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Item 9A. Controls and Procedures

2022-03-31 compared with 2021-03-31 · 608 added, 570 removed, 192 unchanged (86% of the section changed)

CONTROLS AND PROCEDURES

of Disclosure Controls and Procedures

of the end of the period covered by this Annual Report, under the supervision and with the participation of DSCs management,

including its principal executive officer who is also its principal financial officer, DSC conducted an evaluation of its disclosure

controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange

Act of 1934, as amended (the Exchange Act).

Based on this evaluation, DSCs principal executive officer and

principal financial officer concluded that DSCs disclosure controls and procedures are not effective to ensure that information

required to be disclosed by DSC in the reports it files or submits under the Exchange Act is recorded, processed, summarized,

and reported within the time periods specified in the Securities and Exchange Commissions (the SEC) rules

based on the material weakness described below.

Report on Internal Control Over Financial Reporting

management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rule

13a-15(f) under the Exchange Act.

DSCs internal control over financial reporting is designed to provide reasonable assurance

to DSCs management and Board of Directors regarding the preparation and fair presentation of published financial statements

in accordance with United States generally accepted accounting principles (GAAP), including those policies

and procedures that:

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions

and dispositions of the assets of DSC, (ii) provide reasonable assurance that transactions are recorded as necessary to permit

preparation of financial statements in accordance with GAAP and that receipts and expenditures are being made only in accordance

with authorizations of DSCs management and directors and (iii) provide reasonable assurance regarding prevention or timely

detection of unauthorized acquisition, use, or disposition of DSCs assets that could have a material effect on the financial

Evaluation of Disclosure Controls and Procedures

As of the end of the period

covered by this Annual Report, under the supervision and with the participation of Data Storage’s management, including its

principal executive officer and the principal financial officer, the Company conducted an evaluation of its disclosure controls and

procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934,

as amended (the “Exchange Act”).

Based on this evaluation, the company’s Principal Executive Officer and Principal

Financial Officer concluded that Data Storage’s disclosure controls and procedures are effective to ensure that information

required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed,

summarized, and reported within the time periods specified in the Securities and Exchange Commission’s (the “SEC”)

Management’s Report on Internal Control Over Financial Reporting

The Company’s management is responsible for establishing and maintaining

effective internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act.

Data Storage’s internal

control over financial reporting is designed to provide reasonable assurance to Data Storage’s management and Board of Directors

regarding the preparation and fair presentation of published financial statements in accordance with United States generally accepted

accounting principles (“GAAP”), including those policies and procedures that:

(i) pertain to the maintenance of records that,

in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, (ii) provide reasonable

assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts

and expenditures are being made only in accordance with authorizations of Data Storage’s management and directors and (iii) provide

reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s

assets that could have a material effect on the financial statements.

Management conducted an evaluation

of the effectiveness of internal control over financial reporting based on the framework in Internal Control—Integrated Framework

issued by the Committee of Sponsoring Organizations of the Treadway Commission in its 2013 Internal Control-Integrated Framework.

Management’s

assessment included an evaluation of the design of DSC’s internal control over financial reporting and testing of the operational

of the effectiveness of internal control over financial reporting based on the framework in Internal Control-Integrated Framework issued

by the Committee of Sponsoring Organizations of the Treadway Commission in its 2013 Internal Control-Integrated Framework.

assessment included an evaluation of the design of the Company’s internal control over financial reporting and testing of the operational

effectiveness of our internal control over financial reporting.

Based on this evaluation, management has determined that as of December

31, 2020, there were material weaknesses in our internal control over financial reporting.

The material weaknesses identified during management’s

assessment were (i) a lack of sufficient internal accounting expertise to provide reasonable assurance that our financial statements and

notes thereto are prepared in accordance with GAAP and (ii) a lack of segregation of duties to ensure adequate review of financial statement

In light of these material weaknesses, management has concluded that, as of December 31, 2020, DSC did not maintain effective

internal control over financial reporting.

As defined by the Public Company Accounting Oversight Board Auditing Standard No.

5, a material

weakness is a deficiency or a combination of deficiencies, such that there is a reasonable possibility that a material misstatement of

the annual or interim financial statements will not be prevented or detected.

In order to ensure the effectiveness of DSC’s disclosure

controls in the future, DSC intends on adding financial staff resources to our accounting and finance department that have the requisite

of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Therefore, even

those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation

and presentation.

Annual Report does not include an attestation report of DSCs registered public accounting firm regarding internal control

over financial reporting.

