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.