DSS, Inc. Interim Filing Shows Revenue Decline and Wider Losses on Both Quarter and Year-to-Date Windows

Bottom line

- DSS, Inc. (the issuer identified in this filing) is a New York-incorporated holding company that, as of the interim cut-off, operates four distinct business lines: Product Packaging, Biotechnology, Commercial Lending, and Securities and Investment Management. ; the Commercial Lending line is driven by American Pacific Financial ("APF"); and the Securities and Investment Management line spans broker-dealer and mutual-fund ambitions together with a real estate investment trust focused on medical real estate.

- The Company is also pursuing a pending combination disclosed in the notes: a Merger and Share Exchange Agreement among DSS, Impact, Dr Ashleys Limited (PubCo), a Nevada Merger Sub, Dr Ashleys Cayman, and the Dr Ashleys Shareholder, with the closing extended and expected to take place during the fourth quarter of the reporting year. Both the operating footprint and the pending transaction are described in the cited note within the interim financial statements. - For the three-month reporting period, Revenue from Contract with Customer, Excluding Assessed Tax was $3,604,000 USD, compared with $5,285,000 USD for the prior-year comparative; the authorized direction is decrease, with both periods positive.

For the six-month year-to-date period, the same revenue line was $7,934,000 USD versus $10,237,000 USD, also decreasing year over year on a positive base. - For the three-month reporting period, Operating Income (Loss) was -$3,786,000 USD versus -$3,425,000 USD in the prior year; the authorized direction is decrease, with both periods reflecting a loss, and the authorized transition is loss to loss. For the six-month year-to-date period, Operating Income (Loss) was -$9,274,000 USD versus -$7,151,000 USD, again a loss-versus-loss decrease.

- For the three-month reporting period, Net Income (Loss) Attributable to Parent was -$4,789,000 USD versus -$2,152,000 USD; the authorized direction is decrease, both periods are losses, and the authorized transition is loss to loss. The same pattern holds for the six-month year-to-date period, where Net Income (Loss) Attributable to Parent was -$10,389,000 USD versus -$6,929,000 USD, also a loss-to-loss decrease. - The interim filing is presented on a condensed unaudited basis under US GAAP, in conformity with SEC rules and the instructions to Form 10-Q; the same accounting policies used for annual data are applied, and the statements should be read alongside the most recent annual report.

Other report items covered in this filing include Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities and Use of Proceeds, Defaults upon Senior Securities, Mine Safety Disclosures, Other Information, Controls and Procedures, and Exhibits, addressed across the cited item references. - The filing evidence does not attribute this change to any single cause.

Financial performance

- Reported results: Revenue from Contract with Customer, Excluding Assessed Tax was $3,604,000 USD for the three months ended June 30, 2026 and $7,934,000 USD for the six months ended June 30, 2026, compared with $5,285,000 USD for the three months ended June 30, 2025 and $10,237,000 USD for the six months ended June 30, 2025. On a year-over-year basis, the authorized comparison indicates that top-line revenue decreased on both the three-month and six-month year-to-date windows versus the prior-year comparables. - Profitability: Operating Income (Loss) was -$3,786,000 USD for the three months ended June 30, 2026 and -$9,274,000 USD for the six months ended June 30, 2026, against -$3,425,000 USD and -$7,151,000 USD in the prior-year windows.

The authorized year-over-year comparison indicates the operating loss expanded on both the quarter and the half-year. Net Income (Loss) Attributable to Parent was -$4,789,000 USD for the three months ended June 30, 2026 and -$10,389,000 USD for the six months ended June 30, 2026, against -$2,152,000 USD and -$6,929,000 USD for the prior-year periods. The authorized comparison indicates a loss-to-loss result on both windows, with the year-to-date loss deepening against the prior-year comparative.

- Management explanation: The filing presents the condensed unaudited consolidated financial statements under US GAAP and notes that the same accounting policies used in preparing annual data are applied to the interim periods, with normal recurring adjustments only. Reclassifications are disclosed, in which costs associated with third-party logistics services for the three and six months ended were reclassed from Cost of revenue to Other operating expenses to conform with current period presentation. Estimates involving accounts receivable, convertible notes receivable, inventory, fair values of investments, intangible assets and goodwill, useful lives, options and warrants, preferred stock, deferred revenue and income taxes are identified as areas of judgment, with allowances for credit losses built on customer-specific financial data and macro-economic assumptions over a reasonable and supportable forecast period.

A pending business combination referenced in the filing discusses parties including Impact, PubCo, Merger Sub, Dr Ashleys Cayman and the Dr Ashleys Shareholder, with closing extended and expected to occur during the fourth quarter of the referenced period. - Analyst inference: Revenue declined year-over-year on both reported windows while both operating loss and net loss widened against the prior-year comparables, indicating that the deterioration flowed through to the bottom line. The reclassification of third-party logistics costs from Cost of revenue to Other operating expenses changes the presentation of expense lines on the statement of operations but does not change the magnitude of the reported operating loss.

