What changed in this filing

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Item 1. Financial Statements

2025-11-14 compared with 2025-08-14 · 630 added, 537 removed, 941 unchanged (55% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

June 30, 2025

September 30, 2025

December 31, 2024

4 unchanged sentences

Inventory, net

Marketable securities

Marketable securities, current

Assets held for sale

Current portion of notes receivable, net

Current portion of notes receivable - related party, net

Current portion of notes receivable - related party

Current portion of notes receivable

2 unchanged sentences

Property, plant and equipment, net

Investments in real estate, net

Investment in real estate, net

Other investments

Investment, equity method

Marketable securities

Marketable securities, noncurrent

Notes receivable, net

12 unchanged sentences

Current portion of long-term debt on assets held-for-sale, net

Convertible promissory note - related party

Current portion of long-term debt - related party, net

10 unchanged sentences

zero on December 31, 2024).

Common stock, $ .02

shares authorized, 9,092,518

shares issued and outstanding on June 30, 2025 ( 8,092,518

on December 31, 2024)

Common stock, $ .02 par value;

200,000,000 shares authorized, 9,092,518 shares issued and outstanding ( 8,092,518 on December 31, 2024)

Treasury stock

Additional paid-in capital

11 unchanged sentences

For the Three Months Ended

For the Six Months Ended

Printed products

Rental income

Net investment income

September 30,

For the Nine Months Ended

September 30,

Printed products revenue

Rental revenue

Net investment revenue

Commission revenue

Biotechnology retail sales

Biotechnology retail revenue

Total revenue

10 unchanged sentences

Interest income

Dividend income

Other income (expense)

Interest expense

Foreign Currency Translation Adjustment

Gain on extinguishment of debt

(Loss)/gain on equity method investment

Gain (loss) on investments

( 1,021,000 )

Impairment of intangible assets

11 unchanged sentences

$ ( 15,762,000 )

Loss from operations attributed to noncontrolling interest

Income (loss) from operations attributed to noncontrolling interest

Net loss attributable to DSS common stockholders

8 unchanged sentences

Consolidated Statements of Cash Flows

the Six Months Ended June 30,

the Nine Months Ended September 30,

Cash flows from operating activities:

5 unchanged sentences

Stock based payments for professional services rendered

Stock based payments

Stock based payments for employees and directors

(Loss)/gain on equity method investment

Loss (gain) on investments

( 1,255,000 )

Change in ROU assets

1 unchanged sentence

Accrued interest on notes payable

Loss (Gain) on sale of assets

Loss on sale of assets

Impairment of intangibles

Impairment of accounts receivable

Provision for loan losses

extinguishment of debt

Decrease (increase) in assets:

Accounts receivable

( 1,670,000 )

Assets held for sale

Prepaid expenses and other current assets

( 1,113,000 )

Increase (decrease) in liabilities:

3 unchanged sentences

Other liabilities

Net cash provided (used) by operating activities

Net cash used by operating activities

( 7,576,000 )

( 5,889,000 )

Cash flows from investing activities:

4 unchanged sentences

Purchase of investment

( 1,861,000 )

Disposal of property, plant and equipment

1 unchanged sentence

Sale of marketable securities

Issuance of new notes receivable, net origination fees

Payments received on notes receivable

4 unchanged sentences

( 1,492,000 )

Borrowings of long-term debt

Payments on margin loan

Borrowings of long-term debt, net

Debt issuance costs

( 131,000 ) -

Net cash (used) provided by financing activities

Borrowings of convertible note payable - related party

Payments on margin loan

Issuances of common stock, net of issuance costs

Net cash provided (used) by financing activities

( 8,816,000 )

2 unchanged sentences

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Cash and cash equivalents and restricted cash at end of

Cash and cash equivalents

Restricted cash

Cash and cash equivalents and restricted cash at end of

accompanying notes to the condensed consolidated financial statements.

2 unchanged sentences

Preferred Stock

Additional Paid-

Additional Paid-in

Non- controlling Interest in

2 unchanged sentences

$ ( 256,176,000 )

Initial public offering of Impact BioMedical

( 14,034,000 )

2 unchanged sentences

( 15,762,000 )

Balance, June 30, 2024 (unaudited)

Balance, September 30, 2024

$ 321,885,000

12 unchanged sentences

( 10,087,000 )

Balance, June 30, 2025 (unaudited)

Balance, September 30, 2025

$ 326,277,000

53 unchanged sentences

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

Basis of Presentation

and Significant Accounting Policies

of Presentation - The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal

recurring adjustments, unless otherwise indicated) necessary to present fairly our consolidated financial position as of June 30, 2025

and December 31, 2024, and the results of our consolidated operations for the interim periods presented.

We follow the same accounting

policies when preparing quarterly financial data as we use for preparing annual data.

These statements should be read in conjunction

with the consolidated financial statements and the notes included in our latest annual report on Form 10-K, for the fiscal year ended

December 31, 2024 (“Form 10-K”), and our other reports on file with the Securities and Exchange Commission (the “SEC”).

On June 21, 2025, Impact BioMedical Inc.

(“Impact”), Dr Ashleys Limited,

a Cayman Islands exempted company limited by shares (“PubCo”), Dr Ashleys Nevada Sub, Inc., a Nevada corporation and wholly-owned

subsidiary of PubCo (“Merger Sub”), Dr Ashleys Bio Labs Limited, a Cayman Islands exempted company limited by shares (“Dr

Ashleys Cayman”), and Kanans Visvanats (a.k.a.

Kannan Vishwanatth), a Latvian national, solely in his capacity as the sole shareholder

of Dr Ashleys (“Dr Ashleys Shareholder”) entered into a Merger and Share Exchange Agreement (the “Merger Agreement”).

Pursuant to the Merger Agreement and subject to the terms and conditions set forth therein, (i) Merger Sub shall be merged with and into

Impact with Impact being the surviving entity (the “Merger”), and (ii) simultaneous with or immediately following the Merger,

PubCo shall acquire all of the issued and outstanding ordinary shares of Dr Ashleys Cayman from the Dr Ashleys Shareholder (the “Share

The closing date of the transaction is uncertain as of November 14, 2025, due to the pending approval from regulatory

Management will continue evaluating the status of this deal at year end.

Basis of Presentation and Significant Accounting Policies

of Presentation - The accompanying condensed unaudited consolidated financial statements contain all adjustments

(consisting of normal recurring adjustments, unless otherwise indicated) necessary to present fairly our consolidated financial

position as of September 30, 2025 and December 31, 2024, and the results of our consolidated operations for the interim periods

presented in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and

pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), the instructions to Form 10-Q

and Article 10 of Regulation S-X.

We follow the same accounting policies when preparing quarterly financial data as we use for

preparing annual data.

These statements should be read in conjunction with the consolidated financial statements and the notes

included in our latest annual report on Form 10-K, for the fiscal year ended December 31, 2024 (“Form 10-K”), and our

other reports on file with the Securities and Exchange Commission (the “SEC”).

of Consolidation - The consolidated financial statements include the accounts of DSS, Inc.

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Reclassifications -

- Cost associated with Professional fees approximating $ 121,000 and $ 254,000 for the three and six months ended June 30, 2024,

Cost associated with Professional fees approximating $ 82,000 and $ 336,000 for the three and nine months ended September 30, 2024,

respectively have been reclassified to Research and development to conform with current period presentation.

prior period financial statements - During the second quarter of 2025, the Company identified and corrected an immaterial classification

error in our previously reported consolidated balance sheet as of December 31, 2024.

correction of this error between current and non-current assets resulted in an increase in the current asset line item referred to as

“Marketable securities” and a decrease in the noncurrent line-item referred to as “Marketable securities” by

$2.8 million, respectively, from the previously reported amounts of $0 to $2.8 million, and $9.21 million to $6.3 million, respectively .

The Company assessed the materiality of this change in presentation on prior period financial statements in accordance with SEC Staff

Accounting Bulletin No.

99, “Materiality,” (ASC Topic 250, Accounting Changes and Error Corrections).

Based on this assessment,

the Company concluded that this classification error correction in its Balance Sheet is not material to any previously presented financial

statements based upon overall considerations of both quantitative and qualitative factors.

The correction had no effect on any previously

reported amounts in our consolidated financial statements as of and for the year ended December 31, 2024 other than those previously

Equivalents – All highly liquid investments with maturities of three months or less at the date of purchase are classified

as cash equivalents.

Amounts included in cash equivalents in the accompanying consolidated balance sheets are money market funds whose

adjusted costs approximate fair value.

Certain items on the statement of cashflow for nine months ended September 2024, have been reclassified to conform

with the current period presentation.

Equivalents –

All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.

included in cash equivalents in the accompanying consolidated balance sheets are money market funds whose adjusted costs approximate

Receivable - The Company extends credit to its customers in the normal course of business.

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abilities to pay.

June 30, 2025, December 31, 2024, the Company established a reserve for credit losses of approximately $ 1,014,000 ,

$ 1,613,000 ,

September 30, 2025, December 31, 2024, the Company established a reserve for credit losses of approximately $ 1,014,000 ,

and $ 1,613,000 ,

respectively.

Accounts receivable, net at June 30, 2025, December 31, 2024, and January 1, 2024 was $ 2,688,000 ,

$ 3,068,000 ,

Accounts receivable, net at September 30, 2025, and December 31, 2024, was $ 4,139,000 ,

and $ 3,068,000 ,

2 unchanged sentences

Concentration

of Credit Risk - The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits.

The Company believes it is not exposed to any significant credit risk because of any non-performance by the financial institutions.

of June 30, 2025, one customer accounted for approximately 25 % of our consolidated revenue and three customers accounted for approximately

18 %, 15 %, and 11 % of our trade accounts receivable balance.

As of June 30, 2024, one customer accounted for approximately 24 % of our

consolidated revenue and one customer accounted for approximately 39 % of our trade accounts receivable balance.

of Credit Risk - The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured

The Company believes it is not exposed to any significant credit risk because of any non-performance by the financial

institutions.

As of September 30, 2025, one customer accounted for approximately 25 %

of our consolidated revenue and two customers accounted for approximately 36 %,

of our trade accounts receivable balance.

As of September 30, 2024, two customers accounted for approximately 20 %

of our consolidated revenue and two customers accounted for approximately 26 %

of our trade accounts receivable balance.

of December 31, 2024, two customers accounted for approximately 22 % and 13 % of our consolidated revenue and 29 % and 20 % of our trade

accounts receivable balance.

the six months ending June 30, 2025 and 2024, one vendor accounted for approximately 10 % and 12 %, respectively, of our cost of revenue.

receivable, unearned interest, and related recognition - The Company records all future payments of principal and interest on

9 unchanged sentences

with warrants acquired at origination, are accreted as an adjustment to yield over the term of the loan.

