Data Storage SEC Filings

Data Storage Corporation (DTSTW) filed a Form 10-Q covering the quarter ended June 30, 2025. The condensed consolidated financials show operating and balance sheet detail including revenue and expense line items, advertising costs of $308,900 and $249,147 for the three months ended June 30, 2025 and 2024, respectively, and advertising of $524,142 and $481,387 for the six months ended June 30, 2025 and 2024. Accounts receivable concentrations are disclosed (two customers represented 16% and 15% of receivables as of December 31, 2024). Depreciation for six months was $580,332 versus $497,003 prior year; amortization for six months was $133,571 versus $137,507 prior year. The company recorded $838,352 of deferred transaction costs related to a potential subsequent transaction with a $40 million proposed purchase price subject to a $1.5 million escrow and customary adjustments and approvals. Share-based compensation (options and RSUs) totaled $294,116 and $344,728 for options and RSUs respectively for the six months ended June 30, 2025. The filing notes customer revenue concentrations and various contractual commitments and contingencies.

Data Storage Corporation filed a preliminary communication announcing a planned repurchase of up to 85% of its outstanding common stock. The company says the repurchase would be financed by using 85% of its cash on hand at the time the tender offer is commenced, inclusive of net sale proceeds from a proposed divestiture of its cloud solutions business. The Divestiture is described as subject to shareholder approval and, if approved and completed, would be followed by the commencement of the tender offer. The filing attaches a press release reporting business updates and financial results for the three- and six-month periods ended June 30, 2025, and notes that the press release is not an offer or solicitation. The company states that, when the offer is commenced, it will file a Schedule TO and that offer materials will be made available free on the SEC website and the company’s Investor Relations site.

Data Storage Corporation furnished a press release as Exhibit 99.1 that contains financial information for the quarter ended June 30, 2025. The company states the information is being furnished and shall not be deemed filed under the Exchange Act, and will not be incorporated by reference into other SEC filings. This 8-K lists Exhibit 99.1 (press release) and Exhibit 104 (cover page interactive XBRL). The filing text does not include the underlying financial figures; investors must consult Exhibit 99.1 for the reported metrics.

Data Storage Corporation has filed a preliminary Schedule TO-C communication announcing a planned repurchase program tied to a proposed divestiture of its cloud solutions business. The definitive proxy for the Company’s 2025 Annual Meeting on September 10, 2025 contains a shareholder proposal to approve the Divestiture; the Board has stated that if the Divestiture is approved the Company will, following closing, make a tender offer to repurchase up to 85% of the outstanding common stock using 85% of the Company’s cash on hand on the date the offer is commenced, inclusive of net sale proceeds from the Divestiture. The Offer has not commenced and will be the subject of a Schedule TO filing when launched. Tender offer materials will be made available free via the SEC and the Company website.

Data Storage Corporation (DSC) is proposing to sell its CloudFirst cloud solutions business in a transaction that would transfer substantially all of DSC's assets. Under a Purchase Agreement dated July 11, 2025, Purchaser Total Server Solutions Holdings, LLC has agreed to pay a Base Purchase Price of $40,000,000, subject to customary escrow and post-closing working capital and debt adjustments, including a $1,500,000 escrow. The Board unanimously concluded the Divestiture is fair and recommends shareholder approval.

If approved, DSC expects to close in Q3 2025 subject to conditions including shareholder approval, Purchaser financing, and employee acceptance of offers. After closing DSC would retain Nexxis (approximately $1.1 million revenue in 2024), be subject to a non-compete in cloud/DR, and intends to use proceeds to pursue a tender offer to repurchase up to 85% of outstanding shares and pursue targeted acquisitions or a potential sale of the public company.

Data Storage Corp (DTST) Form 4: EVP, director and 10 % owner Thomas Kempster exercised two previously granted stock-option tranches on 04-Aug-2025, acquiring a total of 26,470 common shares.

The options, issued on 01-Mar-2023 and 10-Apr-2023, were exercised at strike prices of $2.00 (16,666 shares) and $1.96 (9,804 shares). Both transactions are coded “M” (option exercise) and are reported as acquisitions (A); no shares were sold.

After the exercise Kempster directly owns 865,582 DTST shares. His remaining option balances on the respective grants fall to 8,334 and 4,902 units. The filing signals ongoing insider accumulation and creates marginal dilution through newly issued shares, but does not involve open-market activity or sales.