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

Segment Information (Tables)

6 Months Ended

Jun. 30, 2024


Operations of:		Products and services provided:

CloudFirst Technologies Corporation		CloudFirst provides services from CloudFirst technological assets deployed in seven 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.
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.


	As of June 30, 2024

	CloudFirst Technologies		Nexxis Inc.		Corporate		Total

Accounts receivable	$	1,854,471	$	50,288	$	—	$	1,904,759
Prepaid expenses and other current assets		614,989		25,037		119,953		759,979
Net property and equipment		3,133,601		2,484		2,257		3,138,342
Intangible assets, net		1,560,577		—		—		1,560,577
Goodwill		4,238,671		—		—		4,238,671
Operating lease right-of-use assets		632,733		—		—		632,733
All other assets		—		—		12,103,835		12,103,835
Total assets	$	12,035,042	$	77,809	$	12,226,045	$	24,338,896

Accounts payable and accrued expenses	$	2,411,858	$	68,905	$	443,809	$	2,924,572
Deferred revenue		208,944		—		—		208,944
Finance leases payable		147,769		—		—		147,769
Finance leases payable related party		113,467		—		—		113,467
Operating lease liabilities		640,165		—		—		640,165
Total liabilities	$	3,522,203	$	68,905	$	443,809	$	4,034,917


	As of December 31, 2023

	CloudFirst Technologies		Nexxis Inc.		Corporate		Total

Accounts receivable	$	1,229,820	$	30,152	$	—	$	1,259,972
Prepaid expenses and other current assets		419,254		18,157		75,764		513,175
Net property and equipment		2,727,225		2,905		2,644		2,732,774
Intangible assets, net		1,698,084		—		—		1,698,084
Goodwill		4,238,671		—		—		4,238,671
Operating lease right-of-use assets		62,981		—		—		62,981
All other assets		—		—		12,795,362		12,795,362
Total assets	$	10,376,035	$	51,214	$	12,873,770	$	23,301,019

Accounts payable and accrued expenses	$	2,020,963	$	65,161	$	522,814	$	2,608,938
Deferred revenue		336,201		—		—		336,201
Finance leases payable		281,241		—		—		281,241
Finance leases payable related party		256,241		—		—		256,241
Operating lease liabilities		63,983		—		—		63,983
Total liabilities	$	2,958,629	$	65,161	$	522,814	$	3,546,604

For the Three Months Ended June 30, 2024


	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	4,617,445		$	293,047		$	—		$	4,910,492
Cost of sales		2,345,385			157,214			—			2,502,599
Gross Profit		2,272,060			135,833			—			2,407,893

Selling, general and administrative		1,400,718			160,044			896,606			2,457,368
Depreciation and amortization		338,908			211			192			339,311
Total operating expenses		1,739,626			160,255			896,798			2,796,679

Income (Loss) from Operations		532,434			(24,422	)		(896,798	)		(388,786	)

Interest expense, net		—			—			152,441			152,441
Other expense		(10,260	)		—			—			(10,260	)
Total Other Income (Expense)		(10,260	)		—			152,441			142,181
Income (Loss) before provision for income taxes	$	522,174		$	(24,422	)	$	(744,357	)	$	(246,605	)


For the Three Months Ended June 30, 2023

	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	5,639,310		$	265,081		$	—		$	5,904,391
Cost of sales		3,168,984			156,653			—			3,325,637
Gross Profit		2,470,326			108,428			—			2,578,754

Selling, general and administrative		1,388,712			169,328			613,020			2,171,060
Depreciation and amortization		300,575			208			167			300,950
Total operating expenses		1,689,287			169,536			613,187			2,472,010

Income (Loss) from Operations		781,039			(61,108	)		(613,187	)		106,744

Interest expense, net		(16,570	)		—			115,864			99,294
Other expense		—			—			—			—
Total Other Income (Expense)		(16,570	)		—			115,864			99,294

Income (Loss) before provision for income taxes	$	764,469		$	(61,108	)	$	(497,323	)	$	206,038

For the Six Months Ended June 30, 2024


	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	12,572,403		$	573,836		$	—		$	13,146,239
Cost of sales		7,448,020			323,854			—			7,771,874
Gross Profit		5,124,383			249,982			—			5,374,365

Selling, general and administrative		3,021,616			336,923			1,545,310			4,903,849
Depreciation and amortization		644,701			422			385			645,508
Total operating expenses		3,666,317			337,345			1,545,695			5,549,357

Income (Loss) from Operations		1,458,066			(87,363	)		(1,545,695	)		(174,992	)

Interest expense, net		—			—			295,810			295,810
Other expense		(21,520	)		—			—			(21,520	)
Total Other Income (Expense)		—			—			—			—

Income (Loss) before provision for income taxes	$	1,436,546		$	(87,363	)	$	(1,249,885	)	$	99,298


	For the six months ended June 30, 2023

	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	12,254,237		$	529,877		$	—		$	12,784,114
Cost of sales		7,780,841			334,774			—			8,115,615
Gross profit		4,473,396			195,103			—			4,668,499

Selling, general and administrative		2,535,491			294,078			1,183,540			4,013,109
Depreciation and amortization		589,100			279			281			589,660
Total operating expenses		3,124,591			294,357			1,183,821			4,602,769

Income (loss) from operations		1,348,805			(99,254	)		(1,183,821	)		65,730

Interest income		—			—			—			—
Interest expense		(43,916	)		—			219,287			175,371
Total Other Income (Expense)		43,916	)		—			219,287			175,371

Income (loss) before provision for income taxes	$	1,304,889		$	(99,254	)	$	(964,534	)	$	241,101