For Loans Losses - ASC Topic 326 which requires

an allowance for credit losses to be deducted from the amortized cost basis of financial assets to present the net carrying value at

the amount that is expected to be collected over the contractual term of the asset considering relevant information about past events,

current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.

In estimating expected

losses in the loan portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable

and supportable forecast period.

Assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral

values and other factors used to determine the borrowers’ abilities to repay obligations.

After the forecast period, the Company

utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans.

At June 30, 2025,

December 31, 2024, the Company established a reserve for credit losses of approximately $ 7,670,000 ,

$ 9,406,000 ,

respectively.

For Loans Losses - ASC Topic 326 which requires an allowance for credit losses to be deducted from the amortized cost basis

of financial assets to present the net carrying value at the amount that is expected to be collected over the contractual term of

the asset considering relevant information about past events, current conditions, and reasonable and supportable forecasts that

affect the collectability of the reported amount.

In estimating expected losses in the loan portfolio, borrower-specific financial

data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period.

and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to

determine the borrowers’ abilities to repay obligations.

After the forecast period, the Company utilizes longer-term

historical loss experience to estimate losses over the remaining contractual life of the loans.

At September 30, 2025, December 31,

2024, the Company established a reserve for credit losses of approximately $ 7,478,000 , $ 9,406,000 , respectively.

– Investments in equity securities with a readily determinable fair value, not accounted for under the equity method, are

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An allowance for obsolescence of approximately $ 131,000 and $ 180,000 associated with the inventory at our Premier

subsidiary for June 30, 2025, and December 31, 2024, respectively.

subsidiary for September 30, 2025, and December 31, 2024, respectively.

Write-downs and write-offs are charged to cost of revenue.

19 unchanged sentences

held for sale.

As of June 30, 2025, circumstances around the sale of these properties have changed and the Company does not believe

the sale of these properties will be finalized within the 12 months from the filing of these quarterly financial statements and have reclassified

As of September 30, 2025, circumstances around the sale of these properties have changed and the Company does not believe the

sale of these properties will be finalized within the 12 months from the filing of these quarterly financial statements and have reclassified

these assets to Investment in real estate, net and will begin to depreciate these assets prospectively.

7 unchanged sentences

No circumstances or events have occurred since the most recent analysis that would indicate

the need for an impairment is needed for the six months ended June 30, 2025.

the need for an impairment is needed for the nine months ended September 30, 2025.

– Goodwill is the excess of cost of an acquired entity over the fair value of amounts assigned to assets acquired and liabilities

21 unchanged sentences

No circumstances or events have occurred since the most recent analysis that would indicate

the need for an impairment is needed for the six months ended June 30, 2025.

the need for an impairment is needed for the nine months ended September 30, 2025.

of Long-Lived Assets and Goodwill - The Company monitors the carrying value of long-lived assets for potential impairment and

6 unchanged sentences

the fair value of the asset or asset group to its carrying value.

At June 30, 2025, the Company determined to resign its position as the

registered investment advisor (“RIA”) of the American First Mutual Funds and impaired the related asset acquired at the time

the Company became the RIA in September 2021 in the amount of $ 600,000 .

At June 30, 2025, the Company determined to resign its position as

the registered investment advisor (“RIA”) of the American First Mutual Funds and impaired the related asset acquired at the

time the Company became the RIA in September 2021 in the amount of $ 600,000 .

Promissory Note -The Company accounts for convertible promissory notes in accordance with

ASU 2020-06, and evaluates embedded features under ASC 815, Derivatives and Hedging .

Upon issuance, convertible notes are recorded

at their principal amount, net of any original issue discount (“OID”) and debt issuance costs.

OID and issuance costs are

presented as a direct deduction from the carrying amount of the debt and are amortized to interest expense using the effective interest

method over the contractual term (ASC 835-30).

The Company assesses all terms and features of its convertible notes, including conversion

options, redemption provisions, make-whole or down-round adjustments, and default put/call rights, to determine whether any embedded features

shall be bifurcated and accounted for as derivatives at fair value with changes in fair value recognized in earnings (ASC 815 and ASC

820), or whether the convertible note instrument could be qualified for simplified accounting per ASU 2020-06 and recorded at amortized

cost as liability.

Convertible notes are classified as current or noncurrent liabilities based on contractual maturity and the Company’s

intent and ability to settle the obligation within twelve months of the balance sheet date.

Accrued interest and amortization of discounts

and issuance costs are included in interest and amortization expense, respectively.

For diluted earnings per share, the Company applies

the if-converted method to its convertible instruments in accordance with ASU 2020-06 (ASC 260).

Combinations - Business combinations and non-controlling interests are recorded in accordance with FASB ASC 805 Business Combinations.

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diluted (loss) earnings per share is the same, as the impact of potential common shares is anti-dilutive.

For the six months ended June

For the nine months ended September

30, 2025 and 2024, there were no potential dilutive instruments issued and outstanding.

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one year of the date that the financial statements are issued.

from its $ 9.4 million in

cash as of June 30, 2025, to continue as a going concern, the Company can generate operating cash through the sale of its $ 9.8

from its $ 7.0 million

in cash as of September 30, 2025, to continue as a going concern, the Company can generate operating cash through the sale of its $ 1.6

million of Marketable Securities.

To continue as a going concern, The Company has also taken steps to sell its real estate holdings

assets of AMRE LifeCare, Winter Haven, and Shelton located in Texas, Pennsylvania, Florida, and Connecticut.

These properties

approximate $ 35.4

million in assets and are identified on the accompanying balance sheet as Investments in real estate, net.

Also, historically, the

Company has been able to obtain equity and/or debt-based financing to meet its working capital needs.

In addition, the Company has

taken steps, and will continue to take measures, to materially reduce the expenses and cash burn at all corporate and business line

Related Party

Transactions - Transactions with affiliates and other parties that meet the definition of a related party under ASC 850, Related

Party Disclosures are reflected in the accompanying condensed consolidated financial statements.

All related-party balances are recorded

at the exchange amounts established and agreed to by the parties.

All material transaction not in the normal course of business operations

are approved by the Audit Committee of the Board of Directors.

To continue as a going concern,

Also, historically, the Company has been able to obtain equity and/or debt-based financing to meet its working capital needs.

the Company has taken steps, and will continue to take measures, to materially reduce the expenses and cash burn at all corporate and

business line levels.

Party Transactions - Transactions with affiliates and other parties that meet the definition of a related party under ASC 850,

Related Party Disclosures are reflected in the accompanying condensed consolidated financial statements.

All related-party balances are

recorded at the exchange amounts established and agreed to by the parties.

All material transaction not in the normal course of business

operations are approved by the Audit Committee of the Board of Directors.

Issued Accounting Pronouncements — The Financial Accounting Standards Board (FASB) issues various Accounting Standards

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in a change to the Company’s segment structure or to the method used to allocate resources among segments.

In December 2023, the FASB issued

2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures (“ASU 2023-09”).

requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation

and income taxes paid.

The amendment in the ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax

The ASU 2023-09’s amendments are effective for annual periods beginning after December 15, 2024.

The Company is currently

evaluating the impact that adoption of ASU 2023-09 will have on its financial statements.

November 2024, the FASB issued ASU No.

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of business primarily through internet sales and recognizes revenue as items are shipped.

of June 30, 2025, the Company had no unsatisfied performance obligations for contracts with an original expected duration of greater

than one year.

Pursuant to Topic 606, the Company has applied the practical expedient with respect to disclosure of the deferral and

future expected timing of revenue recognition for transaction price allocated to remaining performance obligations.

The Company elected

the practical expedient allowing it to not recognize as a contract asset the commission paid to its salesforce on the sale of its products

as an incremental cost of obtaining a contract with a customer but rather recognize such commission as expense when incurred as the amortization

period of the asset that the Company would have otherwise recognized is one year or less.

Costs of revenue

Costs of revenue includes all direct cost of the Company’s packaging,

commercial and security printing sales, primarily, paper, inks, dies, and other consumables, and direct labor, transportation, amortization,

deprecation, and manufacturing facility costs.

In addition, this category includes all direct costs associated with the manufacturing

and procurement of the products sold in the Company’s Direct Marketing line of business as well as with the Company’s technology

sales, services and licensing including hardware and software that is resold, third-party fees, and fees paid to inventors or others as

a result of technology licenses or settlements, if any.

Cost of revenue for our REIT line of business includes all direct cost associated

with the maintenance and upkeep of the related facilities, depreciation, amortization and the costs to acquire the facilities.

Our Commercial

Lending operating segment has costs of revenue associated with the impairment of notes receivable for those amounts at risk of collection.

Costs of revenue do not include expenses related to product development, integration, and support.

These costs are included in research

and development, which is a component of selling, general and administrative expenses on the consolidated statement of operations.

costs are included in selling, general and administrative.

of September 30, 2025, the Company had no unsatisfied performance obligations for contracts with an original expected duration of

greater than one year.

Pursuant to Topic 606, the Company has applied the practical expedient with respect to disclosure of the

deferral and future expected timing of revenue recognition for transaction price allocated to remaining performance obligations.

Company elected the practical expedient allowing it to not recognize as a contract asset the commission paid to its salesforce on

the sale of its products as an incremental cost of obtaining a contract with a customer but rather recognize such commission as

expense when incurred as the amortization period of the asset that the Company would have otherwise recognized is one year or

of revenue includes all direct cost of the Company’s packaging, commercial and security printing sales, primarily, paper, inks,

dies, and other consumables, and direct labor, transportation, amortization, deprecation, and manufacturing facility costs.

this category includes all direct costs associated with the manufacturing and procurement of the products sold in the Company’s

Direct Marketing line of business as well as with the Company’s technology sales, services and licensing including hardware and

software that is resold, third-party fees, and fees paid to inventors or others as a result of technology licenses or settlements, if

Cost of revenue for our REIT line of business includes all direct cost associated with the maintenance and upkeep of the related

facilities, depreciation, amortization and the costs to acquire the facilities.

Our Commercial Lending operating segment has costs of

revenue associated with the impairment of notes receivable for those amounts at risk of collection.

Costs of revenue do not include expenses

related to product development, integration, and support.

These costs are included in research and development, which is a component

of selling, general and administrative expenses on the consolidated statement of operations.

