EXHIBIT 99.2
DATA STORAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
FOR THE SIX MONTHS ENDED JUNE 30, 2025
| Six Months Ended June 30, | ||||||||||||||||
| 2025 | 2025 | 2025 | ||||||||||||||
| Consolidated (Unaudited) | Adjustments (Unaudited) | Pro forma (Unaudited) | ||||||||||||||
| ASSETS | ||||||||||||||||
| Current Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 611,323 | 34,731,427 | (2),(4) | $ | 35,342,750 | ||||||||||
| Accounts receivable (less provision for credit losses of $16,305 and $31,472 in 2025 and 2024, respectively) | 1,727,111 | (1,635,350 | ) | (1) | 91,761 | |||||||||||
| Marketable securities | 10,510,179 | — | 10,510,179 | |||||||||||||
| Escrow receivable | — | 1,500,000 | (4) | 1,500,000 | ||||||||||||
| Prepaid expenses and other current assets | 1,913,094 | (918,060 | ) | (1) | 995,034 | |||||||||||
| 14,761,707 | 33,678,017 | 48,439,724 | ||||||||||||||
| Property and Equipment: | ||||||||||||||||
| Property and equipment | 10,078,502 | (10,068,289 | ) | (1) | 10,213 | |||||||||||
| Less—Accumulated depreciation | (6,740,363 | ) | 6,736,287 | (1) | (4,076 | ) | ||||||||||
| Net Property and Equipment | 3,338,139 | (3,332,002 | ) | 6,137 | ||||||||||||
| Other Assets: | ||||||||||||||||
| Goodwill | 4,238,671 | (4,238,671 | ) | (1) | — | |||||||||||
| Operating lease right-of-use assets | 525,416 | (525,416 | ) | (1) | — | |||||||||||
| Other assets | 263,778 | (48,272 | ) | (1) | 215,506 | |||||||||||
| Intangible assets, net | 1,293,435 | (1,293,435 | ) | (1) | — | |||||||||||
| Total Other Assets | 6,321,300 | (6,105,794 | ) | 215,506 | ||||||||||||
| Total Assets | $ | 24,421,146 | 24,240,221 | $ | 48,661,367 | |||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Current Liabilities: | ||||||||||||||||
| Accounts payable and accrued expenses | $ | 2,349,999 | (390,170 | ) | (1) | 1,959,829 | ||||||||||
| Income taxes payable | 0 | 9,500,000 | (3) | 9,500,000 | ||||||||||||
| Deferred revenue | 227,204 | (227,204 | ) | (1) | — | |||||||||||
| Operating lease liabilities short term | 105,750 | (105,750 | ) | (1) | — | |||||||||||
| Total Current Liabilities | 2,682,953 | 8,776,876 | 11,459,829 | |||||||||||||
| Operating lease liabilities | 468,432 | (468,432 | ) | (1) | — | |||||||||||
| Deferred tax liability | 39,031 | — | 39,031 | |||||||||||||
| Total Long-Term Liabilities | 507,463 | (468,432 | ) | 39,031 | ||||||||||||
| Total Liabilities | 3,190,416 | 8,308,444 | 11,498,860 | |||||||||||||
| Stockholders’ Equity: | ||||||||||||||||
| Preferred stock, par value $.001; 10,000,000 shares authorized; 1,401,786 designated as Series A Preferred Stock, par value $.001; 0 shares issued and outstanding at March 31,2025 and December 31, 2024 | — | — | — | |||||||||||||
| Common stock, par value $.001; 250,000,000 shares authorized; 7,123,227 and 7,045,108 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively | 7,231 | 0 | 7,231 | |||||||||||||
| Additional paid in capital | 41,094,738 | 0 | 41,094,738 | |||||||||||||
| Accumulated deficit | (19,691,560 | ) | 15,867,762 | (1),(2),(3) | (3,823,798 | ) | ||||||||||
| Accumulated other comprehensive income (loss) | 64,015 | 64,015 | (1) | 128,030 | ||||||||||||
| Total Data Storage Corp Stockholders’ Equity | 21,474,424 | 15,931,777 | 37,406,201 | |||||||||||||
| Non-controlling interest in consolidated subsidiary | (243,694 | ) | — | (243,694 | ) | |||||||||||
