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

Segment Information (Tables)

9 Months Ended

Sep. 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 September 30, 2024

	CloudFirst Technologies		Nexxis Inc.		Corporate		Total

Accounts receivable	$	1,931,076	$	42,077	$	—	$	1,973,153
Prepaid expenses and other current assets		633,231		22,947		104,386		760,564
Net property and equipment		3,053,222		2,269		4,212		3,059,703
Intangible assets, net		1,493,792		—		—		1,493,792
Goodwill		4,238,671		—		—		4,238,671
Operating lease right-of-use assets		599,625		—		—		599,625
All other assets		—		—		12,093,086		12,093,086
Total assets	$	11,949,617	$	67,293	$	12,201,684	$	24,218,594

Accounts payable and accrued expenses	$	2,051,086	$	72,901	$	505,427	$	2,629,414
Deferred revenue		160,237		—		—		160,237
Finance leases payable		79,652		—		—		79,652
Finance leases payable related party		74,077		—		—		74,077
Operating lease liabilities		644,442		—		—		644,442
Total liabilities	$	3,009,494	$	72,901	$	505,427	$	3,587,822


	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 September 30, 2024


	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	5,483,537		$	325,298		$	—		$	5,808,835
Cost of sales		3,116,332			180,832			—			3,297,164
Gross Profit		2,367,205			144,466			—			2,511,671

Selling, general and administrative		1,196,547			149,055			834,635			2,180,237
Depreciation and amortization		356,855			214			195			357,264
Total operating expenses		1,553,402			149,269			834,830			2,537,501

Income (Loss) from Operations		813,803			(4,803	)		(834,830	)		(25,830	)

Interest income		—			—			160,770			160,770
Interest expense		(9,815	)		—			—			(9,815	)
Loss on disposal of equipment		(1,599	)		—			—			(1,599	)
Total Other Income (Expense)		(11,414	)		—			160,770			149,356
Income (Loss) before provision for income taxes	$	802,389		$	(4,803	)	$	(674,060	)	$	123,526


For the Three Months Ended September 30, 2023

	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	5,716,060		$	270,565		$	—		$	5,986,625
Cost of sales		3,492,250			164,021			—			3,656,271
Gross Profit		2,223,810			106,544			—			2,330,354

Selling, general and administrative		1,196,582			174,527			606,584			1,977,693
Depreciation and amortization		338,131			213			176			338,520
Total operating expenses		1,534,713			174,740			606,760			2,316,213

Income (Loss) from Operations		689,097			(68,196	)		(606,760	)		14,141

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

Income (Loss) before provision for income taxes	$	676,028		$	(68,196	)	$	(450,094	)	$	157,738

For the Nine Months Ended September 30, 2024


	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	18,055,940		$	899,134		$	—		$	18,955,074
Cost of sales		10,564,352			504,686			—			11,069,038
Gross Profit		7,491,588			394,448			—			7,886,036

Selling, general and administrative		4,229,162			485,978			2,379,944			7,095,084
Depreciation and amortization		990,557			636			580			991,773
Total operating expenses		5,219,719			486,614			2,380,524			8,086,857

Income (Loss) from Operations		2,271,869			(92,166	)		(2,380,524	)		(200,821	)

Interest income		—			—			456,580			456,580
Interest expense		(31,335	)		—			—			(31,335	)
Loss on disposal of equipment		(1,599	)		—			—			(1,599	)
Total Other Income (Expense)		(32,934	)		—			456,580			423,646

Income (Loss) before provision for income taxes	$	2,238,935		$	(92,166	)	$	(1,923,944	)	$	222,825


	For the nine months ended September 30, 2023

	CloudFirst Technologies			Nexxis Inc.			Corporate			Total
Sales	$	17,970,297		$	800,442		$	—		$	18,770,739
Cost of sales		11,273,091			498,795			—			11,771,886
Gross profit		6,697,206			301,647			—			6,998,853
		—
Selling, general and administrative		3,732,073			468,605			1,790,124			5,990,802
Depreciation and amortization		927,231			492			457			928,180
Total operating expenses		4,659,304			469,097			1,790,581			6,918,982

Income (loss) from operations		2,037,902			(167,450	)		(1,790,581	)		79,871

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

Income (loss) before provision for income taxes	$	1,980,917		$	(167,450	)	$	(1,414,628	)	$	398,839