Data Storage (DTST) 10-Q 15 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 15, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-35384
Entity Registrant Name	DATA STORAGE CORPORATION
Entity Central Index Key	0001419951
Entity Tax Identification Number	98-0530147
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	48 South Service Road
Entity Address, City or Town	Melville
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11747
City Area Code	(212)
Local Phone Number	564-4922
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,822,127
Common Stock, par value $0.001 per share
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	DTST
Security Exchange Name	NASDAQ
Warrants to purchase shares of Common Stock,
Title of 12(b) Security	Warrants to purchase shares of Common Stock,
Trading Symbol	DTSTW
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 1,882,039	$ 2,286,722
Accounts receivable (less allowance for credit losses of $31,136 and $27,250 in 2023 and 2022, respectively)	3,671,170	3,502,836
Marketable securities	9,114,391	9,010,968
Prepaid expenses and other current assets	878,460	584,666
Total Current Assets	15,546,060	15,385,192
Property and Equipment:
Property and equipment	7,597,462	7,168,488
Less—Accumulated depreciation	(5,177,980)	(4,956,698)
Net Property and Equipment	2,419,482	2,211,790
Other Assets:
Goodwill	4,238,671	4,238,671
Operating lease right-of-use assets	175,842	226,501
Other assets	65,736	48,437
Intangible assets, net	1,905,914	1,975,644
Total Other Assets	6,386,163	6,489,253
Total Assets	24,351,705	24,086,235
Current Liabilities:
Accounts payable and accrued expenses	3,699,246	3,207,577
Deferred revenue	309,273	281,060
Finance leases payable	308,180	359,868
Finance leases payable related party	454,115	520,623
Operating lease liabilities short term	143,480	160,657
Total Current Liabilities	4,914,294	4,529,785
Operating lease liabilities	36,733	71,772
Finance leases payable	192,666	281,242
Finance leases payable related party	139,285	256,241
Total Long-Term Liabilities	368,684	609,255
Total Liabilities	5,282,978	5,139,040
Commitments and contingencies (Note 6)
Stockholders’ Equity:
Preferred stock, Series A par value $.001; 10,000,000 shares authorized; 0 and 0 shares issued and outstanding in 2023 and 2022, respectively
Common stock, par value $.001; 250,000,000 shares authorized; 6,834,627 and 6,822,127 shares issued and outstanding in 2023 and 2022, respectively	6,835	6,822
Additional paid in capital	39,068,896	38,982,440
Accumulated deficit	(19,836,712)	(19,887,378)
Total Data Storage Corp Stockholders' Equity	19,239,019	19,101,884
Non-controlling interest in consolidated subsidiary	(170,292)	(154,689)
Total Stockholder’s Equity	19,068,727	18,947,195
Total Liabilities and Stockholders' Equity	$ 24,351,705	$ 24,086,235

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Noncurrent	$ 31,136	$ 27,250
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Outstanding	6,834,627	6,822,127

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Sales	$ 6,879,723	$ 8,657,199
Cost of sales	4,789,978	6,011,289
Gross Profit	2,089,745	2,645,910
Selling, general and administrative	2,130,759	2,459,866
Income (Loss) from Operations	(41,014)	186,044
Other Income (Expense)
Interest income (expense), net	76,077	(42,660)
Total Other Income (Expense)	76,077	(42,660)
Income before provision for income taxes	35,063	143,384
Benefit from income taxes
Net Income	35,063	143,384
Non-controlling interest in consolidated subsidiary	15,603	12,626
Net Income Attributable to Common Stockholders	$ 50,666	$ 156,010
Earnings per Share – Basic	$ 0.01	$ 0.02
Earnings per Share – Diluted	$ 0.01	$ 0.02
Weighted Average Number of Shares - Basic	6,822,127	6,695,966
Weighted Average Number of Shares - Diluted	6,954,320	6,955,900

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2021		$ 6,694	$ 38,241,155	$ (15,530,576)	$ (102,628)	$ 22,614,645
Beginning balance, shares at Dec. 31, 2021		6,693,793
Stock Options Exercise		$ 3	6,931			6,934
Stock Options Exercise, shares		3,334
Stock-based compensation			66,505			66,505
Net Income (Loss)				156,010	(12,626)	143,384
Ending balance, value at Mar. 31, 2022		$ 6,697	38,314,591	(15,374,566)	(115,254)	22,831,468
Ending balance, shares at Mar. 31, 2022		6,697,127
Beginning balance, value at Dec. 31, 2022		$ 6,822	38,982,440	(19,887,378)	(154,689)	18,947,195
Beginning balance, shares at Dec. 31, 2022		6,822,127
Stock-based compensation		$ 13	86,456			86,469
Stock-based compensation, shares		12,500
Net Income (Loss)				50,666	(15,603)	35,063
Ending balance, value at Mar. 31, 2023		$ 6,835	$ 39,068,896	$ (19,836,712)	$ (170,292)	$ 19,068,727
Ending balance, shares at Mar. 31, 2023		6,834,627

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities:
Net Income	$ 35,063	$ 143,384
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	288,710	351,338
Stock based compensation	86,469	66,505
Changes in Assets and Liabilities:
Accounts receivable	(168,334)	(1,140,097)
Other assets	(17,300)	25,180
Prepaid expenses and other current assets	(293,794)	(719,842)
Right of use asset	50,659	47,962
Accounts payable and accrued expenses	491,669	2,991,981
Deferred revenue	28,213	(74,409)
Operating lease liability	(52,216)	(48,179)
Net Cash Provided by Operating Activities	449,139	1,643,823
Cash Flows from Investing Activities:
Capital expenditures	(426,671)	(25,946)
Purchase of short-term investments	(103,423)
Net Cash Used in Investing Activities	(530,094)	(25,946)
Cash Flows from Financing Activities:
Repayments of finance lease obligations related party	(183,464)	(274,393)
Repayments of finance lease obligations	(140,264)	(65,515)
Cash received for the exercised of options		6,935
Net Cash Used in Financing Activities	(323,728)	(332,973)
Increase (decrease) in Cash and Cash Equivalents	(404,683)	1,284,904
Cash and Cash Equivalents, Beginning of Period	2,286,722	12,135,803
Cash and Cash Equivalents, End of Period	1,882,039	13,420,707
Supplemental Disclosures:
Cash paid for interest	24,863	41,040
Cash paid for income taxes
Non-cash investing and financing activities:
Assets acquired by finance lease		$ 881,308