| Total Stockholder’s Equity | 21,230,730 | 15,931,777 | 37,162,507 | |||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 24,421,146 | $ | 24,240,221 | $ | 48,661,367 | ||||||||||
DATA STORAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2025
| Six Months Ended June 30, | ||||||||||||
| 2025 | 2025 | 2025 | ||||||||||
| Consolidated (Unaudited) | Adjustments (Unaudited) | Pro
forma (Unaudited) | ||||||||||
| Sales | $ | 13,230,678 | $ | (12,586,528 | )(5) | $ | 644,150 | |||||
| Cost of sales | 7,834,028 | (7,472,291 | )(5) | 361,737 | ||||||||
| Gross Profit | 5,396,650 | (5,114,237 | ) | 282,413 | ||||||||
| Selling, general and administrative | 6,284,826 | (4,338,967 | )(5) | 1,945,859 | ||||||||
| Income/(Loss) from Operations | (888,176 | ) | (775,270 | ) | (1,663,446 | ) | ||||||
| Other Income (Expense) | ||||||||||||
| Interest income | 224,173 | — | 224,173 | |||||||||
| Interest expense | (18,245 | ) | 18,245 | (5) | — | |||||||
| Other Expense | (23,327 | ) | 23,327 | — | ||||||||
| Total Other Income (Expense) | 182,601 | 41,572 | 224,173 | |||||||||
| Income (Loss) before provision for income taxes | (705,575 | ) | (733,698 | ) | (1,439,273 | ) | ||||||
| Provision for income taxes | — | — | — | |||||||||
| Net Income (Loss) | (705,575 | ) | (733,698 | ) | (1,439,273 | ) | ||||||
| Loss in Non-controlling interest of consolidated subsidiary | (3,396 | ) | — | (3,396 | ) | |||||||
| Net Income (Loss) attributable to Data Storage Corp | (708,971 | ) | (733,698 | ) | (1,442,669 | ) | ||||||
| Preferred Stock Dividends | — | — | — | |||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | (708,971 | ) | $ | (733,698 | ) | $ | (1,442,669 | ) | |||
| Earnings per Share – Basic | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.20 | ) | |||
| Earning pers Share – Diluted | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.20 | ) | |||
| Weighted Average Number of Shares - Basic | 7,119,102 | 7,119,102 | 7,119,102 | |||||||||
| Weighted Average Number of Shares - Diluted | 7,119,102 | 7,119,102 | 7,119,102 | |||||||||
DATA STORAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2024
| Twelve Months Ended December 31, | ||||||||||||
| 2024 | 2024 | 2024 | ||||||||||
| Consolidated (Audited) | Adjustments (Unaudited) | Pro forma (Unaudited) | ||||||||||
| Sales | $ | 25,371,303 | $ | (24,152,056 | )(5) | $ | 1,219,247 | |||||
| Cost of sales | 14,267,936 | (13,575,937 | )(5) | 691,999 | ||||||||
| Gross Profit | 11,103,367 | (10,576,119 | ) | 527,248 | ||||||||
| Impairment of intangible assets | — | — | — | |||||||||
| Selling, general and administrative | 11,023,476 | (7,183,109 | )(5) | 3,840,368 | ||||||||
| Income/(Loss) from Operations | 79,891 | (3,393,010 | ) | (3,313,119 | ) | |||||||
| Other Income (Expense) | ||||||||||||
| Interest income | 592,819 | — | 592,819 | |||||||||
| Interest expense | (119,008 | ) | 119,008 | (5) | — | |||||||
| Loss on disposal of equipment | (1,599 | ) | 1,599 | (5) | — | |||||||
| Total Other Income (Expense) | 472,212 | 120,607 | 592,819 | |||||||||
| Income (Loss) before provision for income taxes | 552,103 | (3,272,403 | ) | (2,720,300 | ) | |||||||
| Provision for income taxes | (39,031 | ) | — | (39,031 | ) | |||||||
| Net Income (Loss) | 513,072 | (3,272,403 | ) | (2,759,331 | ) | |||||||
| Loss in Non-controlling interest of consolidated subsidiary | 10,142 | — | 10,142 | |||||||||
