Data Storage Corporation Reports 60% Increase in Revenue to $23.9 Million for 2022

MELVILLE, N.Y., March 31, 2023 (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 IT services, today provided a business update and reported financial results for the twelve months ended December 31, 2022.

Chuck Piluso, CEO of Data Storage Corporation, commented, “We made meaningful progress the past year and achieved a 60% increase in revenue to $23.9 million for 2022. Additionally, we reported positive adjusted EBITDA for the full year. While we witnessed strong year-over-year growth, we also implemented several important strategic initiatives that we believe will enable us to further accelerate growth and streamline the organization to ensure sustained profitability within each of our business subsidiaries.”

“Validating our efforts, our CloudFirst subsidiary generated $11.5 million of revenue with an EBITDA margin of 27% and $1.9 million of net income in 2022, on a standalone basis. Moving forward, we plan to replicate this success across each of our business segments, including Flagship, which we acquired in 2021. Specifically, our vision is to grow recurring revenue. Today, our sales and marketing teams are focused on building Flagship’s monthly recurring solutions and providing these solutions to new and existing clients while we continue to provide equipment and software to our clients. We also believe that investing in this recurring revenue strategy is aligned with the overall market as customers are working to outsource services and migrate to cloud-type solutions.”

“We have also realigned management and sales personnel to allocate resources towards services and verticals that we believe will generate the greatest return on capital, with a focus on areas such as cyber security and migration of customers to cloud-based solutions and long-term contracted managed services. These cloud-based solutions represent large addressable markets, where we are gaining traction, and have positioned ourselves as a leader in the market. At the same time, we continue to carefully manage expenses, and have maintained a strong balance sheet with approximately $11.3 million in cash and short-term investments. Overall, we are executing on our business growth strategy and look forward to providing meaningful updates to shareholders as developments unfold.”

Conference Call

The Company plans to host a conference call at 10:00 am ET today, March 31st, 2023, to discuss the Company's financial results for the 2022 fiscal year ended December 31, 2022, as well as corporate progress and other developments.

The conference call will be available via telephone by dialing toll-free 877-451-6152 for U.S. callers or for international callers 1-201-389-0879. A webcast of the call may be accessed at, or on the Company’s News & Events section of the website,

A webcast replay of the call will be available on the Company’s website ( through March 31st, 2024. A telephone replay of the call will be available approximately three hours following the call, through April 7th, 2023, and can be accessed by dialing 844-512-2921 for U.S. callers or + 1-412-317-6671 for international callers and entering conference ID: 13737044. 

About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) is a family of fully integrated cyber security, cloud infrastructure, and voice & data companies, built around investments in proprietary IT solutions for a broad range of domestic and global customers, including Fortune 500 clients, across a wide range of industries, such as government, education, and healthcare, with a focus on the rapidly growing, multi-billion-dollar business continuity market. A stable and emerging growth leader in cloud infrastructure support, DTST companies operate regional data center facilities across North America, sustainably servicing clients via recurring subscription agreements. Additional information about the Company is available at: and on Twitter (@DataStorageCorp).

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, 2022, 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]


    December 31, 2022   December 31, 2021
Current Assets:                
Cash and cash equivalents   $ 2,286,722     $ 12,135,803  
Short-term investments     9,010,968        
Accounts receivable (less allowance for credit losses of $27,250 and $30,000 in 2022 and 2021, respectively)     3,502,836       2,384,367  
Prepaid expenses and other current assets     584,666       536,401  
 Total Current Assets     15,385,192       15,056,571  
Property and Equipment:                
Property and equipment     7,168,488       6,595,236  
Less—Accumulated depreciation     (4,956,698 )     (4,657,765 )
 Net Property and Equipment     2,211,790       1,937,471  
Other Assets:                
  Goodwill     4,238,671       6,560,671  
  Operating lease right-of-use assets     226,501       422,318  
  Other assets     48,437       103,226  
  Intangible assets, net     1,975,644       2,254,566  
     Total Other Assets     6,489,253       9,340,781  
     Total Assets   $ 24,086,235     $ 26,334,823  
Current Liabilities:                
Accounts payable and accrued expenses   $ 3,207,577     $ 1,343,391  
Deferred revenue     281,060       366,859  
Finance leases payable     359,868       216,299  
Finance leases payable related party     520,623       839,793  
Operating lease liabilities short term     160,657       205,414  
Total Current Liabilities     4,529,785       2,971,756  
Operating lease liabilities     71,772       226,344  
Finance leases payable     281,242       157,424  
Finance leases payable related party     256,241       364,654  
Total Long Term Liabilities     609,255       748,422  
 Total Liabilities     5,139,040       3,720,178  
Commitments and contingencies            
Stockholders’ Equity:                
Preferred stock, Series A par value $.001; 10,000,000 shares authorized; 0 and 0 shares issued and outstanding in 2022 and 2021, respectively            
Common stock, par value $.001; 250,000,000 shares authorized; 6,822,127 and 6,693,793 shares issued and outstanding in 2022 and 2021, respectively     6,822       6,694  
Additional paid in capital     38,982,440       38,241,155  
Accumulated deficit     (19,887,378 )     (15,530,576 )
Total Data Storage Corp Stockholders’ Equity     19,101,884       22,717,273  
Non-controlling interest in consolidated subsidiary     (154,689 )     (102,628 )
Total Stockholder’s Equity     18,947,195       22,614,645  
Total Liabilities and Stockholders’ Equity   $ 24,086,235     $ 26,334,823  


