Data Storage Corp Files 2023 10-K

TL;DR

<b>Data Storage Corp has filed its 2023 10-K report, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Data Storage Corp (DTSTW) filed a Annual Report (10-K) with the SEC on March 28, 2024. Data Storage Corp filed its 2023 10-K on March 28, 2024. The company was formerly known as Euro Trend Inc., with a name change on November 30, 2007. Incorporated in Nevada, the company's principal business address is in Melville, NY. The filing covers the fiscal year ending December 31, 2023. Data Storage Corp is classified under SIC code 7374 (Computer Processing & Data Preparation).

Why It Matters

For investors and stakeholders tracking Data Storage Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Data Storage Corp's financial health, operational status, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess performance and future prospects. Understanding the company's financial statements, risk factors, and executive compensation detailed in this filing is essential for making informed investment decisions and evaluating the company's management effectiveness.

Risk Assessment

Risk Level: medium — Data Storage Corp shows moderate risk based on this filing. The company's financial statements and risk factors, which are not detailed in this header, will contain specific information that determines the overall risk level.

Analyst Insight

Review the full 10-K filing to analyze Data Storage Corp's financial performance, identify key risks, and understand executive compensation structures.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-28 — Filing Date (As of date)
• 0001731122-24-000526 — Accession Number (Unique identifier for the filing)
• 7374 — SIC Code (Services-Computer Processing & Data Preparation)

Key Players & Entities

• Data Storage Corp (company) — Filer name
• Euro Trend Inc. (company) — Former company name
• NV (company) — State of incorporation
• NY (company) — State of business address
• 212-564-4922 (dollar_amount) — Business phone number

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-28: Filing Date — Date the 10-K was officially submitted to the SEC.
• 2007-11-30: Name Change — Date the company changed its name from Euro Trend Inc. to Data Storage Corp.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the core financial and operational data for Data Storage Corp for the fiscal year 2023.)

SIC Code

Standard Industrial Classification code used to classify businesses based on their primary activity. (Indicates Data Storage Corp's industry focus on Computer Processing & Data Preparation.)

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share DTST The Nasdaq Capital M
• $36 billion — CloudFirst Technologies positioned in a $36 billion annual recurring revenue market in the
• $381,575 — attributable to common shareholders of $381,575 for the year ended December 31, 2023 an
• $4,356,802 — attributable to common shareholders of $4,356,802 for the year ended December 31, 2022. A
• $1,428,730, m — ember 31, 2023, the Company had cash of $1,428,730, marketable securities of $11,318,196, and
• $11,318,196 — of $1,428,730, marketable securities of $11,318,196, and working capital of $11,011,407. Th
• $11,011,407 — of $11,318,196, and working capital of $11,011,407. There can be no assurance that the Com

Filing Documents

• e5506_10k.htm (10-K) — 1577KB
• e5506_ex10-20.htm (EX-10.20) — 8KB
• e5506_ex10-21.htm (EX-10.21) — 8KB
• e5506_ex19-1.htm (EX-19.1) — 50KB
• e5506_ex21-1.htm (EX-21.1) — 3KB
• e5506_ex23-1.htm (EX-23.1) — 2KB
• e5506_ex31-1.htm (EX-31.1) — 8KB
• e5506_ex31-2.htm (EX-31.2) — 8KB
• e5506_ex32-1.htm (EX-32.1) — 5KB
• e5506_ex32-2.htm (EX-32.2) — 4KB
• e5506_ex97-1.htm (EX-97.1) — 34KB
• image_001.gif (GRAPHIC) — 2KB
• image_003.gif (GRAPHIC) — 2KB
• 0001731122-24-000526.txt (&nbsp;) — 7526KB
• dtst-20231231.xsd (EX-101.SCH) — 51KB
• dtst-20231231_cal.xml (EX-101.CAL) — 54KB
• dtst-20231231_def.xml (EX-101.DEF) — 200KB
• dtst-20231231_lab.xml (EX-101.LAB) — 414KB
• dtst-20231231_pre.xml (EX-101.PRE) — 346KB
• e5506_10k_htm.xml (XML) — 1243KB

