanding shares of common

stock, par value $0.02, following authorization by its Board of Directors and majority shareholders to effect a reverse split by a ratio

of not less than 1-for-20 and not more than 1-for-40 (the “Reverse Split Range”), at any time on or before April 20, 2024,

with the Board having the discretion as to whether or not the Reverse Split is to be effected, and with the exact ratio to be set at

a whole number within the Reverse Split Range as determined by the Chief Executive Officer in his discretion.

The reverse split was effective January 8, 2024.

BUSINESS PLAN AND 2023 PROGRESSION

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.

we highlight three specific developments:

We are preparing

for an Initial Public Offering (“IPO”) of our majority owned subsidiary, Impact Biomedical, Inc.

after distributing four shares of IBIO for every share of DSS held as of the record date of July 10, 2023.

Once the IPO has

been completed, these stock dividend shares will not be eligible for resale until 180 days from the effective date of the IPO, a

restriction that can be lifted at the discretion of IBIO.

The structure of this spinoff is designed for DSS to maintain the

consolidation of IBIO’s financials, ensuring our shareholders receive the benefits of IBIO’s success on a go forward

Our license agreement with ProPhase Labs (Nasdaq:

PRPH) is resulting in promising clinical advancement in the development of

our Linebacker and Equivir assets.

Impact Biomedical is actively considering various ways to maximize the value of its investments

The company is excited about the opportunities that the IPO will create and is looking forward to introducing its

shareholders to subsequent spinoffs or similar liquidity events.

Turning to our

product packaging division, Premier Packaging Corporation, Inc., net income increased 126% year over year.

Premier Packaging

Corporation is experiencing a positive trend in its financial performance, thanks to strategic investments and operational

improvements.

Our commitment to

reinforcing our leadership dynamics is evident in the recent enhancement of the management team at DSS Wealth Management, Inc.

This deliberate

move is aimed at fostering a legacy of investment excellence and scaling our assets under management.

We are planning to launch a Total

Return Bond Fund, to capitalize on the prevailing higher interest rates.

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.

For every completed acquisition, and

taking into consideration market conditions and other constraints, we adhere to a well-structured three-stage development process with

the goal of maximizing value creation and propelling our growth by expanding our capabilities, strength, and scale.

Asset Acquisition

and Organizational Development In this initial phase, our focus lies in identifying and acquiring assets, vehicles, asset structures,

and assembling the necessary talent and organizations.

This strategic step serves as the strong foundation upon which we build future

Generation and Operational Excellence Our second stage revolves around driving revenue through diverse channels, including revenue streams,

licensing, and other scalable sources.

Our primary objective during this phase is the creation of efficient and well-operating businesses

that excel in operational performance.

The success achieved in this stage in 2022, evidenced by substantial revenue growth, is a testament

to our efforts.

Profitability

and Positive EBITDA The third and final stage focuses on achieving positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and

Amortization) and profitability.

This is realized through the optimization of business operations, capitalizing on scale and efficiency

to generate sustained profits.

IPOs as a Growth Strategy:

has plans to pursue Initial Public Offerings (IPOs) as a means to share its success with shareholders.

We aim to take our businesses

public once they reach an optimal point for effective leverage and meet internal goals and expectations.

Decentralized Sharing Model:

believe in our unique decentralized sharing model, combined with the three-stage development process, to create substantial shareholder

This model involves distributing dividends from potential IPOs directly to benefit shareholders.

In summary, our strategy delineates a

methodical approach encompassing asset acquisition, revenue generation, operational efficiency, profitability, and ultimately, taking

businesses public through IPOs to reward our shareholders.

We place a strong emphasis on our decentralized sharing model, ensuring that

the benefits of our success are shared directly with our valued shareholders.

Packaging Secures Contract Extension with Major Retailer

Our 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

The increased production capacity at the

new facility, which has enabled us to meet growing customer demand, was a key driver behind our nearly 3% year-over-year revenue growth

for this segment in the most recently reported quarter as well as net income increase of 126% year over year.

Since 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.

In 2023, Premier

Packaging signed a contract extension with an existing client for the next three years with expected revenue to approximate $12

Million with a fourth-year extension.

We are very pleased

to see that our capital investment to increase production capacity and economies of scale at Premier Packaging continues to result in

satisfied clients and increasing revenues.

