What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-15 · 94 added, 74 removed, 243 unchanged (41% of the section changed)

172 unchanged sentences

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

of operations for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

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

March 31, 2025

March 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

1 unchanged sentence

Biotechnology

the three months ended March 31 2025, total revenue increased 28% as compared to the three months ended March 31, 2024.

in Printed Product revenue of approximately 30% is driven by new customer orders as well as existing customer orders exceeding their

The increases in Rental income of 79% is driven by new tenants at AMRE LifeCare Pittsburg facility beginning to making rental

payments in the second half of 2024.

The decreases in Net investment income approximating 78% is due to a number of loans made going

on non-accrual as borrowers have struggled to make expect payments.

Commission revenue, associated with Sentinel Brokers Company subsidiary,

decrease 27% due to decreases in commissions on equity trading resulting from a change in clearing houses which required such transactions

to be put on hold during the transition.

This revenue stream has begun to ramp up during the first quarter of 2025.

March 31, 2025

March 31, 2024

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

79% is due to a number of loans made going on non-accrual as borrowers have struggled to make expect payments.

Biotechnology revenue

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

Cost of revenue

5 unchanged sentences

Commercial Lending

Direct marketing

Direct Marketing

Sales, general and administrative compensation

16 unchanged sentences

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

Total costs of revenue increased 4% in 2025 as compared to 2024,

primarily due to the increase in revenue associated with our Printed product business line.

general and administrative compensation costs, excluding stock-based compensation, increased 67% for three months ended March 31,

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 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.

Heng Fai Ambrose Chan, Director of DSS, Inc., for services rendered.

1 unchanged sentence

of directors on January 31, 2025.

fees decreased 49% for three months ended March 31, 2025 as compared to 2024 due primarily to efforts taken to decrease these costs

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.

5 unchanged sentences

and trade show participation expenses.

Sales and marketing decreased 19% during the three months ended March 31, 2025 as compared to

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

and utilities decreased 7% during the three months ended March 31, 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.

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 increased 372% the three months ended March

31, 2025 as compared to March 31, 2024, due primarily to increased efforts in this area post Impact Bio’s IPO in September 2024.

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.

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

These costs decreased approximately 73% during the three months ended March 31, 2025 as compared to March 31, 2024, primarily due to

collections of previously written-off of accounts receivable associated with our AMRE LifeCare facilities of approximately

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.

Income (Expense)

March 31, 2025

March 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

Interest Income

Interest Expense

Loss on equity method investment

Loss on investments

Foreign Currency Translation Adjustment

(Loss)/gain on equity method investment

Gain (loss) on investments

Impairment of intangible assets

Provision for loan losses

Loss on sale of real estate

Total other expense

$ (1,637,000 )

(Loss)/gain on sale

Total other income (expense)

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 three months ended March 31, 2025 as compared to 2024 decreased 81% due primarily to income incurred in

2024 regarding the Company’s distribution agreement with BioMed Technologies that did not reoccur in 2025.

expenses decreased 31% during the three months ended March 31, 2025, as compared to the same period in 2024, due to decreasing debt

income for the six months ended June 30, 2025 as compared to 2024 decreased 76% 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

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

of account for the three months ended March 31, 2025 as compared to 2024.

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 three months ended March 31, 2025 as

compared to 2024 is driven by the performance of our stock portfolio.

of account for the six months ended June 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).

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

the American First Mutual Funds.

The related asset was acquired at the time the Company became the RIA in September 2021.

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

During the three months ended March

During the six months ended June

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.

March 31, 2025

March 31, 2024

Three months ended June 30, 2025

Three months ended June 30, 2024

Six months ended June 30, 2025

$ (2,607,000 )

$ (4,954,000 )

the three months ended March 31, 2025 the Company recorded net losses of $5,296,000 as compared to net losses of $5,109,000 for the same

$ (7,902,000 )

$ (10,063,000 )

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 increase in net loss is driven 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 $683,000 on the sale of the Company’s Plano, Tx facility.

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.

AND CAPITAL RESOURCES

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

As of March 31, 2025 the Company had cash of approximately $11.0 million.

As of March 31, 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.

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 used by operating activities was $1,638,000 for the three months ended March 31, 2025 as compared to $2,150,000 for three months

ended March 31, 2024.

This fluctuation is driven by decreases in net loss, after reconciling items, approximating $1,816,000 offset by

the paydown of various liabilities approximating $1,121,000.

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.

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

Flow from Investing Activities

cash provided by investing activities was $12,876,000 for the three months ended March 31, 2025 as compared to net cash provided by

investing activities of $5,097,000 for the three months ended March 31, 2024.

This fluctuation is driven by the sale of real estate

approximating $9,500,000, the sale of marketable securities of approximately $2,806,000, 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 $1,160,000 during 2024.

This is offset by receipts on Notes receivable of $3,971,000 in 2024 versus

$122,000 in 2025.

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.

Flow from Financing Activities

cash used by financing activities was $11,694,000 for the three months ended March 31, 2025 as compared to net cash used by financing

activities of $310,000 for the three months ended March 31, 2024.

This variance is driven by payments toward long term debt of

$8,997,000 and payments on margin loans of $2,806,000 in 2025 versus payments toward long term debt of $1,062,000 in

2024 and no payments on margin loans during 2024.

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.

Sheet Arrangements

8 unchanged sentences

There have been

no material changes to such critical accounting policies as of the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

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

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