Legal costs are included in selling, general

and administrative.

commissions are expensed as incurred for contracts with an expected duration of one year or less.

There were no sales commissions capitalized

as of June 30, 2025 or June 30, 2024.

as of September 30, 2025 or September 30, 2024.

and Handling Costs

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Schedule of Inventory

September 30, 2025

December 31, 2024

Finished Goods

3 unchanged sentences

Less allowance for obsolescence

$ ( 180,000 )

Inventory net

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The outstanding

principal and interest as of June 30, 2025 and December 31, 2024, approximated $ 5,544,000 .

As of June 30, 2025 and December 31, 2024

principal and interest as of September 30, 2025 and December 31, 2024, approximated $ 5,544,000 .

As of September 30, 2025 and December

31, 2024 this note is in default and the Company has a reserve of $ 5,544,000 against the principal and interest outstanding.

September 23, 2021, APB entered into refunding bond anticipatory note (“Note 2”) with Southeast Regional Management District

(“SERMD”), which operates as a conservation and reclamation district pursuant to Chapter 3891, Texas Special District Local

Laws Code, Chapter 375, Texas Local Government Code;

and Chapter 49, Texas Water Code.

The District Note was in the sum of $ 3,500,000

and incurs interest at a rate of 5.59 % per annum.

Principal and interest was due in full on September 22, 2022, and later amended to

extend the maturity date to September 19, 2024 .

Note 2 was repaid in full during March 2024.

October 25, 2021, APF entered into a loan agreement (“Note 2”) with Asili, LLC.

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APF, as holder of Note 2, has the right to elect one member to the Board of Managers.

This note is in default and the outstanding principal and interest of approximately $ 884,000 is fully reserved for as of June 30, 2025

This note is in default and the outstanding principal and interest of approximately $ 884,000 is fully reserved for as of September 30,

2025 and December 31, 2024.

4, related party

December 28, 2021, APF entered into a promissory note (“Note 4”) with WestPark Capital Group, LLC.

(“WestPark”),

a company registered in the state of California.

Note 4 has a principal balance of $ 700,000 .

Note 4, which incurs interest at a rate

of 12.0 % with principal and interest due at the maturity date of December 28, 2022 .

On December 29, 2022, the maturity date of this note

was extended to May 31, 2023 .

On November 27, 2023, the parties to Note 4 agreed to modify the payment terms of the note to be monthly

payments of $ 50,000 until the outstanding principal and interest are paid in full.

The outstanding principal and interest was paid in

full during 2024.

January 24, 2022, APF and an individual entered into a promissory note (“Note 5”) in the principal sum of $ 100,000

with interest of 6 %,

due annually, and maturing in January

The outstanding principal and interest at December 31, 2024 approximated $ 17,000

and was included in Current portion of notes receivable on the accompanying consolidate balance sheet.

As of June 30, 2025, the

outstanding principal and interest approximating $ 18,000

were written-off.

January 24, 2022, APF and an individual entered into a promissory note (“Note 3”) in the principal sum of $ 100,000 with interest

of 6 %, due annually, and maturing in January 2024 .

The outstanding principal and interest at December 31, 2024 approximated $ 17,000 and

was included in Current portion of notes receivable on the accompanying consolidate balance sheet.

As of September 30, 2025, the outstanding

principal and interest approximating $ 18,000 were written-off.

March 2, 2022, APF and WUURII Commerce, Inc.

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sum of $ 893,000 with an interest rate of 8 %, and matured in March 2024 and was extended to April 2025, with interest payable quarterly.

The outstanding principal and interest at June 30, 2025, and December 31, 2024 is $ 465,000 and $ 468,000 , respectively.

This loan is currently

in default and as of June 30, 2025 the Company has a reserve of $ 465,000 against the principal and interest outstanding.

The outstanding principal and interest at September 30, 2025, and December 31, 2024 is $ 465,000 and $ 468,000 , respectively.

is currently in default and as of September 30, 2025 the Company has a reserve of $ 465,000 against the principal and interest outstanding.

May 9, 2022, DSS PureAir and Puradigm entered into a promissory note (“Note 5”) in the principal sum of $ 210,000 with interest

3 unchanged sentences

The outstanding principal and interest

at June 30, 2025 and December 31, 2024 approximates $ 224,000 .

This note was fully reserved for as of June 30, 2025 and December 31, 2024.

at September 30, 2025 and December 31, 2024 approximates $ 224,000 .

This note was fully reserved for as of September 30, 2025 and December

6, related party

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All unpaid principal and interest is due on August 29, 2025 .

The outstanding principal and interest at June 30, 2025,

and December 31, 2024 approximated $ 83,000 , and was fully reserved for as of June 30, 2025 and December 31, 2024.

DSS owns 24.9 % of the

outstanding common shares of BMIC.

The outstanding principal and interest at September

30, 2025, and December 31, 2024 approximated $ 83,000 , and was fully reserved for as of September 30, 2025 and December 31, 2024.

owns 24.9 % of the outstanding common shares of BMIC.

7, related party

1 unchanged sentence

with interest at the prime rate plus 2 % with a maturity date of May 7, 2026 .

The outstanding principal and interest at June 30, 2025,

and December 31, 2024 approximated $ 110,000 , and was fully reserved for as of June 30, 2025 and December 31, 2024.

DSS owns 24.9 % of

the outstanding common shares of BMIC.

The outstanding principal and interest at September 30,

2025, and December 31, 2024 approximated $ 110,000 , and was fully reserved for as of September 30, 2025 and December 31, 2024.

24.9 % of the outstanding common shares of BMIC.

8, related party

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principal and interest is due July 26, 2025.

The outstanding principal and interest as of June 30, 2025 and December 31, 2024 approximates

This note was fully reserved for as of June 30, 2025 and December 31, 2024.

Heng Fai Ambrose Chan, the Chairman of DSS, Inc

is also the on the board of directors of VEII.

The outstanding principal and interest as of September 30, 2025 and December 31, 2024 approximates

This note was fully reserved for as of September 30, 2025 and December 31, 2024.

Heng Fai Ambrose Chan, the Chairman of DSS,

Inc is also the on the board of directors of VEII.

February 19, 2021, Impact BioMedical, Inc, entered into a promissory note with an individual.

5 unchanged sentences

real property situated in Collier County, Florida.

outstanding principal and interest as of June 30, 2025, and December 31, 2024 was approximately $ 200,000 and $ 201,000 , respectively.

As of June 30, 2025, approximately $ 200,000 is classified in Current notes receivable.

As of December 31, 2024, $ 184,000 is classified

in Current notes receivable and the remaining $ 17,000 is classified as Notes receivable on the accompanying consolidated balance sheet.

June 27, 2023, Decentralized Sharing Systems, Inc.

The outstanding principal and interest as of September 30, 2025, and December 31,

2024 was approximately $ 199,000 and $ 201,000 , respectively.

As of September 30, 2025, approximately $ 199,000 is classified in Current

notes receivable.

As of December 31, 2024, $ 184,000 is classified in Current notes receivable and the remaining $ 17,000 is classified

as Notes receivable on the accompanying consolidated balance sheet.

September 27, 2023, Decentralized Sharing Systems, Inc.

and Stemtech Corporation (“Stemtech”) entered into a convertible

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The outstanding principal, interest, and associated discount was fully reserved for as of December 31, 2024 and

written off as of June 30, 2025

March 31,2023, DSS Biohealth Security, Inc and an individual entered into a promissory note (“Note 13”) in the principal

sum of $ 140,000 and interest rate floating daily to Wall Street Journal Prime rate per annum with the total outstanding principal and

interest due at the maturity date of March 31, 2025 .

As of June 30, 2025 and December 31, 2024, the outstanding principal and interest

approximated $ 135,000 .

This balance was fully reserved for as of June 30, 2025 and December 31, 2024.

written off as of September 30, 2025

March 31, 2023, DSS Biohealth Security, Inc and an individual entered into a promissory note (“Note 11”) in the

principal sum of $ 140,000

and interest rate floating daily to Wall Street Journal Prime rate per annum with the total outstanding principal and interest due

at the maturity date of March

As of September 30, 2025 and December 31, 2024, the outstanding principal and interest approximated $ 135,000 .

This balance was fully reserved for as of September 30, 2025 and December 31, 2024.

August 29, 2024, APF entered into a promissory note (“Note 12”) with WestPark.

Note 14 has a principal balance of $ 459,000 .

Note 14, which incurs interest at a rate of 10.0 % with principal and interest due at the maturity date of April 27, 2026 .

1, 2024, monthly payments of approximately $ 28,000 are due with any unpaid interest and principal due at maturity.

As of June 30, 2025,

the outstanding principal and interest approximates $ 304,000 , which is classified as Current notes receivable on the accompanying consolidated

balance sheet.

As of December 31, 2024, the outstanding principal and interest approximates $ 450,000 , of which $ 337,000 is classified

as Current notes receivable and the remaining $ 113,000 is classified as Notes receivable on the accompanying consolidated balance sheet.

Note 14, which incurs interest at a rate of 10.0 %

with principal and interest due at the maturity date of April

On November 1, 2024, monthly payments of approximately $ 28,000

are due with any unpaid interest and principal due at maturity.

As of September 30, 2025, the outstanding principal and interest

approximates $ 257,000 ,

which is classified as Current notes receivable on the accompanying consolidated balance sheet.

As of December 31, 2024, the

outstanding principal and interest approximates $ 450,000 ,

of which $ 337,000

is classified as Current notes receivable and the remaining $ 113,000

is classified as Non-current notes receivable on the accompanying consolidated balance sheet.

Financial Instruments

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Schedule of Cash and Marketable Securities by Significant Investment Category

June 30, 2025

September 30, 2025

Restricted Cash

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risk of not collecting amounts owed by customers and records its allowance for credit losses based on the results of this analysis.

of June 30, 2025 and December 31, 2024, we have reviewed the entire loan portfolio as well as all financial assets of the Company for

the purpose of evaluating the loan portfolio and the loan balances, including a review of individual and collective portfolio loan quality,

loan(s) performance, including past due status and covenant defaults, assessment of the ability of the borrower to repay the loan on

the loan terms, whether any loans should be placed on nonaccrual or returned to accrual, any concentrations in any single borrower and/or

industry that we might need to further manage, and if any specific or general loan loss reserve should be established for the entire

loan portfolio or for any specific loan.

of September 30, 2025 and December 31, 2024, we have reviewed the entire loan portfolio as well as all financial assets of the Company

for the purpose of evaluating the loan portfolio and the loan balances, including a review of individual and collective portfolio loan

quality, loan(s) performance, including past due status and covenant defaults, assessment of the ability of the borrower to repay the

loan on the loan terms, whether any loans should be placed on nonaccrual or returned to accrual, any concentrations in any single borrower

and/or industry that we might need to further manage, and if any specific or general loan loss reserve should be established for the

entire loan portfolio or for any specific loan.

analyzed the loan loss reserve from three basis:

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industry portfolio reserves, and specific loan loss

For the six months ended June 30, 2025, June 30, 2024 and year ended December 31, 2024, the Company recorded a Loan loss reserve

of approximately $ 233,000 , $ 346,000 and $ 9,406,000 , respectively.