Managements report was not subject to attestation by DSCs registered public accounting

firm pursuant to rules of the SEC that permit DSC to provide only managements report in this Annual Report.

in Internal Control over Financial Reporting

have been no significant changes in DSCs internal control over financial reporting during the most recently completed fiscal

quarter ended December 31, 2020 that have materially affected, or is reasonably likely to materially affect, DSCs internal

control over financial reporting.

31, 2021, there were no material weaknesses in our internal control over financial reporting and, management has concluded that, as of

December 31, 2021, the Company maintained effective internal control over financial reporting.

As defined by the Public Company Accounting

Oversight Board Auditing Standard No.

5, a material weakness is a deficiency or a combination of deficiencies, such that there is a reasonable

possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected.

Because of its inherent limitations,

internal control over financial reporting may not prevent or detect misstatements.

Therefore, even those systems determined to be effective

can provide only reasonable assurance with respect to financial statement preparation and presentation.

This Annual Report does not include

an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting.

report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the SEC that permit

the Company to provide only management’s report in this Annual Report.

Changes in Internal Control over Financial Reporting

There have been no significant changes in the Company’s

internal control over financial reporting during the most recently completed fiscal quarter ended December 31, 2021, that have materially

affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

OTHER INFORMATION

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following table sets forth

the names, ages, and positions of DSC’s executive officers and directors.

Executive officers are elected annually by DSC’s

Board of Directors.

Each executive officer holds his office until he resigns, is removed by the Board, or his successor is elected and

Each director holds his office until his successor is elected and qualified or his earlier resignation or removal.

Chairman of the Board, Chief Executive Officer, Chief Financial Officer

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE

The following table sets forth the names, ages, and

positions of the Company’s executive officers and directors.

Executive officers are elected annually by its Board of Directors.

Each executive officer holds his office until he resigns, is removed by the Board, or his successor is elected and qualified.

Each director

holds his office until his successor is elected and qualified or his earlier resignation or removal.

Chairman of the Board, Chief Executive Officer

Chris Panagiotakos

Chief Financial Officer

Director, President

Director, Executive Vice President

Director, Executive Vice President of Strategic Development

Matthew Grover

Piluso, Chairman of the Board, Chief Executive Officer, Chief Financial Officer and Treasurer

Piluso is DSCs Chief Executive Officer, Chief Financial Officer and Chairman of the Board.

He has served as Chief Executive

Officer since 2008, Chief Financial Officer since 2014, Treasurer since 2020, and Chairman of the Board since 2008.

Prior to founding

DSC in 2001, Mr.

Piluso founded North American Telecommunication Corporation a facilities-based Competitive Local Exchange Carrier

licensed by the Public Service Commission in ten states, serving as the companys Chairman and President from 1997 to 2000.

Director, Executive Vice President

Piluso, Chairman of the Board, Chief Executive Officer,

and Treasurer

Piluso is Data Storage’s

Chief Executive Officer and Chairman of the Board.

He has served as Chief Executive Officer since 2008, Treasurer since 2020, and Chairman

of the Board since 2008.

Prior to founding Data Storage in 2001, Mr.

Piluso founded North American Telecommunication Corporation a facilities-based

Competitive Local Exchange Carrier licensed by the Public Service Commission in ten states, serving as the company’s Chairman and

President from 1997 to 2000.

Between 1990 and 1997, Mr.

Piluso served as Chairman & Founder of International Telecommunications Corporation (ITC),

a facilities-based international carrier licensed by the Federal Communications Commission.

ITC participated in a consolidation

strategy that went public in 1997 for $800 million.

Piluso served as Chairman & Founder of International Telecommunications Corporation

(“ITC”), a facilities-based international carrier licensed by the Federal Communications Commission.

ITC participated in a

consolidation strategy that went public in 1997 for $800 million.

Piluso holds a bachelor’s degree, a Master of Arts in Political

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John’s University.

He was an Instructor

Professor at St.

He was an Instructor Professor

John’s University, College of Business from 1986 through 1988.

From 2001 to 2013, served on the Board of

Trustees of Molloy College.

From 2001 to 2013, served on the Board of Trustees of Molloy

Piluso served on the Board of Governors at St.

Johns University from 2001 to 2016 and Governor

and, is currently serving on the Board of Advisors for the Nassau County Police Department Foundation.

John’s University from 2001 to 2016 and Governor Emeritus;

and, is currently

serving on the Board of Advisors for the Nassau County Police Department Foundation.

