What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-11-14 compared with 2025-08-14 · 178 added, 154 removed, 183 unchanged (64% of the section changed)

86 unchanged sentences

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

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

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

Equivir/Nemovir technology is a novel

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

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

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

Myricetin is a member of the flavonoid class of polyphenolic compounds

with antioxidant properties.

Multi-faceted

therapeutic platform for metabolic, neurologic, cancer, and infectious diseases.

A polyphenol compound

that is believed to be successful in antiviral infection treatments.

Equivir/Nemovir technology is a novel blend of FDA Generally

Recognized as Safe (“GRAS”) eligible polyphenols ( e.g., Myricetin, Hesperetin, Piperine) which have demonstrated

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

Polyphenols are sourced from fruits,

vegetables, and other natural substances.

Myricetin is a member of the flavonoid class of polyphenolic compounds with antioxidant

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

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

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

Advanced bio-compatible plastics that mitigate accumulation of plastics in oceans and landfills and provide UVA and UVB protection

for many types of material for including containers, hard surfaces, and fibers for clothing.

The technology is presently in development

and testing antimicrobial plastics for consumer products that control the spread of active pathogens such as SARS-CoV-2, Influenza,

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

These new plastics are specifically focused

on solutions for common products such as cups, plates, utensils, plastic bags, and countertops.

The first prototypes are currently

undergoing antimicrobial resistance testing.

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

and metabolic response of sugar alone.

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

a breakthrough alternative sugar aimed to combat diabetes.

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

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

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

3F is a unique formulation of specialized

ingredients ( e.g.

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

Food preservative

booster made up of polyphenols that extend the shelf life.

Advanced bio-compatible

plastics that mitigate accumulation of plastics in oceans and landfills and provide UVA and UVB protection for many types of material

for including containers, hard surfaces, and fibers for clothing.

The technology is presently in development and testing antimicrobial

plastics for consumer products that control the spread of active pathogens such as SARS-CoV-2, Influenza, E.

coli, Staph, and Rhinovirus,

by exploiting key strategies found in the biological realm.

These new plastics are specifically focused on solutions for common products

such as cups, plates, utensils, plastic bags, and countertops.

The first prototypes are currently undergoing antimicrobial resistance

Laetose technology

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

response of sugar alone.

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

alternative sugar aimed to combat diabetes.

The use of Laetose in a daily diet, compared to sugar, could result in 30% lower sugar

consumption and lower glycemic index/load.

A botanical compound

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

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

terpenes) from botanical sources with demonstrated effect as an insect repellent and an antimicrobial.

Mosquito Repellent:

3F Mosquito Repellent:

3F repellent contains botanical ingredients that mosquitos avoid.

These ingredients are scientifically proven1

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

This can be utilized as

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

Antimicrobial:

3F antimicrobial contains botanical ingredients known to kill viruses.

These ingredients are scientifically proven

to inhibit viral replication.

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

fabrics, and other substances.

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

effectiveness and persistence of natural compounds and existing drugs.

These ingredients are scientifically proven1 to affect the mosquito’s

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

This can be utilized as a stand-alone repellent or as

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

3F Antimicrobial:

3F antimicrobial

contains botanical ingredients known to kill viruses.

These ingredients are scientifically proven to inhibit viral replication.

can be utilized as a stand-alone antimicrobial or as an additive in detergents, lotions, shampoo, fabrics, and other substances.

The solution to

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

and persistence of natural compounds and existing drugs.

The safety attributes of the original molecules are maintained.

Typically, drug discovery processes modify functional groups.

drug discovery processes modify functional groups.

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

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

Med (license):

A probiotic gut health product that helps to regulate many physiological functions, ranging from energy regulation

and cognitive processes to toxin neutralization and immunity against pathogens.

Bio Med (license):

gut health product that helps to regulate many physiological functions, ranging from energy regulation and cognitive processes to

toxin neutralization and immunity against pathogens.

and Investment Management:

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and services:

Management Fund:

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

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

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

and critical care businesses.