    Year Ended December 31,
    2022   2021
Sales   $ 23,870,837     $ 14,876,227  
Cost of sales     15,787,544       8,459,117  
Gross Profit     8,083,293       6,417,110  
Impairment of intangible assets     2,322,000        
Selling, general and administrative     9,837,308       7,184,182  
Loss from Operations     (4,076,015 )     (767,072 )
Other Income (Expense)                
Interest expense, net     (130,087 )     (126,746 )
Impairment of deferred offering costs and financing costs associated with canceled financing efforts     (127,343 )      
Other Expense     (75,418 )      
Loss on disposal of equipment           (44,732 )
Gain on forgiveness of debt           798,840  
 Total Other Income (Expense)     (332,848 )     627,362  
Income (Loss) before provision for income taxes     (4,408,863 )     (139,710 )
Benefit from income taxes           399,631  
Net Income (Loss)     (4,408,863 )     259,921  
Non-controlling interest in consolidated subsidiary     52,061       7,923  
Net Income (Loss) attributable to Data Storage Corp     (4,356,802 )     267,844  
Preferred Stock Dividends           (63,683 )
Net Income (Loss) Attributable to Common Stockholders   $ (4,356,802 )   $ 204,161  
Earnings per Share – Basic   $ (0.64 )   $ 0.04  
Earning pers Share – Diluted   $ (0.64 )   $ 0.03  
Weighted Average Number of Shares – Basic     6,775,140       5,075,716  
Weighted Average Number of Shares – Diluted     6,775,140       6,340,125  


    Year Ended December 31,
    2022   2021
Cash Flows from Operating Activities:                
Net (loss) income   $ (4,408,863 )   $ 259,921  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                
Depreciation and amortization     1,225,911       1,284,345  
Stock based compensation     734,479       171,798  
Gain on forgiveness of debt           (798,840 )
Impairment of deferred offering costs and financing costs associated with canceled financing efforts     127,343        
Impairment of intangible assets     2,322,000        
Loss on disposal of equipment           44,732  
 Received interest income on short-term investments     (10,968 )        
Deferred income taxes, release of valuation allowance           (399,631 )
   Changes in Assets and Liabilities:                
      Accounts receivable     (1,118,469 )     (440,517 )
      Other assets     54,788       (6,417 )
      Prepaid expenses and other current assets     (48,265 )     (169,355 )
      Right of use asset     195,817       (180,407 )
      Accounts payable and accrued expenses     1,864,188       (142,233 )
      Deferred revenue     (85,799 )     (163,770 )
      Operating lease liability     (199,329 )     179,684  
Net Cash Provided by (Used in) Operating Activities     652,833       (360,690 )
Cash Flows from Investing Activities:                
         Investor deposit           (25,000 )
         Capital expenditures     (127,257 )     (455,835 )
      Purchase of short-term investments     (9,000,000 )      
         Cash acquired in business acquisition           212,068  
         Cash consideration for business acquisition           (6,149,343 )
Net Cash Used in Investing Activities     (9,127,257 )     (6,418,110 )
Cash Flows from Financing Activities:                
Proceeds from line of credit           50,000  
Repayments of finance lease obligations related party     (867,741 )     (968,420 )
Repayments of finance lease obligations     (386,509 )     (156,845 )
Payments for deferred offering costs     (127,343 )      
Proceeds from issuance of common stock and warrants           16,944,380  
Cash received for the exercise of Warrants           3,381,271  
Cash received for the exercise of options     6,934        
Repayments of Dividend payable           (1,179,357 )
Repayment of line of credit           (50,024 )
Net Cash (Used in) Provided by Financing Activities     (1,374,657 )     18,021,005  
Increase (decrease) in Cash and Cash Equivalents     (9,849,081 )     11,242,205  
Cash and Cash Equivalents, Beginning of Period     12,135,803       893,598  
Cash and Cash Equivalents, End of Period   $ 2,286,722     $ 12,135,803  
Supplemental Disclosures:                
Cash paid for interest   $ 127,871     $ 116,682  
Cash paid for income taxes   $     $  
Non-cash investing and financing activities:                
Accrual of preferred stock dividend   $     $ 63,683  
Assets acquired by finance lease   $ 1,094,051     $ 164,754  

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Source: Data Storage Corp.