We believe that Mr.

Piluso is qualified to serve as

a member of our Board due to his technical expertise and management experience of technology and communications companies.

is qualified to serve as a member of our Board due to his technical expertise and management experience of technology and communications

Chris Panagiotakos, Chief

Financial Officer

Panagiotakos has served as our Chief Financial Officer since May

Panagiotakos served as the Vice President, Corporate Controller of Cinedigm Corp.

Nasdaq Global Market) from April

2017 until March 2021, where he was responsible for the company’s accounting function, oversight of the company’s external

audit, compliance and controls in addition to staff training and development.

Prior to becoming Vice President, Corporate Controller of

Cinedigm Corp, he served as their Corporate Assistant Controller from October 2013 to April 2017.

From September 2004 to October 2013,

Panagiotakos served in various capacities in the accounting department at Young Broadcasting Inc., including as Controller of one

its divisions and Assistant Corporate Controller.

Panagiotakos has over 24 years in public company accounting experience and he brings

a broad range of experience related to public company accounting matters.

Panagiotakos holds a Bachelor of Business Administration

in Accounting from Bernard M.

Baruch College, a Masters of Business Administration from Texas A&M University-Commerce, and is a Certified

Public Accountant.

Schwartz, President and Director

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Since 1995, Mr.

Schwartz has served as vice president of ABC Services, Inc., which he co-founded,

where he was responsible for the strategic direction of the company, operations, business development and sales.

Over the past

two decades, Mr.

Schwartz has honed his expertise in IBM business systems, business continuity and helping organizations increase

IT performance while reducing costs.

Schwartz has served as vice president of ABC Services, Inc., which he co-founded, where

he was responsible for the strategic direction of the company, operations, business development and sales.

Over the past two decades,

Schwartz has honed his expertise in IBM business systems, business continuity and helping organizations increase IT performance while

reducing costs.

In addition, Mr.

Schwartz is the founder of Systems Trading, Inc., a technology leasing company

established in 1997, where Mr.

Schwartz is the founder of Systems Trading, Inc., a technology leasing company established in 1997,

Schwartz serves as the company’s CEO and president.

Prior to founding these two businesses,

Schwartz was with CAC Leasing for six years, where he started a lease asset sales division in 1991.

This division was established

shortly after Mr.

Schwartz earned his bachelors degree in business from California State University in San Bernardino.

Prior to founding these two businesses, Mr.

Schwartz was with CAC

Leasing for six years, where he started a lease asset sales division in 1991.

This division was established shortly after Mr.

earned his bachelor’s degree in business from California State University in San Bernardino.

Since 2010, Mr.

Schwartz has served on the Board of Advisors for Data Storage Corporation.

Schwartz has served

on the Board of Advisors for Data Storage Corporation.

We believe that Mr.

Schwartz is qualified to serve

as a member of our Board due to his proven ability to strengthen and improve the operations of the companies he has been a part of his

experience in sales and business development and his knowledge of the industry.

Kempster, President of Technical Operations and Director

Kempster is DSC’s President

of Service Operations and serves as a Director.

Until March 29, 2021 he had served as DSC’s President of Technical Operations.

has served as Director since December 2016, Executive Vice President since 2020, and served as Secretary from 2016 to 2020.

Prior to DCS’s

acquisition of ABC in 2016, Mr.

Kempster founded and developed ABC Services, Inc., a solutions provider specializing in IBM power environments

Kempster was ABC’s visionary and was responsible for developing strategic partnerships with many industry leaders

such as IBM, Microsoft, and VMware to build a successful solution-driven business.

ABC Services, Inc., with the help of its strategic

partnerships, worked with organizations across the United States and continued to expand.

Kempster began his career in 1985 as a computer

technician at Systems Configuration Services (SCS) where he was trained on IBM System hardware and software operating systems.

he was hired by Diversified Data Corp.

as their general manager to assist in building a Technical Division to support IBM-specific sales.

Kempster spearheaded the service division into a successful and profitable entity.

Kempster then joined CAC Leasing where his

business development experiences further inspired his vision to form ABC Services, Inc.

is qualified to serve as a member of our Board due to his proven ability to strengthen and improve the operations of the companies he

has been a part of his experience in sales and business development and his knowledge of the industry.

Kempster, Executive Vice President and Director

Kempster is Data Storage’s Executive Vice President, and has served as Director since 2016.

