EX-99.2 3 ex99-2.htm

 

Exhibit 99.2

 

DOCUMENT SECURITY SYSTEMS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

 

   DSS, Inc   Sharing Services Global Corporation         
   For the Nine
Months Ended
September 30, 2021
   For the Six
Months Ended
September 30, 2021
   Proforma
Adjustment
(Note 1)
   Consolidated 
Revenue:                    
Printed products  $10,652,000   $-    (151,509)  $10,500,491 
Rental income   184,000    -         184,000 
Direct marketing   2,382,000    21,084,827         23,466,827 
Total revenue   13,218,000    21,084,827    (151,509)   34,151,318 
                     
Costs and expenses:                    
Cost of revenue, exclusive of depreciation and amortization   9,513,000    6,278,250    (151,509)   15,639,741 
Selling, general and administrative (including stock based compensation)   17,621,000    20,213,352         37,834,352 
Depreciation and amortization   2,075,000    228,294         2,303,294 
Total costs and expenses   29,209,000    26,719,896    (151,509)   55,777,387 
Operating loss   (15,991,000)   (5,635,069)   -    (21,626,069)
                     
Other income (expense):                    
Interest income   3,130,000    -    (1,787,000)   1,343,000 
Other income (expense)   575,000    (14,046)   (344,475)   216,479 
Interest expense   (157,000)   (6,056,372)   1,671,419    (4,541,953)
Gain on extinguishment of debt   116,000    1,040,400         1,156,400 
(Loss) gain on investment   (10,894,000)   2,114,970    6,410,318    (2,368,712)
Loss on equity method investment   (2,556,000)   -    2,556,000    - 
Gain on employee warrants liability   -    1,781,100         1,781,100 
Amortization of deferred financing costs and debt discount   -    -         - 
(Loss) income from continuing operations before income taxes   (25,777,000)   (6,769,017)   8,506,262    (24,039,755)
                     
Income tax benefit   4,315,000    506,245         4,821,245 
(Loss) income from continuing operations   (21,462,000)   (6,262,772)   8,506,262    (19,218,510)
Income (loss) from discontinued operations, net of tax   2,129,000    -         2,129,000 
Net (loss) income   (19,333,000)   (6,262,772)   8,506,262    (17,089,510)
                     
Other Comprehensive Income, net of tax                    
Currency translation adjustments   -    23,973         23,973 
Total other comprehensive income   -    23,973    -    23,973 
Comprehensive earnings (loss)   (19,333,000)   (6,238,799)   8,506,262    (17,065,537)
Loss from continuing operations attributed to noncontrolling interest   336,000    -    -    336,000 
                     
Net (loss) income attributable to common stockholders  $(18,997,000)  $(6,262,772)  $8,506,262   $(16,753,510)

 

Note 1: Eliminate intercompany activity

 

Note 2: DSS, Inc. fiscal year end is December 31st , and Sharing Service Global Corporation fiscal year end is March 31st. DSS’s income statement covers the nine months ended September 30, 2021 while the SHRG income statement covers the six months ended September 30, 2021. As the difference in fiscal year ends do not differ by more that one fiscal quarted, the proforma condensed statements of operations are presented are in compliance with Rule 11-02(c).