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

Segment Information (Tables)

12 Months Ended

Dec. 31, 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 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, 2023

	CloudFirst Technologies		Flagship Solutions LLC		Nexxis Inc.		Corporate		Total

Accounts receivable	$	528,810	$	701,010	$	30,152		—	$	1,259,972
Prepaid expenses and other current assets		353,881		65,373		18,157		75,764		513,175
Net Property and Equipment		2,706,435		20,790		2,905		2,644		2,732,774
Intangible assets, net		279,268		1,418,816		—		—		1,698,084
Goodwill		3,015,700		1,222,971		—		—		4,238,671
Operating lease right-of-use assets		—		62,981		—		—		62,981
All other assets		—		—		—		12,795,362		12,795,362
Total Assets	$	6,884,094	$	3,491,941	$	51,214	$	12,873,770	$	23,301,019

Accounts payable and accrued expenses	$	687,342	$	1,333,621	$	65,161	$	522,814	$	2,608,938
Deferred revenue		231,253		104,948		—		—		336,201
Total Finance leases payable		281,241		—		—		—		281,241
Total Finance leases payable related party		256,241		—		—		—		256,241
Total Operating lease liabilities		—		63,983		—		—		63,983
Total Liabilities	$	1,456,077	$	1,502,552	$	65,161	$	522,814	$	3,546,604


As of December 31, 2022

	CloudFirst Technologies		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 year ended December 31, 2023

	CloudFirst Technologies			Flagship Solutions LLC		Nexxis Inc.			Corporate			Total
Sales	$	13,510,866		$	10,351,783	$	1,096,927		$	—		$	24,959,576
Cost of sales		7,097,844			7,651,993		633,414			—			15,383,251
Gross Profit		6,413,022			2,699,790		463,513			—			9,576,325

Selling, general and administrative		2,723,593			2,388,600		692,185			2,638,764			8,443,142
Depreciation and amortization		1,016,901			283,337		705			651			1,301,594
Total operating expenses		3,740,494			2,671,937		692,890			2,639,415			9,744,736

Income (Loss) from Operations		2,672,528			27,853		(229,377	)		(2,639,415	)		(168,411	)

Interest expense, net		(74,502	)		—		—			542,229			467,727
Total Other Income (Expense)		(74,502	)		—		—			542,229			467,727

Income (Loss) before provision for income taxes	$	2,598,026		$	27,853	$	(229,377	)	$	(2,097,186	)	$	299,316


For the year ended December 31, 2022

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

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

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

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

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