“Importantly, we began the year with the consolidation of our CloudFirst and Flagship subsidiaries. This strategic decision combines the unique strengths and expertise of the respective business units, positioning us to optimize operations, leverage our technical teams, realize greater efficiencies, and improve internal resource allocation, while allowing us to capitalize on cross-selling and upselling opportunities among our customers. As further validation of this strategy, we announced two meaningful contracts during the quarter. We expanded a contract with an existing client, a major global telecommunications company, while also securing a new contract with one of the largest insurance companies in
“In addition, we are actively advancing our international growth plan, including the recent opening of our
“Overall, we have developed a robust business strategy that we believe will drive growth and secure sustainable profitability, while maximizing long term value for shareholders. At the same time, we have a strong balance sheet with over
Conference Call
The Company plans to host a conference call at
The conference call will be available via telephone by dialing toll-free 877-451-6152 for
A webcast replay of the call will be available on the Company’s website (www.dtst.com/news-events) through
About
Safe Harbor Provision
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. The forward looking statements in this press release include statements such as continuing to grow revenue and increase profitability as the Company executes on its strategic initiatives, the consolidation of the CloudFirst and Flagship subsidiaries positioning the Company to optimize operations, leverage its technical teams, realize greater efficiencies, and improve internal resource allocation, while capitalizing on extensive cross-selling and upselling opportunities among its customer networks, the two meaningful announced contracts being just the first of many such announcements that will come from the efforts of the combined organizations, having developed a robust business strategy that we will drive growth and secure sustainable profitability while maximizing long term value for shareholders and providing meaningful updates to shareholders as developments unfold. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include the Company’s ability to execute and advance its growth strategies. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the
Contact:
212-671-1020
DTST@crescendo-ir.com
[Tables to Follow]
DATA STORAGE CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 640,742 | $ | 1,428,730 | ||||
Accounts receivable (less provision for credit losses of | 4,437,666 | 1,259,972 | ||||||
Marketable securities | 11,261,565 | 11,318,196 | ||||||
Prepaid expenses and other current assets | 666,957 | 513,175 | ||||||
Total Current Assets | 17,006,930 | 14,520,073 | ||||||
Property and Equipment: | ||||||||
Property and equipment | 8,196,862 | 7,838,225 | ||||||
Less—Accumulated depreciation | (5,331,503 | ) | (5,105,451 | ) | ||||
Net Property and Equipment | 2,865,359 | 2,732,774 | ||||||
Other Assets: | ||||||||
4,238,671 | 4,238,671 | |||||||
Operating lease right-of-use assets | 36,160 | 62,981 | ||||||
Other assets | 48,436 | 48,436 | ||||||
Intangible assets, net | 1,628,937 | 1,698,084 | ||||||
Total Other Assets | 5,952,204 | 6,048,172 | ||||||
Total Assets | $ | 25,824,493 | $ | 23,301,019 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 4,835,868 | $ | 2,608,938 | ||||
Deferred revenue | 310,123 | 336,201 | ||||||
Finance leases payable | 214,961 | 263,600 | ||||||
Finance leases payable related party | 155,164 | 235,944 | ||||||
Operating lease liabilities short term | 36,733 | 63,983 | ||||||
Total Current Liabilities | 5,552,849 | 3,508,666 | ||||||
Finance leases payable | — | 17,641 | ||||||
Finance leases payable related party | — | 20,297 | ||||||
Total Long-Term Liabilities | — | 37,938 | ||||||
Total Liabilities | 5,552,849 | 3,546,604 | ||||||
Commitments and contingencies (Note 7) | ||||||||
Stockholders’ Equity: | ||||||||
Preferred stock, Series A par value | — | — | ||||||
Common stock, par value | 6,930 | 6,881 | ||||||
Additional paid in capital | 39,661,561 | 39,490,285 | ||||||
Accumulated deficit | (19,148,701 | ) | (19,505,803 | ) | ||||
Total Data Storage Corporation Stockholders’ Equity | 20,519,790 | 19,991,363 | ||||||
Non-controlling interest in consolidated subsidiary | (248,146 | ) | (236,948 | ) | ||||
Total Stockholder’s Equity | 20,271,644 | 19,754,415 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 25,824,493 | $ | 23,301,019 |
DATA STORAGE CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Sales | $ | 8,235,747 | $ | 6,879,723 | ||||
Cost of sales | 5,269,275 | 4,789,978 | ||||||
Gross Profit | 2,966,472 | 2,089,745 | ||||||
Selling, general and administrative | 2,752,677 | 2,130,759 | ||||||
Income (loss) from Operations | 213,795 | (41,014 | ) | |||||
Other Income (Expense) | ||||||||
Interest income | 143,369 | 103,424 | ||||||
Interest expense | (11,260 | ) | (27,347 | ) | ||||
Total Other Income (Expense) | 132,109 | 76,077 | ||||||
Income before provision for income taxes | 345,904 | 35,063 | ||||||
Provision from income taxes | — | — | ||||||
Net Income | 345,904 | 35,063 | ||||||
Loss in Non-controlling interest in consolidated subsidiary | 11,198 | 15,603 | ||||||
Net Income Attributable to Common Stockholders | $ | 357,102 | $ | 50,666 | ||||
Earnings per Share – Basic | $ | 0.05 | $ | 0.01 | ||||
Earnings per Share – Diluted | $ | 0.05 | $ | 0.01 | ||||
Weighted Average Number of Shares – Basic | 7,090,389 | 6,822,127 | ||||||
Weighted Average Number of Shares – Diluted | 7,259,472 | 6,954,320 |
DATA STORAGE CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 345,904 | $ | 35,063 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 295,198 | 288,710 | ||||||
Stock based compensation | 171,325 | 86,469 | ||||||
Changes in Assets and Liabilities: | ||||||||
Accounts receivable | (3,177,694 | ) | (168,334 | ) | ||||
Other assets | — | (17,300 | ) | |||||
Prepaid expenses and other current assets | (153,782 | ) | (293,794 | ) | ||||
Right of use asset | 26,821 | 50,659 | ||||||
Accounts payable and accrued expenses | 2,226,932 | 491,669 | ||||||
Deferred revenue | (26,078 | ) | 28,213 | |||||
Operating lease liability | (27,250 | ) | (52,216 | ) | ||||
(318,624 | ) | 449,139 | ||||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (358,637 | ) | (426,671 | ) | ||||
Sale of marketable securities | 200,000 | — | ||||||
Purchase of marketable securities | (143,369 | ) | (103,423 | ) | ||||
(302,006 | ) | (530,094 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Repayments of finance lease obligations related party | (66,280 | ) | (183,464 | ) | ||||
Repayments of finance lease obligations | (101,078 | ) | (140,264 | ) | ||||
(167,358 | ) | (323,728 | ) | |||||
Decrease in Cash and Cash Equivalents | (787,988 | ) | (404,683 | ) | ||||
Cash and Cash Equivalents, Beginning of Period | 1,428,730 | 2,286,722 | ||||||
Cash and Cash Equivalents, End of Period | $ | 640,742 | $ | 1,882,039 | ||||
Supplemental Disclosures: | ||||||||
Cash paid for interest | $ | 8,855 | $ | 24,863 | ||||
Cash paid for income taxes | $ | — | $ | — |
Source:
2024 GlobeNewswire, Inc., source