Data Storage Corporation Reports 76% Increase in Revenue for the Second Quarter of 2021

Data Storage to host conference call today, August 16, 2021, at 11:00AM ET

MELVILLE, N.Y., Aug. 16, 2021 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (the “Company”), a provider of diverse business continuity, disaster recovery protection, and cloud infrastructure solutions and services, today provided a business update and reported its financial results for the second quarter ended June 30, 2021.

Chuck Piluso, CEO of Data Storage Corporation, stated, “I am pleased to report we achieved a 76% increase in revenue for the three months ended June 30, 2021, compared to the same period last year. Specifically, we reported growth across all of our product lines, and expect to maintain strong organic growth going forward. Specifically, revenue for Infrastructure & Disaster Recovery/Cloud Services increased 25%; revenue for Equipment and Software increased 208%; revenue for Managed Services increased 269%; and revenue for Nexxis VoIP services increased 19%. We attribute this success to an increase in monthly subscription revenue and additional sales from the Flagship Solutions merger.”

“As a leading provider of IBM solutions, managed services and cloud solutions, Flagship’s offerings and established customers are highly complementary to our business. It’s also important to note that the increase in reported revenue for the second quarter of 2021 includes just one month of Flagship results, June, since we completed the merger on May 31, 2021. Looking ahead, we see substantial opportunities to cross-sell solutions across Data Storage and Flagship’s respective clients. We are also benefitting from other synergies following the acquisition, which we believe will help drive further operational efficiency across the organization.”

“Given our expanded offering following the acquisition, we realigned our sales and marketing strategy to focus more heavily on four key verticals, where we have particularly strong sector expertise and see significant growth opportunities. These verticals include sports, banking & finance, healthcare, and government. Although we will still focus on opportunities in other sectors, we believe this new strategy will help accelerate our organic growth. Overall, we believe we are well positioned. The target marketplace for Infrastructure as a Service and Disaster Recovery as a Service is estimated at over one million logical partitions, virtual servers, in this mission critical technical environment. Our goal for the remainder of 2021 is to increase our presence in the IBM Power infrastructure cloud and business continuity marketplace and to further enhance our position as a leader in this market.”

“Finally, we have significantly enhanced our balance sheet. We ended the second quarter of 2021 with approximately $3.1 million of cash and cash equivalents after payments for the acquisition of Flagship. Since the end of the second quarter, we generated an additional $3.4 million in net proceeds from the exercise of warrants and raised $7.6 million through our recent registered direct in July. As a result, we believe we are positioned to execute on our organic growth strategy, as well as explore opportunistic and accretive acquisitions.”

Financial Results

Revenue for the three months ended June 30, 2021 was $3.5 million, an increase of 76%, compared to $2.0 million for the three months ended June 30, 2020. The increase was primarily attributable to additional sales from the Flagship merger and an increase in software and equipment sales, and Infrastructure & Disaster Recovery/Cloud Services.

Selling, general and administrative expenses for the three months ended June 30, 2021 were $1.6 million compared to $1.0 million for the three months ended June 30, 2020. The increase in expenses was primarily attributable to increases in salaries, professional fees, and advertising expenses as a result of the Flagship merger.

Net income for the three months ended June 30, 2020 was $135,500 or $0.03 per share, as compared to $183,000 or $0.05 per share for the three months ended June 30, 2020.

Conference Call

The Company plans to host a conference call at 11:00 AM Eastern Time on Monday, August 16, 2021, to discuss the Company’s financial results for the second quarter ended June 30, 2021, as well as corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or for international callers +1 973-528-0011 and using entry code: 518430. A webcast of the call may be accessed at, or on the Company’s Investor Relations section of the website,

A webcast replay of the call will be available on the Company’s Investor Relations section of the website ( through August 16, 2022. A telephone replay of the call will be available approximately one hour following the call, through August 30, 2021 and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 42513.

About Data Storage Corporation

The Company delivers and supports a broad range of premium technology solutions focusing on IaaS, data storage protection and IT management. Clients look to DSC to ensure disaster recovery, business continuity, enhance security, and to meet increasing industry, state and federal regulations. The Company markets to businesses, government, education and the healthcare industry by leveraging leading technologies. Through its business units, the Company provides IaaS, SaaS, DRaaS, VoIP, cyber security, data analytics, IBM Power systems and storage hardware with managed IT services. For more information, please visit

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 include statements regarding the expansion of the existing relationship with the Falcons illustrating the scalability and performance of Flagship’s solutions. 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. Important factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, the Company’s ability to leverage the scalability and performance of Flagship’s solutions, the Company’s ability to benefit from the IBM cloud migration underway, the Company’s ability to position itself for future profitability and the Company’s ability to maintain its Nasdaq listing. 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 for the year ended December 31, 2020, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.

Investor Relations Contact:
Crescendo Communications, LLC
Tel: 212-671-1021

***tables follow***


    June 30, 2021   December 31, 2020
Current Assets:                
Cash and cash equivalents   $ 3,076,120     $ 893,598  
Accounts receivable (less allowance for doubtful accounts of $59,067 and $30,000 in 2021 and 2020, respectively)     1,558,716       554,587  
Prepaid expenses and other current assets     392,489       239,472  
Total Current Assets     5,027,325       1,687,657  
Property and Equipment:                
Property and equipment     6,327,875       7,845,423  
Less—Accumulated depreciation     (4,177,560 )     (5,543,822 )
Net Property and Equipment     2,150,315       2,301,601  
Other Assets:                
Goodwill     13,216,040       3,015,700  
Operating lease right-of-use assets     198,549       241,911  
Other assets     72,153       49,310  
Intangible assets, net     391,662       455,935  
Total Other Assets     13,878,404       3,762,856  
Total Assets   $ 21,056,044     $ 7,752,114  
Current Liabilities:                
Accounts payable and accrued expenses   $ 1,547,763     $ 979,552  
Dividend payable           1,115,674  
Deferred revenue     431,047       461,893  
Line of credit           24  
Finance leases payable     174,110       168,139  
Finance leases payable related party     973,245       1,149,403  
Operating lease liabilities short term     106,102       104,549  
Contingent Consideration     4,950,000        
Note payable     481,977       374,871  
Total Current Liabilities     8,664,244       4,354,105  

