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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 12 Months Ended
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Dec. 31, 2021
Accounting Changes and Error Corrections [Abstract] |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2 – RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company has restated the accompanying financial statements for the year ended December 31, 2021, along with certain notes to such restated financial statements. The adjustments recorded were related to the correction of an error identified by management. The nature and impact of this adjustment on the Company’s previously issued financial statements is summarized as follows and the effects by impacted line items are detailed in the tables below. Impacted amounts and associated disclosures are restated within the accompanying notes to the financial statements. The Company’s Premier Packaging subsidiary relocated to a new manufacturing and warehouse facility in March 2022 resulting in a consolidation of its warehousing function from its previous manufacturing facility and multiple third-party locations. Due to this relocation, Premier Packaging performed a physical count of its inventory as of June 30, 2022, which is in addition to its annual inventory physical count that took place beginning on December 30, 2021 and concluded on January 1, 2022 for inclusion in its December 31, 2021 financial statements. As a result of this count, abnormal adjustments from the physical count to the recorded values within the Company’s ERP system were identified. Upon further investigation, it was discovered that several unintentional errors were made when converting the inventory quantities into the unit of measure in the Company’s ERP system for inclusion in the December 31, 2021 financial statements. The resulting errors accumulated to an overstatement of Premier Packaging’s inventory by approximately $2,119,000 and its cost of revenue excluding depreciation and amortization to be understated by approximately $2,119,000. Management and the Audit Committee of the Company has concluded that restatement of its December 31, 2021 financial statements, filed on March 31, 2022, is required. The following tables summarize the effect of the restatement on each financial statement line items as of the December 31, 2021 SCHEDULE OF OF THE RESTATEMENT ON EACH FINANCIAL STATEMENT LINE ITEMS DSS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021
|  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
Consolidated Balance Sheets as of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Inventory |  | $ | 10,380,000 |  |  | $ | (2,119,000 | ) |  | $ | 8,261,000 |
Total current assets |  |  | 82,424,000 |  |  |  | (2,119,000 | ) |  |  | 80,305,000 |
Total assets |  |  | 284,826,000 |  |  |  | (2,119,000 | ) |  |  | 282,707,000 |
Accumulated deficit |  |  | (132,384,000 | ) |  |  | (2,119,000 | ) |  |  | (134,503,000 | )
Total stockholders’ equity |  |  | 200,304,000 |  |  |  | (2,119,000 | ) |  |  | 198,185,000 |
Total liabilities and stockholders’ equity |  |  | 284,826,000 |  |  |  | (2,119,000 | ) |  |  | 282,707,000 |
Consolidated Statements of Operations Income (Loss) for the year ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue, exclusive of depreciation and amortization |  | $ | 12,271,000 |  |  | $ | 2,119,000 |  |  | $ | 14,390,000 |
Total costs and expenses |  |  | 41,684,000 |  |  | $ | 2,119,000 |  |  |  | 43,803,000 |
Operating loss |  |  | (21,409,000 | ) |  | $ | (2,119,000 | ) |  |  | (23,528,000 | )
(Loss) income from continuing operations before income taxes |  |  | (38,082,000 | ) |  | $ | (2,119,000 | ) |  |  | (40,201,000 | )
(Loss) income from continuing operations |  |  | (34,050,000 | ) |  | $ | (2,119,000 | ) |  |  | (36,169,000 | )
Net (loss) income |  |  | (31,921,000 | ) |  | $ | (2,119,000 | ) |  |  | (34,040,000 | )
Net (loss) income attributable to common stockholders |  |  | (31,000,000 | ) |  | $ | (2,119,000 | ) |  |  | (33,119,000 | )
Basic earnings per share |  |  | (0.64 | ) |  |  | (0.04 | ) |  |  | (0.68 | )
Diluted earnings per share |  |  | (0.64 | ) |  |  | (0.04 | ) |  |  | (0.68 | )
Consolidated Statements of Cash Flows for the year ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income from continuing operations |  | $ | (34,050,000 | ) |  | $ | (2,119,000 | ) |  | $ | (36,169,000 | )
Inventory |  |  | (8,425,000 | ) |  |  | 2,119,000 |  |  | $ | (6,306,000 | )
Consolidated Statements of Changes in Stockholders’ Equity for the year ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Net loss, accumulated deficit |  | $ | (31,000,000 | ) |  | $ | (2,119,000 | ) |  | $ | (33,119,000 | )
Accumulated deficit |  |  | (132,382,000 | ) |  | $ | (2,119,000 | ) |  | $ | (134,501,000 | )

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