Data Storage (DTST) - 2025 Q3 - Quarterly Results

Financial Performance - For Q3 2025, sales increased to $416,956, a 28.1% rise from $325,299 in Q3 2024[12] - Gross profit for Q3 2025 was $198,499, representing a 37.4% increase compared to $144,467 in Q3 2024[12] - The net income attributable to common stockholders for Q3 2025 was $16,778,276, compared to $122,397 in Q3 2024, marking a substantial increase[12] - The company reported a loss from operations of $1,098,475 for Q3 2025, compared to a loss of $839,632 in Q3 2024[12] - Loss from continuing operations decreased to $(1,313,172) in 2025 from $(2,016,109) in 2024, showing an improvement[14] - Net income from discontinued operations increased significantly to $17,385,939 in 2025 compared to $2,238,934 in 2024[14] Assets and Liabilities - The total assets as of September 30, 2025, were $47,677,690, up from $25,280,215 as of December 31, 2024[10] - Current liabilities increased to $8,414,058 as of September 30, 2025, compared to $3,546,149 at the end of 2024[10] Cash Flow and Investments - Net cash provided by (used in) operating activities was $(555,823) in 2025, a decline from $552,590 in 2024[14] - Cash and cash equivalents at the end of the period decreased to $284,714 in 2025 from $513,718 in 2024[14] - Capital expenditures were minimal at $(128) in 2025, compared to $(2,149) in 2024[14] - Cash used in investing activities of discontinued operations was $(787,129) in 2025, down from $(1,113,859) in 2024[14] Strategic Initiatives - The company plans to strategically invest in high-growth areas such as GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, and cybersecurity[6] - The Nexxis subsidiary continues to perform well, providing a stable, recurring revenue base that supports broader strategic objectives[3] - The company aims to leverage its expertise and financial strength to identify opportunities that align with its core competencies for sustainable results[3] Discontinued Operations - Net proceeds from the sale of discontinued operations amounted to $35,634,291 in 2025, with no comparable figure in 2024[14] - The company reported a significant gain on the sale of discontinued operations of $(17,471,290) in 2025, with no prior year figure[14] Other Financial Metrics - Stock-based compensation increased to $1,005,830 in 2025 from $564,800 in 2024, indicating higher employee incentives[14] - The effect of exchange rate changes on cash resulted in an increase of $9,950 in 2025, with no prior year figure reported[14]