Data Storage Corporation Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2023


Operations of:		Products and services provided:
Nexxis Inc		NEXXIS is a single-source solution provider that delivers fully-managed cloud-based voice services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment.

Flagship Solutions, LLC		Flagship Solutions Group (FSG) is a managed service provider. FSG invoices clients primarily for services that assist the clients’ technical teams. FSG has few technical assets and utilizes the assets or software of other cloud providers, whereby managing 3rd party infrastructure. FSG periodically sells equipment and software.

CloudFirst Technologies Corporation		CloudFirst, provides services from CloudFirst technological assets deployed in six Tier 3 data centers throughout the USA and Canada. This technology has been developed by CloudFirst. Clients are invoiced for cloud infrastructure and disaster recovery on the CloudFirst platform. Services provided to clients are provided on a subscription basis on long term contracts.


As of March 31, 2023

	Nexxis Inc.		Flagship Solutions LLC		CloudFirst Technologies		Corporate		Total

Accounts receivable	$	60,019	$	2,895,708	$	715,443	$	—	$	3,671,170
Prepaid expenses and other current assets		19,503		178,094		505,506		175,357		878,460
Net Property and Equipment		737		18,533		2,397,542		2,670		2,419,482
Intangible assets, net		—		1,626,646		279,268		—		1,905,914
Goodwill		—		1,222,971		3,015,700		—		4,238,671
Operating lease right-of-use assets		—		141,933		33,909		—		175,842
All other assets		—		—		—		11,062,166		11,062,166
Total Assets	$	80,259	$	6,083,885	$	6,947,368	$	11,240,193	$	24,351,705

Accounts payable and accrued expenses	$	46,335	$	2,332,956	$	905,137	$	414,818	$	3,699,246
Deferred revenue		—		155,545		153,728		—		309,273
Total Finance leases payable		—		—		500,846		—		500,846
Total Finance leases payable related party		—		—		593,400		—		593,400
Total Operating lease liabilities		—		143,646		36,567		—		180,213
Total Liabilities	$	46,335	$	2,632,147	$	2,189,678	$	414,818	$	5,282,978


As of December 31, 2022

	Nexxis Inc.		Flagship Solutions LLC		CloudFirst Technologies		Corporate		Total

Accounts receivable	$	34,903	$	1,924,184	$	1,543,749	$	—	$	3,502,836
Prepaid expenses and other current assets		16,799		213,826		285,306		68,735		584,666
Net Property and Equipment		—		19,705		2,192,085		—		2,211,790
Intangible assets, net		—		1,696,376		279,268		—		1,975,644
Goodwill		—		1,222,971		3,015,700		—		4,238,671
Operating lease right-of-use assets		—		167,761		58,740		—		226,501
All other assets		—		—		—		11,346,127		11,346,127
Total Assets	$	51,702	$	5,244,823	$	7,374,848	$	11,414,862	$	24,086,235

Accounts payable and accrued expenses	$	40,091	$	1,563,408	$	1,069,278	$	534,800	$	3,207,577
Deferred revenue		—		165,725		115,335		—		281,060
Total Finance leases payable		—		—		641,110		—		641,110
Total Finance leases payable related party		—		—		776,864		—		776,864
Total Operating lease liabilities		—		169,469		62,960		—		232,429
Total Liabilities	$	40,091	$	1,898,602	$	2,665,547	$	534,800	$	5,139,040


For the three months ended March 31, 2023

	Nexxis Inc.			Flagship Solutions LLC			CloudFirst Technologies			Corporate			Total
Sales	$	264,796		$	3,456,188		$	3,158,739		$	—		$	6,879,723
Cost of sales		178,121			2,906,212			1,705,645			—			4,789,978
Gross Profit		86,675			549,976			1,453,094			—			2,089,745

Selling, general and administrative		124,750			540,327			606,452			570,520			1,842,049
Depreciation and amortization		71			70,903			217,622			114			288,710
Total operating expenses		124,821			611,230			824,074			570,634			2,130,759

Loss from Operations		(38,146	)		(61,254	)		629,020			(570,634	)		(41,014	)

Interest expense, net		—			—			(27,346	)		103,423			76,077
Total Other Income (Expense)		—			—			(27,346	)		103,423			76,077

Income (Loss) before provision for income taxes	$	(38,146	)	$	(61,254	)	$	601,674		$	(467,211	)	$	35,063


For the three months ended March 31, 2022

	Nexxis Inc.			Flagship Solutions LLC			CloudFirst Technologies			Corporate			Total
Sales	$	211,924		$	6,043,222		$	2,402,053		$	—		$	8,657,199
Cost of sales		139,876			4,518,346			1,353,067		$	—			6,011,289
Gross Profit		72,048			1,524,876			1,048,986			—			2,645,910

Selling, general and administrative		97,199			1,087,540			475,116		$	448,673			2,108,528
Depreciation and amortization		—			70,135			281,203		$	—			351,338
Total operating expenses		97,199			1,157,675			756,319			448,673			2,459,866

Loss from Operations		(25,151	)		367,201			292,667			(448,673	)		186,044

Interest expense, net		—			(48	)		(41,723	)	$	(889	)		(42,660	)
Total Other Income (Expense)		—			(48	)		(41,723	)		(889	)		(42,660	)

Income (Loss) before provision for income taxes	$	(25,151	)	$	367,153		$	250,944		$	(449,562	)	$	143,384