Basis of Presentation, Organiza

Basis of Presentation, Organization and Other Matters	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation, Organization and Other Matters	Note 1 – Basis of Presentation, Organization and Other Matters Data Storage Corporation (“DSC” or the “Company”) headquartered in Melville, NY, DSC provides solutions and services to businesses within the healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. DSC derives its revenues from subscription services and solutions, managed services, equipment, software and maintenance, and onboarding implementation. DSC maintains infrastructure and storage equipment in seven technical centers in New York, Massachusetts, Texas, Florida, North Carolina and Canada. On May 31, 2021, the Company completed an acquisition of Flagship Solutions, LLC (“Flagship”) (a Florida limited liability company) and the Company’s wholly-owned subsidiary, Data Storage FL, LLC. Flagship is a provider of Hybrid Cloud solutions, managed services and cloud solutions. On January 27, 2022, we formed Information Technology Acquisition Corporation a special purpose acquisition company for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial statements for interim periods in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The Company’s accounting policies are described in the “Notes to Consolidated Financial Statements” in the 2022 Form 10-K and are updated, as necessary, in this Form 10-Q. The December 31, 2022 condensed consolidated balance sheet data presented for comparative purposes was derived from the audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial statements include the accounts of the Company and its wholly-owned subsidiaries, (i) CloudFirst Technologies Corporation, a Delaware corporation, (ii) Data Storage FL, LLC, a Florida limited liability company, (iii) Flagship Solutions, LLC, a Florida limited liability company, (iv) Information Technology Acquisition Corporation, a Delaware Corporation, and (v) its majority-owned subsidiary, Nexxis Inc, a Nevada corporation. All inter-company transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Estimated Fair Value of Financial Instruments The fair value measurement disclosures are grouped into three levels based on valuation factors: ● Level 1 – quoted prices in active markets for identical investments ● Level 2 – other significant observable inputs (including quoted prices for similar investments and market corroborated inputs) ● Level 3 – significant unobservable inputs (including our own assumptions in determining the fair value of investments) The Company’s Level 1 assets/liabilities include cash, accounts receivable, marketable securities, accounts payable, prepaid, and other current assets. Management believes the estimated fair value of these accounts at March 31, 2023 approximate their carrying value as reflected in the balance sheets due to the short-term nature of these instruments. The Company’s Level 2 assets/liabilities include certain of the Company’s operating lease right-of-use assets. Their carrying value approximates their fair values based upon a comparison of the interest rate and terms of such debt given the level of risk to the rates and terms of similar debt currently available to the Company in the marketplace. The Company’s Level 3 assets/liabilities include goodwill and intangible assets. Inputs to determine fair value are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including discounted cash flow models. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. Our marketable equity securities are publicly traded stocks measured at fair value using quoted prices for identical assets in active markets and classified as Level 1 within the fair value hierarchy. Marketable equity securities as of March 31, 2023 and December 31, 2022 are $ 9,114,391 9,010,968 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, operating lease right-of-use assets, goodwill and other intangible assets. These assets are measured using Level 3 inputs, if determined to be impaired. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity or remaining maturity at the time of purchase, of three months or less to be cash equivalents. Investments The Company invests in equity securities and reports them in accordance with ASU 2016-01. Equity securities are reported at fair value with unrealized gains and losses, net of the related tax effect, reflected as a gain or loss on the statement of operations. Dividends and interest are recognized when earned. The following table sets forth a summary of the changes in equity investments, at cost that are measured at fair value on a non-recurring basis: For the three months ended March 31, 2023 Total As of January 1, 2023 $ 9,010,968 Purchase of equity investments 103,423 As of March 31, 2023 $ 9,114,391 Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments and assets subjecting the Company to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and trade accounts receivable. The Company’s cash and cash equivalents are maintained at major U.S. financial institutions. Deposits in these institutions may exceed the amount of insurance provided on such deposits. The Company’s customers are primarily concentrated in the United States. As of March 31, 2023, DSC had one customer with an accounts receivable balance representing 61 23 14 For the three months ended March 31, 2023, the Company had one customer that accounted for 33 55 Accounts Receivable/Allowance for Credit Losses The Company sells its services to customers on an open credit basis. Accounts receivables are uncollateralized, non-interest-bearing customer obligations. Accounts receivables are typically due within 30 Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives or the term of the lease using the straight-line method for financial statement purposes. Estimated useful lives in years for depreciation are five to seven years for property and equipment. Additions, betterments and replacements are capitalized, while expenditures for repairs and maintenance are charged to operations when incurred. As units of property are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income. Goodwill and Other Intangibles The Company tests goodwill and other intangible assets for impairment on at least an annual basis. Impairment exists if the carrying value of a reporting unit exceeds its estimated fair value. To determine the fair value of goodwill and intangible assets, the Company uses many assumptions and estimates using a market participant approach that directly impact the results of the testing. In making these assumptions and estimates, the Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. The Company tests goodwill for impairment on an annual basis on December 31, or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. The Company has four reporting units. The Company uses an income-based approach to determine the fair value of the reporting units. This approach uses a discounted cash flow methodology and the ability of our reporting units to generate cash flows as measures of fair value of our reporting units. Revenue Recognition Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: 1) Cloud Infrastructure and Disaster Recovery Revenue Cloud Infrastructure provides clients the ability to migrate their on-premises computing and digital storage to DSC’s enterprise-level technical compute and digital storage assets located in Tier 3 data centers. Data Storage Corporation owns the assets and provides a turnkey solution whereby achieving reliable and cost-effective, multi-tenant IBM Power compute, x86/intel, flash digital storage, while providing disaster recovery and cyber security while eliminating client capital expenditures. The client pays a monthly fee and can increase capacity as required. Clients can subscribe to an array of disaster recovery solutions without subscribing to cloud infrastructure. Product offerings provided directly from DSC are High Availability, Data Vaulting and retention solutions, including standby servers which allows clients to centralize and streamline their mission-critical digital information and technical environment while ensuring business continuity if they experience a cyber-attack or natural disaster Client’s data is vaulted, at two data centers with the maintenance of retention schedules for corporate governances and regulations all to meet their back to work objective in a disaster. 2) Managed Services These services are performed at the inception of a contract. The Company provides professional assistance to its clients during the implementation processes. On-boarding and set-up services ensure that the solution or software is installed properly and function as designed to provide clients with the best solutions. In addition, clients that are managed service clients have a requirement for DSC to offer time and material billing supplementing the client’s staff. The Company also derives both one-time and subscription-based revenue, from providing support, management and renewal of software, hardware, third party maintenance contracts and third-party cloud services to clients. The managed services include help desk, remote access, operating system and software patch management, annual recovery tests and manufacturer support for equipment and on-gong monitoring of client system performance. 3) Equipment and Software The Company provides equipment and software and actively participates in collaboration with IBM to provide innovative business solutions to clients. The Company is a partner of IBM and the various software, infrastructure and hybrid cloud solutions provided to clients. 4) Nexxis Voice over Internet and Direct Internet Access The Company provides VoIP, Internet access and data transport services to ensure businesses are fully connected to the internet from any location, remote and on premise. The company provides Hosted VoIP solutions with equipment options for IP phones and internet speeds of up to 10Gb delivered over fiber optics. Disaggregation of revenue In the following table, revenue is disaggregated by major product line, geography, and timing of revenue recognition. Schedule of revenue is disaggregated by major product For the Three Months Ended March 31, 2023 United States International Total Infrastructure & Disaster Recovery/Cloud Service $ 2,137,317 $ 52,324 $ 2,189,641 Equipment and Software 3,522,559 — 3,522,559 Managed Services 858,660 35,107 893,767 Nexxis VoIP Services 231,772 — 231,772 Other 41,984 — 41,984 Total Revenue $ 6,792,292 $ 87,431 $ 6,879,723 For the Three Months Ended March 31, 2022 United States International Total Infrastructure & Disaster Recovery/Cloud Service $ 1,888,387 $ 37,463 $ 1,925,850 Equipment and Software 5,319,459 — 5,319,459 Managed Services 1,149,503 33,307 1,182,810 Nexxis VoIP Services 194,934 — 194,934 Other 34,146 — 34,146 Total Revenue $ 8,586,429 $ 70,770 $ 8,657,199 For the Three Months Ended March 31, Timing of revenue recognition 2023 2022 Products transferred at a point in time $ 3,564,543 $ 5,402,996 Products and services transferred over time 3,315,180 3,254,203 Total Revenue $ 6,879,723 $ 8,657,199 Contract receivables are recorded at the invoiced amount and are uncollateralized, non-interest-bearing client obligations. Provisions for estimated uncollectible accounts receivable are made for individual accounts based upon specific facts and circumstances including criteria such as their age, amount, and client standing. Sales are generally recorded in the month the service is provided. For clients who are billed on an annual basis, deferred revenue is recorded and amortized over the life of the contract. Transaction price allocated to the remaining performance obligations The Company has the following performance obligations: 1) Data Vaulting 2) High Availability 3) Cloud Infrastructure 4) Internet 5) Support and Maintenance 6) Implementation / Set-Up Fees 7) Equipment sales 9) License Disaster Recovery and Business Continuity Solutions Subscription services allow clients to access data or receive services for a predetermined period of time. As the client obtains access at a point in time and continues to have access for the remainder of the subscription period, the client is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the related performance obligation is considered to be satisfied ratably over the contract term. As the performance obligation is satisfied evenly across the term of the contract, revenue is recognized on a straight-line basis over the contract term. Initial Set-Up Fees The Company accounts for set-up fees as a separate performance obligation. Set-up services are performed one-time and accordingly the revenue is recognized at the point in time, and is non-refundable, and the Company is entitled to the payment. Equipment Sales The obligation for the equipment sales is such the control of the product transfer is at a point in time (i.e., when the goods have been shipped or delivered to the client’s location, depending on shipping terms). Noting that the satisfaction of the performance obligation, in this sense, does not occur over time, the performance obligation is considered to be satisfied at a point in time when the obligation to the client has been fulfilled (i.e., when the goods have left the shipping facility or delivered to the client, depending on shipping terms). License - granting SSL certificates and other licenses Performance obligations as it relates to licensing means that the control of the product transfers, either at a point in time or over time, depending on the nature of the license. The revenue standard identifies two types of licenses of IP: (i) a right to access IP; and (ii) a right to use IP. To assist in determining whether a license provides a right to use or a right to access IP, ASC 606 defines two categories of IP: Functional and Symbolic. The Company’s license arrangements typically do not require the Company to make its proprietary content available to the client either through a download or through a direct connection. Throughout the life of the contract the Company does not continue to provide updates or upgrades to the license granted. Based on the guidance, the Company considers its license offerings to be akin to functional IP and recognizes revenue at the point in time the license is granted and/or renewed for a new period. Payment Terms The typical terms of subscription contracts range from 12 to 36 months, with auto-renew options extending the contract for an additional term. The Company invoices clients one month in advance for its services, in addition to any contractual data overages or for additional services. Warranties The Company offers guaranteed service levels and service guarantees on some of its contracts. These warranties are not sold separately and are accounted as “assurance warranties”. Significant Judgement In the instance where contracts have multiple performance obligations the Company uses judgment to establish a stand-alone price for each performance obligation. The price for each performance obligation is determined by reviewing market data for similar services as well as the Company’s historical pricing of each individual service. The sum of each performance obligation is calculated to determine the aggregate price for the individual services. The proportion of each individual service to the aggregate price is determined. The ratio is applied to the total contract price in order to allocate the transaction price to each performance obligation. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events and circumstances indicate that the carrying value of an asset might not be recoverable. An impairment loss, measured as the amount by which the carrying value exceeds the fair value is recognized if the carrying amount exceeds estimated un-discounted future cash flows. Advertising Costs The Company expenses the costs associated with advertising as they are incurred. The Company incurred $ 189,878 89,731 Stock-Based Compensation The Company follows the requirements of FASB ASC 718-10-10, Share-Based Payments The valuation methodology used to determine the fair value of the options issued during the period is the Black-Scholes option-pricing model. The Black-Scholes model requires the use of a number of assumptions including the volatility of the stock price, the average risk-free interest rate, and the weighted average expected life of the options. Risk-free interest rates are calculated based on continuously compounded risk-free rates for the appropriate term. The dividend yield is assumed to be zero as the Company has never paid or declared any cash dividends on its Common Stock and does not intend to pay dividends on its Common Stock in the foreseeable future. The expected forfeiture rate is estimated based on management’s best assessment. Estimated volatility is a measure of the amount by which DSC’s stock price is expected to fluctuate each year during the expected life of the award. The Company’s calculation of estimated volatility is based on historical stock prices over a period equal to the expected life of the awards. Net Income Per Common Share Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income adjusted for income or loss that would result from the assumed conversion of potential common shares from contracts that may be settled in stock or cash by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The following table sets forth the information needed to compute basic and diluted earnings per share for the three months ended March 31, 2023, and 2022: Schedule of Earning per share basic and diluted Three Months Ended March 31, 2023 2022 Net Income Available to Common Shareholders $ 50,666 $ 156,010 Weighted average number of common shares - basic 6,822,127 6,695,966 Dilutive securities Options 130,526 256,601 Warrants 1,667 3,333 Weighted average number of common shares - diluted 6,954,320 6,955,900 Earnings per share, basic $ 0.01 $ 0.02 Earnings per share, diluted $ 0.01 $ 0.02 The following table sets forth the number of potential shares of common stock that have been excluded from diluted net income per share net income per share because their effect was anti-dilutive: Schedule of anti-dilutive income (loss) per share Three Months ended 2023 2022 Options 385,257 37,641 Warrants 2,415,860 1,384,610 2,801,117 1,422,251

Prepaids and other current asse

Prepaids and other current assets	3 Months Ended
	Mar. 31, 2023
Prepaids And Other Current Assets
Prepaids and other current assets	Note 3 - Prepaids and other current assets Prepaids and other current assets consist of the following: Schedule of Prepaids and other current assets March 31, December 31, 2023 2022 Prepaid Marketing & Promotion $ 25,273 $ 4,465 Prepaid Subscriptions and Licenses 664,596 439,088 Prepaid Maintenance 27,305 45,216 Prepaid Insurance 89,256 54,564 Other 72,030 41,333 Total prepaid and other current assets $ 878,460 $ 584,666

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 4- Property and Equipment Property and equipment, at cost, consist of the following: March 31, December 31, 2023 2022 Storage equipment $ 60,288 $ 60,288 Furniture and fixtures 20,860 20,860 Leasehold improvements 20,983 20,983 Computer hardware and software 100,426 93,062 Data center equipment 7,394,905 6,973,295 Gross Property and equipment 7,597,462 7,168,488 Less: Accumulated depreciation (5,177,980 ) (4,956,698 ) Net property and equipment $ 2,419,482 $ 2,211,790 Depreciation expense for the three months ended March 31, 2023, and 2022 was $ 218,979 281,608

