Data Storage Corporation Reports 97% Increase in Revenue for the Fourth Quarter of 2021

Management to host conference call today, March 31, at 10:00 AM Eastern Time

MELVILLE, N.Y., March 31, 2022 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a provider of diverse business continuity solutions for disaster-recovery, cloud infrastructure, cyber-security and data analytics solutions, today provided a business update and reported financial results for the fourth quarter and year ended December 31, 2021.

Chuck Piluso, CEO of Data Storage Corporation, commented, “I am pleased to report we achieved revenue growth of 97.1% and 59.6% for the fourth quarter and fiscal year 2021, respectively. We also achieved positive adjusted EBITDA for both the fourth quarter and full year. Importantly, we are successfully executing on our strategy to establish Data Storage as a leading provider of business continuity solutions, ranging from Managed Cloud Infrastructure to cybersecurity, direct internet access, VoIP integration with Microsoft Teams, and an array of managed services. It is clear that digital infrastructure, data integrity and disaster recovery is more critical than ever given the heightened risks of cyber attacks from foreign nations and rogue actors. We have been protecting our clients’ data and providing secure hosting environments for over 15 years, we provide a complete end-to-end security and data recovery offering. Not all attacks or natural disasters can be avoided and it is crucial that organizations backup encrypted data offsite, so information can be recovered, restored and available within the committed client’s timeframe.”

“2021 was a transformational year for the Company as we completed the merger with Flagship Solutions, LLC, a leading provider of IBM solutions, managed services and cloud solutions. This acquisition complements our overall business strategy and expands our offering with an impressive roster of tier-1 customers. We are already realizing the synergies of this acquisition, as illustrated by increased cross-selling activity and a multi-million dollar contract with one of the nation’s premier professional sports teams, which we expect to recognize as revenue in the first quarter of 2022. We are also expanding domestically and internationally, with the opening of operations in Austin, Texas, as well as in Canada through the addition of two new data centers and our partnership with Able-One.”

“Looking ahead, we are more encouraged than ever by the outlook for the business. We have increased our sales pipeline to over $20 million and are growing our subscription revenue, which provides long-term and high margin revenue streams. Our customer base now includes more than 400 companies served and 30 active distribution companies. We are also increasing our sales force, expanding our marketing initiatives and investing in personnel and infrastructure to support our continued growth. Overall, our solutions address a rapidly growing multi-billion-dollar market, which is accelerating as more companies migrate their IBM Power infrastructure to the cloud.”

Conference Call

The Company plans to host a conference call at 10:00 am Eastern Time today, March 31, 2022 to discuss the Company’s financial results for the fourth quarter and year ended December 31, 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: 283625. 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 March 15, 2023. A telephone replay of the call will be available approximately one hour following the call, through April 14, 2022 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: 44979.

About Data Storage Corporation

The Company delivers and supports a broad range of premium technology solutions from its six technical facilities throughout the USA and Canada focusing on cloud infrastructure, data storage and IT management. Clients look to Data Storage Corporation to ensure disaster recovery, business continuity, enhance cyber security, and meet increasing industry, state, and federal regulations. The Company markets to businesses, government, education, and the healthcare industry by leveraging its leading technologies in the creation of their solutions. 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

Crescendo Communications, LLC

SOURCE: Data Storage Corporation

[Tables follow]


    December 31, 2021   December 31, 2020
Current Assets:              
Cash and cash equivalents   $ 12,135,803     $ 893,598  
Accounts receivable (less allowance for doubtful accounts of $50,375 and $30,000 in 2021 and 2020, respectively)     2,384,367       554,587  
Prepaid expenses and other current assets     536,401       239,472  
Total Current Assets     15,056,571       1,687,657  
Property and Equipment:              
Property and equipment     6,595,236       7,845,423  
Less—Accumulated depreciation     (4,657,765 )     (5,543,822 )
Net Property and Equipment     1,937,471       2,301,601  
Other Assets:              
Goodwill     6,560,671       3,015,700  
Operating lease right-of-use assets     422,318       241,911  
Other assets     103,226       49,310  
Intangible assets, net     2,254,566       455,935  
Total Other Assets     9,340,781       3,762,856  
Total Assets   $ 26,334,823     $ 7,752,114  
Current Liabilities:              
Accounts payable and accrued expenses   $ 1,343,391     $ 979,552  
Dividend payable           1,115,674  
Deferred revenue     366,859       461,893  
Line of credit           24  
Finance leases payable     216,299       168,139  
Finance leases payable related party     839,793       1,149,403  
Operating lease liabilities short term     205,414       104,549  
Note payable           374,871  
Total Current Liabilities     2,971,756       4,354,105  
Note payable long term           107,106  
Operating lease liabilities long term     226,344       147,525  
Finance leases payable, long term     157,424       247,677  
Finance leases payable related party, long term     364,654       974,743  
Total Long Term Liabilities     748,422       1,477,051  
Total Liabilities     3,720,178       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; 6,693,793 and 3,214,537 shares issued and outstanding in 2021 and 2020, respectively     6,694       3,213  
Additional paid in capital     38,241,155       17,745,785  
Accumulated deficit     (15,530,576 )     (15,734,737 )
Total Data Storage Corp Stockholders’ Equity     22,717,273       2,015,663  
Non-controlling interest in consolidated subsidiary     (102,628 )     (94,705 )
Total Stockholder’s Equity     22,614,645       1,920,958  
Total Liabilities and Stockholders’ Equity   $ 26,334,823     $ 7,752,114  


