EX-99.1 2 e7059_ex99-1.htm EXHIBIT 99.1

 

 

EXHIBIT 99.1

 

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DTST Reports Q3 2025 Results Following Transformative CloudFirst Sale

 

Transaction Unlocks Shareholder Value and Refocuses Company on High-Growth AI, Cybersecurity, and Infrastructure Markets

 

Conference Call to be Held Today at 10:00 am ET

 

MELVILLE, N.Y., November 19, 2025 (GLOBE NEWSWIRE) — Data Storage Corporation (Nasdaq: DTST) (the “Company”), today provided a business update and reported financial results for the three months and nine months ended September 30, 2025.

 

Chuck Piluso, Chairman and Chief Executive Officer of Data Storage Corporation, commented, “This quarter represents a defining period for Data Storage Corporation as we completed the sale of our CloudFirst subsidiary and repositioned the Company for its next phase of disciplined growth. The CloudFirst sale was a transformative milestone that unlocked significant shareholder value and provided us with a solid financial foundation for the future. It allows us to simplify our structure, sharpen our focus, and redeploy capital toward initiatives that offer higher returns and long-term sustainability.”

 

“With this transaction behind us, we are executing from a position of strength. We now have the flexibility to strategically invest in high-growth areas where we believe we can build durable competitive advantages, including, but not limited to, GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications. Our priority is to remain disciplined—both operationally and financially. We are committed to creating lasting value through prudent capital allocation, sound execution, and thoughtful innovation. Our Nexxis subsidiary continues to perform well, and we believe it provides a stable, recurring revenue base that supports our broader strategic objectives.”

 

“Looking forward, we intend to leverage our expertise, financial strength, and market position to identify opportunities that align with our core competencies and aim to build upon our history in data and communications infrastructure to deliver sustainable results and long-term shareholder value.”

 

Conference Call

 

The management will host a business update conference call today at 10:00 a.m. Eastern Time, to discuss the Company’s sale of its CloudFirst subsidiary as well as its strategic business outlook.

 

The conference call will be available via telephone by dialing toll-free 877-407-9219 for U.S. callers or for international callers +1-412-652-1274. A webcast of the call may be accessed at  DTST Business Update Call 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 19, 2026. A telephone replay of the call will be available approximately three hours following the call, through November 26, 2025, and can be accessed by dialing 877-660-6853 for U.S. callers or + 1-201-612-7415 for international callers and entering conference ID: 13757276.

 

 

 

About Data Storage Corporation

 

Data Storage Corporation (Nasdaq: DTST), once the tender offer is complete, plans to invest in and support businesses, including, but not limited to, GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications. The Company’s mission is to build sustainable, recurring revenue streams while maintaining financial discipline and strategic focus. For more information, visit www.dtst.com.

 

Safe Harbor Provision

 


This 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 forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and include statements regarding repositioning the Company for its next phase of disciplined growth; the CloudFirst sale providing the Company with a solid financial foundation for the future; allowing the Company to simplify its structure, sharpen its focus, and redeploy capital toward initiatives that offer higher returns and long-term sustainability; executing from a position of strength; having the flexibility to strategically invest in high-growth areas where the Company can build durable competitive advantages, including, but not limited to, GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications; remaining disciplined both operationally and financially; creating lasting value through prudent capital allocation, sound execution, and thoughtful innovation; the Company’s Nexxis subsidiary providing a stable, recurring revenue base that supports its broader strategic objectives; leveraging the Company’s expertise, financial strength, and market position to identify opportunities that align with its core competencies; and aiming to build upon the Company’s history in data and communications infrastructure to deliver sustainable results and long-term shareholder value. Important factors that could cause actual results to differ materially from current expectations include the Company’s ability to redeploy capital toward initiatives that offer higher returns and long-term sustainability; the Company’s ability to strategically invest in high-growth areas where it can build durable competitive advantages; the Company’s ability to create lasting value through prudent capital allocation, sound execution, and thoughtful innovation; the Company ability to operate Nexxis as a stable, recurring revenue base that supports broader strategic objectives; the Company’s ability to leverage its expertise, financial strength, and market position to identify opportunities that align with its core competencies; and the Company’s ability to build upon its history in data and communications infrastructure to deliver sustainable results and long-term shareholder value.. 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, 2024, 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, LLC
212-671-1020
DTST@crescendo-ir.com

 

 

 

DATA STORAGE CORPORATION AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   September 30, 2025  December 31, 2024
ASSETS          
Current Assets:          
Cash and cash equivalents  $284,714   $1,070,097 
Accounts receivable, net of allowance for expected credit losses of $648 and $767, respectively   74,035    59,018 
Escrow funds receivable   1,500,000     
Marketable securities   45,471,979    11,261,006 
Prepaid expenses and other current assets   127,778    118,538 
Current assets of discontinued operations       2,907,404 
Total current assets   47,458,506    15,416,063 
           
Property and equipment, net   4,545    6,077 
Other long-term assets   214,639    137,077 
Non-current assets of discontinued operations       9,720,998 
           
Total assets   47,677,690    25,280,215 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities:          
Accounts payable and accrued expenses   708,993    588,590 
Warrant liability   1,224,838     
Payable to purchaser of discontinued operations   176,687     
Income taxes payable   5,976,589     
Deferred tax liability - current   326,951     
Current liabilities of discontinued operations       2,957,559 
Total current liabilities   8,414,058    3,546,149 
           