He is focused on business growth

and strategic development in one of the Company’s key verticals for 2022, government.

Prior to his current position, Mr.

Kempster served as the President of Service Delivery until 2021 and was directly responsible for forging improvements that are the

foundation of the Company’s highly rated customer service today.

Prior to Data Storage Corporation Mr.

Kempster founded ABC

Services in 1994 and served as president until 2016.

ABC Services was an IBM Gold partner and provided managed services,

equipment, software and specialized in IBM Power systems.

In 2012 ABC Services launched a joint venture with Data Storage

Corporation to provide cloud infrastructure on IBM Power systems.

The joint venture was Secure Infrastructure and Services,

In 2016, ABC Services was acquired by Data Storage Corporation.

We believe that Mr.

Kempster is qualified to serve

as a member of our Board because of his practical experience in a broad range of competencies including his industry experience.

Argen, Director

Argen has been a Director since January 12, 2006.

Argen has been a Business Consultant and Developer specializing in the information

technology, telecommunications, and construction industries since 2003.

He is a seasoned professional that brings 30 years of

experience and entrepreneurial success from working with small business owners to Fortune 500 firms.

is qualified to serve as a member of our Board because of his practical experience in a broad range of competencies including his industry

John Argen, Director

Argen has been a Director

since January 12, 2006.

Argen has been a Business Consultant and Developer specializing in the information technology, telecommunications,

and construction industries since 2003.

He is a seasoned professional that brings 30 years of experience and entrepreneurial success from

working with small business owners to Fortune 500 firms.

From 1992 to 2003, Mr.

was the CEO and founder of DCC Systems, a privately held nationwide Technology Design / Build Construction Development and Consulting

Solutions firm.

Argen built DCC Systems from the ground up, re-engineering the firm several times to meet the needs of its

clientele and enabled DCC Systems to produce gross revenues exceeding 100 million dollars in 2000.

Argen was the CEO and founder of DCC Systems, a privately

held nationwide Technology Design / Build Construction Development and Consulting Solutions firm.

Argen built DCC Systems from the

ground up, re-engineering the firm several times to meet the needs of its clientele and enabled DCC Systems to produce gross revenues

exceeding 100 million dollars in 2000.

Prior to DCC Systems Mr.

held senior management positions for 15 years at ITT/Metromedia and was VP of Engineering& Operations at DataNet, a Wilcox

& Gibbs company for 2 years.

Throughout his corporate tenure, he has worked in Operations, Marketing, Systems Engineering,

Telecommunications and Information Technology.

Argen graduated Pace University with a BPS in Finance.

His commitment to continued

education is reflected in his completion to over 2000 hours of corporate sponsored courses.

Argen also holds a Federal Communication

Commission (FCC) Radio Telephone 1st Class License.

Argen held senior management positions for 15 years at ITT/Metromedia

and was VP of Engineering& Operations at DataNet, a Wilcox & Gibbs company for 2 years.

Throughout his corporate tenure, he has

worked in Operations, Marketing, Systems Engineering, Telecommunications and Information Technology.

Argen graduated Pace University

with a BPS in Finance.

His commitment to continued education is reflected in his completion to over 2000 hours of corporate sponsored

Argen also holds a Federal Communication Commission (FCC) Radio Telephone 1st Class License.

We believe that Mr.

qualified to serve as a member of our Board because of his practical experience in managing the growth of companies, including technology

is qualified to serve as a member of our Board because of his practical experience in managing the growth of companies, including technology

and communication companies, and his general knowledge and experience of the industry.

Hoffman, Director

Hoffman has been a Director since August 29,2001.

Hoffman has been a partner at Kelley Drye & Warren LLP in the firms

Washington, D.C.

office since June 1999.

His commercial practice focuses on real estate and corporate transactions cutting across

a wide range of industries.

Hoffmans real estate practice involves developers, borrowers, lenders, buyers, sellers,

landlords and tenants.

Hoffmans corporate experience includes the purchase and sale of assets and companies as well

as venture capital, equipment leasing and institutional financing transactions.

Hoffman represents telecommunications companies,

real estate developers, lenders, venture capital funds, emerging growth companies, thoroughbred horse industry interests and high

net-worth individuals.

Hoffman received his Bachelor of Science, cum laude , from the University of Maryland and

his Juris Doctor degree, with honors, from the George Washington University Law School.

Hoffman has been a Director

since August 29, 2001.

Hoffman has been a partner at Kelley Drye & Warren LLP in the firm’s Washington, D.C.

