$DTST

Data Storage Corp

CIK:0001419951|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Sales	$ 358,530	$ 327,951	$ 705,237	$ 640,695
Cost of sales	190,049	189,769	350,737	361,736
Gross profit	168,481	138,182	354,500	278,959
Selling, general and administrative	1,450,551	1,088,944	2,922,664	1,945,859
Loss from operations	(1,282,070)	(950,762)	(2,568,164)	(1,666,900)
Interest income	81,415	103,267	199,800	224,173
Other (expense) income	(38,358)		80,857
Loss from continuing operations before income taxes	(1,239,013)	(847,495)	(2,287,507)	(1,442,727)
Benefit from income taxes	(63,637)		(343,873)
Loss from continuing operations, net of tax	(1,175,376)	(847,495)	(1,943,634)	(1,442,727)
Income from discontinued operations, net of tax		115,532		737,152
(Loss) gain on sale of discontinued operations, net of tax	(49,684)		99,307
(Loss) income from discontinued operations, net of tax	(49,684)	115,532	99,307	737,152
Net loss	(1,225,060)	(731,963)	(1,844,327)	(705,575)
Less: net income attributable to non-controlling interest of consolidated subsidiary	455	1,086	12,460	3,396
Net loss attributable to common stockholders	$ (1,225,515)	$ (733,049)	$ (1,856,787)	$ (708,971)
Loss per share from continuing operations – basic	$ (0.52)	$ (0.12)	$ (0.73)	$ (0.20)
Loss per share from continuing operations – diluted	(0.52)	(0.12)	(0.73)	(0.20)
(Loss) earnings per share from discontinued operations – basic	(0.02)	0.02	0.04	0.10
(Loss) earnings per share from discontinued operations – diluted	(0.02)	0.02	0.04	0.10
Loss per share attributable to common stockholders – basic (1)	(0.55)	(0.10)	(0.69)	(0.10)
Loss per share attributable to common stockholders – diluted (1)	$ (0.55)	$ (0.10)	$ (0.69)	$ (0.10)
Weighted average number of shares – basic	2,244,002	7,155,464	2,671,953	7,119,102
Weighted average number of shares – diluted	2,244,002	7,155,464	2,671,953	7,119,102

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Loss from continuing operations, net of tax	$ (1,943,634)	$ (1,442,727)
Income from discontinued operations, net of tax	99,307	737,152
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	1,434	1,098
Stock based compensation	1,221,249	468,012
Change in fair value of warrant liability	(150,458)
Change in fair value of investment	69,601
Deferred taxes	(312,334)
Provision for credit losses		6,512
Changes in Assets and Liabilities:
Accounts receivable	(11,324)	(39,255)
Prepaid expenses and other assets	200,730	(954,925)
Income taxes receivable	(545,472)
Accounts payable and accrued expenses	(107,611)	1,448,519
Income taxes payable	(1,166,315)
Changes in assets and liabilities of discontinued operations		(951,873)
Net cash used in operating activities	(2,644,827)	(727,487)
Cash Flows from Investing Activities:
Capital expenditures		(1,156)
Purchase of marketable securities	(210,210)	(224,173)
Sale of marketable securities	30,205,420	975,000
Cash used in investing activities of discontinued operations		(477,655)
Net cash provided by investing activities	29,995,210	272,016
Cash Flows from Financing Activities:
Share repurchases in connection with Tender Offer	(29,528,957)
Costs paid in connection with at-the-market offering	(87,568)
Other	47,479
Proceeds from stock option exercises		38,267
Cash used in financing activities of discontinued operations		(51,520)
Net cash used in financing activities	(29,569,046)	(13,253)
Effect of exchange rates on cash		9,950
Decrease in cash, cash equivalents, and restricted cash	(2,218,663)	(458,774)
Cash, cash equivalents, and restricted cash, beginning of period	3,489,354	1,070,097
Cash, cash equivalents, and restricted cash, end of period	1,270,691	611,323
Reconciliation to consolidated balance sheets:
Cash and cash equivalents	270,691	611,323
Escrow funds receivable	1,000,000
Cash, cash equivalents, and restricted cash	1,270,691	611,323
Supplemental cash flow disclosures:
Cash paid for interest		17,239
Cash paid for income taxes	1,711,787
Non-cash investing and financing activities:
Reclassification of warrants from equity to liability	300,533
Tender offer costs included in excise taxes payable	$ 292,507

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 270,691	$ 1,989,354
Accounts receivable, net of allowance for expected credit losses of $648 at June 30, 2026 and December 31, 2025	45,929	34,605
Escrow funds receivable	1,000,000	1,500,000
Marketable securities	9,008,914	39,004,124
Income taxes receivable	545,472
Prepaid expenses and other current assets	126,816	98,843
Total current assets	10,997,822	42,626,926
Property and equipment, net	15,432	16,866
Other long-term assets	120,467	378,682
Total assets	11,133,721	43,022,474
Current Liabilities:
Accounts payable and accrued expenses	736,516	842,473
Payable to purchaser of discontinued operations		15,889
Excise taxes payable	292,507	1,166,315
Total current liabilities	1,029,023	2,024,677
Deferred tax liability - non-current		312,334
Total long-term liabilities		312,334
Total liabilities	1,029,023	2,337,011
Preferred stock, par value $0.001; 10,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
Common stock, par value $0.001; 250,000,000 shares authorized; 7,962,867 and 2,337,738 shares issued and outstanding at June 30, 2026, respectively; 7,792,267 shares issued and outstanding at December 31, 2025	7,963	7,793
Treasury stock, at cost; 5,625,129 and 0 shares as of June 30, 2026 and December 31, 2025, respectively	(29,821,464)
Additional paid-in capital	41,777,237	40,706,616
(Accumulated deficit) retained earnings	(1,634,676)	222,111
Accumulated other comprehensive loss		(14,235)
Total Data Storage Corporation stockholders’ equity	10,329,060	40,922,285
Non-controlling interest in consolidated subsidiary	(224,362)	(236,822)
Total stockholders’ equity	10,104,698	40,685,463
Total liabilities and stockholders’ equity	$ 11,133,721	$ 43,022,474