Data Storage Corporation Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

12 Months Ended

Dec. 31, 2022


Operations of:		Products and services provided:
Nexxis Inc		NEXXIS is a single-source solution provider that delivers fully-managed cloud-based voice services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment.

Flagship Solutions, LLC		Flagship Solutions Group (FSG) is a managed service provider. FSG invoices clients primarily for services that assist the clients’ technical teams. FSG has few technical assets and utilizes the assets or software of other cloud providers, whereby managing 3rd party infrastructure. FSG periodically sells equipment and software.

CloudFirst Technologies Corporation		CloudFirst, provides services from CloudFirst technological assets deployed in six Tier 3 data centers throughout the USA and Canada. This technology has been developed by CloudFirst. Clients are invoiced for cloud infrastructure and disaster recovery on the CloudFirst platform. Services provided to clients are provided on a subscription basis on long term contracts.


As of December 31, 2022

	Nexxis Inc.		Flagship Solutions LLC		CloudFirst Technologies		Corporate		Total

Accounts receivable	$	34,903	$	1,924,184	$	1,543,749	$	—	$	3,502,836
Prepaid expenses and other current assets		16,799		213,826		285,306		68,735		584,666
Net Property and Equipment		—		19,705		2,192,085		—		2,211,790
Intangible assets, net		—		1,696,376		279,268		—		1,975,644
Goodwill		—		1,222,971		3,015,700		—		4,238,671
Operating lease right-of-use assets		—		167,761		58,740		—		226,501
All other assets		—		—		—		11,346,127		11,346,127
Total Assets	$	51,702	$	5,244,823	$	7,374,848	$	11,414,862	$	24,086,235

Accounts payable and accrued expenses	$	40,091	$	1,563,408	$	1,069,278	$	534,800	$	3,207,577
Deferred revenue		—		165,725		115,335		—		281,060
Total Finance leases payable		—		—		641,110		—		641,110
Total Finance leases payable related party		—		—		776,864		—		776,864
Total Operating lease liabilities		—		169,469		62,960		—		232,429
Total Liabilities	$	40,091	$	1,898,602	$	2,665,547	$	534,800	$	5,139,040


As of December 31, 2021

	Nexxis Inc.		Flagship Solutions LLC		CloudFirst Technologies		Corporate		Total

Accounts receivable	$	19,094	$	1,437,840	$	927,433	$	—	$	2,384,367
Prepaid expenses and other current assets		6,117		330,777		198,860		647		536,401
Net Property and Equipment		—		6,036		1,931,435		—		1,937,471
Intangible assets, net		—		1,975,298		279,268		—		2,254,566
Goodwill		—		3,544,971		3,015,700		—		6,560,671
Operating lease right-of-use assets		—		268,698		153,620		—		422,318
All other assets		—		—		—		12,239,029		12,239,029
Total Assets	$	25,211	$	7,563,620	$	6,506,316	$	12,239,676	$	26,334,823

Accounts payable and accrued expenses	$	49,291	$	274,387	$	812,192	$	207,521	$	1,343,391
Deferred revenue		—		—		366,859		—		366,859
Total Finance leases payable		—		—		373,723		—		373,723
Total Finance leases payable related party		—		—		1,204,447		—		1,204,447
Total Operating lease liabilities		—		269,407		162,351		—		431,758
Total Liabilities	$	49,291	$	543,794	$	2,919,572	$	207,521	$	3,720,178


For the year ended December 31, 2022

	Nexxis Inc.			Flagship Solutions LLC			CloudFirst Technologies			Corporate			Total
Sales	$	931,341		$	11,395,770		$	11,543,726		$	—		$	23,870,837
Cost of sales		600,410			9,041,684			6,145,450			—			15,787,544
Gross Profit		330,931			2,354,086			5,398,276			—			8,083,293

Selling, general and administrative		403,370			3,599,572			2,391,613			2,216,842			8,611,397
Impairment of goodwill					2,322,000			—			—			2,322,000
Depreciation and amortization		—			282,684			943,227			—			1,225,911
Total operating expenses		403,370			6,204,256			3,334,840			2,216,842			12,159,308

Loss from Operations		(72,439	)		(3,850,170	)		2,063,436			(2,216,842	)		(4,076,015	)

Interest expense, net		—			(319	)		(138,365	)		8,597			(130,087	)
Other expense		—			(75,418)			—			—			(75,418)
Impairment of deferred offering costs		—			—			—			(127,343	)		(127,343	)
Total Other Income (Expense)		—			(75,737	)		(138,365	)		(118,746	)		(332,848	)

Income (Loss) before provision for income taxes	$	(72,439	)	$	(3,925,907	)	$	1,925,071		$	(2,335,588	)	$	(4,408,863	)


For the year ended December 31, 2021

	Nexxis Inc.			Flagship Solutions LLC			CloudFirst Technologies			Corporate			Total
Sales	$	817,175		$	3,853,473		$	10,205,579		$	—		$	14,876,227
Cost of sales		527,159			2,334,331			5,597,627			—			8,459,117
Gross Profit		290,016			1,519,142			4,607,952			—			6,417,110

Selling, general and administrative		329,628			1,965,727			2,763,880			840,602			5,899,837
Depreciation and amortization		—			168,011.00			1,116,334.00			—			1,284,345
Total operating expenses		329,628			2,133,738			3,880,214			840,602			7,184,182

Loss from Operations		(39,612	)		(614,596	)		727,738			(840,602	)		(767,072	)

Interest expense, net		—			(3,423	)		(123,323	)		—			(126,746	)
All other expenses		—			310,723			443,385			—			754,108
Total Other Income (Expense)		—			307,300			320,062			—			627,362

Income (Loss) before provision for income taxes	$	(39,612	)	$	(307,296	)	$	1,047,800		$	(840,602	)	$	(139,710	)