Restatement Issues Lead to DSS Inc. Needing a Financial Statement Correction

DSS Inc. (NYSEAMERICAN: DSS) made an announcement on October 18, 2024, regarding the need for a restatement of its previously issued financial statements. The company’s Audit Committee resolved that the financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2023, which were originally filed on March 27, 2024, should no longer be relied upon due to errors.

The restatement was prompted by a significant distribution of around 280 million shares of Sharing Service Global Corporation (SHRG) on May 4, 2023. This distribution, provided to the shareholders of DSS Inc.’s common stock, resulted in the deconsolidation of SHRG from the consolidated financial statements. Following this deconsolidation, the consolidated statement of operations excluded SHRG activity post-April 30, 2023.

As part of the restatement, it was discovered that the loss on deconsolidation was inaccurately overstated by approximately $23.5 million due to an unintentional overstatement and a misinterpretation of accumulated deficit adjustments. Moreover, the deconsolidation required the recognition of discontinued operations, further necessitating the restatement of the financial statements.

In response to these findings, DSS Inc. amended its annual report on Form 10-K/A for the fiscal year ended December 31, 2023, on October 22, 2024, rectifying the errors in the financial statements.

It is important to note that the information provided in this announcement is disclosed as required and is not considered “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934. Additionally, this information should not be integrated by reference into the company’s filings under the Securities Act of 1933.

DSS Inc.’s Interim Chief Executive Officer, Jason Grady, signed off on the report on behalf of the registrant on October 22, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read DSS’s 8K filing here.

About DSS

DSS, Inc operates in the product packaging, biotechnology, commercial lending, securities and investment management, alternative trading, and direct marketing businesses. It manufactures, markets, and sells mailers, photo sleeves, custom folding cartons, and 3-dimensional direct mail solutions; and markets and distributes nutritional and personal care products.