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

medical outpatient services.

REIT Management Fund:

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

Management, Inc.) Through AAMI/AMRE, a medical real estate investment trust, fulfills community needs for quality healthcare facilities

while enabling care providers to allocate their capital to growth and investment in their contemporary clinical and critical care

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

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

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

as well as preferred stock, and accelerates the trajectory of the DSS digital securities business.

BMIC is a private investment bank specializing in corporate finance advising, raising equity, and venture services, providing

a global “one-stop” corporate consultancy to listed companies.

From corporate finance to professional valuation, corporate

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

Wealth Management:

Sentinel Brokers Company, Inc.

(“Sentinel”) began business on January 1, 1996.

It’s primarily engaged in acting

as an intermediary facilitating the trading of Municipal Bonds and Preferred Stocks between institutions.

Sentinel has no retail

customer base.

Sentinel is a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA) and the Securities

Exchange Commission.

Sentinel, as a non-clearing broker, does not handle customers’ funds or securities.

In April of 2025,

Sentinel received approval from FINRA to perform underwriting licenses.

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

corporate consultancy to listed companies.

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

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

DSS Wealth Management:

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

AmericaFirst expects to expand into

numerous investment platforms including additional mutual funds and exchange-traded funds.

AmericaFirst currently consists of four

mutual funds that seek to outperform their respective benchmark indices by applying top-down, fundamental research, quantitative

and technical analysis to stock selection and portfolio management.

AmericaFirst expects to expand into numerous investment

platforms including additional mutual funds and exchange-traded funds.

AmericaFirst currently consists of four mutual funds that

seek to outperform their respective benchmark indices by applying top-down, fundamental research, quantitative and technical analysis

to stock selection and portfolio management.

Marketing Segment :

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

of operations for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024.

of operations for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024.

discussion should be read in conjunction with the financial statements and footnotes contained in this Quarterly Report and in our Annual

Report on Form 10-K for the year ended December 31, 2024.

Three months ended June 30, 2025

Three months ended June 30, 2024

Six months ended June 30, 2025

Six months ended June 30, 2024

Product Packaging

Commercial Lending

Biotechnology

the six months ended June 30 2025, total revenue increased 27% as compared to the six months ended June 30, 2024.

The increase in Printed

Product revenue of approximately 25% is driven by new customer orders as well as existing customer orders exceeding their forecasts.

The increases in Securities revenue of approximately 45% is driven by an increase in rental income by new tenants at AMRE LifeCare Pittsburgh

facility beginning to making rental payments in the second half of 2024.

The decreases in Commercial lending revenue of approximating

Three months ended September 30, 2025

Three months ended September 30, 2024

Nine months ended September 30, 2025

Nine months ended September 30, 2024

Printed products

Rental income

Net investment income

Commission revenue

Biotechnology retail sales

Total Revenue

the nine months ended September 30 2025, total revenue increased 22% as compared to the nine months ended September 30, 2024.

in Printed Product revenue of approximately 16% is driven by new customer orders as well as existing customer orders exceeding their

The increases in Securities revenue of approximately 61% is driven by an increase in rental income by new tenants at AMRE

LifeCare Pittsburgh facility beginning to making rental payments in the second half of 2024.

The decreases in Net investment income approximating

80% is due to a number of loans made going on non-accrual as borrowers have struggled to make expect payments.

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is driven by sales of the Company’s air purification Celios brand.

Three months ended June 30, 2025

Three months ended June 30, 2024

Six months ended June 30, 2025

Six months ended June 30,2024

Three months ended September 30, 2025

Three months ended September 30, 2024

Nine months ended September 30, 2025

Nine months ended September 30,2024

Cost of revenue

Printed products

Product Packaging

Biotechnology

Commercial lending

Commercial Lending

Direct marketing

Direct Marketing

Sales, general and administrative compensation

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impairment of notes receivable for those amounts at risk of collection.

