Data Storage (DTST) Registration Filing summary

Company overview and business model

• Provides cloud hosting, disaster recovery, cybersecurity, IT automation, and voice & data solutions to clients in healthcare, finance, manufacturing, education, government, and other sectors through subsidiaries CloudFirst Technologies and Nexxis Inc.

• Operates seven data centers across the U.S. and Canada, offering secure, resilient, and scalable IT solutions via recurring subscription agreements.

• Focuses on managed cloud and cybersecurity services, targeting the $36 billion annual recurring revenue market in the U.S. and Canada.

• Growth strategies include expanding service offerings, investing in R&D, enhancing customer experience, strengthening alliances, and implementing sustainable practices.

Financial performance and metrics

• As of May 29, 2024, the aggregate market value of outstanding common stock held by non-affiliates is approximately $32,092,110, based on 4,109,105 shares at $7.81 per share.

• Net tangible book value as of March 31, 2024, was approximately $14.4 million, or $2.08 per share; after the offering, pro forma as adjusted net tangible book value would be $2.84 per share, with immediate dilution of $3.60 per share to new investors at an assumed offering price of $6.44.

Use of proceeds and capital allocation

• Net proceeds from the offering are intended for working capital, general corporate purposes, business development, and potential acquisitions.

• Management retains broad discretion over the use of proceeds, which may be reallocated as needed.