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 5 - Goodwill and Intangible Assets Goodwill and intangible assets consisted of the following: Schedule of intangible assets and goodwill Estimated life in years Gross amount December 31, 2022, Accumulated Amortization Net Intangible assets not subject to amortization Goodwill Indefinite $ 4,238,671 $ — $ 4,238,671 Trademarks Indefinite 514,268 — 514,268 Total intangible assets not subject to amortization 4,752,939 — 4,752,939 Intangible assets subject to amortization Customer lists 7 2,614,099 1,167,075 1,447,024 ABC acquired contracts 5 310,000 310,000 — SIAS acquired contracts 5 660,000 660,000 — Non-compete agreements 4 272,147 272,147 — Website and Digital Assets 3 33,002 18,650 14,352 Total intangible assets subject to amortization 3,889,248 2,427,872 1,461,376 Total Goodwill and Intangible Assets $ 8,642,187 $ 2,427,872 $ 6,214,315 Estimated life in years Gross amount March 31, 2023, Accumulated Amortization Net Intangible assets not subject to amortization Goodwill Indefinite $ 4,238,671 $ — $ 4,238,671 Trademarks Indefinite 514,268 — 514,268 Total intangible assets not subject to amortization 4,752,939 — 4,752,939 Intangible assets subject to amortization Customer lists 7 2,614,099 1,233,861 1,380,238 ABC acquired contracts 5 310,000 310,000 — SIAS acquired contracts 5 660,000 660,000 — Non-compete agreements 4 272,147 272,147 — Website and Digital Assets 3 33,002 21,594 11,408 Total intangible assets subject to amortization 3,889,248 2,497,602 1,391,646 Total Goodwill and Intangible Assets $ 8,642,187 $ 2,497,602 $ 6,144,585 Scheduled amortization over the next five years are as follows: Schedule of amortization over the next two years Twelve months ending March 31, 2024 $ 276,976 2025 268,717 2026 267,143 2027 267,143 2028 200,357 Thereafter 111,310 Total $ 1,391,646 Amortization expense for the three months ended March 31, 2023, and 2022 was $ 69,731 and $ 69,730  respectively.

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases
Leases	Note 6- Leases Operating Leases The Company currently maintains two leases for office space located in Melville, NY. The first lease for office space in Melville, NY commenced on September 1, 2019. The term of this lease is for three years and eleven months and runs co-terminus with our existing lease in the same building. The base annual rent is $ 11,856 988 A second lease for office space in Melville, NY, was entered into on November 20, 2017, which commenced on April 2, 2018. The term of this lease is five years and three months at $ 86,268 July 31, 2023 On July 31, 2021, the Company signed a three-year lease for approximately 2,880 square feet of office space at 980 North Federal Highway, Boca Raton, FL. The commencement date of the lease was August 2, 2021 4,820 The Company leases cages and racks for technical space in Tier 3 data centers in New York, Massachusetts, North Carolina and Florida. These leases are month to month. The monthly rent is approximately $ 39,000 1,403 On January 1, 2022, the Company entered into a lease agreement for office space with WeWork in Austin, TX. The lease term is six months and requires monthly payments of $ 1,470 June 30, 2022 3,073 Finance Lease Obligations On June 1, 2020, the Company entered into a lease agreement with a finance company to lease technical equipment. The lease obligation is payable in monthly installments of $ 5,008 7 June 1, 2023 On June 29, 2020, the Company entered into a lease agreement for technical equipment with a finance company. The lease obligation is payable in monthly installments of $ 5,050 7 June 29, 2023 On July 31, 2020, the Company entered into a lease agreement for technical equipment with a finance company. The lease obligation is payable in monthly installments of $ 4,524 7 July 31, 2023 On November 1, 2021, the Company entered into a lease agreement with a finance company for technical equipment. The lease obligation is payable in monthly installments of $ 3,152 . The lease carries an interest rate of 6 % and is a three-year lease. The term of the lease ends November 1, 2024 . On January 1, 2022, the Company entered into a lease agreement with a finance company for technical equipment. The lease obligation is payable in monthly installments of $ 17,718 . The lease carries an interest rate of 5 % and is a three-year lease. The term of the lease ends February 1, 2025 . On January 1, 2022, the Company entered into a technical equipment lease with a finance company. The lease obligation is payable in monthly installments of $ 2,037 6 January 1, 2025 Finance Lease Obligations – Related Party On January 1, 2019, the Company entered into a lease agreement with Systems Trading. This lease obligation is payable to Systems Trading with monthly installments of $ 29,592 6.75 December 31, 2023 On January 1, 2020, the Company entered into a lease agreement with Systems Trading to lease equipment. The lease obligation is payable to Systems Trading with monthly installments of $ 10,534 6 December 31, 2022 On March 4, 2021, the Company entered into a lease agreement with Systems Trading effective April 1, 2021. This lease obligation is payable to Systems Trading with monthly installments of $ 1,567 March 31, 2024 8 On January 1, 2022, the Company entered into a lease agreement with Systems Trading effective January 1, 2022. This lease obligation is payable to Systems Trading with monthly installments of $ 7,145 and expires on February 1, 2025 . The lease carries an interest rate of 8 %. On April 1, 2022, the Company entered into a lease agreement with Systems Trading effective May 1, 2022. This lease obligation is payable to Systems Trading with monthly installments of $ 6,667 and expires on January 1, 2025 . The lease carries an interest rate of 8 %. The Company determines if an arrangement contains a lease at inception. Right of Use “ROU” assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company’s lease term includes options to extend the lease when it is reasonably certain that it will exercise that option. Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. A discount rate of 5 The components of lease expense were as follows: Schedule of components of lease expense Three Months Ended March 31, 2023 Finance leases: Amortization of assets, included in depreciation and amortization expense $ 171,775 Interest on lease liabilities, included in interest expense 24,863 Operating lease: Amortization of assets, included in total operating expense 51,912 Interest on lease liabilities, included in total operating expense 2,456 Total net lease cost $ 251,006 Supplemental balance sheet information related to leases was as follows: Operating Leases: Operating lease right-of-use asset $ 175,842 Current operating lease liabilities $ 143,480 Noncurrent operating lease liabilities 36,733 Total operating lease liabilities $ 180,213 March 31, 2023 Finance leases: Property and equipment, at cost $ 5,521,716 Accumulated amortization (3,694,587 ) Property and equipment, net $ 1,827,129 Current obligations of finance leases $ 762,295 Finance leases, net of current obligations 331,951 Total finance lease liabilities $ 1,094,246 Supplemental cash flow and other information related to leases were as follows: Schedule of supplemental cash flow and other information related to leases Three Months Ended March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 52,216 Financing cash flows related to finance leases $ 323,728 Weighted average remaining lease term (in years): Operating leases 1.10 Finance leases 1.30 Weighted average discount rate: Operating leases 4 % Finance leases 7 % Long-term obligations under the operating and finance leases at March 31, 2023, mature as follows: Schedule of long-term obligations under the operating and finance leases For the Twelve Months Ended March 31, Operating Leases Finance Leases 2023 $ 147,587 $ 632,920 2024 37,020 446,136 2025 — 71,765 Total lease payments 184,607 1,150,821 Less: Amounts representing interest (4,394 ) (56,575 ) Total lease obligations 180,213 1,094,246 Less: long-term obligations (36,733 ) (331,951 ) Total current $ 143,480 $ 762,295 As of March 31, 2023, the Company had no additional significant operating or finance leases that had not yet commenced. Rent expense under all operating leases for the three months ended March 31, 2023, and 2022 was $ 60,572 34,219

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7 - Commitments and Contingencies As part of the Flagship acquisition the Company acquired a licensing agreement for marketing related materials with a National Football League team. The Company has approximately $ 1.3 5

Stockholders_ (Deficit)

Stockholders’ (Deficit)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders’ (Deficit)	Note 8 – Stockholders’ (Deficit) Capital Stock The Company has 260,000,000 250,000,000 .001 10,000,000 .001 Common Stock Options A summary of the Company’s options activity and related information follows: Schedule of option activity and related information Number of Weighted Weighted Shares Range of Average Average Under Option Price Exercise Contractual Options Per Share Price Life Options Outstanding at January 1, 2023 301,391 $ 1.48 – 15.76 $ 3.46 7.45 Options Granted 243,605 1.52 – 1.96 1.77 10.00 Exercised — — — — Expired/Cancelled (29,213 ) 2.16 – 5.80 3.76 — Options Outstanding at March 31, 2023 515,783 $ 1.48 - 14.00 $ 2.65 8.36 Options Exercisable at March 31, 2023 166,352 $ 1.48 - 14.00 $ 3.69 5.76 Share-based compensation expense for options totaling $ 54,433 66,505 The valuation methodology used to determine the fair value of the options issued during the year was the Black-Scholes option-pricing model. The Black-Scholes model requires the use of a number of assumptions including the volatility of the stock price, the average risk-free interest rate, and the weighted average expected life of the options. The risk-free interest rate assumption is based upon observed interest rates on zero-coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options. Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of the award. The Company’s calculation of estimated volatility is based on historical stock prices of the Company over a period equal to the expected life of the awards. As of March 31, 2023, there was $ 636,464 2.48 The weighted average fair value of options granted, and the assumptions used in the Black-Scholes model during the three months ended March 31, 2023, and 2022, are set forth in the table below. Schedule of weighted average fair value of options granted 2023 2022 Weighted average fair value of options granted $ 1.77 $ 3.30 Risk-free interest rate 3.48 4.01 % 1.63 2.32 % Volatility 196 199 % 212 214 % Expected life (years) 10 10 Dividend yield $ — % $ — % Share-based awards, restricted stock award (“RSAs”) On March 1, 2023, the Company granted certain employees 73,530 130,883 On March 28, 2023, the Company granted certain employees 44,942 72,357 On March 31, 2023, the Board resolved that the Company shall pay each member of the Board compensation as a group amount of $ 22,750 A summary of the activity related to RSUs for the three months ended March 31, 2023, is presented below: Schedule of non-vested Restricted stock units Total Grant Date Restricted Stock Units (RSUs) Shares Fair Value RSUs non-vested at January 1, 2023 50,000 $ 1.48 3.23 RSUs granted 130,972 $ 1.61 1.82 RSUs vested (12,500 ) $ 3.23 RSUs forfeited — $ — RSUs non-vested March 31, 2023 168,472 $ 1.48 2.45 Stock-based compensation for RSU’s has been recorded in the consolidated statements of operations and totaled $52,285 for the three months ended March 31, 2023.

