Data Storage Corp Segments Disclosure
Note 10 – Segment Information
Following the sale of its Cloud Solutions Business, which consisted of the operations of the Company’s subsidiaries, CloudFirst Technologies Corporation and CloudFirst Europe Ltd., on September 11, 2025 (see Note 3 for details), the Company operates in one reportable segment: Nexxis, Inc. The CloudFirst Technologies Corporation and CloudFirst Europe Ltd. reportable segments were removed as a result of the sale of the Cloud Solutions Business.
The Company’s segment was determined based on its internal organizational structure, the manner in which its operations are managed, and the criteria used by the Company’s CODM which is its Chief Executive Officer, to evaluate performance, which is generally the segment’s operating income or losses.
Nexxis, Inc. is a single-source solution provider that delivers fully-managed cloud-based voice over internet services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment.
The following tables present certain financial information related to the Company’s reportable segment and Corporate:
| For the year ended December 31, 2025 | ||||||||||||
| Nexxis, Inc. | Corporate | Total | ||||||||||
| Revenue | $ | 1,382,929 | $ | $ | 1,382,929 | |||||||
| Cost of sales | 768,605 | 768,605 | ||||||||||
| Gross profit | 614,324 | 614,324 | ||||||||||
| Selling, general and administrative | 598,797 | 3,583,994 | 4,182,791 | |||||||||
| Depreciation and amortization | 3,905 | 1,330 | 5,235 | |||||||||
| Total operating expenses | 602,702 | 3,585,324 | 4,188,026 | |||||||||
| Income (loss) from operations | $ | 11,622 | $ | (3,585,324 | ) | $ | (3,573,702 | ) | ||||
| For the year ended December 31, 2024 | ||||||||||||
| Nexxis, Inc. | Corporate | Total | ||||||||||
| Revenue | $ | 1,219,247 | $ | $ | 1,219,247 | |||||||
| Cost of sales | 691,998 | 691,998 | ||||||||||
| Gross profit | 527,249 | 527,249 | ||||||||||
| Selling, general and administrative | 619,912 | 3,218,831 | 3,838,743 | |||||||||
| Depreciation and amortization | 850 | 775 | 1,625 | |||||||||
| Total operating expenses | 620,762 | 3,219,606 | 3,840,368 | |||||||||
| Loss from operations | $ | (93,513 | ) | $ | (3,219,606 | ) | $ | (3,313,119 | ) | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 14, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 31, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.