Restatement of Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2025

Restatement Of Quarterly Financial Information

Schedule of financial statement adjustments


		September 30, 2025
		As previously reported				Adjustments				As restated
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Warrant liability		$	1,224,838			$	(182,488	)		$	1,042,350
Income taxes payable			5,976,589				13,182				5,989,771
Total current liabilities			8,414,058				(183,244	)			8,230,814
Total liabilities			8,414,058				(183,244	)			8,230,814

Stockholders’ equity:
Additional paid-in capital			42,427,313				(2,461,663	)			39,965,650
Accumulated deficit			(2,912,547	)			2,644,907				(267,640	)
Total Data Storage Corporation stockholders’ equity			39,507,997				183,244				39,691,241
Total stockholders’ equity		$	39,263,632			$	183,244			$	39,446,876

The following tables present the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025:

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


		Three Months Ended September 30, 2025
		As previously reported				Adjustment				As restated

Provision (benefit) for income taxes		$	(1,034,683	)		$	15,006			$	(1,019,677	)
Loss from continuing operations, net of tax			129,555				(15,006	)			114,549
Gain on sale of discontinued operation, net of tax			17,471,290				2,659,913				20,131,203
Net income of discontinued operations			16,648,787				2,659,913				19,308,700
Net income			16,778,342				2,644,907				19,423,249
Income (loss) in non-controlling interest of consolidated subsidiary, net of tax			(66	)			737				671
Net income attributable to common stockholders		$	16,778,276			$	2,645,644			$	19,423,920

Earnings per share from discontinued operations – basic		$	2.28			$	0.37			$	2.65
Earnings per share from discontinued operations – diluted		$	2.19			$	0.35			$	2.54
Earnings per share attributable to common stockholders – basic		$	2.30			$	0.36			$	2.66
Earnings per share attributable to common stockholders – diluted		$	2.20			$	0.35			$	2.55


		Nine Months Ended September 30, 2025
		As previously reported				Adjustment				As restated

Provision (benefit) for income taxes		$	(1,034,683	)		$	15,006			$	(1,019,677	)
Loss from continuing operations, net of tax			(1,313,172	)			(15,006	)			(1,328,178	)
Gain on sale of discontinued operation, net of tax			17,471,290				2,659,913				20,131,203
Net income of discontinued operations			17,385,939				2,659,913				20,045,852
Net income			16,072,767				2,644,907				18,717,674
Income (loss) in non-controlling interest of consolidated subsidiary, net of tax			(3,462	)			737				(2,725	)
Net income attributable to common stockholders		$	16,069,305			$	2,645,644			$	18,714,949

Earnings per share from discontinued operations – basic		$	2.42			$	0.37			$	2.79
Earnings per share from discontinued operations – diluted		$	2.32			$	0.36			$	2.68
Earnings per share attributable to common stockholders – basic		$	2.24			$	0.37			$	2.61
Earnings per share attributable to common stockholders – diluted		$	2.15			$	0.35			$	2.50

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

The following tables present the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2025:


		For the Three Months Ended September 30, 2025
		As previously reported				Adjustment				As restated
Additional Paid-in Capital
Reclassification of warrant to liability			—				(2,461,663	)			(2,461,663	)
Balance, September 30, 2025		$	42,427,313			$	(2,461,663	)		$	39,965,650
Accumulated Deficit
Net income			16,070,042				3,353,878				19,423,920
Balance, September 30, 2025		$	(2,912,547	)		$	2,644,907			$	(267,640	)
Total Stockholders’ Equity
Reclassification of warrant to liability			—				(2,461,663	)			(2,461,663	)
Net income			16,072,767				3,350,482				19,423,249
Balance, September 30, 2025		$	39,263,632			$	183,244			$	39,446,876


		For the Nine Months Ended September 30, 2025
		As previously reported				Adjustment				As restated
Additional Paid-in Capital
Reclassification of warrant to liability			—				(2,461,663	)			(2,461,663	)
Balance, September 30, 2025		$	42,427,313			$	(2,461,663	)		$	39,965,650
Accumulated Deficit
Net income			16,779,013				1,935,936				18,714,949
Balance, September 30, 2025		$	(2,912,547	)		$	2,644,907			$	(267,640	)
Total Stockholders’ Equity
Reclassification of warrant to liability			—				(2,461,663	)			(2,461,663	)
Net income			16,778,342				1,939,332				18,717,674
Balance, September 30, 2025		$	39,263,632			$	183,244			$	39,446,876

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Statement of Cash Flows for the nine-month period ended September 30, 2025:


		Nine Months Ended September 30, 2025
		As previously reported				Adjustment				As restated

Net income from discontinued operations		$	17,385,939			$	2,659,913			$	20,045,852
Adjustments to reconcile net income to net cash used in operating activities:
Gain on sale of discontinued operations			(17,471,290	)			(2,659,913	)			(20,131,203	)