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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information

16. Segment Information

 

The Company’s nine businesses lines are organized, managed, and internally reported as five operating segments. One of these operating segments, Product Packaging, is the Company’s packaging and printing group. Product Packaging operates in the paper board folding carton, smart packaging, and document security printing markets. It markets, manufactures, and sells mailers, photo sleeves, sophisticated custom folding cartons, and complex 3-dimensional direct mail solutions. These products are designed to provide functionality and marketability while also providing counterfeit protection. A second, Biotechnology, invests in, or acquires companies in the biohealth and biomedical fields, including businesses focused on the advancement of drug discovery and prevention, inhibition, and treatment of neurological, oncological, and immune related diseases. This division is also developing open-air defense initiatives, which curb transmission of air-borne infectious diseases, such as tuberculosis and influenza. Biotechnology is also targeting unmet, urgent medical needs. A third operating segment, Securities, and Investment Management (“Securities”) was established to develop and/or acquire assets and investments in the securities trading and/or funds management arena. Further, Securities, in partnership with recognized global leaders in alternative trading systems, intends to own and operate in the US a single or multiple vertical digital asset exchanges for securities, tokenized assets, utility tokens, stable coins and cryptocurrency via a digital asset trading platform using blockchain technology. The scope of services within this section is planned to include asset issuance and allocation (securities and cryptocurrency), FPO, IPO, ITO, PPO, STO and UTO listings on a primary market(s), asset digitization/tokenization (securities, currency, and cryptocurrency), and the listing and trading of digital assets (securities and cryptocurrency) on a secondary market(s). Also in this segment is the Company’s real estate investment trust (“REIT”), organized for the purposes of acquiring hospitals and other acute or post-acute care centers from leading clinical operators with dominant market share in secondary and tertiary markets, and leasing each property to a single operator under a triple-net lease. The REIT was formed to originate, acquire, and lease a credit-centric portfolio of licensed medical real estate. The fourth segment, Direct, provides services to assist companies in the emerging growth gig business model of peer-to-peer decentralized sharing marketplaces. It specializes in marketing and licensing its products and services through its subsidiary and partner network, using the popular gig economic marketing strategy as a form of direct marketing. Direct marketing products include, among other things, nutritional and personal care products sold throughout North America, Asia Pacific and Eastern Europe (see Note 1, Deconsolidation of Sharing Services Global Corporation). The fifth business line, Commercial Banking, is organized for the purposes of being a financial network holding company, focused providing commercial loans and on acquiring equity positions in (i) undervalued commercial bank(s), bank holding companies and nonbanking licensed financial companies operating in the United States, South East Asia, Taiwan, Japan and South Korea, and (ii) companies engaged in—nonbanking activities closely related to banking, including loan syndication services, mortgage banking, trust and escrow services, banking technology, loan servicing, equipment leasing, problem asset management, SPAC (special purpose acquisition company) consulting, and advisory capital raising services. From this financial platform, the Company shall provide an integrated suite of financial services for businesses that shall include commercial business lines of credit, land development financing, inventory financing, third party loan servicing, and services that address the financial needs of the world Gig Economy.

 

Approximate information concerning the Company’s operations by reportable segment for the three and nine months ended September 30, 2024 and 2023 is as follows. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein:

 

Three Months Ended September 30, 2024  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $4,846,000   $45,000   $-   $1,000   $707,000   $-   $5,599,000 
Cost of revenue   4,350,000    252,000    (2,000)   10,000    1,993,000    -    6,603,000 
Gross profit (loss)   496,000    (207,000)   2,000    (9,000)   (1,286,000)   -    (1,004,000)
Operating expense   766,000    104,000    73,000    1,169,000    901,000    654,000    3,667,000 
Operating income (loss)   (270,000)   (311,000)   (71,000)   (1,178,000)   (2,187,000)   (654,000)   (4,671,000)
Other income (expense)   (43,000)   251,000    (52,000)   (573,000)   336,000    (949,000)   (1,030,000)
Net income (loss) from continuing operations before taxes   (313,000)   (60,000)   (123,000)   (1,751,000)   (1,851,000)   (1,603,000)   (5,701,000)

 

Three Months Ended September 30,2023  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $3,378,000   $108,000   $523,000   $-   $173,000   $-   $4,182,000 
Cost of revenue   3,871,000    -    271,000    4,000    1,926,000    -    6,072,000 
Gross profit (loss)   (493,000)   108,000    252,000    (4,000)   (1,753,000)   -    (1,890,000)
Operating expense   647,000    139,000    55,000    1,154,000    352,000    866,000    3,213,000 
Operating income (loss)   (1,140,000)   (31,000)   197,000    (1,158,000)   (2,105,000)   (866,000)   (5,103,000)
Other income (expense)   (143,000)   7,000    (1,208,000)   6,000    (50,000)   (189,000)   (1,577,000)
Net income (loss) from continuing operations before taxes   (1,283,000)   (24,000)   (1,011,000)   (1,152,000)   (2,155,000)   (1,055,000)   (6,680,000)