The pending Merger and Share Exchange transaction is described as extending its closing to the fourth quarter, which the filing frames as a subsequent event affecting reporting context rather than current period operating results. - Counter-evidence: The filing does not present segment-level operating detail in the quoted narrative, and any causal attribution between revenue movement and expense line movement is not stated. No guidance commentary on near-term performance appears in the quoted material.

- Unknowns: The filing evidence does not attribute this change to any single cause.. No peer or industry benchmark accompanies the reported figures. The filing evidence contains no peer or industry comparison..

Operating drivers and segments

DSS operates across Product Packaging, Biotechnology, Commercial Lending, Securities and Investment Management, and a real estate investment trust. The filing describes the packaging operation as a manufacturer and seller of folding cartons, mailers, photo sleeves, and direct-mail solutions, primarily serving the United States. The lending operation provides commercial credit and property, inventory, equipment, and third-party servicing, while the securities operation develops or acquires trading and asset-management interests. The REIT acquires medical properties and leases them under triple-net arrangements.

Consolidated revenue declined year over year in both the three-month reporting period and the six-month year-to-date period. The filing reports revenue of $3,604,000 for the three months ended June 30, 2026, compared with $5,285,000 for the three months ended June 30, 2025, and revenue of $7,934,000 for the six months ended June 30, 2026, compared with $10,237,000 for the six months ended June 30, 2025. The available evidence is consolidated rather than disaggregated by operating line, so the contribution of packaging, lending, securities, biotechnology, or the REIT to the revenue change cannot be established from the cited catalog.

Operating performance also weakened on both reported windows. The filing reports an operating loss of -$3,786,000 for the three months ended June 30, 2026, compared with -$3,425,000 for the three months ended June 30, 2025. For the year-to-date period, the operating loss was -$9,274,000 for the six months ended June 30, 2026, compared with -$7,151,000 for the six months ended June 30, 2025. Because the filing evidence provides consolidated results without segment revenue, operating income, or cost allocations, segment margins and the source of the consolidated loss are not supportable. The filing evidence contains no peer or industry comparison.

The filing presents DSS as a diversified group spanning packaging, biotechnology, commercial lending, securities and investment management, and medical real estate. It describes the packaging business as serving custom packaging and document-security printing markets, the lending business as supplying financing and servicing solutions, and the securities business as pursuing trading, brokerage, and asset-management activities. It also describes the REIT as a portfolio of licensed medical properties leased to operators.

For credit-risk estimation, management states that customer-specific financial data and macroeconomic assumptions are used to project losses in the accounts-receivable portfolio, while borrower-specific financial data and macroeconomic assumptions are used for the loan portfolio. The filing also states that major United States projects receive independent third-party valuations to assess potential impairment triggers. These disclosures identify risk-estimation practices and valuation procedures, but they do not provide enough reported information to connect those practices to the revenue decline or the operating loss.

The filing evidence does not attribute the reported changes to any single cause. Accordingly, no independent claim is made here that weakness in packaging, lending, securities, biotechnology, REIT activity, credit costs, or project valuations drove the consolidated results. Segment-level operating evidence, project-level valuation outcomes, and management’s quantified reconciliation of consolidated performance remain necessary to distinguish operating drivers from broader portfolio and corporate effects.

Cash flow and capital

- The reported balance sheet at the balance sheet date of June 30, 2026 shows $4,068,000 in Cash and Cash Equivalents, against $5,272,000 in Long-term Debt Excluding Current Maturities — a starting frame for any working-capital or liquidity read on DSS, INC. (10-Q for period-ended-2026-06-30, accession 0001493152-26-038447). - Working-capital positioning at the same instant: $1,286,000 in current Accounts Receivable (after the Allowance for Credit Loss), $1,286,000 in the broader net Accounts Receivable line, and $3,187,000 in current Accounts Payable — the standard short-term operating footprint.

- Operating cash flow for the year-to-date window (the six months ended June 30, 2026) was -$1,985,000 (a use of cash), versus -$454,000 for the six months ended June 30, 2025 (also a use of cash). Authorized direction: decrease versus the prior year-to-date; both periods sit on the negative side of zero, so the read is "a larger use rather than a smaller one," not a swing into positive territory. - Investing cash flow for the same year-to-date window was -$2,707,000 (a use of cash) against $11,019,000 (a source of cash).

Authorized direction: decrease, marking a swing in sign across the comparative — investing moved from providing cash in the prior year-to-date to consuming cash in the current one. - Financing cash flow for the year-to-date window was $2,446,000 (a source of cash) against -$12,512,000 (a use of cash). Authorized direction: increase, again a sign change versus the prior comparative.

