Data Storage Corp SEC Filings

Data Storage Corporation entered into a new Equity Distribution Agreement with Maxim Group LLC, allowing it to offer and sell, from time to time, shares of common stock under an existing at-the-market program. The related ATM prospectus covers an offering of up to $10,600,000 shares of common stock under the company’s effective Form S-3 shelf registration statement.

Maxim will act as sales agent or principal and use commercially reasonable efforts to execute sales under the company’s instructions, including price, time, and size limits. Data Storage will pay Maxim a 2.5% commission on aggregate gross proceeds, reimburse up to $25,000 of specified expenses, and pay $2,500 for Maxim’s legal fees on each Bringdown Date. The company is not obligated to sell any shares, and there is no assurance that any sales will occur.

Data Storage Corp submitted a Form 25 notification that the Warrants class has been removed from listing and/or registration on Nasdaq Stock Market LLC, pursuant to Section 12(b) and related rules. The filing states the Exchange and the issuer complied with the applicable withdrawal procedures.

Data Storage Corporation’s first quarter of 2026 reflects its transition to a smaller, telecom-focused business centered on its Nexxis subsidiary after selling the CloudFirst cloud solutions business in 2025. Continuing-operations sales were $346,707, up 10.9% year over year, with gross profit rising to $186,019 and gross margin improving to 53.7% on a more favorable mix and operating leverage.

Higher selling, general and administrative expenses of $1,472,113, driven largely by a $561,408 increase in non-cash stock-based compensation and higher professional fees, led to a loss from continuing operations, net of tax, of $768,258. Including a $148,991 gain related to final post-closing adjustments on the CloudFirst sale, net loss attributable to common stockholders was $631,272, or $(0.20) per share.

The company used proceeds from prior marketable securities holdings, originally funded by the CloudFirst sale, to complete a January 2026 tender offer, repurchasing 5,625,129 shares at $5.20 per share for about $29.3 million. This reduced outstanding shares to 2,167,138 and left cash and cash equivalents of $1,614,622 plus $9,571,837 of marketable securities as of March 31, 2026. Working capital was $11,052,387. Management continues to report a previously identified material weakness in internal control over financial reporting related to complex transactions and is pursuing remediation.

Data Storage Corporation reported a mixed first quarter 2026 as it pivots toward AI continuity infrastructure. Sales from continuing operations were $346,707 with gross profit of $186,019, while selling, general and administrative expenses rose to $1,472,113, leading to a loss from operations of $1,286,094.

Net loss attributable to common stockholders was $631,272, or $0.20 per share, compared with essentially break-even earnings per share a year earlier. Results include a $148,991 gain from discontinued operations related to the prior sale of the cloud solutions business.

The company executed a large Tender Offer, repurchasing shares for $29,528,957, creating $29,821,464 of treasury stock and reducing total assets to $11,753,446 at March 31, 2026. Management highlighted Nexxis, where first-quarter sales grew 10.9% year over year and gross profit rose 32.1%, with gross margin improving to 53.7% from 45.0%. DTST is establishing Sovereign AI Solutions to build an AI Continuity Control Plane for regulated industries.

Data Storage Corporation filed its annual report detailing a major business transformation, a financial restatement, and control issues. The company sold its CloudFirst business for $38.1 million in cash, generating about $31.6 million in net proceeds, and then used most of those funds to repurchase 5.6 million shares at $5.20 per share via a tender offer, leaving 2,167,138 shares outstanding and over $10 million in cash.

After the sale, operations center on its Nexxis telecom and data subsidiary while the board evaluates acquisitions in high‑growth areas such as AI and cybersecurity or a possible sale or merger. The report includes a restatement tied to misclassifying a $2.46 million warrant liability and discloses a material weakness in internal control over financial reporting, which management is working to remediate. Net income attributable to common shareholders was $19.2 million in 2025, largely driven by the divestiture.

Data Storage Corporation reported fiscal 2025 results highlighted by record net income of $19.2 million, largely driven by the $40 million divestiture of its CloudFirst business. The company returned $29.3 million to shareholders via a tender offer and ended 2025 debt-free with over $10 million in capital.

Continuing operations are now focused on Nexxis, which generated $1.4 million in revenue, up 13.4% year over year, with gross margin expanding to 44.4%. Despite a $0.9 million loss from continuing operations, earnings per share surged to $2.64 from $0.08 as discontinued operations produced substantial gains.

Management describes DTST as a streamlined Nasdaq-listed platform with capital and strategic flexibility to pursue acquisitions in high-growth technology areas such as AI-enabled SaaS, GPU infrastructure, cybersecurity, and scalable, recurring-revenue services, and is actively advancing related initiatives.

Data Storage Corporation notified the SEC that it cannot timely file its Annual Report on Form 10-K for the year ended December 31, 2025. The delay is due to additional time needed to finalize financial statements after the September 11, 2025 sale of substantially all assets of the company’s cloud solutions business. The cloud solutions business will be reported as discontinued operations, and continuing operations will reflect the results of subsidiary Nexxis, Inc. The company expects higher sales, cost of sales, SG&A and an increase in net income tied to the sale; the financial statements are not yet finalized and quantitative amounts are not provided.

Data Storage Corp Chief Financial Officer Christos Panagiotakos reported equity awards that increase his direct ownership stake. He received stock options for 125,000 shares at an exercise price of $0.0000 per share and a grant of 60,000 shares of common stock underlying restricted stock units.

Both the options and RSUs vest in three equal installments on May 20, 2027, May 20, 2028, and May 20, 2029. After the common stock award, his directly held common shares total 100,507, aligning his compensation more closely with shareholder outcomes over a multi-year period.

Data Storage Corp reported that Chairman and CEO Charles M. Piluso received new equity awards on February 13, 2026. He was granted stock options for 250,000 shares, which vest in three equal parts on May 20, 2027, May 20, 2028, and May 20, 2029, with an exercise price set at 110% of the closing share price on the grant date. He also received a restricted stock unit award covering 60,000 shares of common stock, vesting one-third on each of May 20, 2027, May 20, 2028, and May 20, 2029; these units convert into common stock on a one-for-one basis as they vest.