Litigation

Litigation	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Litigation	Note 9 – Litigation We are currently not involved in any litigation that we believe could have a materially adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting DSC, its common stock, any of its subsidiaries or of DSC’s or DSC’s subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Note 10 – Related Party Transactions Nexxis Capital LLC Charles M. Piluso (Chairman and CEO) and Harold Schwartz (President) collectively own 100% of Nexxis Capital LLC (“Nexxis Capital”). Nexxis Capital was formed to purchase equipment and provide leases to Nexxis Inc.’s customers. The Company received funds of $ 2,756 2,328

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Information	Note 11 – Segment Information We operate in three reportable segments: Nexxis, Flagship Solutions Group, and CloudFirst. Our segments were determined based on our internal organizational structure, the manner in which our operations are managed, and the criteria used by our Chief Operating Decision Maker (CODM) to evaluate performance, which is generally the segment’s operating income or losses. Schedule of segment reporting income or losses Operations of: Products and services provided: Nexxis Inc NEXXIS is a single-source solution provider that delivers fully-managed cloud-based voice services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment. Flagship Solutions, LLC Flagship Solutions Group (FSG) is a managed service provider. FSG invoices clients primarily for services that assist the clients’ technical teams. FSG has few technical assets and utilizes the assets or software of other cloud providers, whereby managing 3rd party infrastructure. FSG periodically sells equipment and software. CloudFirst Technologies Corporation CloudFirst, provides services from CloudFirst technological assets deployed in six Tier 3 data centers throughout the USA and Canada. This technology has been developed by CloudFirst. Clients are invoiced for cloud infrastructure and disaster recovery on the CloudFirst platform. Services provided to clients are provided on a subscription basis on long term contracts. The following tables present certain financial information related to our reportable segments and Corporate: Schedule of financial information related to reportable segments As of March 31, 2023 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Accounts receivable $ 60,019 $ 2,895,708 $ 715,443 $ — $ 3,671,170 Prepaid expenses and other current assets 19,503 178,094 505,506 175,357 878,460 Net Property and Equipment 737 18,533 2,397,542 2,670 2,419,482 Intangible assets, net — 1,626,646 279,268 — 1,905,914 Goodwill — 1,222,971 3,015,700 — 4,238,671 Operating lease right-of-use assets — 141,933 33,909 — 175,842 All other assets — — — 11,062,166 11,062,166 Total Assets $ 80,259 $ 6,083,885 $ 6,947,368 $ 11,240,193 $ 24,351,705 Accounts payable and accrued expenses $ 46,335 $ 2,332,956 $ 905,137 $ 414,818 $ 3,699,246 Deferred revenue — 155,545 153,728 — 309,273 Total Finance leases payable — — 500,846 — 500,846 Total Finance leases payable related party — — 593,400 — 593,400 Total Operating lease liabilities — 143,646 36,567 — 180,213 Total Liabilities $ 46,335 $ 2,632,147 $ 2,189,678 $ 414,818 $ 5,282,978 As of December 31, 2022 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Accounts receivable $ 34,903 $ 1,924,184 $ 1,543,749 $ — $ 3,502,836 Prepaid expenses and other current assets 16,799 213,826 285,306 68,735 584,666 Net Property and Equipment — 19,705 2,192,085 — 2,211,790 Intangible assets, net — 1,696,376 279,268 — 1,975,644 Goodwill — 1,222,971 3,015,700 — 4,238,671 Operating lease right-of-use assets — 167,761 58,740 — 226,501 All other assets — — — 11,346,127 11,346,127 Total Assets $ 51,702 $ 5,244,823 $ 7,374,848 $ 11,414,862 $ 24,086,235 Accounts payable and accrued expenses $ 40,091 $ 1,563,408 $ 1,069,278 $ 534,800 $ 3,207,577 Deferred revenue — 165,725 115,335 — 281,060 Total Finance leases payable — — 641,110 — 641,110 Total Finance leases payable related party — — 776,864 — 776,864 Total Operating lease liabilities — 169,469 62,960 — 232,429 Total Liabilities $ 40,091 $ 1,898,602 $ 2,665,547 $ 534,800 $ 5,139,040 For the three months ended March 31, 2023 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Sales $ 264,796 $ 3,456,188 $ 3,158,739 $ — $ 6,879,723 Cost of sales 178,121 2,906,212 1,705,645 — 4,789,978 Gross Profit 86,675 549,976 1,453,094 — 2,089,745 Selling, general and administrative 124,750 540,327 606,452 570,520 1,842,049 Depreciation and amortization 71 70,903 217,622 114 288,710 Total operating expenses 124,821 611,230 824,074 570,634 2,130,759 Loss from Operations (38,146 ) (61,254 ) 629,020 (570,634 ) (41,014 ) Interest expense, net — — (27,346 ) 103,423 76,077 Total Other Income (Expense) — — (27,346 ) 103,423 76,077 Income (Loss) before provision for income taxes $ (38,146 ) $ (61,254 ) $ 601,674 $ (467,211 ) $ 35,063 For the three months ended March 31, 2022 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Sales $ 211,924 $ 6,043,222 $ 2,402,053 $ — $ 8,657,199 Cost of sales 139,876 4,518,346 1,353,067 $ — 6,011,289 Gross Profit 72,048 1,524,876 1,048,986 — 2,645,910 Selling, general and administrative 97,199 1,087,540 475,116 $ 448,673 2,108,528 Depreciation and amortization — 70,135 281,203 $ — 351,338 Total operating expenses 97,199 1,157,675 756,319 448,673 2,459,866 Loss from Operations (25,151 ) 367,201 292,667 (448,673 ) 186,044 Interest expense, net — (48 ) (41,723 ) $ (889 ) (42,660 ) Total Other Income (Expense) — (48 ) (41,723 ) (889 ) (42,660 ) Income (Loss) before provision for income taxes $ (25,151 ) $ 367,153 $ 250,944 $ (449,562 ) $ 143,384