    Year Ended December 31,
    2021   2020
Sales   $ 14,876,227     $ 9,320,933  
Cost of sales     8,459,117       5,425,205  
Gross Profit     6,417,110       3,895,728  
Selling, general and administrative     7,184,182       3,896,791  
Loss from Operations     (767,072 )     (1,063 )
Other Income (Expense)                
Interest income           24  
Interest expense, net     (126,746 )     (175,602 )
Gain on contingent liability           350,000  
Loss on disposal of assets     (44,732 )      
Gain on forgiveness of debt     798,840        
Total Other Income     627,362       174,422  
Income (loss) before provision for income taxes     (139,710 )     173,359  
Benefit from income taxes     399,631        
Net Income (loss)     259,921       173,359  
Non-controlling interest in consolidated subsidiary     7,923       26,657  
Net Income (loss) attributable to Data Storage Corp     267,844       200,016  
Preferred Stock Dividends     (63,683 )     (144,677 )
Net Income Loss Attributable to Common Stockholders   $ 204,161     $ 55,339  
Earning per Share – Basic   $ 0.04     $ 0.02  
Earning per Share – Diluted   $ 0.03     $ 0.02  
Weighted Average Number of Shares - Basic     5,075,716       3,213,157  
Weighted Average Number of Shares - Diluted     6,340,125       3,366,010  


    Years Ended December 31,
    2021   2020
Cash Flows from Operating Activities:                
Net Income (loss)   $ 259,921     $ 173,359  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     1,284,345       1,032,566  
Stock based compensation     171,798       158,728  
Gain on forgiveness of debt     (798,840 )      
Gain on contingent liability           (350,000 )
Deferred income taxes, release of valuation allowance     (399,631      
Loss on disposal of assets     44,732        
Changes in Assets and Liabilities:                
Accounts receivable     (440,517 )     136,849  
Other assets     (6,417 )     16,126  
Prepaid expenses and other current assets     (169,355 )     (132,132 )
Right of use asset     (180,407 )     82,356  
Accounts payable and accrued expenses     (142,232 )     44,619  
Deferred revenue     (163,770 )     28,951  
Operating lease liability     179,684       (80,743 )
Net Cash Provided by (Used in) Operating Activities     (360,690 )     1,110,679  
Cash Flows from Investing Activities:                
Investor deposit     (25,000 )      
Capital expenditures     (455,835 )     (181,072 )
Cash acquired in business acquisition     212,068        
Cash consideration for business acquisition     (6,149,343 )      
Net Cash Used in Investing Activities     (6,418,110 )     (181,072 )
Cash Flows from Financing Activities:                
Proceeds from issuance of note payable           481,977  
Proceeds from line of credit     50,000        
Repayments of finance lease obligations related party     (968,420 )     (718,690 )
Repayments of finance lease obligations     (156,845 )     (56,281 )
Proceeds from issuance of common stock and warrants     16,944,380        
Cash received for the exercised of Warrants     3,381,271        
Cash received for the exercised of options           5,400  
Repayments of Dividend payable     (1,179,357 )      
Repayment of line of credit     (50,024 )     (74,976 )
Net Cash Provided by (Used) in Financing Activities     18,021,005       (362,570 )
Increase in Cash and Cash Equivalents     11,242,205       567,037  
Cash and Cash Equivalents, Beginning of Year     893,598       326,561  
Cash and Cash Equivalents, End of Year   $ 12,135,803     $ 893,598  
Supplemental Disclosures:                
Cash paid for interest   $ 116,682     $ 168,837  
Cash paid for income taxes   $     $  
Non-cash investing and financing activities:                
Accrual of preferred stock dividend   $ 63,683     $ 144,677  
Assets acquired by finance lease   $ 164,754     $ 808,261  

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Source: Data Storage Corp.