Data Storage Corporation (NASDAQ:DTST) has established a wholly owned subsidiary, Sovereign AI Solutions, focused on AI continuity infrastructure for regulated industries. The company also reported a net loss for the first quarter.
Net loss for Q1 2026 was $631,272, compared to net income of $24,078 in the same period last year. Loss from continuing operations was $768,258.
Revenue from Nexxis subsidiary increased 10.9% year-over-year to $346,707. Gross profit rose 32.1% to $186,019, with margin expanding to 53.7%.
Selling, general and administrative expenses increased to $1,472,113 from $856,915.
Cash and cash equivalents totaled $114,622, down from $1,989,354 at year-end. The company has no long-term debt.
CEO Chuck Piluso stated the company is evaluating strategic partnerships and acquisitions. Sovereign AI Solutions will advance development throughout 2026.
