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 https://www.webcaster4.com/Webcast/Page/2763/44979, or on the Company’s Investor Relations section of the website, ir.datastoragecorp.com.
A webcast replay of the call will be available on the Company’s Investor Relations section of the website (ir.datastoragecorp.com) 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 http://www.DataStorageCorp.com.
Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com
SOURCE: Data Storage Corporation
[Tables follow]
| DATA STORAGE CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| December 31, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| 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 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| 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 | ||||
| DATA STORAGE CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| 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 | ||||||
| DATA STORAGE CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| 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 | ||||
Released March 31, 2022