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The Consolidated Financial statements include the accounts of the Company and its wholly-owned subsidiaries, (i) CloudFirst Technologies Corporation, a Delaware corporation, (ii) Data Storage FL, LLC, a Florida limited liability company, (iii) Flagship Solutions, LLC, a Florida limited liability company, (iv) Information Technology Acquisition Corporation, a Delaware Corporation, and (v) its majority-owned subsidiary, Nexxis Inc, a Nevada corporation. All inter-company transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.
Estimated Fair Value of Financial Instruments	Estimated Fair Value of Financial Instruments The fair value measurement disclosures are grouped into three levels based on valuation factors: ● Level 1 – quoted prices in active markets for identical investments ● Level 2 – other significant observable inputs (including quoted prices for similar investments and market corroborated inputs) ● Level 3 – significant unobservable inputs (including our own assumptions in determining the fair value of investments) The Company’s Level 1 assets/liabilities include cash, accounts receivable, marketable securities, accounts payable, prepaid, and other current assets. Management believes the estimated fair value of these accounts at March 31, 2023 approximate their carrying value as reflected in the balance sheets due to the short-term nature of these instruments. The Company’s Level 2 assets/liabilities include certain of the Company’s operating lease right-of-use assets. Their carrying value approximates their fair values based upon a comparison of the interest rate and terms of such debt given the level of risk to the rates and terms of similar debt currently available to the Company in the marketplace. The Company’s Level 3 assets/liabilities include goodwill and intangible assets. Inputs to determine fair value are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including discounted cash flow models. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. Our marketable equity securities are publicly traded stocks measured at fair value using quoted prices for identical assets in active markets and classified as Level 1 within the fair value hierarchy. Marketable equity securities as of March 31, 2023 and December 31, 2022 are $ 9,114,391 9,010,968
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis	Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, operating lease right-of-use assets, goodwill and other intangible assets. These assets are measured using Level 3 inputs, if determined to be impaired.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity or remaining maturity at the time of purchase, of three months or less to be cash equivalents.
Investments	Investments The Company invests in equity securities and reports them in accordance with ASU 2016-01. Equity securities are reported at fair value with unrealized gains and losses, net of the related tax effect, reflected as a gain or loss on the statement of operations. Dividends and interest are recognized when earned. The following table sets forth a summary of the changes in equity investments, at cost that are measured at fair value on a non-recurring basis: For the three months ended March 31, 2023 Total As of January 1, 2023 $ 9,010,968 Purchase of equity investments 103,423 As of March 31, 2023 $ 9,114,391
Concentration of Credit Risk and Other Risks and Uncertainties	Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments and assets subjecting the Company to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and trade accounts receivable. The Company’s cash and cash equivalents are maintained at major U.S. financial institutions. Deposits in these institutions may exceed the amount of insurance provided on such deposits. The Company’s customers are primarily concentrated in the United States. As of March 31, 2023, DSC had one customer with an accounts receivable balance representing 61 23 14 For the three months ended March 31, 2023, the Company had one customer that accounted for 33 55
Accounts Receivable/Allowance for Credit Losses	Accounts Receivable/Allowance for Credit Losses The Company sells its services to customers on an open credit basis. Accounts receivables are uncollateralized, non-interest-bearing customer obligations. Accounts receivables are typically due within 30
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives or the term of the lease using the straight-line method for financial statement purposes. Estimated useful lives in years for depreciation are five to seven years for property and equipment. Additions, betterments and replacements are capitalized, while expenditures for repairs and maintenance are charged to operations when incurred. As units of property are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income.
Goodwill and Other Intangibles	Goodwill and Other Intangibles The Company tests goodwill and other intangible assets for impairment on at least an annual basis. Impairment exists if the carrying value of a reporting unit exceeds its estimated fair value. To determine the fair value of goodwill and intangible assets, the Company uses many assumptions and estimates using a market participant approach that directly impact the results of the testing. In making these assumptions and estimates, the Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. The Company tests goodwill for impairment on an annual basis on December 31, or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. The Company has four reporting units. The Company uses an income-based approach to determine the fair value of the reporting units. This approach uses a discounted cash flow methodology and the ability of our reporting units to generate cash flows as measures of fair value of our reporting units.
Revenue Recognition	Revenue Recognition Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: 1) Cloud Infrastructure and Disaster Recovery Revenue Cloud Infrastructure provides clients the ability to migrate their on-premises computing and digital storage to DSC’s enterprise-level technical compute and digital storage assets located in Tier 3 data centers. Data Storage Corporation owns the assets and provides a turnkey solution whereby achieving reliable and cost-effective, multi-tenant IBM Power compute, x86/intel, flash digital storage, while providing disaster recovery and cyber security while eliminating client capital expenditures. The client pays a monthly fee and can increase capacity as required. Clients can subscribe to an array of disaster recovery solutions without subscribing to cloud infrastructure. Product offerings provided directly from DSC are High Availability, Data Vaulting and retention solutions, including standby servers which allows clients to centralize and streamline their mission-critical digital information and technical environment while ensuring business continuity if they experience a cyber-attack or natural disaster Client’s data is vaulted, at two data centers with the maintenance of retention schedules for corporate governances and regulations all to meet their back to work objective in a disaster. 2) Managed Services These services are performed at the inception of a contract. The Company provides professional assistance to its clients during the implementation processes. On-boarding and set-up services ensure that the solution or software is installed properly and function as designed to provide clients with the best solutions. In addition, clients that are managed service clients have a requirement for DSC to offer time and material billing supplementing the client’s staff. The Company also derives both one-time and subscription-based revenue, from providing support, management and renewal of software, hardware, third party maintenance contracts and third-party cloud services to clients. The managed services include help desk, remote access, operating system and software patch management, annual recovery tests and manufacturer support for equipment and on-gong monitoring of client system performance. 3) Equipment and Software The Company provides equipment and software and actively participates in collaboration with IBM to provide innovative business solutions to clients. The Company is a partner of IBM and the various software, infrastructure and hybrid cloud solutions provided to clients. 4) Nexxis Voice over Internet and Direct Internet Access The Company provides VoIP, Internet access and data transport services to ensure businesses are fully connected to the internet from any location, remote and on premise. The company provides Hosted VoIP solutions with equipment options for IP phones and internet speeds of up to 10Gb delivered over fiber optics. Disaggregation of revenue In the following table, revenue is disaggregated by major product line, geography, and timing of revenue recognition. Schedule of revenue is disaggregated by major product For the Three Months Ended March 31, 2023 United States International Total Infrastructure & Disaster Recovery/Cloud Service $ 2,137,317 $ 52,324 $ 2,189,641 Equipment and Software 3,522,559 — 3,522,559 Managed Services 858,660 35,107 893,767 Nexxis VoIP Services 231,772 — 231,772 Other 41,984 — 41,984 Total Revenue $ 6,792,292 $ 87,431 $ 6,879,723 For the Three Months Ended March 31, 2022 United States International Total Infrastructure & Disaster Recovery/Cloud Service $ 1,888,387 $ 37,463 $ 1,925,850 Equipment and Software 5,319,459 — 5,319,459 Managed Services 1,149,503 33,307 1,182,810 Nexxis VoIP Services 194,934 — 194,934 Other 34,146 — 34,146 Total Revenue $ 8,586,429 $ 70,770 $ 8,657,199 For the Three Months Ended March 31, Timing of revenue recognition 2023 2022 Products transferred at a point in time $ 3,564,543 $ 5,402,996 Products and services transferred over time 3,315,180 3,254,203 Total Revenue $ 6,879,723 $ 8,657,199 Contract receivables are recorded at the invoiced amount and are uncollateralized, non-interest-bearing client obligations. Provisions for estimated uncollectible accounts receivable are made for individual accounts based upon specific facts and circumstances including criteria such as their age, amount, and client standing. Sales are generally recorded in the month the service is provided. For clients who are billed on an annual basis, deferred revenue is recorded and amortized over the life of the contract. Transaction price allocated to the remaining performance obligations The Company has the following performance obligations: 1) Data Vaulting 2) High Availability 3) Cloud Infrastructure 4) Internet 5) Support and Maintenance 6) Implementation / Set-Up Fees 7) Equipment sales 9) License
Disaster Recovery and Business Continuity Solutions	Disaster Recovery and Business Continuity Solutions Subscription services allow clients to access data or receive services for a predetermined period of time. As the client obtains access at a point in time and continues to have access for the remainder of the subscription period, the client is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the related performance obligation is considered to be satisfied ratably over the contract term. As the performance obligation is satisfied evenly across the term of the contract, revenue is recognized on a straight-line basis over the contract term.
Initial Set-Up Fees	Initial Set-Up Fees The Company accounts for set-up fees as a separate performance obligation. Set-up services are performed one-time and accordingly the revenue is recognized at the point in time, and is non-refundable, and the Company is entitled to the payment.
Equipment Sales	Equipment Sales The obligation for the equipment sales is such the control of the product transfer is at a point in time (i.e., when the goods have been shipped or delivered to the client’s location, depending on shipping terms). Noting that the satisfaction of the performance obligation, in this sense, does not occur over time, the performance obligation is considered to be satisfied at a point in time when the obligation to the client has been fulfilled (i.e., when the goods have left the shipping facility or delivered to the client, depending on shipping terms).
License - granting SSL certificates and other licenses	License - granting SSL certificates and other licenses Performance obligations as it relates to licensing means that the control of the product transfers, either at a point in time or over time, depending on the nature of the license. The revenue standard identifies two types of licenses of IP: (i) a right to access IP; and (ii) a right to use IP. To assist in determining whether a license provides a right to use or a right to access IP, ASC 606 defines two categories of IP: Functional and Symbolic. The Company’s license arrangements typically do not require the Company to make its proprietary content available to the client either through a download or through a direct connection. Throughout the life of the contract the Company does not continue to provide updates or upgrades to the license granted. Based on the guidance, the Company considers its license offerings to be akin to functional IP and recognizes revenue at the point in time the license is granted and/or renewed for a new period.
Payment Terms	Payment Terms The typical terms of subscription contracts range from 12 to 36 months, with auto-renew options extending the contract for an additional term. The Company invoices clients one month in advance for its services, in addition to any contractual data overages or for additional services.
Warranties	Warranties The Company offers guaranteed service levels and service guarantees on some of its contracts. These warranties are not sold separately and are accounted as “assurance warranties”.
Significant Judgement	Significant Judgement In the instance where contracts have multiple performance obligations the Company uses judgment to establish a stand-alone price for each performance obligation. The price for each performance obligation is determined by reviewing market data for similar services as well as the Company’s historical pricing of each individual service. The sum of each performance obligation is calculated to determine the aggregate price for the individual services. The proportion of each individual service to the aggregate price is determined. The ratio is applied to the total contract price in order to allocate the transaction price to each performance obligation.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events and circumstances indicate that the carrying value of an asset might not be recoverable. An impairment loss, measured as the amount by which the carrying value exceeds the fair value is recognized if the carrying amount exceeds estimated un-discounted future cash flows.
Advertising Costs	Advertising Costs The Company expenses the costs associated with advertising as they are incurred. The Company incurred $ 189,878 89,731
Stock-Based Compensation	Stock-Based Compensation The Company follows the requirements of FASB ASC 718-10-10, Share-Based Payments The valuation methodology used to determine the fair value of the options issued during the period is the Black-Scholes option-pricing model. The Black-Scholes model requires the use of a number of assumptions including the volatility of the stock price, the average risk-free interest rate, and the weighted average expected life of the options. Risk-free interest rates are calculated based on continuously compounded risk-free rates for the appropriate term. The dividend yield is assumed to be zero as the Company has never paid or declared any cash dividends on its Common Stock and does not intend to pay dividends on its Common Stock in the foreseeable future. The expected forfeiture rate is estimated based on management’s best assessment. Estimated volatility is a measure of the amount by which DSC’s stock price is expected to fluctuate each year during the expected life of the award. The Company’s calculation of estimated volatility is based on historical stock prices over a period equal to the expected life of the awards.
Net Income Per Common Share	Net Income Per Common Share Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income adjusted for income or loss that would result from the assumed conversion of potential common shares from contracts that may be settled in stock or cash by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The following table sets forth the information needed to compute basic and diluted earnings per share for the three months ended March 31, 2023, and 2022: Schedule of Earning per share basic and diluted Three Months Ended March 31, 2023 2022 Net Income Available to Common Shareholders $ 50,666 $ 156,010 Weighted average number of common shares - basic 6,822,127 6,695,966 Dilutive securities Options 130,526 256,601 Warrants 1,667 3,333 Weighted average number of common shares - diluted 6,954,320 6,955,900 Earnings per share, basic $ 0.01 $ 0.02 Earnings per share, diluted $ 0.01 $ 0.02 The following table sets forth the number of potential shares of common stock that have been excluded from diluted net income per share net income per share because their effect was anti-dilutive: Schedule of anti-dilutive income (loss) per share Three Months ended 2023 2022 Options 385,257 37,641 Warrants 2,415,860 1,384,610 2,801,117 1,422,251

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block]	For the three months ended March 31, 2023 Total As of January 1, 2023 $ 9,010,968 Purchase of equity investments 103,423 As of March 31, 2023 $ 9,114,391
Schedule of revenue is disaggregated by major product	Schedule of revenue is disaggregated by major product For the Three Months Ended March 31, 2023 United States International Total Infrastructure & Disaster Recovery/Cloud Service $ 2,137,317 $ 52,324 $ 2,189,641 Equipment and Software 3,522,559 — 3,522,559 Managed Services 858,660 35,107 893,767 Nexxis VoIP Services 231,772 — 231,772 Other 41,984 — 41,984 Total Revenue $ 6,792,292 $ 87,431 $ 6,879,723 For the Three Months Ended March 31, 2022 United States International Total Infrastructure & Disaster Recovery/Cloud Service $ 1,888,387 $ 37,463 $ 1,925,850 Equipment and Software 5,319,459 — 5,319,459 Managed Services 1,149,503 33,307 1,182,810 Nexxis VoIP Services 194,934 — 194,934 Other 34,146 — 34,146 Total Revenue $ 8,586,429 $ 70,770 $ 8,657,199 For the Three Months Ended March 31, Timing of revenue recognition 2023 2022 Products transferred at a point in time $ 3,564,543 $ 5,402,996 Products and services transferred over time 3,315,180 3,254,203 Total Revenue $ 6,879,723 $ 8,657,199
Schedule of Earning per share basic and diluted	Schedule of Earning per share basic and diluted Three Months Ended March 31, 2023 2022 Net Income Available to Common Shareholders $ 50,666 $ 156,010 Weighted average number of common shares - basic 6,822,127 6,695,966 Dilutive securities Options 130,526 256,601 Warrants 1,667 3,333 Weighted average number of common shares - diluted 6,954,320 6,955,900 Earnings per share, basic $ 0.01 $ 0.02 Earnings per share, diluted $ 0.01 $ 0.02
Schedule of anti-dilutive income (loss) per share	Schedule of anti-dilutive income (loss) per share Three Months ended 2023 2022 Options 385,257 37,641 Warrants 2,415,860 1,384,610 2,801,117 1,422,251

Prepaids and other current as_2

Prepaids and other current assets (Tables)	3 Months Ended
	Mar. 31, 2023
Prepaids And Other Current Assets
Schedule of Prepaids and other current assets	Schedule of Prepaids and other current assets March 31, December 31, 2023 2022 Prepaid Marketing & Promotion $ 25,273 $ 4,465 Prepaid Subscriptions and Licenses 664,596 439,088 Prepaid Maintenance 27,305 45,216 Prepaid Insurance 89,256 54,564 Other 72,030 41,333 Total prepaid and other current assets $ 878,460 $ 584,666

