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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information

14. 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 six months ended June 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 June 30, 2024  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $3,539,000   $44,000   $3,000   $1,000   $624,000   $-   $4,211,000 
Cost of Revenue   3,598,000    (4,484,000)   -    10,000    2,066,000    4,483,000    5,673,000 
Depreciation and amortization   190,000    -    34,000    288,000    39,000    4,000    555,000 
Interest expense   45,000    -    -    -    1,199,000    -    1,244,000 
Interest income   -    (1,000)   36,000    3,000    156,000    1,000    195,000 
Net income (loss) from continuing operations   (894,000)   502,000    104,000    (669,000)   (2,566,000)   (1,431,000)   (4,954,000)
Capital expenditures   29,000    -    -    -    -    -    29,000 
Identifiable assets   19,683,000    12,129,000    442,000    48,631,000    59,211,000    4,352,000    144,448,000 
Assets held for sale   -    -    -    -    46,040,000    -    46,040,000 

 

Three Months Ended June 30,2023  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $3,626,000   $197,000   $1,572,000   $-   $1,838,000   $-   $7,233,000 
Cost of Revenue   2,421,000    -    516,000    2,000    1,820,000    73,000    4,832,000 
Depreciation and amortization   193,000    -    43,000    289,000    782,000    7,000    1,314,000 
Interest expense   47,000    -    -    -    91,000    -    138,000 
Interest income   -    -    280,000    49,000    78,000         407,000 
Net income (loss) from continuing operations   (205,000)   (1,213,000)   (28,074,000)   (3,934,000)   (4,413,000)   116,000    (37,723,000)
Capital expenditures   4,000    -    (4,000)   12,000    7,000    -    19,000 
Identifiable assets   23,080,000    41,324,000    7,159,000    49,952,000    71,610,000    9,619,000    202,744,000 
Assets held for sale   -    -    2,004,000    -    -    -    2,004,000 

 

Six Months Ended June 30, 2024  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $6,620,000   $146,000   $3,000   $2,000   $1,311,000   $-   $8,082,000 
Cost of Revenue   6,365,000    (4,015,000)   -    20,000    3,810,000    4,483,000    10,663,000 
Depreciation and amortization   381,000    -    68,000    577,000    107,000    3,000    1,136,000 
Interest expense   91,000    -    -    -    2,299,000    -    2,390,000 
Interest income   -    -    72,000    9,000    219,000    2,000    302,000 
Net income (loss) from continuing operations   (1,367,000)   (880,000)   34,000    (1,610,000)   (4,915,000)   (1,325,000)   (10,063,000)
Capital expenditures   29,000    -    -    -    -    -    29,000 
Total Identifiable assets   19,683,000    12,129,000    442,000    48,631,000    59,211,000    4,352,000    144,448,000 
Assets held for sale   -    -    -    -    46,040,000    -    46,040,000 

 

Six Months Ended June 30,2023  Product Packaging   Commercial Lending   Direct Marketing   Biotechnology   Securities   Corporate   Total 
Revenue  $9,661,000   $314,000   $5,566,000   $-   $3,523,000   $-   $19,064,000 
Cost of revenue   7,081,000    -    1,806,000    63,000    4,340,000    75,000    13,365,000 
Depreciation and amortization   381,000    -    89,000    586,000    1,526,000    65,000    2,647,000 
Interest expense   86,000    -    -    -    302,000    -    388,000 
Interest income   -    -    285,000    143,000    110,000    -    538,000 
Net income (loss) from continuing operations   491,000    (1,777,000)   (31,260,000)   (4,782,000)   (6,441,000)   (2,588,000)   (46,357,000)
Capital expenditures   580,000    -    -    17,000    35,000    (19,000)   613,000 
Identifiable assets   23,080,000    41,324,000    7,159,000    49,952,000    71,610,000    9,619,000    202,744,000 
Assets held for sale   -    -    2,004,000    -    -    -    2,004,000 

 

 

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

 

Printed Products Revenue Information:

 

Three months ended June 30, 2024     
Packaging Printing and Fabrication  $3,441,000 
Commercial and Security Printing   87,000 
Total Printed Products  $3,528,000 

 

Three months ended June 30, 2023     
Packaging Printing and Fabrication  $3,571,000 
Commercial and Security Printing   55,000 
Total Printed Products  $3,626,000 

 

Six months ended June 30, 2024     
Packaging Printing and Fabrication  $6,323,000 
Commercial and Security Printing   278,000 
Total Printed Products  $6,601,000 

 

Six months ended June 30, 2023     
Packaging Printing and Fabrication  $9,341,000 
Commercial and Security Printing   320,000 
Total Printed Products  $9,661,000 

 

Direct Marketing

 

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

 

Three months ended June 30, 2023     
Direct Marketing Internet Sales  $1,572,000 
Total Direct Marketing  $1,572,000 

 

Six months ended June 30, 2024     
Direct Marketing Internet Sales  $- 
Total Direct Marketing  $- 

 

Six months ended June 30, 2023     
Direct Marketing Internet Sales  $5,566,000 
Total Direct Marketing  $5,566,000 

 

Rental Income

 

Three months ended June 30, 2024     
Rental income  $438,000 
Total Rental Income  $438,000 
      
Three months ended June 30, 2023     
Rental income  $1,543,000 
Total Rental Income  $1,543,000 

 

Six months ended June 30, 2024     
Rental income  $838,000 
Total Rental Income  $838,000 

 

Six months ended June 30, 2023     
Rental income  $3,228,000 
Total Rental Income  $3,228,000 

 

Commission Income

 

Three months ended June 30, 2024     
Commission income  $204,000 
Total commission income  $204,000 

 

Three months ended June 30, 2023     
Commission income  $295,000 
Total commission income  $295,000 

 

Six months ended June 30, 2024     
Commission income  $507,000 
Total commission income  $507,000 

 

Six months ended June 30, 2023     
Commission income  $295,000 
Total commission income  $295,000 

 

Net Investment Income

 

Three months ended June 30, 2024     
Net Investment Income  $41,000 
Total Investment Income  $41,000 

 

Three months ended June 30, 2023     
Net Investment Income  $197,000 
Total Rental Income  $197,000 

 

Six months ended June 30, 2024     
Net investment income  $136,000 
Total Management fee income  $136,000 

 

Six months ended June 30, 2023     
Net Investment Income  $314,000 
Total Management fee income  $314,000