| Net Income (Loss) attributable to Data Storage Corp | 523,214 | (3,272,403 | ) | (2,749,189 | ) | |||||||
| Preferred Stock Dividends | — | — | — | |||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 523,214 | $ | (3,272,403 | ) | $ | (2,749,189 | ) | ||||
| Earnings per Share – Basic | $ | 0.08 | $ | (0.47 | ) | $ | (0.40 | ) | ||||
| Earning pers Share – Diluted | $ | 0.07 | $ | (0.45 | ) | $ | (0.37 | ) | ||||
| Weighted Average Number of Shares - Basic | 6,931,399 | 6,931,399 | 6,931,399 | |||||||||
| Weighted Average Number of Shares - Diluted | 7,347,779 | 7,347,779 | 7,347,779 | |||||||||
DATA STORAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2023
| Twelve Months Ended December 31, | ||||||||||||
| 2023 | 2023 | 2023 | ||||||||||
| Consolidated (Audited) | Adjustments (Unaudited) | Pro
forma (Unaudited) | ||||||||||
| Sales | $ | 24,959,576 | $ | (23,862,649 | )(5) | $ | 1,096,927 | |||||
| Cost of sales | 15,383,251 | (14,749,837 | )(5) | 633,413 | ||||||||
| Gross Profit | 9,576,325 | (9,112,812 | ) | 463,513 | ||||||||
| Impairment of intangible assets | — | — | — | |||||||||
| Selling, general and administrative | 9,744,736 | (6,412,431 | )(5) | 3,332,306 | ||||||||
| Income/(Loss) from Operations | (168,411 | ) | (2,700,381 | ) | (2,868,792 | ) | ||||||
| Other Income (Expense) | ||||||||||||
| Interest income | 542,229 | — | 542,229 | |||||||||
| Interest expense | (74,502 | ) | 74,502 | (5) | — | |||||||
| Gain on contingent liability | — | — | — | |||||||||
| Total Other Income (Expense) | 467,727 | 74,502 | 542,229 | |||||||||
| Income (Loss) before provision for income taxes | 299,316 | (2,625,879 | ) | (2,326,563 | ) | |||||||
| Provision for income taxes | — | — | — | |||||||||
| Net Income (Loss) | 299,316 | (2,625,879 | ) | (2,326,563 | ) | |||||||
| Loss in Non-controlling interest of consolidated subsidiary | 82,259 | — | 82,259 | |||||||||
| Net Income (Loss) attributable to Data Storage Corp | 381,575 | (2,625,879 | ) | (2,244,304 | ) | |||||||
| Preferred Stock Dividends | — | — | — | |||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 381,575 | $ | (2,625,879 | ) | $ | (2,244,304 | ) | ||||
| Earnings per Share – Basic | $ | 0.06 | $ | (0.38 | ) | $ | (0.33 | ) | ||||
| Earning pers Share – Diluted | $ | 0.05 | $ | (0.38 | ) | $ | (0.33 | ) | ||||
| Weighted Average Number of Shares - Basic | 6,841,094 | 6,841,094 | 6,841,094 | |||||||||
| Weighted Average Number of Shares - Diluted | 7,215,069 | 6,841,094 | 6,841,094 | |||||||||
NOTES TO THE PRO FORMA CONSOLIDATED COMBINED FINANCIAL INFORMATION
(1) Removal of Disposed Business: Reflects the removal of the historical assets and liabilities of the Business as of June 30, 2025.
(2) Cash Proceeds and Gain on Sale: Reflects the estimated cash proceeds, net of estimated selling expenses, the contractual repurchase of outstanding warrants and the calculation of the gain on the sale.
(3) Income tax impact: Record the expected income tax payable from the gain on sale of the CloudFirst Business. As the Company has significant net operating loss carryforwards (NOLs) the pro forma adjustment to the balance sheet reflects their use.
(4) Escrow: $1.5 million released to the Company six months post-closing.
(5) Removal of Disposed Business Operations: Reflects the removal of the historical revenues and expenses of the CloudFirst Business.