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	March 31, December 31, 2023 2022 Storage equipment $ 60,288 $ 60,288 Furniture and fixtures 20,860 20,860 Leasehold improvements 20,983 20,983 Computer hardware and software 100,426 93,062 Data center equipment 7,394,905 6,973,295 Gross Property and equipment 7,597,462 7,168,488 Less: Accumulated depreciation (5,177,980 ) (4,956,698 ) Net property and equipment $ 2,419,482 $ 2,211,790

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of amortization over the next two years	Schedule of intangible assets and goodwill Estimated life in years Gross amount December 31, 2022, Accumulated Amortization Net Intangible assets not subject to amortization Goodwill Indefinite $ 4,238,671 $ — $ 4,238,671 Trademarks Indefinite 514,268 — 514,268 Total intangible assets not subject to amortization 4,752,939 — 4,752,939 Intangible assets subject to amortization Customer lists 7 2,614,099 1,167,075 1,447,024 ABC acquired contracts 5 310,000 310,000 — SIAS acquired contracts 5 660,000 660,000 — Non-compete agreements 4 272,147 272,147 — Website and Digital Assets 3 33,002 18,650 14,352 Total intangible assets subject to amortization 3,889,248 2,427,872 1,461,376 Total Goodwill and Intangible Assets $ 8,642,187 $ 2,427,872 $ 6,214,315 Estimated life in years Gross amount March 31, 2023, Accumulated Amortization Net Intangible assets not subject to amortization Goodwill Indefinite $ 4,238,671 $ — $ 4,238,671 Trademarks Indefinite 514,268 — 514,268 Total intangible assets not subject to amortization 4,752,939 — 4,752,939 Intangible assets subject to amortization Customer lists 7 2,614,099 1,233,861 1,380,238 ABC acquired contracts 5 310,000 310,000 — SIAS acquired contracts 5 660,000 660,000 — Non-compete agreements 4 272,147 272,147 — Website and Digital Assets 3 33,002 21,594 11,408 Total intangible assets subject to amortization 3,889,248 2,497,602 1,391,646 Total Goodwill and Intangible Assets $ 8,642,187 $ 2,497,602 $ 6,144,585 Scheduled amortization over the next five years are as follows: Schedule of amortization over the next two years Twelve months ending March 31, 2024 $ 276,976 2025 268,717 2026 267,143 2027 267,143 2028 200,357 Thereafter 111,310 Total $ 1,391,646
Schedule of amortization over the next two years	Schedule of amortization over the next two years Twelve months ending March 31, 2024 $ 276,976 2025 268,717 2026 267,143 2027 267,143 2028 200,357 Thereafter 111,310 Total $ 1,391,646

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases
Schedule of components of lease expense	Schedule of components of lease expense Three Months Ended March 31, 2023 Finance leases: Amortization of assets, included in depreciation and amortization expense $ 171,775 Interest on lease liabilities, included in interest expense 24,863 Operating lease: Amortization of assets, included in total operating expense 51,912 Interest on lease liabilities, included in total operating expense 2,456 Total net lease cost $ 251,006 Supplemental balance sheet information related to leases was as follows: Operating Leases: Operating lease right-of-use asset $ 175,842 Current operating lease liabilities $ 143,480 Noncurrent operating lease liabilities 36,733 Total operating lease liabilities $ 180,213 March 31, 2023 Finance leases: Property and equipment, at cost $ 5,521,716 Accumulated amortization (3,694,587 ) Property and equipment, net $ 1,827,129 Current obligations of finance leases $ 762,295 Finance leases, net of current obligations 331,951 Total finance lease liabilities $ 1,094,246
Schedule of supplemental cash flow and other information related to leases	Schedule of supplemental cash flow and other information related to leases Three Months Ended March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 52,216 Financing cash flows related to finance leases $ 323,728 Weighted average remaining lease term (in years): Operating leases 1.10 Finance leases 1.30 Weighted average discount rate: Operating leases 4 % Finance leases 7 %
Schedule of long-term obligations under the operating and finance leases	Schedule of long-term obligations under the operating and finance leases For the Twelve Months Ended March 31, Operating Leases Finance Leases 2023 $ 147,587 $ 632,920 2024 37,020 446,136 2025 — 71,765 Total lease payments 184,607 1,150,821 Less: Amounts representing interest (4,394 ) (56,575 ) Total lease obligations 180,213 1,094,246 Less: long-term obligations (36,733 ) (331,951 ) Total current $ 143,480 $ 762,295

Stockholders_ (Deficit) (Tables

Stockholders’ (Deficit) (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of option activity and related information	Schedule of option activity and related information Number of Weighted Weighted Shares Range of Average Average Under Option Price Exercise Contractual Options Per Share Price Life Options Outstanding at January 1, 2023 301,391 $ 1.48 – 15.76 $ 3.46 7.45 Options Granted 243,605 1.52 – 1.96 1.77 10.00 Exercised — — — — Expired/Cancelled (29,213 ) 2.16 – 5.80 3.76 — Options Outstanding at March 31, 2023 515,783 $ 1.48 - 14.00 $ 2.65 8.36 Options Exercisable at March 31, 2023 166,352 $ 1.48 - 14.00 $ 3.69 5.76
Schedule of weighted average fair value of options granted	Schedule of weighted average fair value of options granted 2023 2022 Weighted average fair value of options granted $ 1.77 $ 3.30 Risk-free interest rate 3.48 4.01 % 1.63 2.32 % Volatility 196 199 % 212 214 % Expected life (years) 10 10 Dividend yield $ — % $ — %
Schedule of non-vested Restricted stock units	Schedule of non-vested Restricted stock units Total Grant Date Restricted Stock Units (RSUs) Shares Fair Value RSUs non-vested at January 1, 2023 50,000 $ 1.48 3.23 RSUs granted 130,972 $ 1.61 1.82 RSUs vested (12,500 ) $ 3.23 RSUs forfeited — $ — RSUs non-vested March 31, 2023 168,472 $ 1.48 2.45

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of segment reporting income or losses	Schedule of segment reporting income or losses Operations of: Products and services provided: Nexxis Inc NEXXIS is a single-source solution provider that delivers fully-managed cloud-based voice services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment. Flagship Solutions, LLC Flagship Solutions Group (FSG) is a managed service provider. FSG invoices clients primarily for services that assist the clients’ technical teams. FSG has few technical assets and utilizes the assets or software of other cloud providers, whereby managing 3rd party infrastructure. FSG periodically sells equipment and software. CloudFirst Technologies Corporation CloudFirst, provides services from CloudFirst technological assets deployed in six Tier 3 data centers throughout the USA and Canada. This technology has been developed by CloudFirst. Clients are invoiced for cloud infrastructure and disaster recovery on the CloudFirst platform. Services provided to clients are provided on a subscription basis on long term contracts.
Schedule of financial information related to reportable segments	Schedule of financial information related to reportable segments As of March 31, 2023 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Accounts receivable $ 60,019 $ 2,895,708 $ 715,443 $ — $ 3,671,170 Prepaid expenses and other current assets 19,503 178,094 505,506 175,357 878,460 Net Property and Equipment 737 18,533 2,397,542 2,670 2,419,482 Intangible assets, net — 1,626,646 279,268 — 1,905,914 Goodwill — 1,222,971 3,015,700 — 4,238,671 Operating lease right-of-use assets — 141,933 33,909 — 175,842 All other assets — — — 11,062,166 11,062,166 Total Assets $ 80,259 $ 6,083,885 $ 6,947,368 $ 11,240,193 $ 24,351,705 Accounts payable and accrued expenses $ 46,335 $ 2,332,956 $ 905,137 $ 414,818 $ 3,699,246 Deferred revenue — 155,545 153,728 — 309,273 Total Finance leases payable — — 500,846 — 500,846 Total Finance leases payable related party — — 593,400 — 593,400 Total Operating lease liabilities — 143,646 36,567 — 180,213 Total Liabilities $ 46,335 $ 2,632,147 $ 2,189,678 $ 414,818 $ 5,282,978 As of December 31, 2022 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Accounts receivable $ 34,903 $ 1,924,184 $ 1,543,749 $ — $ 3,502,836 Prepaid expenses and other current assets 16,799 213,826 285,306 68,735 584,666 Net Property and Equipment — 19,705 2,192,085 — 2,211,790 Intangible assets, net — 1,696,376 279,268 — 1,975,644 Goodwill — 1,222,971 3,015,700 — 4,238,671 Operating lease right-of-use assets — 167,761 58,740 — 226,501 All other assets — — — 11,346,127 11,346,127 Total Assets $ 51,702 $ 5,244,823 $ 7,374,848 $ 11,414,862 $ 24,086,235 Accounts payable and accrued expenses $ 40,091 $ 1,563,408 $ 1,069,278 $ 534,800 $ 3,207,577 Deferred revenue — 165,725 115,335 — 281,060 Total Finance leases payable — — 641,110 — 641,110 Total Finance leases payable related party — — 776,864 — 776,864 Total Operating lease liabilities — 169,469 62,960 — 232,429 Total Liabilities $ 40,091 $ 1,898,602 $ 2,665,547 $ 534,800 $ 5,139,040 For the three months ended March 31, 2023 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Sales $ 264,796 $ 3,456,188 $ 3,158,739 $ — $ 6,879,723 Cost of sales 178,121 2,906,212 1,705,645 — 4,789,978 Gross Profit 86,675 549,976 1,453,094 — 2,089,745 Selling, general and administrative 124,750 540,327 606,452 570,520 1,842,049 Depreciation and amortization 71 70,903 217,622 114 288,710 Total operating expenses 124,821 611,230 824,074 570,634 2,130,759 Loss from Operations (38,146 ) (61,254 ) 629,020 (570,634 ) (41,014 ) Interest expense, net — — (27,346 ) 103,423 76,077 Total Other Income (Expense) — — (27,346 ) 103,423 76,077 Income (Loss) before provision for income taxes $ (38,146 ) $ (61,254 ) $ 601,674 $ (467,211 ) $ 35,063 For the three months ended March 31, 2022 Nexxis Inc. Flagship Solutions LLC CloudFirst Technologies Corporate Total Sales $ 211,924 $ 6,043,222 $ 2,402,053 $ — $ 8,657,199 Cost of sales 139,876 4,518,346 1,353,067 $ — 6,011,289 Gross Profit 72,048 1,524,876 1,048,986 — 2,645,910 Selling, general and administrative 97,199 1,087,540 475,116 $ 448,673 2,108,528 Depreciation and amortization — 70,135 281,203 $ — 351,338 Total operating expenses 97,199 1,157,675 756,319 448,673 2,459,866 Loss from Operations (25,151 ) 367,201 292,667 (448,673 ) 186,044 Interest expense, net — (48 ) (41,723 ) $ (889 ) (42,660 ) Total Other Income (Expense) — (48 ) (41,723 ) (889 ) (42,660 ) Income (Loss) before provision for income taxes $ (25,151 ) $ 367,153 $ 250,944 $ (449,562 ) $ 143,384