Since inaugurating Premier’s state-of-the-art 105,000 sq.

facility in 2022, our

packaging division has expanded its customer base and built a competitive advantage in the packaging industry.

We 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.

Premier specializes in creating innovative

fiber-based, folding cartons and packaging solutions which provide a sustainable alternative to traditional plastic packaging.

BioMedical Share Distribution and IPO

In the field of Biotechnology

and Biomedical, Impact Biomedical Inc.

is dedicated to the discovery, validation, and patenting of innovative scientific advancements

and technologies that lead to new developments in human healthcare and well-being.

Once these breakthroughs are ready for implementation,

IBIO collaborates closely with various partners through licensing agreements, co-development initiatives, joint ventures, and other strategic

relationships to facilitate the introduction of these novel healthcare solutions to the market.

Their mission is to advance and bring

to fruition cutting-edge innovations that have the potential to significantly impact and improve the field of human health and wellness.

In 2023, Impact BioMedical,

a vital component of our BioHealth group, made significant strides in various areas.

These achievements included promising initial test

results related to new bioplastics, the reinforcement of intellectual property safeguards, and the establishment of licensing agreements

with ProPhase Biopharma, a wholly-owned subsidiary of ProPhase Labs, Inc.

ProPhase Labs, an extensively diversified diagnostic

company with a track record spanning over three decades, dedicated to enhancing wellness and improving health through both over-the-counter

(OTC) and prescription products.

They have shown strong belief in Impact BioMedical’s Linebacker compounds, recognizing their potential

value in the multi-billion-dollar range as co-therapies for cancer.

Furthermore, ProPhase Labs anticipates the launch of Equivir as an

OTC supplement in late 2023.

Additionally, ProPhase BioPharma is preparing to submit an Investigational New Drug (“IND”) application to

the US FDA for Equivir G as a prescription antiviral.

Impact BioMedical

effectively utilizes its scientific expertise and intellectual property rights to provide innovative solutions to long-standing challenges

within the biomedical field.

The company’s primary focus lies in dedicated research and discovery efforts aimed at developing promising

products for the prevention, inhibition, and treatment of neurological, oncological, and immuno-related diseases.

For further details

about Impact BioMedical, you can visit their website at http://impactbiomedinc.com/.

With 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.

In August of 2023, DSS, Inc.

distributed a stock dividend of four (4) shares

of Impact BioMedical Inc.

to all DSS Inc.

shareholders of record on July 10, 2023.

Each share of Impact BioMedical distributed as part

of the distribution will not be eligible for resale until 180 days from the date Impact BioMedical’s initial public offering becomes

effective under the Securities Act, subject to the discretion of the Company to lift the restriction sooner.

Importantly, Impact

BioMedical is just one of multiple assets we believe can have liquidity events in 2024 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 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.

AmericaFirst Quantitative

Funds, part of our Securities and Investment Management segment, showed improved performance versus benchmarks for three of the four

mutual funds under management since the new investment advisory team took over in May 2023.

In addition to focusing on improved relative

performance, the team expects to enhance marketing and sales efforts to grow assets under management, continue to improve operational

efficiencies, and plans to launch a Total Return Bond Fund in the first half of the year.

Operating Segments:

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

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

As we have reported

above, we financially report business operating results on 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 2023 are as follows:

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

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

among others.

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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.

facility in early March 2022.

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

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

Premier’s innovative

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

solutions providing an alternative to traditional plastic packaging.

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

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

base and their evolving supply chain demands.

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

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

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

(“APB”) provides

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

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

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

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

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

APB’s target customers are businesses with

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

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

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

For over 25 years,

Premier has been a market leader in providing solutions for paperboard packaging from consumer retail packaging and heavy mailing envelopes,

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

Premier’s innovative products and

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

providing an alternative to traditional plastic packaging.

Since 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.

We will continue

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

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

(“Commercial Lending”) through its operating company, American

Pacific Bancorp, Inc.

(“APB”) represents our banking and financing business line.

Looking ahead, to better meet the needs of the current financial market, the company is looking to

transition away from certain industries like direct marketing and focus more on growing its inventory / equipment loan portfolio as well

as engaging in more specialized areas of lending like broker/dealer loans.

We will continue to monitor our managed loan portfolio of

more than $6 million, which earns 1.25% annually in service charges, and explore future opportunities.

