{"url_path":"/sec/dtst/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A Risk Factors.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1419951/0001731122-26-000732-index.html","accession_number":"0001731122-26-000732","cik":"0001419951","ticker":"DTST","issuer_name":"Data Storage Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/1419951/0001731122-26-000732-index.html","primary_entity_key":"0001419951","primary_entity_name":"Data Storage Corp"},"word_count":744,"has_tables":true,"body_markdown":"**Item 1A. Risk Factors.**\n\n \n\n**Introduction and Certain Cautionary Statements**\n\n \n\nAs used in this Quarterly Report on Form 10-Q, unless the context requires\notherwise, references to the “Company,” “we,” “us,” and “our” refer to Data Storage Corporation\nand its subsidiaries. The following discussion and analysis of the financial condition and results of our operations should be read in\nconjunction with our unaudited condensed consolidated financial statements and related notes and schedules included elsewhere in this\nQuarterly Report on Form 10-Q and with our audited consolidated financial statements for the year ended December 31, 2025 and 2024 and\nthe accompanying notes, which are included in the 2025 Annual Report. This discussion, particularly information with respect to our future\noperations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note\nRegarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. You should review the disclosure under the heading\n“Risk Factors” in this Quarterly Report on Form 10-Q and the 2025 Annual Report for a discussion of important factors that\ncould cause our actual results to differ materially from those anticipated in these forward-looking statements.\n\n \n\n**Special Note Regarding Forward-Looking Statements**\n\n \n\n*This Quarterly Report on Form 10-Q contains forward-looking\nstatements that involve risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking\nstatements. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements\nwithin the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the\nExchange Act. Statements contained in this Quarterly Report on Form 10-Q may use forward-looking terminology, such as “anticipates,”\n“believes,” “could,” “would,” “estimates,” “may,” “might,” “plan,”\n“expect,” “intend,” “should,” “will,” or other variations on these terms or their negatives.\nAll statements other than statements of historical facts are statements that could potentially be forward-looking. We caution that forward-looking\nstatements involve risks and uncertainties, and actual results could differ materially from those expressed or implied in these forward-looking\nstatements or could affect the extent to which a particular objective, projection, estimate or prediction is realized. These\nstatements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking\nstatements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events\nto differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute\nto such differences include, but are not limited to, those identified below, those discussed in the section titled “Risk Factors”\nincluded under Part II, Item 1A below and those discussed in the section titled “Risk Factors” included under Part I, Item\n1A in the 2025 Annual Report. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required\nby law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such\nstatement.*\n\n \n\n*Although\nwe believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate\nand, therefore, there can be no assurance that the forward-looking statements included in this**Quarterly Report on Form\n10-Q will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking\nstatements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that\nthe objectives and plans of ours will be achieved. Investors are cautioned not to place undue reliance on such forward-looking statements,\nwhich speak only as of the date on which such statements are made. Any forward-looking statements made by us or on our behalf speak only\nas of the date they are made, and we do not undertake to update any forward-looking statement that may be made from time to time on our\nbehalf.*\n\n \n\n26\n\n \n\n \n\n**We have not generated\na significant amount of net income and we may not be able to sustain profitability in the future.**\n\n \n\nAs reflected in the condensed\nconsolidated financial statements, we had a net loss attributable to common stockholders of $631,272 for the three months ended March\n31, 2026. As of March 31, 2026, we had cash of $1,614,622 (including escrow funds receivable), marketable securities of $9,571,837, and\nworking capital of $11,052,387 (excluding income taxes payable). There can be no assurance that we will continue to generate income in\nthe future or that the income will be significant."}