Data Storage Corporation Reports 236% Increase in Revenue and Achieves Profitability for the First Quarter of 2022

Management to host conference call today, May 16, at 10:00 AM Eastern Time

MELVILLE, N.Y., May 16, 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 first quarter ended March 31, 2022.

Chuck Piluso, CEO of Data Storage Corporation, commented, “I am pleased to report we have witnessed increased sales, as well as an increase in monthly subscription services, which contributed to our revenue growth from $2.6 million to $8.7 million, a year-over-year increase of 236% for the first quarter of 2022. At the same time, we achieved positive net income and generated over $600 thousand of EBITDA (see reconciliation below). We continue to deliver critically required information technology solutions to a niche multi-billion-dollar market and have invested millions of dollars to establish ourselves as a leader within the IBM Power cloud infrastructure and disaster recovery industry. As anticipated, the Flagship merger has positioned us as a comprehensive one-stop-solutions provider with the ability to cross-sell solutions across our respective clients. The synergies of the merger are already evident, as illustrated by the multi-million-dollar contract with a highly recognized national sports team announced earlier this year, as well as our expanded our partnership with the Professional Fighters League. The sports industry represents just one of several key markets we are targeting for our solutions. Importantly, we believe we are extremely well positioned to take advantage of the ever increasing market demand for cloud infrastructure services, disaster recovery, cyber security, and data analytics/AI markets, which we believe will translate to accelerated revenue growth, especially as more companies migrate their IBM Power infrastructure to the cloud.”

“Overall, we continue to execute on our business growth strategy, which has resulted in transformational acquisitions, as well as significant contracts and new partnerships. We have built a robust proposal pipeline to support our growth, while at the same time, we are increasing our sales force, expanding our marketing initiatives, as well as investing in highly skilled personnel and infrastructure. With over $13 million in cash as of March 31, 2022 and no long-term debt, we are well positioned to take advantage of the countless opportunities within this emerging multi-billion-dollar market.”

Conference Call

The Company plans to host a conference call at 10:00 am Eastern Time today, May 16, 2022 to discuss the company's financial results for the first quarter ended March 31, 2022, 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: 708934. 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 May 16, 2023. A telephone replay of the call will be available approximately one hour following the call, through May 30, 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: 45417. 

About Data Storage Corporation

The Company provides a broad range of premium business continuity and analytics solutions from seven data center facilities and two technical labs throughout the USA and Canada. The Company serves its clients with cloud infrastructure, disaster recovery, cyber security and data analytics. 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.

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. 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 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, 2021, 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.

Crescendo Communications, LLC

SOURCE: Data Storage Corporation

[Tables follow]

    March 31, 2022   December 31, 2021
Current Assets:                
Cash and cash equivalents   $ 13,420,707     $ 12,135,803  
Accounts receivable (less allowance for credit losses of $47,523 and $30,000 in 2021 and 2020, respectively)     3,524,464       2,384,367  
Prepaid expenses and other current assets     1,256,243       536,401  
Total Current Assets     18,201,414       15,056,571  
Property and Equipment:                
Property and equipment     7,502,490       6,595,236  
Less—Accumulated depreciation     (4,939,373 )     (4,657,765 )
Net Property and Equipment     2,563,117       1,937,471  
Other Assets:                
 Goodwill     6,560,671       6,560,671  
 Operating lease right-of-use assets     374,356       422,318  
 Other assets     78,045       103,226  
 Intangible assets, net     2,184,836       2,254,566  
Total Other Assets     9,197,908       9,340,781  
Total Assets   $ 29,962,439     $ 26,334,823  
Current Liabilities:                
Accounts payable and accrued expenses   $ 4,335,372     $ 1,343,391  
Deferred revenue     292,450       366,859  
Finance leases payable     395,324       216,299  
Finance leases payable related party     741,830       839,793  
Operating lease liabilities short term     206,231       205,414  
Total Current Liabilities     5,971,207       2,971,756  
Operating lease liabilities     177,348       226,344  
Finance leases payable     568,588       157,424  
Finance leases payable related party     434,050       364,654  
Total Long Term Liabilities     1,179,986       748,422  
Total Liabilities     7,151,193       3,720,178  
Stockholders’ Equity:                
Common stock, par value $.001; 250,000,000 shares authorized; 6,697,127 and 6,693,793 shares issued and outstanding in 2022 and 2021, respectively     6,697       6,694  
Additional paid in capital     38,314,591       38,241,155  
Accumulated deficit     (15,394,788 )     (15,530,576 )
Total Data Storage Corp Stockholders’ Equity     22,926,500       22,717,273  
Non-controlling interest in consolidated subsidiary     (115,254 )     (102,628 )
Total Stockholder’s Equity     22,811,246       22,614,645  
Total Liabilities and Stockholders’ Equity   $ 29,962,439     $ 26,334,823  


