Data Storage Corporation Achieves Profitability for the First Quarter of 2023
15 Mayo 2023 - 6:00AM
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 three months ended March 31, 2023.
Chuck Piluso, CEO of Data Storage Corporation,
commented, “We are implementing a number of strategic business
initiatives that are expected to further accelerate growth, such as
expanding our dedicated sales teams, hosting revenue-driven sales
events, expanding our channel partner programs, and increasing our
international footprint through strategic partnerships. At the same
time, we remain focused on streamlining operations and
consolidating redundant business expenses. By executing on these
initiatives, while focusing our efforts on long-term, high-margin,
subscription-based contracts, we believe we can achieve sustained
profitability and maximize returns for our shareholders.”
“Towards this end, I’m pleased to report we
achieved profitability for the first quarter of 2023 on $6.9
million in revenue. We decreased our selling, general and
administrative expenses by 13%, as a result of reallocating
resources and eliminating redundancies. With approximately $11
million of cash and short-term investments, and no debt, we believe
we are well capitalized with a solid balance sheet and poised for
rapid organic growth.”
Conference Call
The Company plans to host a conference call at
10:00 am ET today, May 15, 2023, to discuss the Company's financial
results for the first quarter of 2023 which ended March 31, 2023,
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
https://viavid.webcasts.com/starthere.jsp?ei=1612889&tp_key=d98847e007,
or on the Company’s News & Events section of the website,
www.dtst.com/news-events.
A webcast replay of the call will be available
on the Company’s website (www.dtst.com/news-events) through May 15,
2024. A telephone replay of the call will be available
approximately three hours following the call, through May 22, 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: 13738533.
About Data Storage
CorporationData 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: www.dtst.com and on
Twitter (@DataStorageCorp).
Safe Harbor ProvisionThis 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.
Contact:Crescendo Communications,
LLC212-671-1020DTST@crescendo-ir.comSOURCE: Data
Storage Corporation
[Tables follow]
CONSOLIDATED BALANCE SHEETS
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,882,039 |
|
|
$ |
2,286,722 |
Accounts receivable (less allowance for credit losses of $31,136
and $27,250 in 2023 and 2022, respectively) |
|
|
3,671,170 |
|
|
|
3,502,836 |
Marketable securities |
|
|
9,114,391 |
|
|
|
9,010,968 |
Prepaid expenses and other current assets |
|
|
878,460 |
|
|
|
584,666 |
Total Current Assets |
|
|
15,546,060 |
|
|
|
15,385,192 |
|
|
|
|
|
|
|
|
Property and Equipment: |
|
|
|
|
|
|
|
Property and equipment |
|
|
7,597,462 |
|
|
|
7,168,488 |
Less—Accumulated depreciation |
|
|
(5,177,980 |
) |
|
|
(4,956,698 |
Net Property and Equipment |
|
|
2,419,482 |
|
|
|
2,211,790 |
|
|
|
|
|
|
|
|
Other Assets: |
|
|
|
|
|
|
|
Goodwill |
|
|
4,238,671 |
|
|
|
4,238,671 |
Operating lease right-of-use assets |
|
|
175,842 |
|
|
|
226,501 |
Other assets |
|
|
65,736 |
|
|
|
48,437 |
Intangible assets, net |
|
|
1,905,914 |
|
|
|
1,975,644 |
Total Other Assets |
|
|
6,386,163 |
|
|
|
6,489,253 |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
24,351,705 |
|
|
$ |
24,086,235 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
3,699,246 |
|
|
$ |
3,207,577 |
Deferred revenue |
|
|
309,273 |
|
|
|
281,060 |
Finance leases payable |
|
|
308,180 |
|
|
|
359,868 |
Finance leases payable related party |
|
|
454,115 |
|
|
|
520,623 |
Operating lease liabilities short term |
|
|
143,480 |
|
|
|
160,657 |
Total Current Liabilities |
|
|
4,914,294 |
|
|
|
4,529,785 |
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
|
36,733 |
|
|
|
71,772 |
Finance leases payable |
|
|
192,666 |
|
|
|
281,242 |
Finance leases payable related party |
|
|
139,285 |
|
|
|
256,241 |
Total Long Term Liabilities |
|
|
368,684 |
|
|
|
609,255 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
5,282,978 |
|
|
|