For the nine months ended September 30, 2025, September 30, 2024 and year ended December 31, 2024, the Company recorded a Loan

loss reserve of approximately $ 0 $ 908,000 and $ 9,406,000 , respectively.

Loan Portfolio Reserve - Based upon the review of our loan portfolio, we do not believe that a substantial general loan portfolio

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However, we do recognize that some inherent risks are in all loan portfolios, thus we recorded a general

contingent portfolio reserve of $ 192,000 and $ 196,000 of the loan portfolio loan balance as of June 30, 2025 and December 31, 2024, respectively.

contingent portfolio reserve of $ 0 and $ 196,000 of the loan portfolio loan balance as of September 30, 2025 and December 31, 2024, respectively.

Portfolio Reserves - Given the relatively young loan portfolio and a diversification of the portfolio over several different loan

products, the risk is reduced.

Accordingly, we have not recorded a discretionary reserve as of June 30, 2025 and December 31, 2024.

Loan Reserves - Previously, we had identified credit weaknesses and borrower repayment weakness with Asili, which has a current

principal and interest balance of $ 884,000

and have recorded a loan loss reserve for the full balance due the Company as of December 31, 2024.

The Company had also previously

identified credit weakness in Puradigm and has placed a reserve approximating $ 5,768,000

against the outstanding principal and interest as of December 31, 2024 of their two loans.

Previously, the Company identified credit

weakness in Stemtech and has placed a reserve approximating $ 1,045,000

against the outstanding principal and interest as of December 31, 2024.

During the first quarter of 2024, the Company identified

credit weakness in VEII and an individual and has placed a reserve approximating $ 959,000

Accordingly, we have not recorded a discretionary reserve as of September 30, 2025 and December 31, 2024.

Loan Reserves - Previously, we had identified credit weaknesses and borrower repayment weakness with Asili, which has a current principal

and interest balance of $ 884,000 and have recorded a loan loss reserve for the full balance due the Company as of December 31, 2024.

The Company had also previously identified credit weakness in Puradigm and has placed a reserve approximating $ 5,768,000 against the

outstanding principal and interest as of December 31, 2024 of their two loans.

Previously, the Company identified credit weakness in

Stemtech and has placed a reserve approximating $ 1,045,000 against the outstanding principal and interest as of December 31, 2024.

the first quarter of 2024, the Company identified credit weakness in VEII and an individual and has placed a reserve approximating $ 959,000

against the outstanding principal and interest as of March 31, 2024.

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Also, during the first

quarter of 2024, the Company identified credit weakness in BMIC, a related party, and has placed a reserve approximating $ 211,000

against the outstanding principal and interest as of March 31, 2024, later adjusted to $ 196,000

as of September 30, 2024.

The Company identified credit weakness with WUURII and has placed a $ 234,000

reserve against the outstanding principal and interest as of December 31, 2024 and reserved for the remaining outstanding balance of

approximately $ 233,000

as of June 30, 2025.

The Company has also identified credit weakness with an individual and has placed a $ 135,000

reserve against the outstanding principal and interest as of December 31, 2024, and reserved for an approximate $ 17,000

against the outstanding principal and interest for another individual as of June 30, 2025.

additional reserves were deemed necessary as of June 30, 2025.

quarter of 2024, the Company identified credit weakness in BMIC, a related party, and has placed a reserve approximating $ 211,000 against

the outstanding principal and interest as of March 31, 2024, later adjusted to $ 196,000 as of September 30, 2024.

The Company identified

credit weakness with WUURII and has placed a $ 234,000 reserve against the outstanding principal and interest as of December 31, 2024

and reserved for the remaining outstanding balance of approximately $ 233,000 as of September 30, 2025.

The Company has also identified

credit weakness with an individual and has placed a $ 135,000 reserve against the outstanding principal and interest as of December 31,

2024, and reserved for an approximate $ 17,000 against the outstanding principal and interest for another individual as of September 30,

No additional reserves were deemed necessary as of September 30, 2025.

Disposal of assets

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Chan is also the majority shareholder of Alset Intl as well as the largest shareholder of

The fair value of the marketable security as of June 30, 2025 and December 31, 2024, was approximately $ 2,098,000 and $ 2,518,000 ,

respectively.

During the six months ended June 30, 2025 and 2024, the Company recorded unrealized loss of approximately $ 420,000 and

The fair value of the marketable security as of September 30, 2025 and December 31, 2024, was approximately $ 2,467,000 and

$ 2,518,000 , respectively.

During the nine months ended September 30, 2025 and 2024, the Company recorded unrealized loss of approximately

$ 51,000 and $ 407,000 , respectively.

Partners Capital Holding Limited

The Company owns 81,836,908 shares of True Partners Capital Holding Limited

(“True Partners”), a publicly listed company on the Hong Kong Stock Exchange.

On February 28, 2022, the Company entered into

a Stock Purchase Agreement with Alset EHome International Inc.

(“AEI”), pursuant to which AEI has agreed to sell a subsidiary

holding 62,336,908 shares of stock of True Partner Capital Holding Limited exchange for 17,570,948 shares of common stock of the Company

(the “DSS Shares”).

The Company’s Executive Chairman and a significant stockholder, Heng Fai Ambrose Chan is the Chairman,

Chief Executive Officer and largest shareholder of AEI.

Further, on February 20, 2025, the Company acquired an additional 19,500,000 shares

of True Partners.

The fair value of the marketable security as of June 30, 2025 and December 31, 2024, was approximately $ 4,689,000 and

Company owns 81,836,908 shares of True Partners Capital Holding Limited (“True Partners”), a publicly listed company on the

Hong Kong Stock Exchange.

On February 28, 2022, the Company entered into a Stock Purchase Agreement with Alset EHome International Inc.

(“AEI”), pursuant to which AEI has agreed to sell a subsidiary holding 62,336,908 shares of stock of True Partner Capital

Holding Limited exchange for 17,570,948 shares of common stock of the Company (the “DSS Shares”).

The Company’s Executive

Chairman and a significant stockholder, Heng Fai Ambrose Chan is the Chairman, Chief Executive Officer and largest shareholder of AEI.

Further, on February 20, 2025, the Company acquired an additional 19,500,000 shares of True Partners.

The fair value of the marketable

security as of September 30, 2025 and December 31, 2024, was approximately $ 5,679,000 and $ 3,815,000 , respectively.

During the nine months

ended September 30, 2025 and 2024, the Company recorded unrealized gain of approximately $ 864,000 and a loss of approximately $ 936,000 ,

respectively.

During the six months ended June 30, 2025 and 2024, the Company recorded unrealized loss of approximately $ 126,000

and a gain of approximately $ 11,000 , respectively.

Capital Group, LLC.

December 30, 2020, the Company signed a binding letter of intent with WestPark Capital Group, LLC.

(“WestPark”) and Century

(“TBD”) where the parties agreed to prepare a note and stock exchange agreement whereby DSS will assign the TBD

Note to WestPark and WestPark shall issue to DSS a stock certificate reflecting 7.5 % of the issued and outstanding shares of West Park.

This note and stock exchange agreement was finalized during the first quarter 2022 and valued at approximately $ 500,000 and is included

in Investments on the consolidated balance sheet on June 30, 2025 December 31, 2024.

(“WestPark”) and

Century TBD, Inc.

(“TBD”) where the parties agreed to prepare a note and stock exchange agreement whereby DSS will

assign the TBD Note to WestPark and WestPark shall issue to DSS a stock certificate reflecting 7.5 %

of the issued and outstanding shares of West Park.

This note and stock exchange agreement was finalized during the first quarter

2022 and valued utilizing the cost method at approximately $ 500,000

and is included in Investments on the consolidated balance sheet on September 30, 2025 December 31, 2024.

As of September 30, 2025, and December 31, 2024 the Company has recorded no impairment losses on this investment.

Capital International LLC, related party

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The Company is currently accounting for this investment under the equity method of accounting per

The Company’s portion of net loss in BMIC during the three months ended June 30, 2025 and 2024, approximated $ 5,000 and

$ 7,000 , respectively.

The Company’s portion of net gain in BMIC during the nine months ended September 30, 2025 was approximately $ 4,000 and

a net loss for the nine months ended September 30, 2024, of approximately $ 3,000 .

is a broker-dealer registered with the Securities and Exchange Commission, is a member of the Financial Industry Regulatory Authority,

23 unchanged sentences

Short-Term and Long-Term Debt

Notes - On May 20, 2021, Premier Packaging entered into master loan and security agreement (“BOA Note”) with Bank

of America, N.A.

(“BOA”) to secure financing approximating $ 3,710,000 to purchase and use as collateral, 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.

As of June 30, 2025, and December 31, 2024, the outstanding principal on the BOA Note was $ 2,179,000 and $ 1,647,000 ,

respectively and had an interest rate of 4.63 %.

As of June 30, 2025, $ 532,000 was included in the Current portion of long-term debt,

net, and the remaining balance of approximately $ 1,783,000 is recorded as Long-term debt.

As of December 31, 2024, $ 520,000 was included

in the current portion of long-term debt, net, and the remaining balance of approximately $ 1,916,000 recorded as long-term debt.

note matures in April of 2029 .

Interest expense for the six months ended June 30, 2025 and 2024 approximated $ 54,000 and $ 66,000 , respectively.

The BOA Note contains certain covenants that are analyzed annually.

As of June 30, 2025, Premier is in compliance with these covenants.

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

Bank of America, N.A.

(“BOA”) to secure financing approximating $ 3,710,000 to purchase and use as collateral, 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.

As of September 30, 2025, and December 31, 2024, the outstanding principal on the BOA

Note was $ 2,049,000 and $ 1,647,000 , respectively and had an interest rate of 4.63 %.