His commercial practice focuses on real estate and corporate transactions cutting across a wide range of industries.

real estate practice involves developers, borrowers, lenders, buyers, sellers, landlords and tenants.

Hoffman’s corporate experience

includes the purchase and sale of assets and companies as well as venture capital, equipment leasing and institutional financing transactions.

Hoffman represents telecommunications companies, real estate developers, lenders, venture capital funds, emerging growth companies,

thoroughbred horse industry interests and high net-worth individuals.

Hoffman received his Bachelor of Science, cum laude ,

from the University of Maryland and his Juris Doctor degree, with honors, from the George Washington University Law School.

We believe that Mr.

Hoffman’s

legal knowledge, leadership experience and general industry familiarity will be a substantive contribution to the Board.

is qualified to serve as a member of our Board because of his legal knowledge, leadership experience and general industry familiarity.

Maglione, Director

Maglione has been a Director since August 29, 2001.

Maglione has been a partner in the accounting firm Eisner & Maglione

CPAs, LLC since January 2007.

Maglione, a co-founder of DSC, LLC, is a financial management veteran with more than 30 years

of experience.

Prior to joining the Company in 1991, Mr.

Maglione was a co-founder of North American Telecommunications Corporation

(NATC), a local phone service provider which provides local and long-distance telephone services and data connectivity

to small and medium sized businesses, where Mr.

Maglione served as NATCs Chief Financial Officer and Executive Vice President

from September 1997 through January 2001 where he was responsible for all finance, legal and administration functions.

Maglione spent over 14 years in public accounting, and he brings a broad range of experience related to companies in

the technology, retail services and manufacturing industries.

Maglione holds a Bachelor of Science degree in Accountancy from

Hofstra University, a Master of Science in Taxation from LIU Post, and is a Certified Public Accountant.

Maglione is a member

of the New York State Society of CPAs.

Maglione has been a Director

since August 29, 2001.

Maglione has been a partner in the accounting firm Eisner & Maglione CPAs, LLC since January 2007.

Maglione, a co-founder of DSC, LLC, is a financial management veteran with more than 30 years of experience.

Prior to joining the Company

Maglione was a co-founder of North American Telecommunications Corporation (“NATC”), a local phone service provider

which provides local and long-distance telephone services and data connectivity to small and medium sized businesses, where Mr.

served as NATC’s Chief Financial Officer and Executive Vice President from September 1997 through January 2001 where he was responsible

for all finance, legal and administration functions.

Prior to NATC, Mr.

Maglione spent over 14 years in public accounting, and he brings

a broad range of experience related to companies in the technology, retail services and manufacturing industries.

Maglione holds a

Bachelor of Science degree in Accountancy from Hofstra University, a Master of Science in Taxation from LIU Post, and is a Certified Public

Maglione is a member of the New York State Society of CPAs.

We believe that Mr.

is qualified to serve as a member of our Board because of his managerial and executive experiences, and his in-depth knowledge of telecommunications

and technology companies.

is qualified to serve as a member of our Board because of his practical accounting knowledge, leadership experience and general industry

Correll, Director

Correll has served as a Director form August 2014 until September 6, 2017 and then was reappointed to serve as a Director on November

5, 2019, and Mr.

Correll previously served as a Director from 2014 to 2017.

Correll has served as a financial and operations

executive consultant and board member for SACo, a leading online retail operation.

Correll has served as

a Director form August 2014 until September 6, 2017 and then was reappointed to serve as a Director on November 5, 2019, and Mr.

previously served as a Director from 2014 to 2017.

Correll has served as a financial and operations executive consultant and board

member for SACo, a leading online retail operation.

From 2001 through 2017, Mr.

Correll founded

and served as CEO of Broadsmart Florida, Inc.

Correll founded and served as CEO of Broadsmart Florida,

(“Broadsmart”), a facility-based VoIP carrier.

leadership as its CEO, Broadsmart grew from a local phone company to a nationwide carrier delivering IP based dial tone, broadband

and ancillary services.

Broadsmart was acquired by Magic Jack in 2016 for $42 million, and Mr.

Correll continued to serve as its

CEO until 2017.

Correll’s leadership as its CEO, Broadsmart grew from

a local phone company to a nationwide carrier delivering IP based dial tone, broadband and ancillary services.

Broadsmart was acquired

by Magic Jack in 2016 for $42 million, and Mr.

Correll continued to serve as its CEO until 2017.

Correll attended Syracuse University.

