UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 001-35384

DATA STORAGE CORPORATION

(Exact name of registrant as specified in its charter)

Nevada		98-0530147
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

48 South Service Road Melville, NY		11747
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 564-4922

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	DTST	The Nasdaq Capital Market

Warrants to purchase shares of Common Stock, par value $0.001 per share	DTSTW	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company filer. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐	Accelerated Filer ☐
Non-Accelerated Filer ☒	Smaller Reporting Company ☒
	Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of August 10, 2022, was 6,822,127.

DATA STORAGE CORPORATION

FORM 10-Q

INDEX

			Page
PART I- FINANCIAL INFORMATION

	Item 1	Financial Statements

		Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021	3

		Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (unaudited)	4

		Condensed Consolidated Statements of Stockholders’ Equity for three and six months ended June 30, 2022 and 2021 (unaudited)	5

		Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited)	7

		Notes to Condensed Consolidated Financial Statements	8

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

	Item 4.	Control and Procedures	31

PART II- OTHER INFORMATION			31

	Item 1.	Legal Proceedings	31

	Item 1A.	Risk Factors	31

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31

	Item 3.	Defaults Upon Senior Securities	32

	Item 4.	Mine Safety Disclosures	32

	Item 5.	Other Information	32

	Item 6.	Exhibits	32

DATA STORAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


	June 30, 2022			December 31, 2021
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	11,214,436		$	12,135,803
Accounts receivable (less allowance for credit losses of $28,355 and $30,000 in 2022 and 2021, respectively)		2,484,857			2,384,367
Prepaid expenses and other current assets		974,845			536,401
Total Current Assets		14,674,138			15,056,571

Property and Equipment:
Property and equipment		7,092,451			6,595,236
Less—Accumulated depreciation		(4,510,837	)		(4,657,765	)
Net Property and Equipment		2,581,614			1,937,471

Other Assets:
Goodwill		6,560,671			6,560,671
Operating lease right-of-use assets		325,745			422,318
Other assets		103,436			103,226
Intangible assets, net		2,115,105			2,254,566
Total Other Assets		9,104,957			9,340,781

Total Assets	$	26,360,709		$	26,334,823

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable and accrued expenses	$	1,312,387		$	1,343,391
Deferred revenue		249,482			366,859
Finance leases payable		424,603			216,299
Finance leases payable related party		706,001			839,793
Operating lease liabilities short term		207,062			205,414
Total Current Liabilities		2,899,535			2,971,756

Operating lease liabilities		128,952			226,344
Finance leases payable		421,648			157,424
Finance leases payable related party		450,970			364,654
Total Long-Term Liabilities		1,001,570			748,422

Total Liabilities		3,901,105			3,720,178

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 2022 and 2021, respectively		—			—
Common stock, par value $.001; 250,000,000 shares authorized; 6,822,127 and 6,693,793 shares issued and outstanding in 2022 and 2021, respectively		6,822			6,694
Additional paid in capital		38,799,853			38,241,155
Accumulated deficit		(16,221,610	)		(15,530,576	)
Total Data Storage Corp Stockholders’ Equity		22,585,065			22,717,273
Non-controlling interest in consolidated subsidiary		(125,461	)		(102,628	)
Total Stockholder’s Equity		22,459,604			22,614,645
Total Liabilities and Stockholders’ Equity	$	26,360,709		$	26,334,823

The accompanying notes are an integral part of these condensed consolidated Financial Statements.

DATA STORAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021

Sales	$	4,827,749		$	3,528,249		$	13,484,948		$	6,102,940

Cost of sales		2,977,132			2,021,324			8,988,421			3,442,223

Gross Profit		1,850,617			1,506,925			4,496,527			2,660,717

Selling, general and administrative		2,594,204			1,602,311			5,054,070			2,720,718

Loss from Operations		(743,587	)		(95,386	)		(557,543	)		(60,001	)

Other Income (Expense)
Interest expense, net		(113,664	)		(46,621	)		(156,324	)		(81,666	)
Loss on disposal of equipment		—			(29,732	)		—			(29,732	)
Gain on forgiveness of debt		—			307,300			—			307,300
Total Other Income (Expense)		(113,664	)		230,947			(156,324	)		195,902