As of September 30, 2025, $ 538,000 was included

in the Current portion of long-term debt, net, and the remaining balance of approximately $ 1,510,572,000 is recorded as Long-term

As of December 31, 2024, $ 520,000 was included in the current portion of long-term debt, net, and the remaining balance of

approximately $ 1,916,000 recorded as long-term debt.

This note matures in April of 2029 .

Interest expense for the nine months ended

September 30, 2025 and 2024 approximated $ 79,000 and $ 147,000 , respectively.

The BOA Note contains certain covenants that are

analyzed annually.

As of September 30, 2025, Premier is in compliance with these covenants.

August 1, 2021, AMRE Shelton, LLC., (“AMRE Shelton”) a subsidiary of AMRE, entered into a loan agreement (“Shelton

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intangible assets with an estimated useful life of approximating 3 years.

The net book value of these assets as of June 30, 2025, and

December 31, 2024, approximated $ 6,332,000 .

As of June 30, 2025, the outstanding principal and interest of approximately $ 4,328,000 ,

net of $ 12,000 in deferred financing costs.

As of June 30, 2025, approximately $ 221,000 is classified as Current portion of long-term

debt on assets held -for-sale, net with the remaining $ 4,107,000 classified as Non-current liabilities held for sale assets on the consolidated

balance sheet.

Interest expense for the six months ended June 30, 2025 and 2024 approximated $ 93,000 and $ 98,000 , respectively.

December 31, 2024, the outstanding principal and interest of approximately $ 4,424,000 , net of $ 27,000 in deferred financing costs, is

classified as Current portion of long-term debt on assets held-for-sale, net on the consolidated balance sheet.

This agreement matures

in July of 2031.

October 13, 2021, LVAM entered into loan agreement with BMIC (“BMIC Loan”), a related party, whereas LVAM borrowed the principal

amount of $ 3,000,000 , with interest to be charged at a variable rate to be adjusted at the maturity date.

The BMIC loan contains an auto

renewal period of three months, with a current maturity date of July 2025.

As of June 30, 2025, and December 31, 2024, the outstanding

principal and interest of approximately $ 464,000 and $ 463,000 , respectively, are included in Current portion of long-term debt –

related party, net on the consolidated balance sheet.

The net book value of these assets as of September 30, 2025,

and December 31, 2024, approximated $ 6,277,000 and $ 6,332,000 , respectively.

As of September 30, 2025, the outstanding principal and

interest of approximately $ 4,280,000 , net of $ 10,000 in deferred financing costs.

As of September 30, 2025, approximately $ 204,000 is

classified as Current portion of long-term debt, net with the remaining $ 4,076,000 classified as Current portion of long-term debt, net

on the consolidated balance sheet.

Interest expense for the nine months ended September 30, 2025 and 2024 approximated $ 140,000 and $ 147,000 ,

respectively.

As of December 31, 2024, the outstanding principal and interest of approximately $ 4,424,000 , net of $ 27,000 in deferred

financing costs, is classified as Current portion of long-term debt on assets held-for-sale, net on the consolidated balance sheet.

agreement matures in July of 2031.

October 13, 2021, Liquid Value Asset Management Limited (“LVAM”), a majority owned subsidiary of the Company, entered

into loan agreement with BMIC (“BMIC Loan”), a related party, whereas LVAM borrowed the principal amount of $ 3,000,000 ,

with interest to be charged at a variable rate to be adjusted at the maturity date.

The BMIC loan contains an auto renewal period of

three months, with a maturity date of October 2025 as of September 30, 2025.

The BMIC Loan was automatically extended to January

As of September 30, 2025, and December 31, 2024, the outstanding principal and interest of approximately $ 464,000

and $ 463,000 ,

respectively, are included in Current portion of long-term debt – related party, net on the consolidated balance

October 13, 2021, LVAM entered into a loan agreement with Lee Wilson Tsz Kin (“Wilson Loan”), a related party, whereas LVAM

borrowed the principal amount of $ 3,000,000 , with interest to be charged at a variable rate to be calculated at the maturity date.

Wilson Loan matures on October 12, 2022 , and contains an auto renewal period of three months with a current maturity date of July 2025.

As of March 31, 2025, and December 31, 2024, the outstanding principal and interest of approximately $ 145,000 and $ 145,000 , respectively,

are included in Current portion of long-term debt – related party, net on the consolidated balance sheet.

November 2, 2021, AMRE LifeCare entered into a loan agreement (“LifeCare Agreement”) with Pinnacle Bank, (“Pinnacle

Bank”) in the amount of $ 40,300,000 .

The LifeCare Agreement supported the acquisition of three medical facilities located in Fort

Worth, Texas, Plano, Texas (sold in March 2025), and Pittsburgh, Pennsylvania for a purchase price of $ 62,000,000 .

These assets are classified

as investments, real estate on the consolidated balance sheet, and serves as collateral for the LifeCare Agreement.

The purchase price

has been allocated as $ 32,100,000 , $ 12,100,000 , and $ 1,500,000 for the facility, land and site improvements, respectively.

Also included

in the value of the property is $ 15,901,000 of intangible assets with estimated useful lives ranging from 1 to 11 years.

value of the assets acquired as of June 30, 2025 is approximately $ 24,722,000 .

The LifeCare Agreement calls for the principal amount

of the in equal, consecutive monthly instalments based upon a twenty-five (25) year amortization of the original principal amount of

the LifeCare Agreement at an initial rate of interest equal to the interest rate determined in accordance as of July 29, 2022 provided,

however, such rate of interest shall not be less than 4.28 %, with the first such instalment being payable on August 29, 2022 and subsequent

instalments being payable on the first day of each succeeding month thereafter until the maturity date, at which time any outstanding

principal and interest is due in full.

The affective interest rate at June 30, 2025 was 7.9 %.

As of June 30, 2025, and December 31, 2024,

the outstanding principal and interest of the LifeCare agreement approximates $ 39,034,000 and $ 46,069,000 , respectively, and is included

in Current portion of long-term debt on assets held-for-sale, net on the consolidated balance sheet.

Interest expense for the six months

ended June 30, 2025 and 2024 approximated $ 1,572,000 and $ 1,954,000 , respectively.

This note is in default and demand was made for final

payment to be made by December 22, 2023.

As of June 30, 2025, this amount is past due.

borrowed the principal amount of $ 3,000,000 ,

with interest to be charged at a variable rate to be calculated at the maturity date.

The Wilson Loan contains an auto renewal period

of three months, with a maturity date of October 2025 as of September 30, 2025.

The Wilson Loan was automatically extended to January

As of September 30, 2025, and December 31, 2024, the outstanding principal and interest of approximately $ 145,000

and $ 145,000 ,

respectively, are included in Current portion of long-term debt – related party, net on the consolidated balance sheet.

November 2, 2021, AMRE LifeCare entered into a loan agreement (“LifeCare Agreement”) with Pinnacle Bank,

(“Pinnacle Bank”) in the amount of $ 40,300,000 .

The LifeCare Agreement supported the acquisition of three medical

facilities located in Fort Worth, Texas, Plano, Texas (sold in March 2025), and Pittsburgh, Pennsylvania for a purchase price of

$ 62,000,000 .

These assets are classified as investments, real estate on the consolidated balance sheet, and serves as collateral for

the LifeCare Agreement.

The purchase price has been allocated as $ 32,100,000 , $ 12,100,000 , and $ 1,500,000 for the facility, land and

site improvements, respectively.

Also included in the value of the property is $ 15,901,000 of intangible assets with estimated

useful lives ranging from 1 to 11 years.

The net book value of the assets acquired as of September 30, 2025 is approximately

$ 24,722,000 .

The net book value of these assets as of September 30, 2025, and December 31, 2024, approximated $ 24,233,000 and

$ 34,450,000 , respectively.

The LifeCare Agreement calls for the principal amount of the in equal, consecutive monthly instalments

based upon a twenty-five (25) year amortization of the original principal amount of the LifeCare Agreement at an initial rate of

interest equal to the interest rate determined in accordance as of July 29, 2022 provided, however, such rate of interest shall not

be less than 4.28 %, with the first such instalment being payable on August 29, 2022 and subsequent instalments being payable on the

first day of each succeeding month thereafter until the maturity date, at which time any outstanding principal and interest is due

The affective interest rate at September 30, 2025 was 8.5 %.

As of September 30, 2025, the outstanding principal and

interest of the LifeCare agreement approximates $ 39,144,000 and is included Current portion of long-term debt, net on the

accompanying balance sheet.

As of December 31, 2024 the outstanding principal and interest balance approximated and is included in

Current portion of long-term debt, net on the consolidated balance sheet.

Interest expense for the nine

months ended September 30, 2025 and 2024 approximated $ 2,278,000 and $ 2,939,000 , respectively.

This note is in default and demand

was made for final payment to be made by December 22, 2023.

As of September 30, 2025, this amount is past due.

March 17, 2022, AMRE Winter Haven, LLC (“AMRE Winter Haven”) and Pinnacle Bank (“Pinnacle”) entered into a term

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Also included in the value of the property is $ 29,000 of intangible assets with an estimated useful life of approximately

The net book value of the assets acquired as of June 30, 2025 is approximately $ 4,396,000 .

Payments are to be made in equal,

consecutive installments based on a 25 -year amortization period with interest at 4.28 %.

The net book value of the assets acquired as of September 30, 2025, and December 31, 2024 is approximately $ 4,370,000 and $ 4,396,000 ,

respectively.

Payments are to be made in equal, consecutive installments based on a 25 -year amortization period with interest at 4.28 %.

The first installment is due January 1, 2023.

This AMRE Winter Haven note is currently due and has an effective interest rate of 9.6 %.

This note was assumed by SMS Financial on August 15, 2024, and refinanced with American Savings Life Insurance Company (“American

Savings Note”) on August 29, 2025 in the amount of $ 3,250,000 .

This note has an annual interest rate of 7.99 % and requires monthly

installments of principal and interest of approximately $ 22,000 beginning on October 1, 2025 with a ballon payment at maturity on September

The outstanding principal and interest, approximates $ 3,130,000 and is included in Current portion of long-term debt, net on

the accompanying consolidated balance sheet at September 30, 2025.

The outstanding principal and interest, approximates $ 3,040,000 and

is included in Current portion of long-term debt, net on the accompanying consolidated balance

sheet at December 31, 2024.

Interest expense approximates $ 346,000 and $ 179,000 for the nine months ended September 30, 2025 and 2024,

respectively.

March 30, 2023, Premier Packaging, a subsidiary of the Company entered into a loan and security agreement with Union Bank &

Trust Company for the principal amount of $ 790,000 and shall accrued interest at the rate of 7.44 %.