Total costs of revenue remained flat for the six months ended

June 30, 2025 as compared to June 30, 2024.

Cost of revenue increased at our Printed products business line driven by an increase in

revenue which was offset by decrease in cost of revenue within our REIT business driven by the sale of the Plano, Tx facility as well

as new tenants at our Pittsburgh, PA facility paying related cost previously paid for by the Company.

general and administrative compensation costs, excluding stock-based compensation, increased 30% for six months ended Jun 30, 2025

as compared to 2024 is primarily due to bonus awarded to Heng Fai Holdings Limited (“HFHL”), a Hong Kong Company, which is

beneficially owned by Mr.

Total costs of revenue decreased for the nine months ended September

30, 2025 as compared to September 30, 2024 by approximately 3%.

Cost of revenue increased at our Printed products business line driven

by an increase in revenue which was offset by decrease in cost of revenue within our REIT business driven by the sale of the Plano, Tx

facility as well as new tenants at our Pittsburgh, PA facility paying related cost previously paid for by the Company as well as decreases

in our Commercial lending business unit driven by decreases on loans reserved for year over year.

general and administrative compensation costs, excluding stock-based compensation, increased 21% for nine months ended September

30, 2025 as compared to 2024 is primarily due to bonus 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., for services rendered.

The issuance was approved by the board

of directors on January 31, 2025.

fees decreased 13% for six months ended June 30, 2025 as compared to 2024 due primarily to efforts taken to decrease these costs

as the Company continues to drive savings in non-essential areas.

The issuance was approved by

the board of directors on January 31, 2025.

fees increased for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 due to

cost incurred associated with the resignation of the Company’s position as the registered investment advisor for the

AmericanFirst Funds as well as recruiting costs incurred to expand the sales force at Premier Packaging.

Professional fees increased for the nine

months ended September 30, 2025 as compared to 2024 due primarily to efforts taken to control these costs as the Company continues

to drive savings in non-essential areas.

based compensation includes expense charges for all stock-based awards to employees, directors, and consultants of Impact Bio.

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and trade show participation expenses.

Sales and marketing decreased 13% during the six months ended June 30, 2025 as compared to 2024

due to decreases in marketing, and travel costs within our Printed Products division.

and utilities decreased 39% during the six months ended June 30, 2025 as compared to 2024 primarily due to end of the lease in office

space in California for the Company’s DSS Wealth Management subsidiary.

and development costs represent costs consisting primarily of independent, third-party testing of the various properties of each

technology the Company owns possesses as well as research on new technologies.

These costs decreased 41% the six months ended June 30,

2025 as compared to June 30, 2024, due primarily to decreased efforts in this area post Impact Bio’s IPO in September 2024.

Sales and marketing decreased 21% during the nine months ended September 30, 2025 as compared

to 2024 due to decreases in marketing, and travel costs within our Printed Products division.

and utilities decreased 29% during the nine months ended September 30, 2025 as compared to 2024 primarily due to end of the

lease in office space in California for the Company’s DSS Wealth Management subsidiary.

Research and development

costs represent costs consisting primarily of independent, third-party testing of the various properties of each technology the Company

owns possesses as well as research on new technologies.

These costs increased for the three and nine months ended September 30, 2025

as compared to September 30, 2024, due cost incurred to file, perfect or update existing and potential patents on technologies owned

by Impact BioMedical.

operating expenses consist primarily of equipment maintenance and repairs, office supplies, IT support, and insurance costs.

costs decreased approximately 29% during the six months ended June 30, 2025 as compared to June 30, 2024, primarily due to collections

of previously written-off of accounts receivable associated with our AMRE LifeCare facilities of approximately $600,000.

costs decreased approximately 20% during the nine months ended September 30, 2025 as compared to September 30, 2024, primarily due to

collections of previously written-off of accounts receivable associated with our AMRE LifeCare facilities of approximately $600,000.