Income (Loss) before provision for income taxes		(857,251	)		135,561			(713,867	)		135,901

Provision for income taxes		—			—			—			—

Net Income (Loss)		(857,251	)		135,561			(713,867	)		135,901

Non-controlling interest in consolidated subsidiary		10,207			3,552			22,833			5,311

Net Income (Loss) attributable to Data Storage Corp		(847,044	)		139,113			(691,034	)		141,212

Preferred Stock Dividends		—			(24,800	)		—			(63,683	)

Net Income (Loss) Attributable to Common Stockholders	$	(847,044	)	$	114,313		$	(691,034	)	$	77,529

Earnings (Loss) per Share – Basic	$	(0.13	)	$	0.03		$	(0.10	)	$	0.02
Earnings (Loss) pers Share – Diluted	$	(0.13	)	$	0.03		$	(0.10	)	$	0.02
Weighted Average Number of Shares - Basic		6,758,238			3,981,402			6,727,108			3,607,909
Weighted Average Number of Shares - Diluted		6,758,238			4,118,989			6,758,238			3,611,242

The accompanying notes are an integral part of these condensed consolidated Financial Statements.

DATA STORAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND 2022

(Unaudited)


	Preferred Stock						Common Stock				Additional Paid-in			Accumulated			Non-Controlling			Total Stockholders’
	Shares			Amount			Shares		Amount		Capital			Deficit			Interest			Equity

Balance April 1, 2021		1,401,786		$	1,402			3,213,486	$	3,213	$	17,787,956		$	(15,771,521	)	$	(96,464	)	$	1,924,586
Conversion of preferred series to common stock		(1,401,786	)		(1,402	)		43,806		44		1,358			—			—			—
Proceeds from issuance of common stock and warrants		—			—			1,600,000		1,600		9,453,294			—			—			9,454,894
Stock-based compensation		—			—			5,060		5		(5	)		—			—			—
Stock-based compensation		—			—			—		—		34,050			—			—			34,050
Net Income (Loss)		—			—			—		—		—			139,113			(3,552	)		135,561
Preferred stock dividends		—			—			—		—		—			(24,800	)		—			(24,800	)
Balance, June 30, 2021		—		$	—			4,862,352	$	4,862	$	27,276,653		$	(15,657,208	)	$	(100,016	)	$	11,524,291

Balance April 1, 2022		—		$	—			6,697,127	$	6,697	$	38,314,591		$	(15,374,566	)	$	(115,254	)	$	22,831,468
Stock-based compensation		—			—			125,000		125		485,262			—			—			485,387
Net (Loss)		—			—			—		—		—			(847,044	)		(10,207	)		(857,251	)
Balance, June 30, 2022		—		$	—			6,822,127	$	6,822	$	38,799,853		$	(16,221,610	)	$	(125,461	)	$	22,459,604

The accompanying notes are an integral part of these condensed consolidated Financial Statements

DATA STORAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Unaudited)

	Preferred Stock						Common Stock				Additional Paid-in			Accumulated			Non-Controlling			Total Stockholders’
	Shares			Amount			Shares		Amount		Capital			Deficit			Interest			Equity

Balance January 1, 2021		1,401,786		$	1,402			3,213,486	$	3,213	$	17,745,785		$	(15,734,737	)	$	(94,705	)	$	1,920,958
Conversion of preferred series to stock		(1,401,786	)		(1,402	)		43,806		44		1,358			—			—			—
Proceeds from issuance of common stock and warrants		—			—			1,600,000		1,600		9,453,294			—			—			9,454,894
Stock Options Exercise		—			—			5,060		5		(5	)		—			—			—
Stock-based compensation		—			—			—		—		76,221			—			—			76,221
Net Income (Loss)		—			—			—		—		—			141,212			(5,311	)		135,901
Preferred stock dividends		—			—			—		—		—			(63,683	)		—			(63,683	)
Balance, June 30, 2021		—		$	—			4,862,352	$	4,862	$	27,276,653		$	(15,657,208	)	$	(100,016	)	$	11,524,291