Correll holds a pilots license as well as a USCG Captains

Correll holds a pilot’s license as well as a USCG Captains license.

We believe that Mr.

Correll’s

experience with the Company and his executive experience at telecommunications and technology companies will be a positive contribution

to the Board.

Grover, Director

Grover has served as a Director

since November 5, 2019.

is qualified to serve as a member of our Board because of his practical experience with the Company and his executive experience at telecommunications

and technology companies.

Matt Grover, Director

Grover has served as

a Director since November 5, 2019.

Since January 2019, Mr.

Grover has served as the Executive Vice President of Business Services at Altice USA (NYSE:

ATUS), which is one of the largest broadband communications and video services providers in the United States, delivering broadband, pay

television, mobile, proprietary content and advertising services to approximately 4.9 million residential and business customers across

Grover has served as the Executive Vice President of Business Services at Altice

ATUS), which is one of the largest broadband communications and video services providers in the United States, delivering broadband,

pay television, mobile, proprietary content and advertising services to approximately 4.9 million residential and business customers across

21 states through its Optimum and Suddenlink brands.

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Grover began his 19-year Altice USA career

in 2001 when he joined Altice USA’s Lightpath division as Director of Sales Planning.

Since then, he has held various positions

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Brook University and earned his MBA from the University of Southern California.

believe that Mr.

Grover is qualified to serve as a member of our Board because of his practical experience in a broad range of

competencies including his public company experience.

of the Board of Directors

The Board of Directors has a

standing Audit Committee, Compensation Committee, and Nominating & Corporate Governance Committee.

The following table shows

the directors who are currently members or Chairman of each of these committees.

Board Members

Corporate Governance

We believe that Mr.

is qualified to serve as a member of our Board because of his practical experience in a broad range of competencies including his public

company experience.

Mark Wyllie, Executive Vice President

Wyllie brings

more than 30 years of senior management and sales experience to Flagship.

In his current capacity as CEO of Flagship, he is responsible

for the day-to-day management of Flagship and implementation of the strategic and tactical direction of Flagship, as well as the integration

of services capabilities into responsive customer solutions.

Wyllie began his career with seven years at GAF Corporation,

progressing from Sales Representative to District Manager.

Included in his extensive background are key management roles with some of

the nation’s most recognized computer and data management firms.

At Burroughs, he served as Senior Account Manager;

and at NCR his

12-year tenure covered roles as District Manager, Manager of Education and Training, Director, National Accounts, Pricing Manager, and

Sales Manager.

Wyllie was also Vice-President of Sales for a division of the Mail-Well Corporation.

moved to Champion Solutions Group for 7 years as Vice President of Sales progressing to General Manager of Champion’s Services Division

from April 1998 to June 2003.

Wyllie held the position of Senior Director at Mainline Information Systems from June 2003

to July 2007 where he had responsibility for Mainline’s Services companies, including IBM Global Services, Disaster Recovery and

Professional Services.

Just prior to forming Flagship in December 2008, Mr.

Wyllie was COO for Compuquip Technologies, one of

South Florida’s largest systems integrators.

Wyllie serves on the board of directors of the South Florida Technology

Alliance, a regional 501(c)(3) nonprofit focused on driving awareness of South Florida as a technology hub.

In 2014, Flagship was awarded

with IBM’s highest honor for a Business Partner, A Beacon Award for Outstanding Community Impact.

This was the first time in IBM’s

history a Business Partner was recognized for their community involvement.

In addition to his business responsibilities, Mr.

Wyllie serves

on the IBM Global Business Partner Advisory Council, IBM MSP Advisory Council and IBM Cloud Advisory Council.

a BA in Management and holds IBM Certifications as an IBM Cloud Builder, Systems Expert x series, Smarter Cities Technical and Sales certifications,

IBM Disaster Recovery Top Gun, Blade and Storage Certifications.

In addition, Mr.

Wyllie holds a TOGAF certification.

Committees of the Board of Directors

The Board of Directors has a standing

Audit Committee, Compensation Committee, and Nominating & Corporate Governance Committee.

The following table shows the directors

who are currently members or Chairman of each of these committees.

& Corporate Governance Committee

Matthew Grover

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Thomas Kempster

Larry Maglione

Argen serves as our independent Lead Director .

Lawrence Maglione

John Argen serves as our independent Lead Director .

Composition of our Board of Directors

Our board of directors currently

consists of eight members.

consists of nine members.