Principal and interest shall be

repaid in the approximate amount of $ 14,000 through March 2029.

This loan is collateralized by a Bobst Model Novacut and is

guaranteed by DSS, Inc.

As of September 30, 2025, the outstanding principal and interest approximates $ 514,000 of which $ 130,000 was

included in the current portion of long-term debt, net, and the remaining balance of approximately $ 484,000 recorded as long-term

As of December 31, 2024, the outstanding principal and interest approximates $ 605,000 of which $ 123,000 was included in the

current portion of long-term debt, net, and the remaining balance of approximately $ 482,000 recorded as long-term debt.

expense for the nine months ended September 30, 2025 and 2024 approximated $ 32,000 and $ 38,000 , respectively.

August of 2025, DSS issued a $ 500,000 convertible promissory note to Alset, Inc.

(“holder”), the Company’s largest

shareholder and a related party, bearing interest at Prime ( 7.25 % at September 30, 2025).

The first 12 months’ interest is to be

paid in shares of the Company;

thereafter, interest is prepaid annually in cash or shares at the holder’s election.

convertible at the holder’s option at a fixed $ 0.86 per share, is payable on demand (or July 31, 2028 if not demanded), and may

be redeemed by the Company on or after the first anniversary.

The Company is required to reserve sufficient authorized shares and maintain

the listing/quotation of its common stock.

Under ASU 2020-06 and ASC 815-40, the debt host’s embedded conversion feature is indexed

to the Company’s own stock and is equity-classified;

accordingly, no embedded derivative is bifurcated and the instrument is accounted

for as single-unit debt using the effective interest method.

Interest is recognized in interest expense;

when settled in shares, a credit

to APIC is recorded at the fair value of shares on settlement, and any prepaid interest is recorded as a discount/prepaid and amortized

to expense over the related period.

The outstanding principal and interest, approximates $ 503,000

$ 3,051,000 and is included in Current portion of long-term debt on assets held-for-sale, net long-term debt, net on the accompanying

consolidated balance sheet at June 30, 2025.

The outstanding principal and interest, approximates $ 3,040,000 and is included in Current

portion of long-term debt on assets held-for-sale, net long-term debt, net on the accompanying consolidated balance sheet at December

Interest expense approximates $ 142,000 and $ 148,000 for the six months ended June 30, 2025 and 2024, respectively.

was assumed by SMS Financial on August 15, 2024.

This note is in default and demand was made for final payment to be made by December

As of June 30, 2025, this amount is past due.

March 30, 2023, Premier Packaging, a subsidiary of the Company entered into a loan and security agreement with Union Bank & Trust

Company for the principal amount of $ 790,000 and shall accrued interest at the rate of 7.44 %.

Principal and interest shall be repaid

in the approximate amount of $ 14,000 through March 2029.

This loan is collateralized by a Bobst Model Novacut and is guaranteed by DSS,

As of June 30, 2025, the outstanding principal and interest approximates $ 544,000 of which $ 127,000 was included in the current

portion of long-term debt, net, and the remaining balance of approximately $ 417,000 recorded as long-term debt.

As of December 31, 2024,

the outstanding principal and interest approximates $ 605,000 of which $ 123,000 was included in the current portion of long-term debt,

net, and the remaining balance of approximately $ 482,000 recorded as long-term debt.

Interest expense for the six months ended June 30,

2025 and 2024 approximated $ 22,000 and $ 25,000 , respectively.

summary of scheduled principal payments of long-term debt, not including revolving lines of credit, subsequent to June 30, 2025, are

and is included in Current portion of long-term debt, net on the accompanying consolidated balance sheet at September 30, 2025.

summary of scheduled principal payments of long-term debt, not including revolving lines of credit, subsequent to September 30,

2025, are as follows:

Schedule of Notes Payable and Long-term Debt

Notes payable

Notes payable - related party

payable - related party

Convertible promissory note - related party

Lease Liability

Company has operating leases predominantly for operating facilities.

As of June 30, 2025, the remaining lease terms on our operating

leases range from less than 1 one to nine years .

Renewal options to extend our leases have not been exercised due to uncertainty.

As of September 30, 2025, the remaining lease terms on our

operating leases range from less than one 1 to nine years .

Renewal options to extend our leases have not been exercised due to

Termination options are not reasonably certain of exercise by the Company.

There is no transfer of title or option to purchase the leased

assets upon expiration.

There is no transfer of title or option to

purchase the leased assets upon expiration.

There are no residual value guarantees or material restrictive covenants.

There are no significant finance leases

as of June 30, 2025.

minimum lease payments as of June 30, 2025 are as follows:

significant finance leases as of September 30, 2025.

minimum lease payments as of September 30, 2025 are as follows:

of Lease Liability:

of Future Minimum Lease Payments

Total lease payments

lease payments

Imputed Interest

( 1,202,000 )

Present value of remaining lease payments

Weighted-average remaining lease term (years)

Weighted-average discount rate

cash paid for leases during the six months ended June 30, 2025 and 2024 approximated $ 440,000 and $ 498,000 , respectively.

value of remaining lease payments

Weighted-average

remaining lease term (years)

Weighted-average

discount rate

cash paid for leases during the nine months ended September 30, 2025 and 2024 approximated $ 651,000 and $ 786,000 ,

respectively.

Commitments and Contingencies

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In exchange, the Licensee shall pay the Company a royalty of 5.5 % of net sales.

If not terminated under terms of the agreement, the Equivir License

expires the later of a) expiration date of the last to expire valid claim comprising the licensed patents, or (b) twelve (12) years from

the date of first commercial sale.

terms of the Equivir Agreement, the Company shall reimburse the Licensee for 50 % of the development costs provided that the development

costs shall not exceed $ 1,250,000 .

As of June 30, 2025 and December 31, 2024, a liability of $ 0 has been recorded in relation to the

Equivir License .

As of September 30, 2025 and December 31, 2024, a liability of $ 0 has been recorded in relation to

the Equivir License.

Agreement - On August 15, 2018, the Impact BioMedical entered into Royalty Agreement with Chemia Corporation (“Chemia”)

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by the Company towards patent application and licensing should be reimbursed to the Company before any royalty payments are made.

the six months ended June 30, 2025 and 2024, there were no reimbursements or royalties paid to the Company and the Company cannot be

assured that Chemia’s efforts will end up in any future sales of the technology.

the nine months ended September 30, 2025 and 2024, there were no reimbursements or royalties paid to the Company and the Company cannot

be assured that Chemia’s efforts will end up in any future sales of the technology.

Stockholders’ Equity

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the Company’s common stock for approximately $ 197,000 .

February 6, 2025, as a bonus for compensation awarded to Heng Fai Holdings Limited (“HFHL”), a Hong Kong Company, which is

beneficially owned by Mr.

February 6, 2025, as a bonus for compensation awarded to Heng Fai Holdings Limited (“HFHL”), a Hong Kong Company, which

is beneficially owned by Mr.

Heng Fai Ambrose Chan, Director of DSS, Inc., and pursuant to DSS, Inc’s.

2020 Employee, Director and

Consultant Equity Incentive Plan (the “Plan”), HFHL was awarded 1,000,000 shares of the Company’s common stock, approximating

$ 870,000 , under the Plan, for services rendered.

The issuance was approved by the board of directors on January 31, 2025.

2020 Employee, Director

and Consultant Equity Incentive Plan (the “Plan”), HFHL was awarded 1,000,000

shares of the Company’s common stock, approximating $ 870,000 ,

under the Plan, for strategic planning and merger and acquisition services rendered at the beginning of 2025.

The issuance was approved by the board of

directors on January 31, 2025.

March 21, 2025, DSS, the parent company of Impact Biomedical, Inc.

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completed the sale of 890,800 shares of Impact Biomedical common stock.

These shares were acquired by DSS during Impact’s initial public offering on September 16, 2024.

The sale of these shares, which

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With this sale, the shares are now publicly held and are no longer held by

April 4, 2025, DSS, the parent company of Impact Biomedical, Inc.

completed the sale of 115,600 shares of Impact Biomedical common stock.

These shares were acquired by DSS during Impact’s initial public offering on September 16, 2024.

The sale of these shares, which

were previously held by DSS as part of its ownership interest in Impact, was completed for a total approximate value of $ 63,000 , which

represents the consideration received from the transaction.

With this sale, the shares are now publicly held and are no longer held by

May 22, 2025, DSS, the parent company of Impact Biomedical, Inc.

completed the sale of 115,600

shares of Impact Biomedical common stock.

The sale of these shares, which were previously held by DSS as part of its ownership

interest in Impact, was completed for a total approximate value of $ 63,000 ,

which represents the consideration received from the transaction.

With this sale, the shares are now publicly held and are no longer

On May 23, 2025, DSS, the parent company of Impact Biomedical, Inc.

completed the sale of 45,400 shares of Impact

Biomedical common stock.

The sale of these shares, which were previously held by DSS as part of its ownership interest in Impact, was

completed for a total approximate value of $ 24,000 , which represents the consideration received from the transaction.

With this sale,

the shares are now publicly held and are no longer held by DSS.

Compensation - The Company records stock-based payment expense related to options and warrants based on the grant date fair value

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Such awards include option grants, warrant grants, and restricted stock awards.

During the six months ended June 30,

During the nine months ended September

30, 2025 and 2024, there were none .

BioMedical, Inc.

Transactions - On May 10, 2023, the Company, the Company’s Board of Directors approved an amendment to the Articles of

Incorporation of the Company to increase the total number of shares of Common Stock to 4,000,000,000 shares with a par value of $ 0.001 .

Transactions - On May 10, 2023, the IBO’s Board of Directors approved an amendment to the Articles of Incorporation

for IBO to increase the total number of shares of Common Stock to 4,000,000,000

shares with a par value of $ 0.001 .

Each share of Common Stock when issued, shall have one (1) vote on all matters presented to the stockholders.

Our Amended and Restated

Articles of Incorporation also authorized 100,000,000 shares of preferred stock, par value $ 0.001 per share.

On May 11, 2023, the Company

effected a forward split.

As a result, there were 3,877,282,251 shares of our Common Stock and no shares of preferred stock issued and

Prior to the split, there were 125,073,621 shares of our Common Stock and no shares of preferred stock issued and outstanding.

On October 31, 2023, the Company effected a reverse stock split of 1 for 55 .