Importantly, the equity portfolio

as a bank holding company is anticipated to remain relatively stable, regardless of stock market fluctuations.

Biotechnology:

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

targets unmet, urgent medical needs and expands

the borders of medical and pharmaceutical science.

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

for medical advances in human wellness and healthcare.

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

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

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

at the industrial and medical industry.

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

licensing stages:

(“Biotech”) Impact BioMedical, Inc.

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

and pharmaceutical science.

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

in human wellness and healthcare.

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

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

Other exciting

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

and medical industry.

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

Advanced adjuvant for next generation vaccine applications.

Sugar that prevents muscular atrophy.

Oral capsule able to prevent sun damage to human skin.

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

Med (license):

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and cognitive processes to toxin neutralization and immunity against pathogens.

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

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

companies and venture capitalists in exchange for usage licensing and royalties.

The business model of Impact BioMedical

revolves around two methodologies – Licensing and Sales Distribution.

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

goods companies and venture capitalists in exchange for usage licensing and royalties.

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

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

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

This global distribution

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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/investments and associated products and services:

Management Fund:

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

Estate Title Services:

Alset Title Company, Inc.

provides buyers, sellers, and brokers alike confidence during big real estate

transactions, not just in a transaction, but in the property itself.

Through bundled services, Alset Title Company, Inc.

it all from title searches and insurance to escrow agent assistance.

Sentinel primarily operates as a financial intermediary, facilitating institutional trading of municipal and corporate bonds

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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, this business line provides an array of products and services, through an independent

contractor network.

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

promotes products and services that fulfill its corporate position

of health, wealth, and happiness.

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

versions of themselves.

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

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

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

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

As to the happiness component ,

the company is working with other partners to either acquire or partner in products and/or services to allow its consumers to enjoy and

healthy living, including a global travel membership network.

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.

Wealth Management:

AmericaFirst is a suite of mutual funds managed by DSS Wealth Management.

AmericaFirst expects to expand into numerous investment platforms including additional mutual

funds and exchange-traded funds.

AmericaFirst currently consists of four mutual funds that

seek to outperform their respective benchmark indices by applying top-down, fundamental research,

quantitative and technical analysis to stock selection and portfolio management.

Direct Marketing Segment :

Prior to June

2023, the Direct Marketing business segment, operated through its holding company, Decentralized Sharing Systems, Inc., along with

its subsidiaries and partners, including Sharing Services Global Corporation, offered a diverse range of products and services

through an extensive independent contractor network until its transition to SHRG in late 2023 to effect DSS’s refocus on core

business lines.

For instance, one of Decentralized’s

wholly-owned subsidiaries, HWH World, Inc., was dedicated to promoting products and services that aligned with its core values of health,

wealth, and happiness.

Within the HWH Marketplace and its associated brands, the primary goal was to assist customers in achieving their

healthiest and happiest selves.

In terms of health-related offerings, the company provided herbal alternatives, nutraceuticals, consumables,

topicals, dietary supplements, beauty and skincare products, personal care items, gut health products, aloe vera-based supplements, and

various wellness products.

In the wealth sector, the company developed educational tools to help users manage their finances effectively

and offered savings programs to assist consumers in reaching their financial goals.

In pursuit of happiness, the company collaborated

with partners to acquire or establish products and services that enabled consumers to enjoy a healthy lifestyle, including access to a

global travel membership network.

Sharing Services Global Corporation

(“SHRG”), founded in Nevada on April 24, 2015, is focused on enhancing shareholder value by developing or acquiring businesses

and technologies that expand its product and services portfolio, enhance its business capabilities, and broaden its geographic presence.

Sharing Services’ integrated platform harnesses the expertise of various companies engaged in direct-to-consumer product marketing

through independent contractors.

Their shared services platform caters to the direct selling “gig economy” sector by providing

essential 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 health and wellness products, including subscription-based travel services, in the United States, Canada, and Mexico,

utilizing a direct selling business model.

Their growth strategy involves both organic expansion and strategic acquisitions that complement

their product range, enhance their business capabilities, and align with their overall growth objectives.

in July 2023, Direct now specializes in licensing its products and services through its subsidiary HWH World, Inc.

(“HWH World”)

using the popular gig economic marketing strategy as a form of direct marketing.

Direct’s products include, among other things,

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

Impact Biomedical Inc.

patents issued, one(1) allowed, and over forty (40) patents pending worldwide with expiration of US patents between 2029 and 2040.

