DTST — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-15

• We recently announced our plan to target AI continuity infrastructure through the establishment of a new wholly owned subsidiary, Sovereign AI Solutions (“SaiS”). SaiS is being developed as a purpose-built AI Continuity Control Plane for regulated industries designed to support recovery, validation,…

• Nexxis is a provider of fully managed business voice, internet, data transport, and SD-WAN communication solutions engineered for enterprise-grade reliability, cloud performance, and simplified operations. It delivers integrated technology services designed to support modern, cloud-centric work envi…

• The unified service agreement offered by Nexxis to its customers provides fully managed, integrated connectivity services that combine advanced voice communications with high-performance internet and WAN infrastructure. Nexxis’ business model emphasizes operational simplicity, performance optimizati…

• ● Lower total cost of ownership compared to legacy multi-vendor environments.

• On September 11, 2025, we closed the sale of the CloudFirst business, for which we received $38,068,463 in cash. This amount was based on a contractual base purchase price of $40,000,000, adjusted at closing for a $1,500,000 escrow deposit and $431,537 in net adjustments for estimated closing date d…

Text removed vs the prior filing · source: 10-Q · 2025-11-19

• At the closing of the sale of the CloudFirst business on September 11, 2025, we received $38,068,463 in cash. This amount was based on a contractual base purchase price of $40,000,000, adjusted at closing for a $1,500,000 escrow deposit and $431,537 in net adjustments for estimated closing date debt…

• From this amount, we paid $2,434,172 for selling expenses and other transaction costs. As a result, our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2025, reflects net cash proceeds of $35,634,291 from the sale, net of cash selling expenses.

• The net proceeds, after accounting for all transaction costs and estimated taxes, are reflected in the Gain on sale of discontinued operation on the Condensed Consolidated Statements of Operations.

• Our Board of Directors (the “Board”) has determined that we will engage in a tender offer to repurchase from our shareholders up to 85% of our outstanding shares of Common Stock at the time the tender offer is made, which our Board currently expects will be commenced in the fourth quarter of 2025. W…

• Our Board is actively evaluating multiple strategic alternatives for the use of the remaining sale proceeds, with the goal of maximizing long-term shareholder value. Some of the uses for such remaining cash include, without limitation:

Text added vs the prior filing · source: 10-Q · 2026-05-15

• In connection with the preparation of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, management identified a material weakness in our internal control over financial reporting. The material weakness relates to the design and operating effectiveness of controls over the a…

• This deficiency identified during the third quarter of 2025 resulted in an error related to the income tax implications of the divestiture. Subsequently, in connection with the preparation of the 2025 Annual Report, we identified an additional error stemming from the same material weakness regarding…

• Accordingly, within the 2025 Annual Report, we restated certain financial statements previously included in the Quarterly Report on Form 10-Q for the period ended September 30, 2025, to reflect the initial recognition of the July 2021 warrant liability as a debit to equity, with subsequent changes i…

• In order to remediate this material weakness, management has implemented the following actions to strengthen our internal control environment:

• ●Enhancing internal review procedures to ensure that significant and unusual transactions are identified, analyzed, and reviewed with appropriate rigor each quarter.

Text removed vs the prior filing · source: 10-Q · 2025-11-19

• During the course of the review for this Quarterly Report on Form 10-Q, management identified a material weakness in our internal controls over financial reporting. This material weakness relates specifically to the design and execution of controls over the accounting and disclosure of significant a…

• The material weakness resulted from deficiencies in the controls over the analysis used in the financial reporting process, particularly in evaluating the accounting and tax consequences of this complex transaction. As a result, our existing controls did not operate effectively to ensure that such t…

• In order to remediate this material weakness, management plans to implement the following steps to strengthen our internal control environment:

• ● Enhancing internal review procedures to ensure that significant and unusual transactions are identified, analyzed, and reviewed with appropriate rigor each quarter.

• ● Engaging appropriate internal and external resources to support the evaluation of complex transactions, including the related income tax implications, where specialized expertise is required.

Text added vs the prior filing · source: 10-Q · 2026-05-15

• As used in this Quarterly Report on Form 10-Q, unless the context requires otherwise, references to the “Company,” “we,” “us,” and “our” refer to Data Storage Corporation and its subsidiaries. The following discussion and analysis of the financial condition and results of our operations should be re…

• This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. The statements contained in this Quarterly Report on Form 10-Q that are not purely historica…

• Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Quarterly Report on Form 10-Q will prove to be accurate. In …

• We have not generated a significant amount of net income and we may not be able to sustain profitability in the future.

• As reflected in the condensed consolidated financial statements, we had a net loss attributable to common stockholders of $631,272 for the three months ended March 31, 2026. As of March 31, 2026, we had cash of $1,614,622 (including escrow funds receivable), marketable securities of $9,571,837, and …