Deferred tax liability – long-term       39,031 
Non-current liabilities of discontinued operations       523,070 
Total long-term liabilities       562,101 
           
Total liabilities   8,414,058    4,108,250 
           
Commitments and contingencies (Note 7)          
           
Stockholders’ equity:          
Preferred stock, Series A par value $0.001; 10,000,000 shares authorized; 0 and 0 shares issued and outstanding in 2024 and 2023, respectively        
Common stock, par value $0.001; 250,000,000 shares authorized; 7,465,306 and 7,045,108 shares issued and outstanding at September 30, 2025, and December 31, 2024, respectively   7,466    7,045 
Additional paid in capital   42,427,313    40,417,813 
Accumulated deficit   (2,912,547)   (18,982,589)
Accumulated other comprehensive loss   (14,235)   (23,214)
Total Data Storage Corp stockholders’ equity   39,507,997    21,419,055 
Non-controlling interest in consolidated subsidiary   (244,365)   (247,090)
Total stockholders’ equity   39,263,632    21,171,965 
Total liabilities and stockholders’ equity  $47,677,690   $25,280,215 

 

 

 

DATA STORAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

   Three Months Ended September 30,  Nine Months Ended September 30,
   2025  2024  2025  2024
             
Sales  $416,956   $325,299   $1,057,651   $899,135 
Cost of sales   218,457    180,832    580,193    504,684 
Gross Profit   198,499    144,467    477,458    394,451 
                     
Selling, general and administrative   1,296,974    984,099    3,242,833    2,867,140 
Loss from operations   (1,098,475)   (839,632)   (2,765,375)   (2,472,689)
                     
Interest income   193,347    160,770    417,520    456,580 
                     
Loss from continuing operations before income taxes   (905,128)   (678,862)   (2,347,855)   (2,016,109)
Provision (benefit) for income taxes   (1,034,683)       (1,034,683)    
Loss from continuing operations, net of tax   129,555    (678,862)   (1,313,172)   (2,016,109)
Income (loss) from discontinued operations, net of tax   (822,503)   802,388    (85,351)   2,238,934 
Gain on sale of discontinued operation, net of tax   17,471,290        17,471,290     
 Net income from discontinued operations   16,648,787    802,388    17,385,939    2,238,934 
Net income   16,778,342    123,526    16,072,767    222,825 
Income (loss) in non-controlling interest of consolidated subsidiary   (66)   (1,129)   (3,462)   12,434 
                     
Net income attributable to common stockholders  $16,778,276   $122,397   $16,069,305   $235,259 
                     
Loss per share from continuing operations – basic  $0.02   $(0.10)  $(0.18)  $(0.29)
Loss per share from continuing operations – diluted  $0.02   $(0.10)  $(0.18)  $(0.29)
Earnings per share from discontinued operations - basic  $2.28   $0.11   $2.42   $0.32 
Earnings per share from discontinued operations - diluted  $2.19   $0.11   $2.32   $0.31 
Earnings per share attributable to common stockholders – basic*  $2.30   $0.02   $2.24   $0.03 
Earnings per share attributable to common stockholders – diluted*  $2.20   $0.02   $2.15   $0.03 
Weighted average number of shares - basic   7,293,644    6,999,447    7,177,691    6,918,253 
Weighted average number of shares - diluted   7,613,606    7,405,664    7,482,791    7,334,763 

 

*Earnings per share may not add due to rounding

 

 

 

DATA STORAGE CORPORATION AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   Nine Months Ended September 30,
   2025  2024
Cash Flows from Operating Activities:          
Loss from continuing operations  $(1,313,172)  $(2,016,109)
Net income from discontinued operations   17,385,939    2,238,934 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Gain on sale of discontinued operations   (17,471,290)    
Depreciation and amortization   1,660    1,215 
Stock based compensation   1,005,830    564,800 
Provision for credit losses   6,512    577 
Changes in Assets and Liabilities:          
Accounts receivable   (21,529)   (12,502)
Prepaid expenses and other assets   (86,802)   (165,714)
Accounts payable and accrued expenses   296,345    (9,645)
Income taxes payable   (1,066,307)    
Changes in assets and liabilities of discontinued operations   706,991    (48,966)
Net cash provided by (used in) operating activities   (555,823)   552,590 
           
Cash Flows from Investing Activities:          
Capital expenditures   (128)   (2,149)
Net proceeds from sale of discontinued operation   35,634,291     
Purchase of marketable securities   (38,485,795)   (456,573)
Sale of marketable securities   4,274,822    400,000 
Cash used in investing activities of discontinued operations   (787,129)   (1,113,859)
Net cash provided by (used in) investing activities   636,061    (1,172,581)
           
Cash Flows from Financing Activities:          
Payment for settlement of warrants   (1,236,825)    
Proceeds from stock option exercises   412,774    88,732 
Cash used in financing activities of discontinued operations   (51,520)   (383,753)
Net cash used in financing activities   (875,571)   (295,021)
           
Effect of exchange rate changes on cash   9,950     
           
Decrease in cash and cash equivalents   (785,383)   (915,012)
           
Cash and cash equivalents, beginning of period   1,070,097    1,428,730 
           
Cash and cash equivalents, end of period  $284,714   $513,718 
           
Supplemental cash flow disclosures:          
Cash paid for interest  $   $ 
Cash paid for income taxes  $   $