Income (Expense)

Three months ended June 30, 2025

Three months ended June 30, 2024

Six months ended June 30, 2025

Six months ended June 30,2024

Three months ended September 30, 2025

Three months ended September 30, 2024

Nine months ended September 30, 2025

Nine months ended September 30, 2024

Interest Income

Dividend Income

Other Income (expense)

Interest Expense

Foreign Currency Translation Adjustment

Gain/(Loss) on extinguishment of debt

(Loss)/gain on equity method investment

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(Loss)/gain on sale

Total other income (expense)

Total other income

$ (1,030,000 )

$ (1,638,000 )

income is recognized on the Company’s money markets, and a portion of notes receivable, identified in Note 4.

in interest income is driven by several notes being put on non-accrual as the related borrowers have shown an inability to pay timely.

income for the six months ended June 30, 2025 as compared to 2024 decreased 76% due primarily to income incurred in 2024 regarding

income for the nine months ended September 30, 2025 as compared to 2024 decreased 74% due primarily to income incurred in 2024 regarding

the Company’s distribution agreement with BioMed Technologies that did not reoccur in 2025.

expenses decreased 18% during the six months ended June 30, 2025, as compared to the same period in 2024, due to decreasing debt

expenses decreased 20% during the nine months ended September 30, 2025, as compared to the same period in 2024, due to

decreasing debt balances driven by the sale of the Company’s Plano, Texas facility.

on equity method investment is the Company’s prorated portion of earnings on its investments treated under the equity method

of account for the six months ended June 30, 2025 as compared to 2024.

of account for the nine months ended September 30, 2025 as compared to 2024.

(loss)on investments consists of net realized losses on marketable securities which are recognized as the difference between the

purchase price and sale price of the common stock investment, and net unrealized losses on marketable securities which are

recognized on the change in fair market value on our common stock investment.

The decrease in loss on investment for the six months

ended June 30, 2025 as compared to 2024 is driven by the performance of our stock portfolio, driven by the sale of Impact Bio stock

acquired at the time of its IPO (see Note 12).

purchase price and sale price of the common stock investment, and net unrealized losses on marketable securities which are recognized

on the change in fair market value on our common stock investment.

The decrease in loss on investment for the nine months ended September

30, 2025 as compared to 2024 is driven by the performance of our stock portfolio.

of intangible assets is a result of the Company resigning its position as the registered investment advisor (“RIA”) of

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for loan losses represents a reserve put against certain notes receivable deemed uncollectible.

During the six months ended June

During the nine months ended September

30, 2025, the Company reviewed the entire loan portfolio and determined no additional provisions for loan losses was necessary.

on sale of real estate is driven by the sale of the Company’s Plano, Texas facility.

Three months ended June 30, 2025

Three months ended June 30, 2024

Six months ended June 30, 2025

Three months ended September 30, 2025

Three months ended September 30, 2024

Nine months ended September 30, 2025

Nine months ended September 30, 2024

$ (2,229,000 )

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$ (15,762,000 )

the six months ended June 30, 2025 the Company recorded net losses of $7,902,000 as compared to net losses of $10,603,000 for the same

period in 2024.

The decrease in net loss is driven increases in revenue at our Printed products and Securities divisions of approximately

$1,654,000 and $589,000 respectively.

The Company also saw a gain in our investments of approximately $1,662,000 during this time frame.

This is offset by the bonus paid to Heng Fai Holdings Limited of approximately $871,000 during the first quarter of 2025 as well as an

approximate loss of $727,000 on the sale of the Company’s Plano, Tx facility.

the nine months ended September 30, 2025 the Company recorded net losses of $10,088,000 as compared to net losses of $15,762,000 for

the same period in 2024.

The decrease in net loss is driven increases in revenue at our Printed products and Securities divisions of

approximately $1,820,000 and $1,242,000 respectively.