Also on October 31, 2023, DSS BioHealth Securities, Inc.,

the Company’s largest shareholder converted 60,496,041 shares of Common Stock into 60,496,041 shares of Series A Convertible Preferred

Shares, reducing its ownership of the Company’s Common Stock from approximately 88 % to approximately 12 %.

As of September 30, 2024

and December 31, 2023, there were 11,503,955 and 10,000,000 , respectively, shares of our Common Stock and 60,496,041 shares of preferred

stock issued and outstanding.

August 8, 2023 DSS, the Company’s largest shareholder, distributed to its shareholders of record on July 10, 2023 4 shares of Impact

Bio’s stock for 1 share they owned.

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.

October 31, 2023, the Company effected a reverse stock split of 1 for 55 .

Its Amended and

Restated Articles of Incorporation also authorized 100,000,000

shares of preferred stock, par value $ 0.001

On May 11, 2023, IBO effected a forward split.

As a result, there were 3,877,282,251

shares of its Common Stock and no

shares of preferred stock issued and outstanding.

Prior to the split, there were 125,073,621

shares of its Common Stock and no

shares of preferred stock issued and outstanding.

On October 31, 2023, IBO effected a reverse

stock split of 1 for 55 .

Also on October 31, 2023, DSS BioHealth Securities, Inc., IBO’s largest shareholder converted 60,496,041

shares of Common Stock into 60,496,041

shares of Series A Convertible Preferred Shares, reducing its ownership of the IBO’s Common Stock from approximately 88 %

to approximately 12 %.

As of September 30, 2024 and December 31, 2023, there were 11,503,955

and 10,000,000 ,

respectively, shares of its Common Stock and 60,496,041

shares of preferred stock issued and outstanding.

October 31, 2023, IBO effected a reverse stock split of 1 for 55 .

As of December 31, 2023, and December 31, 2022, there were

3,877,282,251 shares of our Common Stock issued and outstanding which was converted to 70,496,041 shares.

3,877,282,251 shares of its Common Stock issued and outstanding which was converted to 70,496,041 shares.

Also on October 31, 2023, DSS

BioHealth Securities, Inc., the Company’s largest shareholder converted 60,496,041 shares of Common Stock into 60,496,041 shares

BioHealth Securities, Inc., IBO’s largest shareholder converted 60,496,041 shares of Common Stock into 60,496,041 shares

of Series A Convertible Preferred Shares, reducing its ownership of the Company’s Common Stock from approximately 88 % to approximately

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Securities, LLC., as representative (the “Representative”) of the underwriters named therein (the “Underwriters”),

pursuant to which the Company agreed to sell to the Underwriters in a firm commitment initial public offering (the “Offering”)

an aggregate of 1,500,000 of the Company’s shares of common stock, par value $ 0.001 per share at a public offering price of $ 3.00

On September 17, 2024, the Company closed the Offering, and as of September 30, 2024 there were 11,497,703 shares of common

pursuant to which IBO agreed to sell to the Underwriters in a firm commitment initial public offering (the “Offering”)

an aggregate of 1,500,000 of IBO’s shares of common stock, par value $ 0.001 per share at a public offering price of $ 3.00

On September 17, 2024, IBO closed the Offering, and as of September 30, 2024 there were 11,497,703 shares of common

stock issued and outstanding.

The total net proceeds to the Company from the Offering, after deducting discounts, expenses allowance

The total net proceeds to IBO from the Offering, after deducting discounts, expenses allowance

and expenses, was approximately $ 3,726,000 (inclusive of approximately $ 1.5 million contributed by DSS).

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under the symbol “IBO” and began trading there on September 16, 2024.

The Company also issued warrants to the Representative

IBO also issued warrants to the Representative

and its affiliates (the “Representative’s Warrants”) warrants to purchase the number of shares of Common Stock in the

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restricted from trading for 180 days from the Offering date.

February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc.

(DSS PureAir”), a related

party, for $ 1,150,000 to be paid by 545,024 shares of the Company’s common stock calculated on a 10-day VWAP.

Assets acquired included

accounts receivable, inventory and intellectual property of the Celios air purification system.

February 26, 2025, the Company issued 36,433 shares of the Company’s common stock as payment of legal fees incurred associated

with the Company’s IPO, registration of shares associated with its equity incentive plan as well as other related services.

June 30, 2025, the Company issued 100,000 shares of the Company’s common stock as payment of legal fees incurred associated with

the Company’s merger and share exchange agreement with Dr.

February 26, 2025, IBO issued 36,433

shares of the Company’s common stock as payment of legal fees incurred associated with IBO’s IPO, registration

of shares associated with its equity incentive plan as well as other related services.

The legal fees received were valued at approximately $ 29,000 .

June 23, 2025, IBO issued 100,000 shares of IBO’s common stock as payment of legal fees incurred

associated with IBO’s merger and share exchange agreement with Dr.

Ashleys Limited.

Compensation – The Company records stock-based payment expense related to options and warrants based on the grant date

The legal fees received were valued at approximately $ 161,000 .

Compensation – IBO records stock-based payment expense related to options and warrants based on the grant date

fair value in accordance with FASB ASC 718.

Stock-based compensation includes expense charges for all stock-based awards to employees,

directors and consultants.

Stock-based compensation includes expense charges for all stock-based awards to

employees, directors and consultants.

Such awards include option grants, warrant grants, and restricted stock awards.

On October 1,

option grants with a purchase price of $ 3.00 per share were awarded to certain officers, directors and consultants of the Company.

options have various vesting periods, and all expire on October 31, 2031.

Potential proceeds of these grants is $ 2,640,000 and are fair

valued using a Black-Scholes model at approximately $ 50,000 .

The Company record stock based compensation expense of approximately $ 4,000

and $ 19,000 for the six month and year ended June 30, 2025 and the year ended December 31, 2024, respectively, and is included in Sales,

general and administrative compensation (inclusive of stock based compensation) on the accompanying Statement of Operations.

2024, 880,000 option grants with a purchase price of $ 3.00 per share were awarded to certain officers, directors and consultants of

These options have various vesting periods, and all expire on October 31, 2031.

Potential proceeds of these grants is

$ 2,640,000 and are fair valued using a Black-Scholes model at approximately $ 50,000 .

IBO record stock based compensation

expense of approximately $ 5,000 and $ 19,000 for the nine month and year ended September 30, 2025 and the year ended December 31,

2024, respectively, and is included in Sales, general and administrative compensation (inclusive of stock based compensation) on the

accompanying Statement of Operations.

Supplemental Cash Flow Information

following table summarizes supplemental cash flows for the six months ended June 30, 2025 and 2024:

following table summarizes supplemental cash flows for the nine months ended September 30, 2025 and 2024:

Schedule of Supplemental Cash Flow Information

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Shares issued in lieu of cash as payment for legal services

Extinguishment of debt

Stock based compensation

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financial needs of the world Gig Economy.

information concerning the Company’s operations by reportable segment for the three and six months ended June 30, 2025 and 2024

information concerning the Company’s operations by reportable segment for the three and nine months ended September 30, 2025 and

2024 is as follows.

The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently,

would report the results contained herein:

The Company relies on intersegment cooperation and management does not represent that these segments, if operated

independently, would report the results contained herein:

Schedule of Operations by Reportable Segment

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Product Packaging

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Operating expense

( 7,587,000 )

( 1,754,000 )

Operating income (loss)

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Other income (expense)

Net income (loss) from continuing operations before taxes

Net income (loss) from operations before taxes

( 10,986,000 )

( 2,229,000 )

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Product Packaging

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( 2,187,000 )

( 4,671,000 )

Other income (expense)

Net income (loss) from continuing operations before taxes

( 1,030,000 )

Net income (loss) from operations before taxes

( 1,751,000 )

( 1,851,000 )

Six Months Ended June 30, 2025

( 1,603,000 )

( 5,701,000 )

Nine Months Ended September 30, 2025

Product Packaging

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Gross profit (loss)

( 1,090,000 )

Operating expense

Operating income (loss)

( 7,519,000 )

Operating income (loss)

( 1,410,000 )

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Other income (expense)

Net loss from continuing operations

( 1,148,000 )

Net income (loss) from operations

( 1,520,000 )

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( 10,154,000 )

Six Months Ended June 30, 2024

Nine Months Ended September 30,2024

Product Packaging

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Other income (expense)

Net income (loss) from continuing operations

( 1,638,000 )

Net loss from operations

( 1,680,000 )

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( 3,098,000 )

( 15,925,000 )

following tables disaggregate our business segment revenues by major source:

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Printed Products Revenue Information:

Three months ended June 30, 2025

Packaging Printing and Fabrication

months ended September 30, 2025

Packaging Printing

and Fabrication

Commercial and Security Printing

Real Property Rental Income

Total Printed Products

Three months ended June 30, 2024

Property Rental Income

Printed Products Revenue

Three months ended September 30, 2024

Packaging Printing and Fabrication

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Real Property Rental Income

Total Printed Products

Six months ended June 30, 2025

Packaging Printing and Fabrication

Total Printed Products Revenue

months ended September 30, 2025

Packaging Printing

and Fabrication

Commercial and Security Printing

Real Property Rental Income

Total Printed Products

Six months ended June 30, 2024

Property Rental Income

Printed Products Revenue

Nine months ended September 30, 2024

Packaging Printing and Fabrication

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Real Property Rental Income

Total Printed Products

Biotechnology

Three months ended June 30, 2025

Total Printed Products Revenue

Lending Revenue Information:

Three months ended September 30, 2025

Net Investment Income

Total Commercial Lending Revenue

Three months ended September 30, 2024

Net Investment Income

Total Commercial Lending Revenue

Nine months ended September 30, 2025

Net investment income

Total Commercial Lending Revenue

Nine months ended September 30, 2024

Net Investment Income

Total Commercial Lending Revenue

Nine months ended September 30, 2024

Total Direct Marketing Revenue

Biotechnology Revenue Information:

Three months ended September 30, 2025

Retail internet sales

Total Biotechnology

Three months ended June 30, 2024

Total Biotechnology Revenue

Three months ended September 30, 2024

Retail internet sales

Total Biotechnology

Six months ended June 30, 2025

Total Biotechnology Revenue

Nine months ended September 30, 2025

Retail internet sales

Total Direct Marketing

Six months ended June 30, 2024

Total Biotechnology Revenue

Nine months ended September 30, 2024

Retail internet sales

Total Direct Marketing

Securities Revenue Information

Three months ended June 30, 2025

Total Biotechnology Revenue

Revenue Information:

Three months ended September 30, 2025

Rental income

Commission income

Total Rental Income

Three months ended June 30, 2024

Total Securities Revenue

Three months ended September 30, 2024

Rental income

Commission income

Total Rental Income

Six months ended June 30, 2025

Total Securities Revenue

Nine months ended September 30, 2025

Rental income

Total Rental Income

Six months ended June 30, 2024

Commission income

Total Securities Revenue

Nine months ended September 30, 2024

Rental income

Total Rental Income

Commercial Lending Revenue Information:

Three months ended June 30, 2025

Net Investment Income

Total Investment Income

Three months ended June 30, 2024

Net Investment Income

Total Rental Income

Six months ended June 30, 2025

Net investment income

Total Management fee income

Six months ended June 30, 2024

Net Investment Income

Total Management fee income

Commission income

Total Securities Revenue

Related Party Transactions

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Chan is also the majority shareholder of Alset Intl as well as the largest shareholder of

The fair value of the marketable security as of June 30, 2025 and December 31, 2024, was approximately $ 2,098,000 and $ 2,518,000 ,

respectively.