Balance January 1, 2021		—		$	—			6,693,793	$	6,694	$	38,241,155		$	(15,530,576	)	$	(102,628	)	$	22,614,645
Stock options exercise		—			—			3,334		3		6,931			—			—			6,934
Stock-based compensation		—			—			125,000		125		551,767			—			—			551,892
Net (Loss)		—			—			—		—		—			(691,034	)		(22,833	)		(713,867	)
Balance, June 30, 2022		—		$	—			6,822,127	$	6,822	$	38,799,853		$	(16,221,610	)	$	(125,461	)	$	22,459,604

The accompanying notes are an integral part of these condensed consolidated Financial Statements

DATA STORAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six Months Ended June 30,
	2022			2021
Cash Flows from Operating Activities:
Net Income	$	(713,867	)	$	135,901
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		640,589			577,044
Stock based compensation		551,892			76,221
Gain on contingent liability		—			(307,300	)
Loss on disposal of equipment		—			29,732
Changes in Assets and Liabilities:
Accounts receivable		(100,490	)		385,134
Other assets		(211	)		(344	)
Prepaid expenses and other current assets		(438,444	)		(25,443	)
Right of use asset		96,573			43,362
Accounts payable and accrued expenses		(31,003	)		53,857
Deferred revenue		(117,377	)		(99,582	)
Operating lease liability		(95,744	)		(43,565	)
Net Cash (Used in) Provided by Operating Activities		(208,082	)		825,017
Cash Flows from Investing Activities:
Capital expenditures		(51,220	)		(303,228	)
Cash consideration for business acquisition		—			(5,937,275	)
Net Cash Used in Investing Activities		(51,220	)		(6,240,503	)
Cash Flows from Financing Activities:
Repayments of finance lease obligations related party		(487,403	)		(603,495	)
Repayments of finance lease obligations		(181,597	)		(74,010	)
Proceeds from issuance of common stock and warrants		—			9,454,894
Cash received for the exercised of options		6,935			—
Repayments of Dividend payable		—			(1,179,357	)
Repayment of line of credit		—			(24	)
Net Cash (Used in) Provided by Financing Activities		(662,065	)		7,598,008

Increase (decrease) in Cash and Cash Equivalents		(921,367	)		2,182,522

Cash and Cash Equivalents, Beginning of Period		12,135,803			893,598

Cash and Cash Equivalents, End of Period	$	11,214,436		$	3,076,120
Supplemental Disclosures:
Cash paid for interest	$	76,874		$	78,136
Cash paid for income taxes	$	—		$	—
Non-cash investing and financing activities:
Accrual of preferred stock dividend	$	—		$	63,683
Assets acquired by finance lease	$	1,094,051		$	50,000

The accompanying notes are an integral part of these condensed consolidated Financial Statements.

DATA STORAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022

(Unaudited)

Note 1 - Basis of Presentation, Organization and Other Matters

Data Storage Corporation (“DSC” or the “Company”) provides subscription based, long term agreements for disaster recovery solutions, cloud infrastructure, Cyber Security and Voice and Data solutions.

Headquartered in Melville, NY, DSC offers solutions and services to businesses within the healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. DSC derives its revenues from subscription services and solutions, managed services, software and maintenance, equipment and onboarding provisioning. DSC maintains infrastructure and storage equipment in seven technical centers in New York, Massachusetts, Texas, Florida, North Carolina and Canada.

On May 31, 2021, the Company completed a merger of Flagship Solutions, LLC (“Flagship”) (a Florida limited liability company) and the Company’s wholly-owned subsidiary, Data Storage FL, LLC. Flagship is a provider of Hybrid Cloud solutions, managed services and cloud solutions.

Note 2 - Summary of Significant Accounting Policies

Principles of Consolidation

The Condensed Consolidated Financial statements include the accounts of (i) the Company, (ii) its wholly-owned subsidiaries, Data Storage Corporation, a Delaware corporation, and Data Storage FL, LLC, a Florida limited liability company, (iii) Flagship Solutions, LLC, a Florida limited liability company, and (iv) its majority-owned subsidiary, Nexxis Inc, a Nevada corporation. All inter-company transactions and balances have been eliminated in consolidation.

Basis of Presentation

The Condensed Consolidated Financial Statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP).

Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed. As such, the information included in these financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”), as filed on March 31, 2022. In the opinion of the Company’s management, these condensed consolidated financial statements include all adjustments, which are of only a normal and recurring nature, necessary for a fair presentation of the statement of financial position of the Company as of June 30, 2022, statement of cash flows for the six months ended June 30, 2022 and 2021 and the results of operations for the three and six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2022.

Recently Issued and Newly Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU-2016-13”). ASU 2016-13 affects loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. ASU 2016-13 is effective for the fiscal year beginning after December 15, 2022, including interim periods within that fiscal year. The Company expects that there would be no material impact on the Company’s consolidated financial statements upon the adoption of this ASU.

In July 2021, the FASB issued ASU No. 2021-05, Lessors—Certain Leases with Variable Lease Payments (Topic 842), Which requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate (hereafter referred to as “variable payments”) as an operating lease on the commencement date of the lease if specified criteria are met. ASU 2021-05 is effective for the fiscal year beginning after December 15, 2022, including interim periods within that fiscal year. The Company expects that there would be no material impact on the Company’s condensed consolidated financial statements upon the adoption of this ASU.

In November 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, issued by the Financial Accounting Standards Board. This ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in the recognition of contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The adoption of ASU 2021-08 did not have a material impact on the consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.

Estimated Fair Value of Financial Instruments

The Company’s financial instruments include cash, accounts receivable, accounts payable and, lease commitments. Management believes the estimated fair value of these accounts on June 30, 2022, approximate their carrying value as reflected in the balance sheet due to the short-term nature of these instruments or the use of market interest rates for debt instruments. The carrying values of certain of the Company’s notes payable and capital lease obligations approximate their fair values based upon a comparison of the interest rate and terms of such debt given the level of risk to the rates and terms of similar debt currently available to the Company in the marketplace.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity or remaining maturity at the time of purchase, of three months or less to be cash equivalents.

Concentration of Credit Risk and Other Risks and Uncertainties

Financial instruments and assets subjecting the Company to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and trade accounts receivable. The Company’s cash and cash equivalents are maintained at major U.S. financial institutions. Deposits in these institutions may exceed the amount of insurance provided on such deposits.

The Company’s customers are primarily concentrated in the United States.

The Company provides credit in the normal course of business. The Company maintains allowances for doubtful accounts on factors surrounding the credit risk of specific customers, historical trends, and other information.

As of June 30, 2022, DSC had two customers with an accounts receivable balance representing 20% and 14% of total accounts receivable. As of December 31, 2021, the Company had one customer with an accounts receivable balance representing 16% of total accounts receivable

For the three months ended June 30, 2022, the Company had two customers that accounted for 12% and 11% of revenue. For the six months ended June 30, 2021, the Company had one customer that accounted for 13% of revenue.

For the six months ended June 30, 2022, the Company had two customers that accounted for 24% and 17% of revenue. For the six months ended June 30, 2021, the Company had one customer that accounted for 15% of revenue.

Accounts Receivable/Allowance for Credit Losses

The Company sells its services to customers on an open credit basis. Accounts receivables are uncollateralized, non-interest-bearing customer obligations. Accounts receivables are typically due within 30 days. The allowance for credit losses reflects the estimated accounts receivable that will not be collected due to credit losses. Provisions for estimated uncollectible accounts receivable are made for individual accounts based upon specific facts and circumstances including criteria such as their age, amount, and customer standing. Provisions are also made for other accounts receivable not specifically reviewed based upon historical experience. Clients are invoiced in advance for services as reflected in deferred revenue on the Company’s balance sheet.

Property and Equipment

Property and equipment are recorded at cost and depreciated over their estimated useful lives or the term of the lease using the straight-line method for financial statement purposes. Estimated useful lives in years for depreciation are 5 five to 7 seven years for property and equipment. Additions, betterments and replacements are capitalized, while expenditures for repairs and maintenance are charged to operations when incurred. As units of property are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income.