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
Accounting Policies [Abstract]
Fair value of investments, beginning balance	$ 9,010,968
Purchase of equity investments	103,423
Fair value of investments, ending balance	$ 9,114,391

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Product Information [Line Items]
Revenues	$ 6,879,723	$ 8,657,199
Transferred at Point in Time [Member]
Product Information [Line Items]
Revenues	3,564,543	5,402,996
Transferred over Time [Member]
Product Information [Line Items]
Revenues	3,315,180	3,254,203
UNITED STATES
Product Information [Line Items]
Revenues	6,792,292	8,586,429
International [Member]
Product Information [Line Items]
Revenues	87,431	70,770
Service [Member]
Product Information [Line Items]
Revenues	2,189,641	1,925,850
Service [Member] | UNITED STATES
Product Information [Line Items]
Revenues	2,137,317	1,888,387
Service [Member] | International [Member]
Product Information [Line Items]
Revenues	52,324	37,463
Equipment And Software [Member]
Product Information [Line Items]
Revenues	3,522,559	5,319,459
Equipment And Software [Member] | UNITED STATES
Product Information [Line Items]
Revenues	3,522,559	5,319,459
Equipment And Software [Member] | International [Member]
Product Information [Line Items]
Revenues
Managed Services [Member]
Product Information [Line Items]
Revenues	893,767	1,182,810
Managed Services [Member] | UNITED STATES
Product Information [Line Items]
Revenues	858,660	1,149,503
Managed Services [Member] | International [Member]
Product Information [Line Items]
Revenues	35,107	33,307
Nexxis Voip Services [Member]
Product Information [Line Items]
Revenues	231,772	194,934
Nexxis Voip Services [Member] | UNITED STATES
Product Information [Line Items]
Revenues	231,772	194,934
Nexxis Voip Services [Member] | International [Member]
Product Information [Line Items]
Revenues
Other [Member]
Product Information [Line Items]
Revenues	41,984	34,146
Other [Member] | UNITED STATES
Product Information [Line Items]
Revenues	$ 41,984	34,146
Other [Member] | International [Member]
Product Information [Line Items]
Revenues

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Net Income Available to Common Shareholders	$ 50,666	$ 156,010
Weighted average number of common shares - basic	6,822,127	6,695,966
Dilutive securities
Options	130,526	256,601
Warrants	1,667	3,333
Weighted average number of common shares - diluted	6,954,320	6,955,900
Earnings per share, basic	$ 0.01	$ 0.02
Earnings per share, diluted	$ 0.01	$ 0.02

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details 3) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents	2,801,117	1,422,251
Employee Stock Option 1 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents	385,257	37,641
Warrant 1 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents	2,415,860	1,384,610

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Product Information [Line Items]
Marketable equity securities	$ 9,114,391		$ 9,010,968
Accounts receivables due	30 days
Advertising Expense	$ 189,878	$ 89,731
First Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage	61%
First Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage	33%
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage		23%
One Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage		55%
Two Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage		14%
Two Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage		55%

Prepaids and other current as_3

Prepaids and other current assets (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Prepaids And Other Current Assets
Prepaid Marketing & Promotion	$ 25,273	$ 4,465
Prepaid Subscriptions and Licenses	664,596	439,088
Prepaid Maintenance	27,305	45,216
Prepaid Insurance	89,256	54,564
Other	72,030	41,333
Total prepaid and other current assets	$ 878,460	$ 584,666

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Gross Property and equipment	$ 7,597,462	$ 7,168,488
Less: Accumulated depreciation	(5,177,980)	(4,956,698)
Net property and equipment	2,419,482	2,211,790
Technology Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property and equipment	60,288	60,288
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Gross Property and equipment	20,860	20,860
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Property and equipment	20,983	20,983
Computer Hardware And Software [Member]
Property, Plant and Equipment [Line Items]
Gross Property and equipment	100,426	93,062
Data Center Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property and equipment	$ 7,394,905	$ 6,973,295

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 218,979	$ 281,608

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Total intangible assets not subject to amortization, Gross amount	$ 4,752,939	$ 4,752,939
Total intangible assets not subject to amortization, Accumulated Amortization
Total intangible assets not subject to amortization, Net amount	4,752,939	4,752,939
Total Intangible Assets, Gross amount	3,889,248	3,889,248
Total Intangible Assets, Accumulated Amortization	2,497,602	2,427,872
Total Intangible Assets, Net amount	1,391,646	1,461,376
Total Goodwill and Intangible Assets, Gross amount	8,642,187	8,642,187
Total Goodwill and Intangible Assets, Accumulated Amortization	2,497,602	2,427,872
Total Goodwill and Intangible Assets, Net	$ 6,144,585	$ 6,214,315
Goodwill [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated life in years	Indefinite	Indefinite
Total intangible assets not subject to amortization, Gross amount	$ 4,238,671	$ 4,238,671
Total intangible assets not subject to amortization, Accumulated Amortization
Total intangible assets not subject to amortization, Net amount	$ 4,238,671	$ 4,238,671
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated life in years	Indefinite	Indefinite
Total intangible assets not subject to amortization, Gross amount	$ 514,268	$ 514,268
Total intangible assets not subject to amortization, Accumulated Amortization
Total intangible assets not subject to amortization, Net amount	$ 514,268	$ 514,268
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Estimated life in years	7 years	7 years
Total Intangible Assets, Gross amount	$ 2,614,099	$ 2,614,099
Total Intangible Assets, Accumulated Amortization	1,233,861	1,167,075
Total Intangible Assets, Net amount	$ 1,380,238	1,447,024
ABC Acquired Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Estimated life in years	5 years
Total Intangible Assets, Gross amount	$ 310,000	310,000
Total Intangible Assets, Accumulated Amortization	310,000	310,000
Total Intangible Assets, Net amount
SIAS Acquired Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Estimated life in years	5 years	5 years
Total Intangible Assets, Gross amount	$ 660,000	$ 660,000
Total Intangible Assets, Accumulated Amortization	660,000	660,000
Total Intangible Assets, Net amount
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Estimated life in years	4 years	4 years
Total Intangible Assets, Gross amount	$ 272,147	$ 272,147
Total Intangible Assets, Accumulated Amortization	272,147	272,147
Total Intangible Assets, Net amount
Website And Digital Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Estimated life in years	3 years	3 years
Total Intangible Assets, Gross amount	$ 33,002	$ 33,002
Total Intangible Assets, Accumulated Amortization	21,594	18,650
Total Intangible Assets, Net amount	$ 11,408	$ 14,352

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Details 1)	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 276,976
2025	268,717
2026	267,143
2027	267,143
2028	200,357
Thereafter	111,310
Total	$ 1,391,646

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 69,731	$ 69,730

Lease (Details)

Lease (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Leases
Amortization of assets, included in depreciation and amortization expense	$ 171,775
Interest on lease liabilities, included in interest expense	24,863
Amortization of assets, included in total operating expense	51,912
Interest on lease liabilities, included in total operating expense	2,456
Total net lease cost	251,006
Operating lease right-of-use asset	175,842	$ 226,501
Current operating lease liabilities	143,480	160,657
Noncurrent operating lease liabilities	36,733	71,772
Total operating lease liabilities	180,213	$ 232,429
Property and equipment, at cost	5,521,716
Accumulated amortization	(3,694,587)
Property and equipment, net	1,827,129
Current obligations of finance leases	762,295
Finance leases, net of current obligations	331,951
Total finance lease liabilities	$ 1,094,246

Lease (Details 1)

Lease (Details 1)	3 Months Ended
	Mar. 31, 2023 USD ($)
Leases
Operating cash flows related to operating leases	$ 52,216
Financing cash flows related to finance leases	$ 323,728
Operating Lease, Weighted Average Remaining Lease Term	1 year 1 month 6 days
Finance Lease, Weighted Average Remaining Lease Term	1 year 3 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent	4%
Finance Lease, Weighted Average Discount Rate, Percent	7%

Lease (Details 2)

Lease (Details 2) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Leases
Operating Leases 2023	$ 147,587
Finance Leases 2023	632,920
Operating Leases 2024	37,020
Finance Leases 2024	446,136
Operating Leases 2025
Finance Leases 2025	71,765
Operating Leases Total lease payments	184,607
Finance Leases Total lease payments	1,150,821
Operating Leases Less: Amounts representing interest	(4,394)
Finance Leases Less: Amounts representing interest	(56,575)
Operating Leases Total operating lease liabilities	180,213	$ 232,429
Finance Leases Total finance lease liabilities	1,094,246
Operating Leases Less: long-term obligations	(36,733)
Finance Leases Less: long-term obligations	(331,951)
Operating Leases Total current	143,480
Finance Leases Total current	$ 762,295

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)

1 Months Ended

3 Months Ended

Apr. 02, 2022

Jan. 02, 2022

Nov. 01, 2021

Mar. 04, 2021

Jul. 31, 2020

Jun. 29, 2020

Jun. 01, 2020

Jan. 02, 2020

Jan. 02, 2019

Jul. 31, 2021

Mar. 31, 2023

Mar. 31, 2022

Jun. 30, 2022

Lessee, Lease, Description [Line Items]

Annual rent

$ 11,856

Fiance leases contingent monthly rental payments

988

Lease Expiration Date

Jun. 30, 2022

Aug. 02, 2021

Debt Instrument, Periodic Payment

4,820

Annual base rent

$ 1,470

$ 1,403

Month to month lease payment

$ 3,073

Discount rate

5%

Operating leases rent expenses net

$ 60,572

$ 34,219

Systems Trading [Member]

Lessee, Lease, Description [Line Items]

Lease Expiration Date

Jan. 01, 2025

Feb. 01, 2025

Mar. 31, 2024

Dec. 31, 2022

Dec. 31, 2023

Finace leases contingent monthly rental payments

$ 6,667

$ 7,145

$ 1,567

$ 10,534

$ 29,592

Sale Leaseback Transaction, Imputed Interest Rate

8%

8%

8%

6%

6.75%

Melville [Member]

Lessee, Lease, Description [Line Items]