During the six months ended June 30, 2025 and 2024, the Company recorded unrealized loss of approximately $ 420,000 and

The fair value of the marketable security as of September 30, 2025 and December 31, 2024, was approximately $ 2,467,000 and

$ 2,518,000 , respectively.

During the nine months ended September 30, 2025 and 2024, the Company recorded unrealized loss of approximately

$ 51,000 and $ 407,000 , respectively.

September 10, 2020, the Company’s wholly owned subsidiary DSS Securities, Inc.

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limited liability company (“BMIC”) whereas DSS Securities, Inc.

purchased 14.9 %

membership interests in BMIC for $ 100,000 .

DSS Securities also had the option to purchase an additional 10 %

of the outstanding membership interest which it exercised for $ 100,000

in January of 2021 and increased its ownership to 24.9 %.

The Company is currently accounting for this investment under the equity method of accounting per ASC 323.

The Company’s

portion of net loss in BMIC during the three months ended June 30, 2025 and 2024, approximated $ 5,000

and $ 7,000 ,

respectively.

BMIC is a broker-dealer registered with the Securities and Exchange Commission, is a member of the Financial Industry

Regulatory Authority, Inc.

(“FINRA”), and is a member of the Securities Investor Protection Corporation

The Company’s chairman of the board and another independent board member of the Company also have

ownership interest in BMIC.

On February 28, 2022, the Company entered into a Stock Purchase Agreement

with Alset EHome International Inc.

(“AEI”), pursuant to which AEI has agreed to sell a subsidiary holding 62,336,908 shares

of stock of True Partner Capital Holding Limited exchange for 17,570,948 shares of common stock of the Company (the “DSS Shares”).

The Company’s Executive Chairman and a significant stockholder, Heng Fai Ambrose Chan is the Chairman, Chief Executive Officer and

largest shareholder of AEI.

purchased 14.9 % membership interests in BMIC for

DSS Securities also had the option to purchase an additional 10 % of the outstanding membership interest which it exercised

for $ 100,000 in January of 2021 and increased its ownership to 24.9 %.

The Company is currently accounting for this investment under

the equity method of accounting per ASC 323.

The Company’s portion of net gain in BMIC during the nine months ended September

30, 2025 was approximately $ 4,000 and a net loss for the nine months ended September 30, 2024, of approximately $ 3,000 .

broker-dealer registered with the Securities and Exchange Commission, is a member of the Financial Industry Regulatory Authority,

(“FINRA”), and is a member of the Securities Investor Protection Corporation (“SIPC”).

Company’s chairman of the board and another independent board member of the Company also have ownership interest in

February 28, 2022, the Company entered into a Stock Purchase Agreement with Alset EHome International Inc.

(“AEI”), pursuant

to which AEI has agreed to sell a subsidiary holding 62,336,908 shares of stock of True Partner Capital Holding Limited exchange for

17,570,948 shares of common stock of the Company (the “DSS Shares”).

The Company’s Executive Chairman and a significant

stockholder, Heng Fai Ambrose Chan is the Chairman, Chief Executive Officer and largest shareholder of AEI.

Further, on February 20,

2025, the Company acquired an additional 19,500,000 shares of True Partners.

The fair value of the marketable security as of September

30, 2025 and December 31, 2024, was approximately $ 5,679,000 and $ 3,815,000 , respectively.

During the nine months ended September 30,

2025 and 2024, the Company recorded unrealized gain of approximately $ 1,864,000 and a loss of approximately $ 936,000 , respectively.

August 29, 2022, DSS Financial Management Inc and BMI Capital, Inc.

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All unpaid principal and interest is due on August 29, 2025 .

The outstanding principal and interest at June 30, 2025,

and December 31, 2024 approximated $ 83,000 , and was fully reserved for as of June 30, 2025 and December 31, 2024.

DSS owns 24.9 % of the

outstanding common shares of BMIC.

The outstanding principal and interest at September

30, 2025, and December 31, 2024 approximated $ 83,000 , and was fully reserved for as of September 30, 2025 and December 31, 2024.

owns 24.9 % of the outstanding common shares of BMIC.

May 8, 2023, DSS Financial Management Inc and BMIC entered into a promissory note (“Note 9”) in the principal sum of $ 102,000

with interest at the prime rate plus 2 % ( 10.5 % at September 30, 2024 and December 31, 2023) with a maturity date of May 7, 2026 .

outstanding principal and interest at June 30, 2025, and December 31, 2024 approximated $ 110,000 , and was fully reserved for as of June

30, 2025 and December 31, 2024.

outstanding principal and interest at September 30, 2025, and December 31, 2024 approximated $ 110,000 , and was fully reserved for as

of September 30, 2025 and December 31, 2024.

DSS owns 24.9 % of the outstanding common shares of BMIC.

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principal and interest is due July 26, 2025.

The outstanding principal and interest as of June 30, 2025 and December 31, 2024 approximates

The outstanding principal and interest as of September 30, 2025 and December 31, 2024 approximates

Approximately $ 959,000 of this note was reserved for as of December 31, 2024.

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The BMIC loan contains an auto

renewal period of three months, with a current maturity date of July 2025.

As of June 30, 2025, and December 31, 2024, the outstanding

renewal period of three months, with a current maturity date of October 2025.

As of September 30, 2025, and December 31, 2024, the outstanding

principal and interest of approximately $ 464,000 and $ 463,000 , respectively, are included in Current portion of long-term debt –

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borrowed the principal amount of $ 3,000,000 , with interest to be charged at a variable rate to be calculated at the maturity date.

Wilson Loan matures on October 12, 2022 , and contains an auto renewal period of three months with a current maturity date of July 2025.

As of March 31, 2025, and December 31, 2024, the outstanding principal and interest of approximately $ 145,000 and $ 145,000 , respectively,

are included in Current portion of long-term debt – related party, net on the consolidated balance sheet.

Wilson Loan matures on October 12, 2022 , and contains an auto renewal period of three months with a current maturity date of October

As of September 30, 2025, and December 31, 2024, the outstanding principal and interest of approximately $ 145,000 and $ 145,000 ,

respectively, are included in Current portion of long-term debt – related party, net on the consolidated balance sheet.

February 6, 2025, as a bonus for compensation awarded to Heng Fai Holdings Limited (“HFHL”), a Hong Kong Company, which is

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The issuance was approved by the board of directors on January 31, 2025.

In August of 2025, DSS

issued a $ 500,000 convertible promissory note to Alset, Inc.

(“holder”), bearing interest at Prime ( 7.25 % at September

The first 12 months’ interest is to be paid in shares of the Company;

thereafter, interest is prepaid annually in

cash or shares at the holder’s election.

The note is convertible at the holder’s option at a fixed $ 0.86 per share, is

payable on demand (or July 31, 2028 if not demanded), and may be redeemed by the Company on or after the first anniversary.

Company is required to reserve sufficient authorized shares and maintain the listing/quotation of its common stock.

2020-06 and ASC 815-40, the debt host’s embedded conversion feature is indexed to the Company’s own stock and is

equity-classified;

accordingly, no embedded derivative is bifurcated and the instrument is accounted for as single-unit debt using

the effective interest method.

Interest is recognized in interest expense;

when settled in shares, a credit to APIC is recorded at

the fair value of shares on settlement, and any prepaid interest is recorded as a discount/prepaid and amortized to expense over the

related period.

The outstanding principal and interest, approximates $ 503,000

and is included in Current portion of long-term debt, net on the accompanying consolidated balance sheet at September 30, 2025.

is a related party and the Company’s largest shareholder.

Subsequent Events

Company has evaluated all subsequent events and transactions through August 14, 2025 the date that the condensed consolidated

financial statements were available to be issued and noted no subsequent events requiring financial statement recognition or

disclosure other than noted below:

On June 21, 2025, Impact BioMedical Inc.

(“Impact”), Dr Ashleys

Limited, a Cayman Islands exempted company limited by shares (“PubCo”), Dr Ashleys Nevada Sub, Inc., a Nevada corporation

and wholly-owned subsidiary of PubCo (“Merger Sub”), Dr Ashleys Bio Labs Limited, a Cayman Islands exempted company limited

by shares (“Dr Ashleys Cayman”), and Kanans Visvanats (a.k.a.

Kannan Vishwanatth), a Latvian national, solely in his capacity

as the sole shareholder of Dr Ashleys (“Dr Ashleys Shareholder”) entered into a Merger and Share Exchange Agreement (the “Merger

Pursuant to the Merger Agreement and subject to the terms and conditions set forth therein, (i) Merger Sub shall be

merged with and into Impact with Impact being the surviving entity (the “Merger”), and (ii) simultaneous with or immediately

following the Merger, PubCo shall acquire all of the issued and outstanding ordinary shares of Dr Ashleys Cayman from the Dr Ashleys Shareholder

(the “Share Exchange”).

This transaction is expected to close during the fourth quarter of 2025.

Company has evaluated all subsequent events and transactions through November 14, 2025 the date that the condensed consolidated financial

statements were available to be issued and noted no subsequent events requiring financial statement recognition or disclosure other than

In October of 2025, AMRE

received notice from one if its tenants that it will not be continuing its lease at our Pittsburgh facility due to the

tenant’s inability to obtain certain medical practice licenses in the state of Pennsylvania.

As of September 30, 2025, the Company has recorded within other assets, a rent receivable of approximately $ 90,000

that has been past due for the tenant, while recorded the lease receivable of approximately $ 1,184,000 for the remaining term.

would continue to evaluate this circumstance, and determine whether a loss would be recognized at year end.

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-Q

Item 1. Financial Statements