    Three Months Ended March 31,
    2022   2021
Sales   $ 8,657,199     $ 2,574,691  
Cost of sales     6,011,289       1,420,899  
Gross Profit     2,645,910       1,153,792  
Selling, general and administrative     2,459,866       1,118,407  
Income from Operations     186,044       35,385  
Other Income (Expense)                
Interest expense, net     (62,882 )     (35,045 )
Total Other Expense     (62,882 )     (35,045 )
Income before provision for income taxes     123,162       340  
Benefit from income taxes            
Net Income     123,162       340  
Non-controlling interest in consolidated subsidiary     12,626       1,759  
Net Income attributable to Data Storage Corp     135,788       2,099  
Preferred Stock Dividends           (38,883 )
Net Income (Loss) Attributable to Common Stockholders   $ 135,788     $ (36,784 )
Earnings per Share – Basic   $ 0.02     $ (0.01 )
Earning pers Share – Diluted   $ 0.02     $ (0.01 )
Weighted Average Number of Shares - Basic     6,695,966       3,213,485  
Weighted Average Number of Shares - Diluted     6,955,900       3,213,485  


    Three Months Ended March 31,
    2022   2021
Cash Flows from Operating Activities:                
Net Income   $ 123,162     $ 340  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     351,338       267,189  
Stock based compensation     66,505       42,171  
Changes in Assets and Liabilities:                
Accounts receivable     (1,140,097 )     (170,096 )
Other assets     25,180       (345 )
Prepaid expenses and other current assets     (719,842 )     (290,018 )
Right of use asset     47,962       21,492  
Accounts payable and accrued expenses     2,991,981       558,679  
Deferred revenue     (74,409 )     (59,489 )
Operating lease liability     (48,179 )     (21,364 )
Net Cash Provided by Operating Activities     1,623,601       348,559  
Cash Flows from Investing Activities:                
 Capital expenditures     (25,946 )     (257,238 )
Net Cash Used in Investing Activities     (25,946 )     (257,238 )
Cash Flows from Financing Activities:                
Repayments of finance lease obligations related party     (271,574 )     (313,925 )
Repayments of finance lease obligations     (48,112 )     (36,682 )
Cash received for the exercised of options     6,935        
Net Cash Used in Financing Activities     (312,751 )     (350,607 )
Increase (decrease) in Cash and Cash Equivalents     1,284,904       (259,286 )
Cash and Cash Equivalents, Beginning of Period     12,135,803       893,598  
Cash and Cash Equivalents, End of Period   $ 13,420,707     $ 634,312  
Supplemental Disclosures:                
Cash paid for interest   $ 61,262     $ 31,971  
Cash paid for income taxes   $     $  
Non-cash investing and financing activities:                
Accrual of preferred stock dividend   $     $ 38,883  
Assets acquired by finance lease   $ 881,308     $ 50,000  


Adjusted EBITDA

To supplement our consolidated financial statements presented in accordance with GAAP and to provide investors with additional information regarding our financial results, we consider and are including herein Adjusted EBITDA, a Non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income adjusted for interest and financing fees, depreciation, amortization, stock-based compensation, and other non-cash income and expenses. We believe that Adjusted EBITDA provides us an important measure of operating performance because it allows management, investors, debtholders and others to evaluate and compare ongoing operating results from period to period by removing the impact of our asset base, any asset disposals or impairments, stock-based compensation and other non-cash income and expense items associated with our reliance on issuing equity-linked debt securities to fund our working capital.

Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.

The following table shows our reconciliation of net income to adjusted EBITDA for the three months ended March 31, 2022 and 2021, respectively:

    For the Three Months Ended
    March 31,   March 31,
    2022   2021
Net income   $ 123,162       340  
Non-GAAP adjustments:                
Depreciation and amortization     351,338       267,189  
Flagship acquisition costs     605        
Interest income and expense     62,882       35,045  
Stock based compensation     66,505       42,171  
Adjusted EBITDA   $ 604,492       344,745  

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Source: Data Storage Corp.