- Reading the three year-to-date streams together: operating continued to consume cash, investing flipped from providing to consuming cash, and financing flipped from consuming to providing cash — a pattern where outside financing covered an operating shortfall while investing swung to a net outflow. The filing evidence does not attribute this change to any single cause. - The fair-value hierarchy scaffolding referenced in the filing's accounting policies (cited notes and Level 1, Level 2, Level 3 tiers) does not, by itself, identify which tier any specific asset sits in within the cash and debt lines above; it only frames how fair values would be classified if measured at fair value.

- Long-term debt of $5,272,000 is reported alongside the policy statement that the carrying amounts of notes payable and long-term debt "generally approximate their fair values based on the stated or discounted interest rates, contractual terms and expected timing of cash flows," which keeps the balance-sheet and capital-allocation readings consistent with how the filing values these instruments. - Capital-allocation signals visible this period are limited to the financing-stream sign change and the working-capital lines already listed; the filing does not, in the evidence available to this section, disclose share repurchases, dividends, or material new equity issuance in the cited notes (Note 10, Note 13 and the Part II items Item 1, Item 1A, Item 2, Item 3, Item 4, Item 5, Item 6), so any further read on return-of-capital versus raise-capital mix is not in the filing evidence.

- A broader peer or industry frame is not present in this filing's evidence: The filing evidence contains no peer or industry comparison. 's own materials.

Peer and historical context

- Looking only at DSS, INC.'s own year-over-year history as captured in this 10-Q filing for period-ended-2026-06-30 under accession 0001493152-26-038447, the only comparisons the filing evidence authorizes are internal: the three-month reporting period against its prior-year comparative, and the six-month year-to-date period against its prior-year comparative. - Within those authorized comparisons, the direction of change is consistent across every line item the catalog exposes: revenue, operating income, net income attributable to parent, and net cash from operating activities all moved in the same direction when the current period is read against the prior-year period. - Revenue from Contract with Customer, Excluding Assessed Tax is positive in both the current three-month period ($3,604,000) and the prior-year three-month period ($5,285,000), and the authorized direction for the year-over-year move is a decrease, which simply says the current quarter's top line is lower than the prior-year quarter's top line. The same authorized decrease applies on the six-month view, where revenue is positive in both $7,934,000 and $10,237,000 but lower in the current six-month period than in the prior-year comparative. - Operating Income (Loss) was a loss in both the current and prior-year periods on both windows: -$3,786,000 versus -$3,425,000 for the three-month view, and -$9,274,000 versus -$7,151,000 for the six-month view. The authorized direction is a decrease, meaning the current loss is wider than the prior-year loss on each window, even though both periods remain in loss territory. The authorized transition for both windows is loss to loss. - Net Income (Loss) Attributable to Parent mirrors that pattern: a loss in the current quarter (-$4,789,000) and the prior-year quarter (-$2,152,000), a loss in the current six-month period (-$10,389,000) and the prior-year six-month period (-$6,929,000), with the authorized direction a decrease on both windows and the authorized transition loss to loss on both windows. - Net Cash Provided by (Used in) Operating Activities was negative in both the current six-month period (-$1,985,000) and the prior-year six-month period (-$454,000), and the authorized direction for the year-over-year move is a decrease, meaning the current six-month operating cash outflow is larger than the prior-year comparative outflow.

- The filing evidence contains no peer set and no industry benchmark for DSS, INC.; The filing evidence contains no peer or industry comparison. applies for any external comparison a reader might otherwise expect here, so this section is confined to the company's own prior-year comparatives. - The filing evidence does not attribute this change to any single cause.

Looking across these comparisons, the picture for DSS, INC. in period-ended-2026-06-30 is one of a smaller revenue base paired with wider losses on both the three-month and six-month windows, against the same line items a year earlier. The top-line contraction and the wider operating and net losses are internally consistent across the quarter and the year-to-date, and the six-month operating cash outflow deepened as well, even though it was already negative a year earlier. No single driver is identified in the evidence cited.

Scenario analysis

- Reported facts for DSS, INC. under 10-Q period-ended-2026-06-30 (accession 0001493152-26-038447): revenue was $3,604,000 USD for the three months ended June 30, 2026 and $7,934,000 USD for the six months ended June 30, 2026, while Net Income Attributable to Parent was a loss of -$4,789,000 USD for the three months ended June 30, 2026 and a loss of -$10,389,000 USD for the six months ended June 30, 2026. - Analyst inference, base case: revenue carries forward at the level booked for the three months ended June 30, 2026 and the six months ended June 30, 2026, with the year-to-date top line lower than the prior-year the six months ended June 30, 2025 USD and the three months ended June 30, 2025 USD comparables shown in the filing, and the loss line tracks the realized -$4,789,000 USD / -$10,389,000 USD figures rather than widening. - Counter-evidence and unknowns: goodwill tied to Premier Packaging was not flagged for impairment in the cited note, the convertible bond is carried at fair value under the Level 3 tier per Note 10, and any incremental pressure depends on inputs that are not visible here, so this base band reads as continuation of the present revenue path with a continuing rather than deepening loss.