Our directors hold office until their successors have been elected and qualified or until the earlier of their

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Director Independence

With the exception of Charles

exception of Charles M.

Piluso, Harold J.

Schwartz, and Thomas C.

Kempster, our Board has determined that all of our present directors and our former directors

are independent, in accordance with the Listing Rules of the Nasdaq Stock Market LLC (the “Nasdaq Listing Rules”).

has determined that, under the Nasdaq Listing Rules, Charles M.

Schwartz, Mark Wyllie and Thomas C.

Kempster, our Board has determined that all of our present

directors and our former directors are independent, in accordance with the Listing Rules of the Nasdaq (the “Nasdaq Listing Rules”).

Our Board has determined that, under the Nasdaq Listing Rules, Charles M.

Piluso, Harold J.

Schwartz, and Thomas C.

Kempster are not independent

directors because they are employees of the Company.

Our Board has determined that:

John Argen (Chair), Joseph Hoffman, and Matthew Grover are independent under the Nasdaq Listing Rules’

independence standards for

the members of our Board’s audit committee (the “Audit Committee”);

Schwartz, Mark Wyllie and Thomas C.

are not independent directors because they are employees of the Company or its subsidiaries.

Our Board has determined

John Argen (Chair), Joseph Hoffman, and Matthew Grover are independent under the Nasdaq Listing Rules’ independence standards

for the members of our Board’s audit committee (the “Audit Committee”);

Joseph Hoffman (Chair), Todd Correll, and Matthew

Grover are independent under the Nasdaq Listing Rules independence standards for the members of our Board compensation committee (the

“Compensation Committee”);

and Larry Maglione (Chair), Joseph Hoffman and John Argen are independent under the Nasdaq Listing

independence standards for the members of our Board’s Nominating & Corporate Governance committee (the “Nominating

& Corporate Governance Committee”).

“Compensation Committee”);

and Lawrence Maglione (Chair), Joseph Hoffman and John Argen are independent under the Nasdaq Listing

Rules’ independence standards for the members of our Board’s Nominating & Corporate Governance committee (the “Nominating

& Corporate Governance Committee”).

Term of Office

Our directors are appointed for

a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with

Our officers are appointed by our board of directors and hold office until removed by the board.

Our directors are elected for one-year terms to hold office until the next

annual general meeting of our shareholders or until removed from office in accordance with our bylaws.

Our officers are appointed by our

Board and hold office until removed by the board.

Audit Committee

As of January 7, 2021, the Company

has an Audit Committee consisting of non-executive directors.

The Company has an Audit Committee

consisting of non-executive directors each of whom the Board has determined is an independent director pursuant to the Nasdaq

Listing Rules.

The Audit Committee members are:

John Argen (Chair), Matthew Grover and

Joseph Hoffman.

DSC’s securities are not listed on a national exchange securities and are not subject to the special corporate governance

requirements of any such exchanges;

however we have applied to list our common stock on the Nasdaq.

John Argen (Chair), Matthew Grover and Joseph Hoffman.

The Board has determined that Joseph

Hoffman is an “Audit Committee Financial Expert”

as defined by SEC rules and regulations.

Hoffman is an “Audit Committee Financial Expert” as defined by SEC rules and regulations.

The Audit Committee operates pursuant

to a written charter adopted by the board of directors, which is available on our website at www.DataStorageCorp.com .

describes in more detail the nature and scope of responsibilities of the Audit Committee.

to a written charter adopted by the Board, which is available on our website at www.DataStorageCorp.com .

The charter describes

in more detail the nature and scope of responsibilities of the Audit Committee.

Compensation Committee

As of January 7, 2021, the

Company has a Compensation Committee consisting of non-executive directors.

The Compensation Committee members are:

Joseph Hoffman (Chair),

Todd Correll and Matthew Grover.

DSC’s securities are not listed on a national exchange securities and are not subject to the special

corporate governance requirements of any such exchanges.

The Compensation Committee operates pursuant to a written charter adopted by

the board of directors, which is available on our website at www.datastorage.com .

The charter describes in more detail the nature

and scope of responsibilities of the Compensation Committee.

The Company has a Compensation Committee consisting

of non-executive directors each of whom the Board has determined is an independent director pursuant to the Nasdaq Listing Rules.

The Compensation Committee members are Joseph Hoffman (Chair), Todd Correll and Matthew Grover.

The Compensation Committee operates pursuant

to a written charter adopted by the board of directors, which is available on our website at www.datastorage.com .

describes in more detail the nature and scope of responsibilities of the Compensation Committee.

