Financial Performance - Total revenue for Q1 2025 was $8.1 million, reflecting a 14% year-over-year growth in Cloud Infrastructure and Disaster Recovery services[4] - Adjusted EBITDA for the quarter reached $497,000, demonstrating the company's commitment to operational efficiency and margin discipline[4] - Gross profit totaled $2.86 million, maintaining consistent margin levels compared to previous periods[4] - Net income attributable to common stockholders for Q1 2025 was $24,078, compared to $357,102 in Q1 2024[18] - Net income for the three months ended March 31, 2025, was $26,388, a decrease of 92.4% compared to $345,904 in the same period of 2024[20] - Adjusted EBITDA for the total company was $497,135 for the three months ended March 31, 2025, compared to $680,318 for the same period in 2024, reflecting a decline of 26.9%[22][24] Cash Flow and Assets - Cash and marketable securities amounted to $11.1 million, with no long-term debt reported[4] - Cash used in operating activities was $(1,099,807) for Q1 2025, significantly higher than $(318,624) in Q1 2024, indicating increased cash outflow[20] - Total cash at the end of the period was $705,557, up from $640,742 at the end of Q1 2024, showing a year-over-year increase of 10.5%[20] - The company reported a total asset value of $26.93 million as of March 31, 2025, an increase from $25.28 million at the end of 2024[16] - The company experienced a net decrease in cash of $(364,540) in Q1 2025, compared to a net decrease of $(787,988) in Q1 2024, showing improved cash management[20] Expenditures and Liabilities - Capital expenditures for Q1 2025 were $(67,519), a decrease of 81.2% compared to $(358,637) in Q1 2024, indicating reduced investment in capital assets[20] - The company reported a significant increase in accounts payable and accrued expenses, totaling $1,373,552 in Q1 2025, compared to $2,226,932 in Q1 2024, reflecting a decrease of 38.3%[20] - Cash paid for interest in Q1 2025 was $489, a substantial decrease from $8,855 in Q1 2024, indicating lower interest expenses[20] Operational Highlights - The company experienced a modest decline in total revenue due to reduced equipment sales, aligning with its strategic focus on building a stable high-margin, recurring revenue client base[3] - CloudFirst Technologies continues to operate profitably on a standalone basis, serving as a scalable, recurring revenue engine[3] - The partnership with Pulsant enables the company to extend its IBM Power-based cloud offerings across the U.K. and Europe, enhancing its market presence[3] Depreciation and Credit Quality - The company recorded depreciation and amortization of $363,379 in Q1 2025, an increase of 22.9% from $295,198 in Q1 2024, reflecting higher asset depreciation[20] - The company reported a change in expected credit losses of $(6,995) in Q1 2025, indicating a potential improvement in credit quality compared to no losses reported in Q1 2024[20]
Data Storage (DTST) - 2025 Q1 - Quarterly Results