The Company also saw a gain in our investments of approximately $2,126,000 during

this time frame.

This is offset by the bonus paid to Heng Fai Holdings Limited of approximately $871,000 during the first quarter of

2025 as well as an approximate loss of $727,000 on the sale of the Company’s Plano, Tx facility.

AND CAPITAL RESOURCES

The Company has historically met its liquidity and capital requirements

primarily through the sale of its equity securities and debt financing.

As of June 30, 2025 the Company had cash of approximately $9.5

As of June 30, 2025, the Company believes that it will have access to sources of capital from the sale of its equity securities

and debt financing, and thus believes that it has sufficient cash to meet its cash requirements for at least the next 12 months from the

filing date of this Quarterly Report.

Flow from Continuing Operating Activities

cash provided by operating activities was $430,000 for the six months ended June 30, 2025 as compared to cash used of $5,574,000 for

six months ended June 30, 2024.

Company has historically met its liquidity and capital requirements primarily through the sale of its equity securities and debt financing.

As of September 30, 2025 the Company had cash of approximately $9.5 million.

As of September 30, 2025, the Company believes that it will

have access to sources of capital from the sale of its equity securities and debt financing, and thus believes that it has sufficient

cash to meet its cash requirements for at least the next 12 months from the filing date of this Quarterly Report.

Flow from Operating Activities

cash used by operating activities was $7,576,000 for the nine months ended September 30, 2025 as compared to cash used of $5,889,000

for nine months ended September 30, 2024.

This fluctuation is driven by decreases in net loss, after reconciling items, approximating

$2,808,000, offset by increases in accounts receivable by approximately $3,227,000

Flow from Investing Activities

Net cash provided by investing activities was $10,135,000 for the six months

ended June 30, 2025 as compared to net cash provided by investing activities of $8,776,000 for the six months ended June 30, 2024.

fluctuation is driven by the sale of real estate approximating $9,500,000, the sale of marketable securities of approximately $116,000,

and the sale of related party investments of approximately $1,500,000, offset by the purchase of marketable securities of approximately

$1,000,000 during 2025 versus a sale of marketable securities of $0 during 2024.

This is offset by receipts on Notes receivable of $4,044,000

in 2024 versus $163,000 in 2025.

cash provided by investing activities was $12,080,000 for the nine months ended September 30, 2025 as compared to net cash provided by

investing activities of $9,916,000 for the nine months ended September 30, 2024.

This fluctuation is driven by the sale of real estate

approximating $9,023,000, the sale of marketable securities of approximately $3,438,000, and the sale of related party investments of approximately

$2,414,000, offset by the purchase of marketable securities of approximately $2,794,000 during 2025 versus a sale of marketable securities

of $0 during 2024.

This is offset by receipts on Notes receivable of $4,039,000 in 2024 versus $225,000 in 2025.

Flow from Financing Activities

Net cash used by financing activities was $12,511,000 for the six months

ended June 30, 2025 as compared to net cash provided by financing activities of $902,000 for the six months ended June 30, 2024.

variance is driven by payments toward long term debt of $9,443,000 and payments on margin loans of $3,117,000 in 2025 versus payments

toward long term debt of $1,269,000 in 2024 and no payments on margin loans during 2024.

cash used by financing activities was $8,816,000 for the nine months ended September 30, 2025 as compared to net cash provided by

financing activities of $989,000 for the nine months ended September 30, 2024.

This variance is driven by payments toward long term

debt of $11,492,000, payments on margin loans of $943,000 offset by borrowings of long-term debt of $3,250,00 in 2025 versus

payments toward long term debt of $1,492,000 in 2024, no payments on margin loans during 2024, offset by issuance of common stock of a subsidiary of $2,227,000.

Sheet Arrangements

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There have been

no material changes to such critical accounting policies as of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

no material changes to such critical accounting policies as of the Quarterly Report on Form 10-Q for the quarter ended September 30,

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 2. Management’s Discussion and Analysis