CYBERSECURITY

ITEM 1C. CYBERSECURITY 27 ITEM 2. PROPERTIES 28 ITEM 3. LEGAL PROCEEDINGS 28 ITEM 4. MINE SAFETY DISCLOSURES 28 PART II 29 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 29 ITEM 6. RESERVED 29 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 29 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 37 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 37 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 38 ITEM 9A. CONTROLS AND PROCEDURES 38 ITEM 9B. OTHER INFORMATION 38

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 38 PART III 39 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 39 ITEM 11. EXECUTIVE COMPENSATION 44 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 48 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTION, AND DIRECTOR INDEPENDENCE 49 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 50 PART IV 51 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 51

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 51 3 PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K (this "Annual Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. The forward-looking statements are contained principally in Part I, Item 1. "Business," Part I, Item 1A. "Risk Factors," and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," but are also contained elsewhere in this Annual Report in some cases you can identify forward-looking statements by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These statements are based on our current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. You should refer to Item 1A. "Risk Factors" section of this Annual Report for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this Annual Report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We do not undertake any obligation to update any for

BUSINESS

ITEM 1. BUSINESS Company Overview Data Storage Corporation ("DSC," "Data Storage" or the "Company"), based in Melville, New York, leverages its expertise through its three subsidiaries: CloudFirst Technologies Corporation (formerly DSC), Flagship Solutions, LLC, and Nexxis Inc. Catering to diverse sectors such as healthcare, banking, manufacturing, and government, DSC delivers a suite of IT services, including disaster recovery, cloud infrastructure, cybersecurity, managed services and dedicated internet access and UCaaS / Voice over Internet Protocol (VoIP) services. The Company's approach involves long-term subscription models, robust business development, and expansive distribution networks. In 2023, following a capital infusion and its Nasdaq listing in May 2021, DSC embarked on a growth trajectory, enhancing its distribution, marketing capabilities, and technological infrastructure. This strategic expansion is aimed at reinforcing the Company's position in the evolving IT landscape, where there's a marked shift towards multi-cloud technologies and cybersecurity solutions. Market Opportunity and Strategic Focus Recognizing the urgent need for reliable and efficient IT solutions, DSC is tapping into the growing demand for managed cloud and cybersecurity services. With CloudFirst Technologies positioned in a $36 billion annual recurring revenue market in the U.S. and Canada, the Company is at the forefront of addressing critical IT challenges with limited competition. DSC's offerings are designed to support a spectrum of needs from cloud-based IBM Power System deployments for critical workloads to comprehensive disaster recovery and cybersecurity protections. The focus is on hybrid cloud deployments, ensuring data and workloads remain secure against various threats. 6 Operational Footprint DSC operates from key locations in New York, Florida, and Texas, with technology centers and labs designed to meet sophisticated client requirements. The Company bo

RISK FACTORS

ITEM 1A. RISK FACTORS Investing in the Company's common stock involves a high degree of risk. You should carefully consider the following risks together with the other information in this Annual Report. Risks Related to Data Storage's Business The Company has not generated a significant amount of net income and it may not be able to sustain profitability in the future. As reflected in the consolidated financial statements, the Company had net income attributable to common shareholders of $381,575 for the year ended December 31, 2023 and a net loss attributable to common shareholders of $4,356,802 for the year ended December 31, 2022. As of December 31, 2023, the Company had cash of $1,428,730, marketable securities of $11,318,196, and working capital of $11,011,407. There can be no assurance that the Company will continue to generate income in the future. If the Company is unable to attract new customers to its infrastructure and disaster recovery/cloud subscription services on a cost-effective basis, its revenue and operating results would be adversely affected. The Company generates the majority of its revenue from the sale of subscriptions to its infrastructure and disaster recovery/cloud solutions as well as contracted managed services and software and hardware renewals. In order to grow, the Company must continue to reach the many businesses in need of our unique services, many of whom may have not previously used infrastructure as a service and cloud disaster recovery backup solutions. The Company uses and periodically adjusts a diverse mix of advertising and marketing programs to promote its solutions. Significant increases in the pricing of one or more of the Company's advertising channels would increase its advertising costs or cause it to choose less expensive and perhaps fewer effective channels. As the Company adds to or changes the mix of its advertising and marketing strategies, it may expand into channels with significantly higher costs than

View Full Filing

View this 10-K filing on SEC EDGAR