EX-99.1 2 ex99-1.htm

 

Exhibit 99.1

 

DSS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

As of September 30, 2021

 

   Pre-Acquisition
DSS (Purchaser)
   Record 12.23.2021
Investment
   Post-Acquisition
DSS (Purchaser)
   Sharing Service Global Corp (Target)   Proforma
Adjustment
(Note 1)
   Proforma Adjustment (Note 2)   Consolidated 
ASSETS                                   
Current assets:                                   
Cash and cash equivalents  $69,137,000   $(3,000,000)  $66,137,000   $28,841,283             $94,978,283 
Restricted cash   350,000         350,000    -              350,000 
Accounts receivable, net   2,774,000         2,774,000    1,538,965              4,312,965 
Income taxes receivable   -         -    1,974,211              1,974,211 
Inventory   3,535,000         3,535,000    5,604,519              9,139,519 
Current portion of notes receivable   19,716,000         19,716,000    136,281    (16,830,000)        3,022,281 
Prepaid expenses and other current assets   1,469,000         1,469,000    2,506,799              3,975,799 
Total current assets   96,981,000    (3,000,000)   93,981,000    40,602,058    (16,830,000)   -    117,753,058 
                                    
Property, plant and equipment, net   6,396,000         6,396,000    921,694              7,317,694 
Investment in real estate   6,495,000         6,495,000    -              6,495,000 
Other investments   11,337,000         11,337,000    -    (6,536,000)        4,801,000 
Investment, equity method   16,107,000         16,107,000    -         (14,872,000)   1,235,000 
Marketable securities   9,207,000         9,207,000    -              9,207,000 
Notes receivable   4,483,000         4,483,000    -              4,483,000 
Other assets   409,000         409,000    98,312              507,312 
Right-of-use assets   198,000         198,000    319,517              517,517 
Deferred tax asset, net   283,000         283,000    -              283,000 
Investment in unconsolidated entities   -         -    5,051,970              5,051,970 
Investment in target   -    3,000,000    3,000,000    -         (3,000,000)   - 
Goodwill   43,807,000         43,807,000    -              43,807,000 
Other intangible assets, net   23,373,000         23,373,000    760,299              24,133,299 
Total assets  $219,076,000   $-   $219,076,000   $47,753,850   $(23,366,000)  $(17,872,000)  $225,591,850 
                                    
LIABILITIES AND STOCKHOLDERS’ EQUITY                                   
                                    
Current liabilities:                                   
Accounts payable  $1,948,000        $1,948,000   $1,169,030             $3,117,030 
Accrued expenses and deferred revenue   9,555,000         9,555,000    -              9,555,000 
Other current liabilities   415,000         415,000    9,750,273              10,165,273 
Current portion of lease liability   122,000         122,000    -              122,000 
Current portion of long-term debt, net   498,000         498,000    100,000              598,000 
Total current liabilities   12,538,000    -    12,538,000    11,019,303    -    -    23,557,303 
                                  - 
Long-term debt, net   6,664,000         6,664,000    5,367,394    (4,872,262)        7,159,132 
Long term lease liability   75,000         75,000    31,597              106,597 
Other long-term liabilities   507,000         507,000    -              507,000 
Deferred tax liability, net   -         -    4,149,937              4,149,937 
                                    
Stockholders’ equity                                   
Preferred stock, $.02 par value; 47,000 shares authorized, shares issued and outstanding (43,000 on December 31, 2020); Liquidation value $1,000 per share, $- aggregate. $43,000,000 on December 31, 2020)   -         -    -         -    - 
Series A convertible preferred stock, $0.0001 par value, 100,000,000 shares designated, 3,100,000 shares and 5,100,000 shares issued and outstanding at September 30 and March 31, respectively   -         -    310         (310)   - 
Series C convertible preferred stock, $0.0001 par value, 10,000,000 shares designated, 3,220,000 shares and 3,230,000 shares issued and outstanding at September 30 and March 31, respectively   -         -    322         (322)   - 
Common stock, $.02 par value; 200,000,000 shares authorized, 79,745,886 shares issued and outstanding (5,836,000 on December 31, 2020)   1,594,000         1,594,000    -         -    1,594,000 
Common Stock, $0.0001 par value, 800,000,000 Class A shares authorized, 187,610,769 shares and 160,100,769 shares issued and outstanding at September 30 and March 31, respectively   -         -    18,761         (18,761)   - 
Additional paid-in capital   294,682,000         294,682,000    71,922,718    (27,000,000)   (44,922,718)   294,682,000 
Non-controlling interest in subsidiary   23,395,000         23,395,000    -         (17,686,381)   5,708,619 
Shares to be issued   -         -    12,146         (12,146)   - 
Accumulated deficit   (120,379,000)        (120,379,000)   (44,792,611)   8,506,262    44,792,611    (111,872,738)
Cumulative translation adjustments   -         -    23,973         (23,973)   - 
Total stockholders’ equity   199,292,000    -    199,292,000    27,185,619    (18,493,738)   (17,872,000)   190,111,881 
                                  - 
Total liabilities and stockholders’ equity  $219,076,000   $-   $219,076,000   $47,753,850   $(23,366,000)  $(17,872,000)  $225,591,850 

 

   Debit   Credit 
Note 1: Eliminate intercompany activity          
Current portion of notes receivable       $16,830,000 
Other investments       $6,536,000 
Long-term debt, net  $4,872,262      
Additional paid-in capital  $27,000,000      
Accumulated deficit       $8,506,262 
           
Note 2: Elimination of SHRG equity          
Investment, equity method       $14,872,000 
Investment in target       $3,000,000 
Series A convertible preferred stock, $0.0001 par value, 100,000,000 shares designated, 3,100,000 shares and 5,100,000 shares issued and outstanding at September 30 and March 31, respectively  $310      
Series C convertible preferred stock, $0.0001 par value, 10,000,000 shares designated, 3,220,000 shares and 3,230,000 shares issued and outstanding at September 30 and March 31, respectively  $322      
Common Stock, $0.0001 par value, 800,000,000 Class A shares authorized, 187,610,769 shares and 160,100,769 shares issued and outstanding at September 30 and March 31, respectively  $18,761      
Additional paid-in capital  $44,922,718      
Non-controlling interest in subsidiary  $17,686,381      
Shares to be issued  $12,146      
Accumulated deficit       $44,792,611 
Cumulative translation adjustments  $23,973      

 

Note 3: DSS, Inc. is performing a valuation of the assets as well as the non-contorlling interest portion of SHRG and its subsidiaries. For purposes of this proforma, and until the valuation is complete, $17,686,381 is included non-controlling interest.