- Reported facts: revenue of $3,604,000 USD for the three months ended June 30, 2026 and $7,934,000 USD for the six months ended June 30, 2026, and a loss of -$4,789,000 USD for the three months ended June 30, 2026 / -$10,389,000 USD for the six months ended June 30, 2026. - Analyst inference: an upside requires revenue to re-trend back toward the prior-year the three months ended June 30, 2025 / the six months ended June 30, 2025 USD base and for operating costs to compress enough to narrow the -$10,389,000 USD year-to-date loss; qualifying triggers visible in the filing include a benign annual goodwill reassessment for Premier Packaging and orderly Level 3 valuations for the convertible bond under Note 10. - Counter-evidence and unknowns: The filing evidence does not attribute this change to any single cause.; the filing gives no explicit margin bridge or cost-out plan, so an upside rests on qualitative optimism about the operating backdrop rather than a stated driver from management.

- Reported facts: revenue of $3,604,000 USD (the three months ended June 30, 2026) and $7,934,000 USD (the six months ended June 30, 2026), both below the prior-year comparables of $5,285,000 USD and $10,237,000 USD, with losses of -$4,789,000 USD and -$10,389,000 USD. - Analyst inference: a downside layers further top-line erosion onto the already-lower revenue path and widens the loss beyond -$10,389,000 USD; watch items carried in the filing are the fair-value sensitivity of the Level 3 convertible bond discussed in Note 10 and the goodwill posture referenced in Note 13, both of which could re-rate lower in a stressed scenario. - Counter-evidence and unknowns: The filing evidence does not attribute this change to any single cause.; the filing does not enumerate the drivers behind the existing revenue decline or loss, so any downside narrative depends on hypothetical inputs rather than disclosed mechanics. The filing evidence contains no peer or industry comparison..

Risks and what to watch

- The most immediate risk is the persistence of the bottom-line loss. Net Income (Loss) Attributable to Parent was -$10,389,000 USD for the six months ended June 30, 2026, compared with -$6,929,000 USD for the six months ended June 30, 2025, a year-over-year decrease with the authorized transition loss to loss. The three-month window shows the same profile: Net Income (Loss) Attributable to Parent was -$4,789,000 USD for the three months ended June 30, 2026 versus -$2,152,000 USD for the three months ended June 30, 2025, also a decrease with a loss-to-loss transition.

Operating losses cited in the earlier sections track the same authorized direction and transition for both the six-month and the three-month windows. The filing evidence does not attribute this change to any single cause. - The top line carries a parallel warning.

Revenue from Contract with Customer, Excluding Assessed Tax was $7,934,000 USD for the six months ended June 30, 2026, against $10,237,000 USD for the six months ended June 30, 2025, an authorized decrease on a year-over-year basis. For the quarter, Revenue from Contract with Customer, Excluding Assessed Tax was $3,604,000 USD for the three months ended June 30, 2026, against $5,285,000 USD for the three months ended June 30, 2025, also decreasing. Because revenue and operating income both moved in the same direction, the risk is that falling top-line dollars overlap with continued operating losses rather than one offsetting the other.

The filing evidence does not attribute this change to any single cause. - Counter-evidence is limited but worth flagging. The intangible-asset and goodwill disclosures in the filing report no triggering events that would require an impairment for the six months ended June (omitted), and the most recent annual goodwill test for the carrying amount associated with Premier Packaging Company of approximately (omitted) did not require an impairment.

That supports the view that the balance-sheet side of the story is not currently being eroded by write-downs, even as the income statement remains loss-making. The qualitative-only assessment option under the cited goodwill framework also means a future quantitative test could still surface a different outcome if the underlying assumptions change. - Unknowns outside the filing scope include any segment-level split of revenue or operating loss; the filing does not disclose segment-level detail for this dimension.

A peer or industry benchmark is also not provided in the source material, so situating the magnitude of the losses against comparable issuers is not possible from this evidence alone. The filing evidence does not disclose segment-level detail for this dimension. The filing evidence contains no peer or industry comparison.

- Metrics to watch next period: the next quarters' revenue figure for the same line item, the next quarters' net income figure, and whether any triggering event between annual tests causes the Company to move from the qualitative assessment to a quantitative goodwill test. Updates to the fair-value tiers referenced in the cited note on financial instruments, and any change in the Preferred stock disclosure in the cited stockholders' equity note, are also worth tracking because they are the items most likely to surface between filings.

The disclosure practice of comparing this picture with peers such as the REINSURANCE GROUP OF AMERICA INC filing is left to the reader.