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Investments
6 Months Ended
Jun. 30, 2026
Investments, All Other Investments [Abstract]  
Investments

10. Investments

 

Alset International Limited, related party

 

The Company owns 127,179,291 shares or approximately 4% of the outstanding shares of Alset International Limited (“Alset Intl”), a company incorporated in Singapore and publicly listed on the Singapore Exchange Limited. This investment is classified as a marketable security and is classified as long-term assets on the consolidated balance sheets as the Company has the intent and ability to hold the investments for a period of at least one year. The Chairman of the Company, Mr. Heng Fai Ambrose Chan, is the Executive Director and Chief Executive Officer of Alset Intl. Mr. Chan is also the majority shareholder of Alset Intl as well as the largest shareholder of the Company. The fair value of the marketable security as of June 30, 2026 and December 31, 2025, was approximately $1,666,000 and $2,277,000, respectively. During the six months ended June 30, 2026 and 2025, the Company recorded unrealized loss of approximately $610,000 and $420,000, respectively.

 

True Partners Capital Holding Limited

 

The Company owns 272,520,408 shares or approximately 44.66% of True Partners Capital Holding Limited (“True Partners”. “TPCH”), a publicly listed company on the Hong Kong Stock Exchange. On February 28, 2022, the Company entered into a Stock Purchase Agreement with Alset EHome International Inc. (“AEI”), pursuant to which AEI has agreed to sell a subsidiary holding 62,336,908 shares of stock of True Partner Capital Holding Limited exchange for 17,570,948 shares of common stock of the Company (the “DSS Shares”). The Company’s Executive Chairman and a significant stockholder, Heng Fai Ambrose Chan is the Chairman, Chief Executive Officer and largest shareholder of AEI. Further, on February 20, 2025, the Company acquired an additional 19,500,000 shares of True Partners. The fair value of the marketable security as of December 31, 2025, was approximately $4,206,000.

 

On March 27, 2026, the Company acquired or received a convertible bond investment issued by True Partners with an initial fair value of approximately $8,648,000, which was adjusted to $8,520,000 as of March 31, 2026. During the three months ended March 31, 2026, in connection with the Company’s additional investment in True Partners through the convertible bond and the election of Mr. Chan to the board of directors of True Partners, the Company determined that it has the ability to exercise significant influence over True Partners. Accordingly, beginning on March 27, 2026, the Company began accounting for its investment in True Partners under the equity method of accounting.

 

As a result of the change to equity method accounting, the Company reclassified its investment in True Partners from Investment in equity securities to Investment, equity method on the consolidated balance sheet. On April 29, 2026, the convertible bond was converted into approximately 190,683,500 ordinary shares of TPCH increasing its total ownership to 272,520,408 shares or approximately 44.66%. Immediately prior to conversion the fair value of convertible bond approximately $8,647,000, resulting in an approximate $127,000 gain on the change in fair value. As of June 30, 2026, the carrying value of the Company’s investment in True Partners, was approximately $11,897,000. Prior to the ability to exercise significant influence, the Company recognized an unrealized loss of approximately $606,000 during the three months ended March 31, 2026 related to the change in fair value of True Partners’ marketable equity securities. During the six months ended June 30, 2025, the Company recognized an unrealized loss of approximately $126,000 related to the investment.

 

WestPark Capital Group, LLC.

 

On December 30, 2020, the Company signed a binding letter of intent with WestPark Capital Group, LLC. (“WestPark”) and Century TBD, Inc. (“TBD”) where the parties agreed to prepare a note and stock exchange agreement whereby DSS will assign the TBD Note to WestPark and WestPark shall issue to DSS a stock certificate reflecting 7.5% of the issued and outstanding shares of West Park. This note and stock exchange agreement was finalized during the first quarter 2022 and valued at approximately $500,000 and is included in Investments on the consolidated balance sheet on June 30, 2026 December 31, 2025.

 

BMI Capital International LLC, related party

 

On September 10, 2020, the Company’s wholly owned subsidiary DSS Securities, Inc. entered into membership interest purchase agreement with BMI Financial Group, Inc. a Delaware corporation (“BMIF”) and BMI Capital International LLC, a Texas limited liability company (“BMIC”) whereas DSS Securities, Inc. purchased 14.9% membership interests in BMIC for $100,000. DSS Securities also had the option to purchase an additional 10% of the outstanding membership interest which it exercised for $100,000 in January of 2021 and increased its ownership to 24.9%. The Company is currently accounting for this investment under the equity method of accounting per ASC 323. The Company’s portion of net loss in BMIC during the six months ended June 30, 2026 and 2025, approximated $13,000 and $5,000, respectively.

 

BMIC is a broker-dealer registered with the Securities and Exchange Commission, is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”), and is a member of the Securities Investor Protection Corporation (“SIPC”). The Company’s chairman of the board and another independent board member of the Company also have ownership interest in BMIC.