Data Storage Corp Faces Potential Delisting or Listing Transfer

TL;DR

**DTST is facing delisting or moving exchanges, which is bad for liquidity and stock price.**

AI Summary

Data Storage Corporation (DTST) filed an 8-K on January 19, 2024, reporting an event on January 12, 2024, related to a "Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing." This indicates the company is facing potential delisting from its current exchange or is in the process of transferring its listing. This matters to investors because delisting can severely impact a stock's liquidity and make it harder to trade, potentially leading to a decrease in share price and investor confidence.

Why It Matters

This filing signals that Data Storage Corporation's stock might be moved to a less prestigious exchange or delisted entirely, which could make it much harder for investors to buy or sell shares and potentially reduce their value.

Risk Assessment

Risk Level: high — A notice of delisting or failure to satisfy listing standards poses a significant risk to a company's stock, often leading to reduced liquidity and investor confidence.

Analyst Insight

A smart investor would closely monitor subsequent filings for details on the delisting notice or transfer plan and consider the potential impact on liquidity and valuation before making any investment decisions. Existing shareholders might consider reducing their exposure.

Key Players & Entities

• Data Storage Corporation (company) — the registrant facing potential delisting
• January 12, 2024 (date) — date of the earliest event reported regarding listing issues
• January 19, 2024 (date) — date the 8-K filing was made
• 001-35384 (other) — Commission File Number for Data Storage Corporation

Forward-Looking Statements

• Data Storage Corporation's stock (DTST) will experience increased volatility and potential price decline. (DTST) — high confidence, target: Q1 2024
• The company will provide further details regarding the specific listing deficiency or transfer plan. (Data Storage Corporation) — medium confidence, target: Q1 2024

FAQ

Key Financial Figures

• $0.001 — h registered Common Stock, par value $0.001 per share DTST The Nasdaq Capital M

Filing Documents

• e5359_8-k.htm (8-K) — 37KB
• 0001731122-24-000109.txt ( ) — 250KB
• dtst-20240112.xsd (EX-101.SCH) — 4KB
• dtst-20240112_def.xml (EX-101.DEF) — 26KB
• dtst-20240112_lab.xml (EX-101.LAB) — 36KB
• dtst-20240112_pre.xml (EX-101.PRE) — 25KB
• e5359_8-k_htm.xml (XML) — 5KB

01 Notice of Delisting or Failure to Satisfy

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. As previously reported by Data Storage Corporation (the "Company"), on January 5, 2024, the Company notified The Nasdaq Stock Market ("Nasdaq") of the recent passing of Mr. Joseph B. Hoffman. At the time of his death, Mr. Hoffman was a director of the Company, the Chair of the Compensation Committee and a member of each of the Audit Committee and the Nominating and Corporate Governance Committee. In the notice, the Company further notified Nasdaq that, as a result of Mr. Hoffman's passing, the Company's Audit Committee currently consists of only two members, rather than the minimum three members as required by Rule 5605(c)(2)(A) of the Nasdaq listing standards. Accordingly, the Company does not meet the requirements of Rule 5605(c)(2)(A) of the Nasdaq listing standards, which requires that the Company maintain an audit committee of at least three members, each of whom must meet specified criteria, including certain independence criteria. On January 18, 2024, Nasdaq notified the Company that due to the passing of Mr. Hoffman, the Company no longer complies with Nasdaq's audit committee requirements as set forth in Rule 5605(c)(2)(A) of the Nasdaq listing standards. Nasdaq further notified the Company that, consistent with Rule 5605(c)(4) of the Nasdaq listing standards, Nasdaq will provide the Company a cure period in order to regain compliance until the earlier of the Company's next annual meeting of shareholders or December 30, 2024 or, if the next annual meeting of shareholders is held before June 27, 2024, then the Company must provide evidence of compliance no later than June 27, 2024. As discussed in Item 8.01 of this Current Report on Form 8-K, if the Company holds its 2024 Annual Meeting of Shareholders on June 20, 2024, the Company will have until June 27, 2024 to submit to Nasdaq documentation evidencing compliance with Rule 5605(c)(2)(A) of the

08. Shareholder Director Nominations

Item 5.08. Shareholder Director Nominations. To the extent applicable, the information in Item 3.01 and Item 8.01 of this Current Report on Form 8-K is incorporated by reference into this Item 5.08.

01. Other Events

Item 8.01. Other Events. The Company currently plans to hold its 2024 Annual Meeting of Stockholders (the "2024 Annual Meeting") on June 20, 2024. The Company intends to set the record date for determining the stockholders of record who will be entitled to vote at the 2024 Annual Meeting will be close of business on April 23, 2024. The time and location of the 2024 Annual Meeting will be as set forth in the Company's definitive proxy statement for the 2024 Annual Meeting to be filed with the Securities and Exchange Commission. Because the scheduled date of the 2024 Annual Meeting is more than 30 days prior to the anniversary of the Company's 2023 Annual Meeting of Stockholders, prior disclosed deadlines regarding the submission of stockholder proposals pursuant to Rule 14a-8 ("Rule 14a-8") under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), for the 2024 Annual Meeting are no longer applicable. The Company is hereby providing notice of certain revised deadlines for the submission of stockholder proposals in connection with the 2024 Annual Meeting. In order for a stockholder proposal, submitted pursuant to Rule 14a-8, to be considered timely for inclusion in the Company's proxy statement and form of proxy for the 2024 Annual Meeting, such proposal must be received by the Company by April 1, 2024. The Company has determined that April 1, 2024 is a reasonable time before the Company plans to begin printing and mailing its proxy materials. Therefore, in order for a stockholder to submit a proposal for inclusion in the Company's proxy materials for the 2024 Annual Meeting, the stockholder must comply with the requirements set forth in Rule 14a-8, including with respect to the subject matter of the proposal, and must deliver the proposal and all required documentation to the Company no later than April 1, 2024. The public announcement of an adjournment or postponement of the date of the 2024 Annual Meeting will not commence a new time period (or

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Exhibit Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: January 19, 2024 DATA STORAGE CORPORATION By: /s/ Charles M. Piluso Name: Charles M. Piluso Title: Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR