EX-99.4 5 ex99-4.htm

 

Exhibit 99.4

 

DOCUMENT SECURITY SYSTEMS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Income (Loss)

(unaudited)

 

   DSS, Inc   Sharing Services Global Corporation         
   Fiscal year ended
December 31, 2020
   Fiscal year ended
March 31, 2021
   Proforma
Adjustment
(Note 1)
   Consolidated 
Revenue:                    
Printed products  $13,000,000   $-    -   $13,000,000 
Technology sales, services and licensing   2,085,000    -    -    2,085,000 
Rental income   -    -    -    - 
Direct marketing   2,326,000    64,811,151    -    67,137,151 
Total revenue   17,411,000    64,811,151    -    82,222,151 
                     
Costs and expenses:                    
Cost of revenue, exclusive of depreciation and amortization   11,207,000    18,264,494    -    29,471,494 
Selling, general and administrative (including stock based compensation)   15,867,000    48,560,935    -    64,427,935 
Depreciation and amortization   1,084,000    163,248    -    1,247,248 
Total costs and expenses   28,158,000    66,988,677    -    95,146,677 
Operating loss   (10,747,000)   (2,177,526)   -    (12,924,526)
                     
Other income (expense):                    
Interest income   69,000    -    -    69,000 
Other income (expense)   1,000    -    -    1,000 
Interest expense   (185,000)   (47,613)   -    (232,613)
Gain on extinguishment of debt   969,000    -    -    969,000 
(Loss) gain on investment   10,609,000    -    -    10,609,000 
Loss on equity method investment   604,000    -    (604,000)   - 
Litigation settlements and other non-operating expenses   -    (134,726)   -    (134,726)
Gain on employee warrants liability   -    530,335    -    530,335 
Amortization of deferred financing costs and debt discount   (8,000)   -    -    (8,000)
(Loss) income from continuing operations before income taxes   1,312,000    (1,829,530)   (604,000)   (1,121,530)
                     
Income tax benefit   1,774,000    594,509    -    2,368,509 
(Loss) income from continuing operations   3,086,000    (1,235,021)   (604,000)   1,246,979 
Income (loss) from discontinued operations, net of tax   (1,668,000)   -         (1,668,000)
Net (loss) income   1,418,000    (1,235,021)   (604,000)   (421,021)
                     
Other Comprehensive Income, net of tax                    
Currency translation adjustments   -    -    -    - 
Total other comprehensive income   -    -    -    - 
Comprehensive earnings (loss)   1,418,000    (1,235,021)   (604,000)   (421,021)
Loss from continuing operations attributed to noncontrolling interest   481,000    -    -    481,000 
                     
Net (loss) income attributable to common stockholders  $1,899,000   $(1,235,021)  $(604,000)  $59,979 

 

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).