Pending patents could extend this exclusivity period in all regions.

The issued and allowed patents include

composition and method of application for Linebacker, Equivir, 3F (Functional Fragrance), and Laetose.

We have several trademarks

related to our DSS, Inc.

primary corporate website we maintain is www.dssworld.com .

Medical REIT, Inc:

Our other sites are:

American Medical REIT, Inc:

http://www.americanmedreit.com

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https://www.afcm-quant.com

Pacific Bancorp (“APB”):

American Pacific Bancorp (“APB”):

https://www.ampacbancorp.com

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https://www.premiercustompkg.com

HWH (Health, Wealth & Happiness) Marketplace:

https://www.hwhmarketplace.com

Life International, Inc.:

https://rbclife.com

https://www.shrginc.com

Impact Biomedical:

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.

In 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

Our packaging division competes with a significant number of national, regional companies, many of which are independent and

privately held.

The largest competitors in this market are primarily focused on the long-run consumer package goods and health and beauty

They include large integrated paper companies such as West Rock Company, and Graphic Packaging Holding Company.

Our commercial lending company, American Pacific Bancorp (“APB”) provides an integrated suite of financial services

for businesses that include commercial business lines of credit, land development financing, inventory financing, third party loan, servicing,

and services that address the financial needs of a variety of diversified businesses lines.

These efforts compete with a wide variety

of traditional commercial banks and investment banking companies including.

Product Packaging:

Within our packaging division, we face competition from numerous national and regional companies, many of which operate independently

and are privately held.

The major players in this market are primarily concentrated in long-term consumer packaged goods and health and

beauty sectors.

These include prominent integrated paper companies like West Rock Company and Graphic Packaging Holding Company.

Commercial Lending:

American Pacific Bancorp, our commercial lending company, offers a comprehensive range of financial services tailored

to businesses.

Our services encompass commercial business lines of credit, land development financing, inventory financing, third-party

loan servicing, and solutions designed to meet the diverse financial requirements of various business sectors.

In this competitive landscape,

APB competes with a wide array of traditional commercial banks and investment banking firms.

Biotechnology:

Our biotechnology companies including Impact Biomedical Inc., are focused on the discovery, development, and commercialization of products

and technologies to address unmet needs in human healthcare and wellness.

Specific areas of focus include specialty biopharmaceuticals,

antivirals, antimicrobials, and consumer healthcare and wellness products, often derived from naturally sourced elements.

These efforts

compete with established and start-up companies, university research and development efforts, and individual inventors and scientists.

Examples of competitors include Ipsen Pharmaceuticals, Conagen Inc., Mylan Consumer Healthcare, Klaire Labs, Vertex Pharmaceuticals,

and the National Center of Natural Product Development at the University of Mississippi.

The network marketing or direct marketing industry is a very competitive marketplace.

While not directly competing with HWH

and SHRG, the following companies are significant players in the global network marketing business and as a result an indirect competitor

of HWH and SHRG:

Amway, Avon, Herbalife, Natura, Vorwerk, Mary Kay, Perfect, Forever Living, Nu Skin, Young Living, and New Era, among

and Investment Management:

Impact Biomedical

is dedicated to the discovery, confirmation, and patenting of unique scientific advancements and technologies, which lead to

innovative solutions in the realm of human healthcare and wellness.

IBIO collaborates closely with licensing partners, engages in

co-development initiatives, forms joint ventures, and nurtures other valuable relationships to effectively introduce these

groundbreaking solutions to the market.

Securities and Investment

Was established to develop and/or acquire assets in the securities trading or management arena.

These efforts

and established business lines compete with individual money managers, companies or organizations that engage in the business of trading

securities and derivatives for the benefit of their customers.

Traditional RIA’s, Brokers Dealers, REIT’s and other personal

investment companies would also be considered competition.

During 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:

These efforts and established

business lines compete with individual money managers, companies or organizations that engage in the business of trading securities and

derivatives for the benefit of their customers.

Traditional RIA’s, Brokers Dealers, REIT’s and other personal investment

companies would also be considered competition.

During 2023, one customer accounted for approximately 20% of our consolidated revenue and second customer accounted for approximately 11% of our consolidated revenue.

Customer diversification

improvements have produced several new customers to our overall customer base and will continue to do so in 2024.

