Data Storage (DTST) Registration Filing summary

Company overview and business model

• Provides cloud infrastructure, business continuity, and cybersecurity services to clients in healthcare, finance, manufacturing, education, and government sectors through subsidiaries CloudFirst Technologies and Nexxis Inc.

• Operates seven data centers across the U.S. and Canada, offering secure, subscription-based solutions and equipment/software sales.

• Expanded offerings and operational footprint through the 2021 merger with Flagship Solutions, enhancing IBM solutions and managed services.

Financial performance and metrics

• As of March 31, 2024, historical net tangible book value was $14.4 million ($2.08 per share).

• Assuming full warrant exercise, as-adjusted net tangible book value would be $23.5 million ($2.88 per share), with immediate dilution of $4.55 per share to new investors.

Use of proceeds and capital allocation

• Gross proceeds from full warrant exercise estimated at $9.1 million.

• Proceeds intended for working capital and general corporate purposes, with discretion on allocation and possible temporary investment in short-term instruments.