Rent expenses

$ 86,268

Lease Expiration Date

Jul. 31, 2023

Massachusetts And North Carolina Florida And Texas [Member]

Lessee, Lease, Description [Line Items]

Rent expenses

$ 39,000

Arrow Capital Solutions [Member]

Lessee, Lease, Description [Line Items]

Lease Expiration Date

Feb. 01, 2025

Nov. 01, 2024

Jul. 31, 2023

Jun. 29, 2023

Jun. 01, 2023

Finace leases contingent monthly rental payments

$ 17,718

$ 3,152

$ 4,524

$ 5,050

$ 5,008

Sale Leaseback Transaction, Imputed Interest Rate

5%

6%

7%

7%

7%

Arrow Capital Solutions 1 [Member]

Lessee, Lease, Description [Line Items]

Lease Expiration Date

Jan. 01, 2025

Finace leases contingent monthly rental payments

$ 2,037

Sale Leaseback Transaction, Imputed Interest Rate

6%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - Flagship Acquisition [Member] $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Business acquisition	$ 1.3
Business acquisition period	5 years

Stockholders' (Deficit) (Detail

Stockholders' (Deficit) (Details) - Share-Based Payment Arrangement, Option [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding, beginning	301,391
Weighted Average Exercise Price Outstanding beginning	$ 3.46
Weighted Average Contractual Life, Outstanding	8 years 4 months 9 days	7 years 5 months 12 days
Granted	243,605
Weighted Average Exercise Price, Granted	$ 1.77
Weighted Average Contractual Life, granted		10 years
Exercised
Weighted Average Exercise Price, Exercised
Expired/Cancelled	(29,213)
Weighted Average Exercise Price, Expired/Cancelled	$ 3.76
Outstanding, ending	515,783	301,391
Weighted Average Exercise Price Outstanding ending	$ 2.65	$ 3.46
Exercisable, ending	166,352
Weighted Average Exercise Price, Exercisable ending	$ 3.69
Weighted Average Contractual Life, exercisable	5 years 9 months 3 days
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisesPrices	$ 1.48
Range of Option Price Per Share, Granted	1.52
Range of Option Price Per Share, Expired/Cancelled	2.16
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisesPrices	1.48	1.48
Range of Option Price Per Share, Exercisable	1.48
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisesPrices	15.76
Range of Option Price Per Share, Granted	1.96
Range of Option Price Per Share, Expired/Cancelled	5.80
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisesPrices	14	$ 15.76
Range of Option Price Per Share, Exercisable	$ 14

Stockholders' (Deficit) (Deta_2

Stockholders' (Deficit) (Details 1) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Weighted average fair value of options granted	$ 1.77	$ 3.30
Expected life (years)	10 years	10 years
Dividend yield
Minimum [Member]
Risk-free interest rate	3.48%	1.63%
Volatility	196%	212%
Maximum [Member]
Risk-free interest rate	4.01%	2.32%
Volatility	199%	214%

Stockholders' (Deficit) (Deta_3

Stockholders' (Deficit) (Details 2)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
RSUs non-vested Shares, beginning | shares	50,000
RSUs granted Shares | shares	130,972
RSUs vested Shares | shares	(12,500)
Grant date fair value, granted	$ 3.23
RSUs forfeited Shares | shares
RSUs non-vested Shares, ending | shares	168,472
Minimum [Member]
Grant Date Fair Value, beginning	$ 1.48
Grant date fair value, granted	1.61
Grant date fair value, ending	1.48
Maximum [Member]
Grant Date Fair Value, beginning	3.23
Grant date fair value, granted	1.82
Grant date fair value, ending	$ 2.45

Stockholders_ (Deficit) (Detail

Stockholders’ (Deficit) (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended
	Mar. 02, 2023	Mar. 28, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Capital stock authorized			260,000,000
Common stock, authorized			250,000,000		250,000,000
Common stock, par value			$ 0.001		$ 0.001
Preferred stock, authorized			10,000,000		10,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.001		$ 0.001
Share-based compensation expense for options			$ 54,433	$ 66,505
Total unrecognized compensation expense			$ 636,464
Weighted average period expected to recognized compensation expense (in years)			2 years 5 months 23 days
Restricted stock expense			$ 22,750
Restricted Stock Award [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares granted	73,530	44,942
Restricted stock expense	$ 130,883	$ 72,357

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transactions [Abstract]
Proceeds from related party debt	$ 2,756	$ 2,328

Segment Information (Details)

Segment Information (Details)	3 Months Ended
	Dec. 31, 2022
Nexxis Inc [Member]
Revenue from External Customer [Line Items]
Products and services provided	NEXXIS is a single-source solution provider that delivers fully-managed cloud-based voice services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment.
Flagship Solutions L L C [Member]
Revenue from External Customer [Line Items]
Products and services provided	Flagship Solutions Group (FSG) is a managed service provider. FSG invoices clients primarily for services that assist the clients’ technical teams. FSG has few technical assets and utilizes the assets or software of other cloud providers, whereby managing 3rd party infrastructure. FSG periodically sells equipment and software.
Cloud First Technologies Corporation [Member]
Revenue from External Customer [Line Items]
Products and services provided	CloudFirst, provides services from CloudFirst technological assets deployed in six Tier 3 data centers throughout the USA and Canada. This technology has been developed by CloudFirst. Clients are invoiced for cloud infrastructure and disaster recovery on the CloudFirst platform. Services provided to clients are provided on a subscription basis on long term contracts.

Segment Information (Details 1)

Segment Information (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Accounts receivable	$ 3,671,170		$ 3,502,836
Prepaid expenses and other current assets	878,460		584,666
Net Property and Equipment	2,419,482		2,211,790
Intangible assets, net	1,905,914		1,975,644
Goodwill	4,238,671		4,238,671
Operating lease right-of-use assets	175,842		226,501
All other assets	11,062,166		11,346,127
Total Assets	24,351,705		24,086,235
Accounts payable and accrued expenses	3,699,246		3,207,577
Deferred revenue	309,273		281,060
Total Finance leases payable	500,846		641,110
Total Finance leases payable related party	593,400		776,864
Total Operating lease liabilities	180,213		232,429
Total Liabilities	5,282,978		5,139,040
Sales	6,879,723	$ 8,657,199
Cost of sales	4,789,978	6,011,289
Gross Profit	2,089,745	2,645,910
Selling, general and administrative	1,842,049	2,108,528
Depreciation and amortization	288,710	351,338
Total operating expenses	2,130,759	2,459,866
Loss from Operations	(41,014)	186,044
Interest expense, net	76,077	(42,660)
Total Other Income (Expense)	76,077	(42,660)
Income (Loss) before provision for income taxes	35,063	143,384
Nexxis Inc [Member]
Segment Reporting Information [Line Items]
Accounts receivable	60,019		34,903
Prepaid expenses and other current assets	19,503		16,799
Net Property and Equipment	737
Intangible assets, net
Goodwill
Operating lease right-of-use assets
All other assets
Total Assets	80,259		51,702
Accounts payable and accrued expenses	46,335		40,091
Deferred revenue
Total Finance leases payable
Total Finance leases payable related party
Total Operating lease liabilities
Total Liabilities	46,335		40,091
Sales	264,796	211,924
Cost of sales	178,121	139,876
Gross Profit	86,675	72,048
Selling, general and administrative	124,750	97,199
Depreciation and amortization	71
Total operating expenses	124,821	97,199
Loss from Operations	(38,146)	(25,151)
Interest expense, net
Total Other Income (Expense)
Income (Loss) before provision for income taxes	(38,146)	(25,151)
Flagship Solutions L L C [Member]
Segment Reporting Information [Line Items]
Accounts receivable	2,895,708		1,924,184
Prepaid expenses and other current assets	178,094		213,826
Net Property and Equipment	18,533		19,705
Intangible assets, net	1,626,646		1,696,376
Goodwill	1,222,971		1,222,971
Operating lease right-of-use assets	141,933		167,761
All other assets
Total Assets	6,083,885		5,244,823
Accounts payable and accrued expenses	2,332,956		1,563,408
Deferred revenue	155,545		165,725
Total Finance leases payable
Total Finance leases payable related party
Total Operating lease liabilities	143,646		169,469
Total Liabilities	2,632,147		1,898,602
Sales	3,456,188	6,043,222
Cost of sales	2,906,212	4,518,346
Gross Profit	549,976	1,524,876
Selling, general and administrative	540,327	1,087,540
Depreciation and amortization	70,903	70,135
Total operating expenses	611,230	1,157,675
Loss from Operations	(61,254)	367,201
Interest expense, net		(48)
Total Other Income (Expense)		(48)
Income (Loss) before provision for income taxes	(61,254)	367,153
Cloud First Technologies [Member]
Segment Reporting Information [Line Items]
Accounts receivable	715,443		1,543,749
Prepaid expenses and other current assets	505,506		285,306
Net Property and Equipment	2,397,542		2,192,085
Intangible assets, net	279,268		279,268
Goodwill	3,015,700		3,015,700
Operating lease right-of-use assets	33,909		58,740
All other assets
Total Assets	6,947,368		7,374,848
Accounts payable and accrued expenses	905,137		1,069,278
Deferred revenue	153,728		115,335
Total Finance leases payable	500,846		641,110
Total Finance leases payable related party	593,400		776,864
Total Operating lease liabilities	36,567		62,960
Total Liabilities	2,189,678		2,665,547
Sales	3,158,739	2,402,053
Cost of sales	1,705,645	1,353,067
Gross Profit	1,453,094	1,048,986
Selling, general and administrative	606,452	475,116
Depreciation and amortization	217,622	281,203
Total operating expenses	824,074	756,319
Loss from Operations	629,020	292,667
Interest expense, net	(27,346)	(41,723)
Total Other Income (Expense)	(27,346)	(41,723)
Income (Loss) before provision for income taxes	601,674	250,944
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Accounts receivable
Prepaid expenses and other current assets	175,357		68,735
Net Property and Equipment	2,670
Intangible assets, net
Goodwill
Operating lease right-of-use assets
All other assets	11,062,166		11,346,127
Total Assets	11,240,193		11,414,862
Accounts payable and accrued expenses	414,818		534,800
Deferred revenue
Total Finance leases payable
Total Finance leases payable related party
Total Operating lease liabilities
Total Liabilities	414,818		$ 534,800
Sales
Cost of sales
Gross Profit
Selling, general and administrative	570,520	448,673
Depreciation and amortization	114
Total operating expenses	570,634	448,673
Loss from Operations	(570,634)	(448,673)
Interest expense, net	103,423	(889)
Total Other Income (Expense)	103,423	(889)
Income (Loss) before provision for income taxes	$ (467,211)	$ (449,562)