Since 2021, American Pacific Bancorp, Inc.

has issued nearly $26 million in new loans since September 2021 to customers

across a diverse portfolio of businesses.

Securities and Investment

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.

We rely on our extensive supplier network for availability of an extensive range of vitamins, minerals, botanicals, plant and herb extracts,

as well as nutritional supplements.

We are expecting continue price pressure and supply chain issues into 2023 and have put significant

risk mitigation strategies in place to avoid dramatic P&L effects based on this anticipated and continued volatility.

passes any substantial increase of its raw materials or finished goods on to its customers to limit any significant margin impact.

Product Packaging:

The primary raw materials the Company uses in its business 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.

The good news is that while there are materials that remain challenging, raw materials have begun to improve in terms of cost and availability.

The good news is that while there are materials that remain challenging, raw materials have begun to improve in terms of cost and availability

in late 2023.

Procurement sustainability as a crucial element and it involves not only ensuring that suppliers meet sustainability standards,

but also a commitment to ongoing internal improvement in sustainability practices.

Premier is proactively engaged in setting high standards

and ensuring that these standards are followed by its supply chain partners, contributing to the improvement and compliance of the broader

During 2023, one vendor accounted for approximately 25% and second vendor

accounted for approximately 13% of our paper and paperboard purchases.

Direct Marketing:

Sources its products from 3 rd party suppliers

for nutritional, performance, and health and beauty product ingredients.

We rely on our extensive supplier network for the availability

of an extensive range of vitamins, minerals, botanicals, plant, and herb extracts, as well as nutritional supplements.

Environmental

4 unchanged sentences

on the Company’s consolidated annual results of operations, financial position or cash flows.

biotechnology business is faced with potential government regulations.

If new legislation, regulations, or rules are implemented either

by Congress, the U.S.

Patent and Trademark Office (the “USPTO”), or the courts that impact the patent application process,

the patent enforcement process or the rights of patent holders, these changes could negatively affect our patent monetization efforts

and, in turn, our assets, expenses and revenue.

Our biotechnology

business is faced with potential government regulations.

If new legislation, regulations, or rules are implemented either by Congress,

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.

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.

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.

4 unchanged sentences

and costs surrounding the enforcement of any such patented technologies.

new rules regarding the burden of proof in patent enforcement actions could significantly increase the cost of our enforcement actions,

and new standards or limitations on liability for patent infringement could negatively impact our revenue derived from such enforcement

Company, incorporated in the state of New York in May 1984 has formally conducted business in the name of Document Security Systems,

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

maintained the same trading symbol “DSS”

and updated its CUSIP number to 26253C-102.

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

of December 31, 2022, all DSS, Inc.

Moreover, new rules

regarding the burden of proof in patent enforcement actions could significantly increase the cost of our enforcement actions, and new

standards or limitations on liability for patent infringement could negatively impact our revenue derived from such enforcement actions.

The Company, incorporated

in the state of New York in May 1984 has formally conducted business in the name of 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, Inc.

became effective on September 30, 2021.

maintained the same trading symbol “DSS” and updated its CUSIP number to

In January 2024, in conjunction with a reverse split, DSS now operates under the CUSIP 26253C 201.

See the “Overview”

section above for further details about our acquisitions.

Human Capital Resources

As of December

31, 2023, DSS, Inc.

had 95 employees worldwide.

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 .

Information on our website is not incorporated herein by reference.

We make available

free of charge through our website our press releases, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on

Form 8-K and all amendments to those reports as soon as reasonably practicable after electronically filed with or furnished to the Securities

and Exchange Commission.

AHEAD IN 2023

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 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.

When building out our businesses, we look

for established, industry leaders with long track records and the expertise to add meaningful value to our DSS ecosystem and create a

foundation for success.

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

we intend to aggressively

capitalize on these advantages moving forward.

We believe the momentum of our success and ongoing evolution will continue to be unabated

in 2023 we will create the catalyst for new value creation in the coming year and beyond.

We continue to retain and attract qualified management and technical personnel.

employees are not covered by any collective bargaining agreement, and we believe that our relations with our employees are in good

Our website address

is www.dssworld.com .

Information on our

website is not incorporated herein by reference.

We make available free of charge through our website our press releases, Annual Report

on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports as soon as reasonably practicable

after electronically filed with or furnished to the Securities and Exchange Commission.

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