Note payable long term           107,106  
Operating lease liabilities long term     102,407       147,525  
Finance leases payable, long term     167,694       247,677  
Finance leases payable related party, long term     597,408       974,743  
Total Long Term Liabilities     867,509       1,477,051  
Total Liabilities     9,531,753       5,831,156  
Stockholders’ Equity:                
Preferred stock, Series A par value $.001; 10,000,000 shares authorized; 0 and 1,401,786 shares issued and outstanding in 2021 and 2020, respectively           1,402  
Common stock, par value $.001; 250,000,000 shares authorized; 4,862,352 and 3,213,486 shares issued and outstanding in 2021 and 2020, respectively     4,862       3,213  
Additional paid in capital     27,276,653       17,745,785  
Accumulated deficit     (15,657,208 )     (15,734,737 )
Total Data Storage Corp Stockholders’ Equity     11,624,307       2,015,663  
Non-controlling interest in consolidated subsidiary     (100,016 )     (94,705 )
Total Stockholder’s Equity     11,524,291       1,920,958  
Total Liabilities and Stockholders’ Equity   $ 21,056,044     $ 7,752,114  


    Three Months Ended June 30,   Six Months Ended June 30,
    2021   2020   2021   2020
Sales   $ 3,528,249     $ 2,005,625     $ 6,102,940     $ 4,104,335  
Cost of sales     2,021,324       1,140,421       3,442,223       2,356,538  
Gross Profit     1,506,925       865,204       2,660,717       1,747,797  
Selling, general and administrative     1,602,311       988,266       2,720,718       1,864,892  
Income (loss) from Operations     (95,386 )     (123,062 )     (60,001 )     (117,095 )
Other Income (Expense)                                
Interest income     2             4       20  
Interest expense     (46,623 )     (43,679 )     (81,670 )     (90,139 )
Gain on contingent liability           350,000             350,000  
Loss on disposal of equipment     (29,732 )           (29,732 )      
Gain on forgiveness of debt     307,300             307,300        
Total Other Income (Expense)     230,947       306,321       195,902       259,881  
Income  before provision for income taxes     135,561       183,259       135,901       142,786  
Provision for income taxes                        
Net Income     135,561       183,259       135,901       142,786  
Non-controlling interest in consolidated subsidiary     3,552       7,487       5,311       13,550  
Net Income attributable to Data Storage Corp     139,113       190,746       141,212       156,336  
Preferred Stock Dividends     (24,800 )     (35,041 )     (63,683 )     (69,227 )

Net Income Attributable to Common Stockholders   $ 114,313     $ 155,705     $ 77,529     $ 87,109  
Earnings per Share – Basic   $ 0.03     $ 0.05     $ 0.02     $ 0.03  
Earnings per Share – Diluted   $ 0.03     $ 0.05     $ 0.02     $ 0.03  
Weighted Average Number of Shares - Basic     3,981,402       3,213,485       3,607,909       3,212,822  
Weighted Average Number of Shares - Diluted     4,118,989       3,357,589       3,611,242       3,356,926  


    Six Months Ended June 30,
    2021   2020
Cash Flows from Operating Activities:                
Net Income   $ 135,901     $ 142,786  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     577,044       494,467  
Stock based compensation     76,221       74,386  
Gain on forgiveness of debt     (307,300 )      
Gain on contingent liability           (350,000 )
Loss on disposal of equipment     29,732        
Changes in Assets and Liabilities:                
Accounts receivable     385,134       72,069  
Other assets     (344 )     16,125  
Prepaid expenses and other current assets     (25,443 )     (71,168 )
Right of use asset     43,362       40,473  
Accounts payable and accrued expenses     53,857       (55,529 )
Deferred revenue     (99,582 )     56,517  
Operating lease liability     (43,565 )     (39,168 )
Net Cash Provided by Operating Activities     825,017       380,958  
Cash Flows from Investing Activities:                
 Capital expenditures     (303,228 )     (101,850 )
 Cash consideration for business acquisition     (5,937,275 )      
Net Cash Used in Investing Activities     (6,240,503 )     (101,850 )
Cash Flows from Financing Activities:                
Proceeds from issuance of note payable           481,977  
Repayments of finance lease obligations related party     (603,495 )     (397,719 )
Repayments of finance lease obligations     (74,010 )     (4,109 )
Proceeds from issuance of common stock and warrants     9,454,894        
Cash received for the exercised of options           5,400  
Repayments of Dividend payable     (1,179,357 )      
Repayment of line of credit     (24 )     (74,976 )
Net Cash Provided by Financing Activities     7,598,008       10,573  
Increase in Cash and Cash Equivalents     2,182,522       289,681  
Cash and Cash Equivalents, Beginning of Period     893,598       326,561  
Cash and Cash Equivalents, End of Period   $ 3,076,120     $ 616,242  
Supplemental Disclosures                
Cash paid for interest   $ 78,136     $ 77,095  
Cash paid for income taxes   $     $  
Non-cash investing and financing activities:                
Accrual of preferred stock dividend   $ 63,683     $ 69,227  
Assets acquired by finance lease   $ 50,000     $ 663,078  

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Source: Data Storage Corp.