 

Nine Months Ended September 30, 2024  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $11,466,000   $192,000   $3,000   $2,000   $2,018,000   $-   $13,681,000 
Cost of Revenue   10,715,000    719,000    (2,000)   30,000    5,804,000    -    17,266,000 
Gross profit (loss)   751,000    (527,000)   5,000    (28,000)   (3,786,000)   -    (3,585,000)
Operating expense   2,313,000    338,000    227,000    2,637,000    3,023,000    2,164,000    10,702,000 
Operating income (loss)   (1,562,000)   (865,000)   (222,000)   (2,665,000)   (6,809,000)   (2,164,000)   (14,287,000)
Other income (expense)   (118,000)   (73,000)   134,000    (699,000)   52,000    (934,000)   (1,638,000)
Net loss from continuing operations   (1,680,000)   (938,000)   (88,000)   (3,364,000)   (6,757,000)   (3,098,000)   (15,925,000)

 

Nine Months Ended September 30,2023  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $12,883,000   $426,000   $1,930,000   $3,000   $3,678,000   $-   $18,920,000 
Cost of revenue   10,952,000    -    820,000    67,000    6,340,000    -    18,179,000 
Gross profit (loss)   1,931,000    426,000    1,110,000    (64,000)   (2,662,000)   -    741,000 
Operating expense   1,890,000    283,000    2,683,000    3,230,000    5,946,000    2,276,000    16,308,000 
Operating income (loss)   41,000    143,000    (1,573,000)   (3,294,000)   (8,608,000)   (2,276,000)   (15,567,000)
Other income (expense)   (137,000)   (1,943,000)   (7,238,000)   (2,640,000)   16,000    (2,062,000)   (14,004,000)
Net loss from continuing operations   (96,000)   (1,800,000)   (8,811,000)   (5,934,000)   (8,592,000)   (4,338,000)   (29,571,000)

 

 

The following tables disaggregate our business segment revenues by major source:

 

Printed Products Revenue Information:      

 

     
Three months ended September 30, 2024    
Packaging Printing and Fabrication  $4,773,000 
Commercial and Security Printing   55,000 
Total Printed Products  $4,828,000 

 

Three months ended September 30, 2023    
Packaging Printing and Fabrication  $3,293,000 
Commercial and Security Printing   22,000 
Total Printed Products  $3,315,000 

 

Nine months ended September 30, 2024    
Packaging Printing and Fabrication  $11,096,000 
Commercial and Security Printing   333,000 
Total Printed Products  $11,429,000 

 

Nine months ended September 30, 2023     
Packaging Printing and Fabrication  $12,634,000 
Commercial and Security Printing   342,000 
Total Printed Products  $12,976,000 

 

Direct Marketing

 

Three months ended September 30, 2024     
Direct Marketing Internet Sales  $- 
Total Direct Marketing  $- 

 

Three months ended September 30, 2023    
Direct Marketing Internet Sales  $523,000 
Total Direct Marketing  $523,000 

 

Nine months ended September 30, 2024     
Direct Marketing Internet Sales  $- 
Total Direct Marketing  $- 

 

Nine months ended September 30, 2023 (as restated)    
Direct Marketing Internet Sales  $1,763,000 
Total Direct Marketing  $1,763,000 

 

Rental Income

 

Three months ended September 30, 2024    
Rental income  $496,000 
Total Rental Income  $496,000 

 

Three months ended September 30, 2023    
Rental income  $236,000 
Total Rental Income  $236,000 

 

Nine months ended September 30, 2024    
Rental income  $1,334,000 
Total Rental Income  $1,334,000 

 

Nine months ended September 30, 2023    
Rental income  $3,464,000 
Total Rental Income  $3,464,000 

 

Commission Income

 

Three months ended September 30, 2024    
Commission income  $230,000 
Total commission income  $230,000 

 

Three months ended September 30, 2023     
Commission income  $- 
Total commission income  $- 

 

Nine months ended September 30, 2024    
Commission income  $737,000 
Total commission income  $737,000 

 

Nine months ended September 30, 2023    
Commission income  $295,000 
Total commission income  $295,000 

 

Net Investment Income

 

Three months ended September 30, 2024    
Net Investment Income  $45,000 
Total Investment Income  $45,000 

 

Three months ended September 30, 2023    
Net Investment Income  $108,000 
Total Rental Income  $108,000 

 

Nine months ended September 30, 2024    
Net investment income  $181,000 
Total Management fee income  $181,000 

 

Nine months ended September 30, 2023    
Net Investment Income  $422,000 
Total Management fee income  $422,000