5,139,040 |
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 6) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
Preferred stock, Series A par value $.001; 10,000,000 shares
authorized; 0 and 0 shares issued and outstanding in 2023 and 2022,
respectively |
|
|
— |
|
|
|
— |
Common stock, par value $.001; 250,000,000 shares authorized;
6,834,627 and 6,822,127 shares issued and outstanding in 2023 and
2022, respectively |
|
|
6,835 |
|
|
|
6,822 |
Additional paid in capital |
|
|
39,068,896 |
|
|
|
38,982,440 |
Accumulated deficit |
|
|
(19,836,712 |
) |
|
|
(19,887,378 |
Total Data Storage Corp Stockholders' Equity |
|
|
19,239,019 |
|
|
|
19,101,884 |
Non-controlling interest in consolidated subsidiary |
|
|
(170,292 |
) |
|
|
(154,689 |
Total Stockholder’s Equity |
|
|
19,068,727 |
|
|
|
18,947,195 |
Total Liabilities and Stockholders' Equity |
|
$ |
24,351,705 |
|
|
$ |
24,086,235 |
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
Sales |
|
$ |
6,879,723 |
|
|
$ |
8,657,199 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
4,789,978 |
|
|
|
6,011,289 |
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
2,089,745 |
|
|
|
2,645,910 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
2,130,759 |
|
|
|
2,459,866 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
(41,014 |
) |
|
|
186,044 |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
|
76,077 |
|
|
|
(42,660 |
) |
Total Other Income (Expense) |
|
|
76,077 |
|
|
|
(42,660 |
) |
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
|
|
35,063 |
|
|
|
143,384 |
|
|
|
|
|
|
|
|
|
|
Benefit from income taxes |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
35,063 |
|
|
|
143,384 |
|
|
|
|
|
|
|
|
|
|
Non-controlling interest in consolidated subsidiary |
|
|
15,603 |
|
|
|
12,626 |
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Common Stockholders |
|
$ |
50,666 |
|
|
$ |
156,010 |
|
|
|
|
|
|
|
|
|
|
Earnings per Share – Basic |
|
$ |
0.01 |
|
|
$ |
0.02 |
|
Earnings per Share – Diluted |
|
$ |
0.01 |
|
|
$ |
0.02 |
|
Weighted Average Number of Shares - Basic |
|
|
6,822,127 |
|
|
|
6,695,966 |
|
Weighted Average Number of Shares - Diluted |
|
|
6,954,320 |
|
|
|
6,955,900 |
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
Net Income |
|
$ |
35,063 |
|
|
$ |
143,384 |
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
288,710 |
|
|
|
351,338 |
Stock based compensation |
|
|
86,469 |
|
|
|
66,505 |
Changes in Assets and Liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(168,334 |
) |
|
|
(1,140,097 |
Other assets |
|
|
(17,300 |
) |
|
|
25,180 |
Prepaid expenses and other current assets |
|
|
(293,794 |
) |
|
|
(719,842 |
Right of use asset |
|
|
50,659 |
|
|
|
47,962 |
Accounts payable and accrued expenses |
|
|
491,669 |
|
|
|
2,991,981 |
Deferred revenue |
|
|
28,213 |
|
|
|
(74,409 |
Operating lease liability |
|
|
(52,216 |
) |
|
|
(48,179 |
Net Cash Provided by Operating Activities |
|
|
449,139 |
|
|
|
1,643,823 |
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(426,671 |
) |
|
|
(25,946 |
Purchase of short-term investments |
|
|
(103,423 |
) |
|
|
— |
Net Cash Used in Investing Activities |
|
|
(530,094 |
) |
|
|
(25,946 |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
Repayments of finance lease obligations related party |
|
|
(183,464 |
) |
|
|
(274,393 |
Repayments of finance lease obligations |
|
|
(140,264 |
) |
|
|
(65,515 |
Cash received for the exercised of options |
|
|
— |
|
|
|
6,935 |
Net Cash Used in Financing Activities |
|
|
(323,728 |
) |
|
|
(332,973 |
|
|
|
|
|
|
|
|
Increase (decrease) in Cash and Cash Equivalents |
|
|
(404,683 |
) |
|
|
1,284,904 |
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, Beginning of Period |
|
|
2,286,722 |
|
|
|
12,135,803 |
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Period |
|
$ |
1,882,039 |
|
|
$ |
13,420,707 |
Supplemental Disclosures: |
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
24,863 |
|
|
$ |
41,040 |
Cash paid for income taxes |
|
$ |
— |
|
|
$ |
— |
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
Assets acquired by finance lease |
|
$ |
— |
|
|
$ |
881,308 |
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