Data Storage Corporation Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

9 Months Ended

Sep. 30, 2023


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 has maintains technical assets on one data center. 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 September 30, 2023
	CloudFirst Technologies Corporation		Flagship Solutions LLC		Nexxis Inc.		Corporate		Total

Accounts receivable	$	1,032,309	$	1,283,809	$	28,225	$	—	$	2,344,343
Prepaid expenses and other current assets		616,149		149,239		19,089		87,556		872,033
Net Property and Equipment		2,710,730		22,334		3,118		2,838		2,739,020
Intangible assets, net		279,268		1,487,963		—		—		1,767,231
Goodwill		3,015,700		1,222,971		—		—		4,238,671
Operating lease right-of-use assets		—		89,547		—		—		89,547
All other assets		—		—		—		11,573,746		11,573,746
Total Assets	$	7,654,156	$	4,255,863	$	50,432	$	11,664,140	$	23,624,591

Accounts payable and accrued expenses	$	1,031,518	$	1,351,349	$	127,002	$	348,855	$	2,858,724
Deferred revenue		106,370		153,172		—		—		259,542
Total Finance leases payable		346,589		—		—		—		346,589
Total Finance leases payable related party		384,577		—		—		—		384,577
Total Operating lease liabilities		—		90,979		—		—		90,979
Total Liabilities	$	1,869,054	$	1,595,500	$	127,002	$	348,855	$	3,940,411


As of December 31, 2022
	CloudFirst Technologies Corporation		Flagship Solutions LLC		Nexxis Inc.		Corporate		Total

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

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


For the three months ended September 30, 2023
	CloudFirst Technologies Corporation			Flagship Solutions LLC			Nexxis Inc.			Corporate			Total
Sales	$	3,741,717		$	1,974,343		$	270,565		$	—		$	5,986,625
Cost of Sales		1,990,420			1,501,830			164,021			—			3,656,271
Gross Profit		1,751,297			472,513			106,544			—			2,330,354

Selling, General and Administrative		651,896			544,686			174,527			606,584			1,977,693
Depreciation and Amortization		267,440			70,691			213			176			338,520
Total Operating Expenses		919,336			615,377			174,740			606,760			2,316,213

Income (Loss) from Operations		831,961			(142,864	)		(68,196	)		(606,760	)		14,141

Interest Expense, net		(13,069	)		—			—			156,666			143,597
Other Expense		—			—			—			—			—
Total Other Income (Expense)		(13,069	)		—			—			156,666			143,597

Income (Loss) before provision for income taxes	$	818,892		$	(142,864	)	$	(68,196	)	$	(450,094	)	$	157,738


For the three months ended September 30, 2022
	CloudFirst Technologies Corporation			Flagship Solutions LLC			Nexxis Inc.		Corporate			Total
Sales	$	2,976,461		$	1,218,990		$	223,834	$	—		$	4,419,285
Cost of Sales		1,525,175			910,852			130,957		—			2,566,984
Gross Profit		1,451,286			308,138			92,877		—			1,852,301

Selling, General and Administrative		556,060			691,863			92,837		443,026			1,783,786
Depreciation and Amortization		220,810			70,929			—		—			291,739
Total Operating Expenses		776,870			762,792			92,837		443,026			2,075,525

Income (Loss) from Operations		674,416			(454,654	)		40		(443,026	)		(223,224	)

Interest Expense, net		(29,123	)		(137	)		—		(479	)		(29,739	)
Loss on Disposal of Equipment		—			—			—		—			—
Gain on Forgiveness of Debt		—			—			—		—			—
All Other Expenses		—			—			—		—			—
Total Other Income (Expense)		(29,123	)		(137	)		—		(479	)		(29,739	)

Income (Loss) before Provision for Income Taxes	$	645,293		$	(454,791	)	$	40	$	(443,505	)	$	(252,963	)


For the nine months ended September 30, 2023
	CloudFirst Technologies Corporation			Flagship Solutions LLC		Nexxis Inc.			Corporate			Total
Sales	$	10,052,281		$	7,918,016	$	800,442		$	—		$	18,770,739
Cost of Sales		5,323,346			5,949,745		498,795			—			11,771,886
Gross Profit		4,728,935			1,968,271		301,647			—			6,998,853

Selling, General and Administrative		2,002,882			1,729,191		468,605			1,790,124			5,990,802
Depreciation and Amortization		714,585			212,646		492			457			928,180
Total Operating Expenses		2,717,467			1,941,837		469,097			1,790,581			6,918,982

Income (Loss) from Operations		2,011,468			26,434		(167,450	)		(1,790,581	)		79,871

Interest Expense, net		(56,985	)		—		—			375,953			318,968
Total Other Income (Expense)		(56,985	)		—		—			375,953			318,968

Income (Loss) before Provision for Income Taxes	$	1,954,483		$	26,434	$	(167,450	)	$	(1,414,628	)	$	398,839


For the nine months ended September 30, 2022
	CloudFirst Technologies Corporation			Flagship Solutions LLC			Nexxis Inc.			Corporate			Total
Sales	$	8,200,881		$	9,045,733		$	657,619		$	—		$	17,904,233
Cost of Sales		4,289,894			7,146,441			411,125			—			11,847,460
Gross Profit		3,910,987			1,899,292			246,494			—			6,056,773

Selling, General and Administrative		1,712,409			2,807,096			278,785			1,398,977			6,197,267
Depreciation and Amortization		720,573			211,755			—			—			932,328
Total Operating expenses		2,432,982			3,018,851			278,785			1,398,977			7,129,595

Income (Loss) from Operations		1,478,005			(1,119,559	)		(32,291	)		(1,398,977	)		(1,072,822	)

Interest Expense, net		(108,052	)		(75,695	)		—			(2,316	)		(186,063	)
Loss on Disposal of Equipment		—			—			—			—			—
Gain on Forgiveness of Debt		—			—			—			—			—
All Other Expenses		—			—			—			—			—
Total Other Income (Expense)		(108,052	)		(75,695	)		—			(2,316	)		(186,063	)

Income (Loss) before Provision for Income Taxes	$	1,369,953		$	(1,195,254	)	$	(32,291	)	$	(1,401,293	)	$	(1,258,885	)