Goodwill and Other Intangibles

The Company tests goodwill and other intangible assets for impairment on at least an annual basis. Impairment exists if the carrying value of a reporting unit exceeds its estimated fair value. To determine the fair value of goodwill and intangible assets, the Company uses many assumptions and estimates using a market participant approach that directly impact the results of the testing. In making these assumptions and estimates, the Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management.

Revenue Recognition

Nature of goods and services

The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each:

Cloud Infrastructure and Disaster Recovery Revenue

Cloud Infrastructure provides clients the ability to migrate their on-premise computing and digital storage to DSC’s enterprise-level technical compute and digital storage assets located in Tier 3 data centers. Data Storage Corporation owns the assets and provides a turnkey solution whereby achieving reliable and cost-effective, multi-tenant IBM Power compute, x86/intel, flash digital storage, while providing disaster recovery and cyber security while eliminating client capital expenditures. The client pays a monthly fee and can increase capacity as required.

Clients can subscribe to an array of disaster recovery solutions without subscribing to cloud infrastructure. Product offerings provided directly from DSC are High Availability, Data Vaulting and retention solutions, including standby servers which allows clients to centralize and streamline their mission-critical digital information and technical environment while ensuring business continuity if they experience a cyber-attack or natural disaster Client’s data is vaulted, at two data centers with the maintenance of retention schedules for corporate governances and regulations all to meet their back to work objective in a disaster.

Managed Services

These services are performed at the inception of a contract. The Company provides professional assistance to its clients during the implementation processes. On-boarding and set-up services ensure that the solution or software is installed properly and function as designed to provide clients with the best solutions. In addition, clients that are managed service clients have a requirement for DSC to offer time and material billing supplementing the client’s staff.

The Company also derives both one-time and subscription-based revenue, from providing support, management and renewal of software, hardware, third party maintenance contracts and third-party cloud services to clients. The managed services include help desk, remote access, operating system and software patch management, annual recovery tests and manufacturer support for equipment and on-gong monitoring of client system performance.

Equipment and Software

The Company provides equipment and software and actively participate in collaboration with IBM to provide innovative business solutions to clients. The Company is a partner of IBM and the various software, infrastructure and hybrid cloud solutions provided to clients.

Nexxis Voice over Internet and Direct Internet Access

The Company provides VoIP, Internet access and data transport services to ensure businesses are fully connected to the Internet from any location, remote and on premise. The company provides, highly reliable Hosted VoIP solutions with equipment options for IP phones and internet speeds of up to 10Gb delivered over fiber optics.

Disaggregation of revenue

In the following table, revenue is disaggregated by major product line, geography, and timing of revenue recognition.


For the Three Months
Ended June 30, 2022
	United States		International		Total
Infrastructure & Disaster Recovery/Cloud Service	$	1,974,980	$	38,826	$	2,013,806
Equipment and Software		968,490		—		968,490
Managed Services		1,586,384		40,731		1,627,115
Nexxis VoIP Services		188,926		—		188,926
Other		29,412		—		29,412
Total Revenue	$	4,748,192	$	79,557	$	4,827,749

For the Three Months
Ended June 30, 2021
	United States		International		Total
Infrastructure & Disaster Recovery/Cloud Service	$	1,685,951	$	39,212	$	1,725,163
Equipment and Software		760,451		—		760,451
Managed Services		809,487		—		809,487
Nexxis VoIP Services		183,118		—		183,118
Other		50,030		—		50,030
Total Revenue	$	3,489,037	$	39,212	$	3,528,249

For the Three Months
Ended June 30,
Timing of revenue recognition	2022		2021
Products transferred at a point in time	$	1,093,916	$	937,178
Products and services transferred over time		3,733,833		2,591,071
Total Revenue	$	4,827,749	$	3,528,249

For the Six Months
Ended June 30, 2022
	United States		International		Total
Infrastructure & Disaster Recovery/Cloud Service	$	3,863,367	$	76,289	$	3,939,656
Equipment and Software		6,287,949		—		6,287,949
Managed Services		2,735,887		74,038		2,809,925
Nexxis VoIP Services		383,860		—		383,860
Other		63,558		—		63,558
Total Revenue	$	13,334,621	$	150,327	$	13,484,948

For the Six Months

Ended June 30, 2021

SEC Form 10-Q filed by Data Storage Corporation