Nominating & Corporate Governance Committee

As of January 7, 2021, the

Company has a Nominating & Corporate Governance Committee consisting of non-executive directors.

The Nominating & Corporate Governance

Committee members include:

Lawrence Maglione (Chair), John Argen and Mr.

The Nominating & Corporate Governance Committee

operates pursuant to a written charter adopted by the board of directors, which is available on our website at www.datastorage.com .

The charter describes in more detail the nature and scope of responsibilities of the Nominating & Corporate Governance Committee.

The Company has a Nominating & Corporate Governance

Committee consisting of non-executive directors each of whom the Board has determined is an independent director pursuant to the

Nasdaq Listing Rules.

The Nominating & Corporate Governance Committee members include Lawrence Maglione (Chair), John Argen and Mr.

The Nominating & Corporate Governance Committee operates pursuant to a written charter adopted by the board of directors,

which is available on our website at www.datastoragecorp.com .

The charter describes in more detail the nature and scope of

responsibilities of the Nominating & Corporate Governance Committee.

The Company does not have a

formal diversity policy.

However, the Nominating & Corporate Governance Committee evaluates each individual in the context of the

Board of Directors as a whole, with the objective of recommending individuals that can best perpetuate the success of our business and

represent stockholder interests through the exercise of sound business judgment and diversity of experience in various areas.

our current directors possess diverse professional experiences, skills, and backgrounds, in addition to, among other characteristics,

high standards of personal and professional ethics, proven records of success in their respective fields, and valuable knowledge of our

business and industry.

Merger and Acquisition Committee

As of January 7, 2021, the Company

has a merger and acquisition committee (the “M&A Committee”) consisting of non-executive directors.

The M&A Committee

Lawrence Maglione (Chair), John Coghlan, John Argen, Todd Correll.

DSC’s securities are not listed on a national exchange

and are not subject to the special corporate governance requirements of any such exchanges.

The Company has a merger and acquisition committee

(the “M&A Committee”) consisting of non-executive directors.

The M&A Committee members are Lawrence Maglione (Chair),

John Coghlan, John Argen, Todd Correll.

Family Relationships

One part-time employee, reporting

to our controller, is the wife of Thomas C.

Kempster, our President of Technical Operations and there is no direct reporting relationship

between such employee and Mr.

Delinquent Section 16(A) Reports.

Section 16(a) of the Exchange

Act requires the Company’s officers and directors, and persons who beneficially own more than 10% of a registered class of the Company’s

equity securities, to file reports of ownership and changes in ownership with the SEC and are required to furnish copies to the Company.

Based solely on the review of the Changes of Beneficial Ownership disclosures on Forms 3, 4 and 5 filed with the Securities and Exchange

Commission, the following officers and directors filed the following number of transactions on Section 16 beneficial ownership disclosure

filings late for transactions:

Piluso filed six Form 5’s for late filings with respect to nine transactions, and two Form 4’s with respect to 15 transactions.

John Argen filed five form 5’s for late filings with respect to five transactions.

Coghlan filed five Form 5’s for late filings with respect to five transactions.

Hoffman filed five Form 5’s for late filings with respect to five transactions.

Thomas Kempster filed two Form 5’s for late filings with respect to two transactions;

one Form 4 for late filings with respect to two transactions;

and one Form 3 late.

Clifford Stein filed five Form 5’s for late filings with respect to five transactions, and one Form 4 with respect to six transactions.

Howard Schwartz filed three Form 5’s for late filings with respect to three transactions, and one Form 3 with respect to one transaction.

Lawrence Maglione filed five Form 5’s for late filings with respect to five transactions.

Todd Correll filed one Form 3 late with respect to one transaction.

Wendy Schmittzeh filed one Form 3 late with respect to six transactions.

Matthew Grover filed one Form 3 late with respect to one transaction.

One part-time employee, reporting to our Controller,

is the wife of Thomas C.

Kempster, our Executive Vice President, Strategic Development and there is no direct reporting relationship between

such employee and Mr.

One full-time employee is the son of Harold Schwartz,

the President of DSC, and there is no direct reporting relationship between such employee and Mr.

One full-time employee is the

son and direct report to John Camello, President of Nexxis Inc.

Code of Ethics

has adopted a Code of Ethics applicable to its Directors, Officers and Employees.

A copy of our Code of Ethics is available on

our website at www.DataStorageCorp.com .

The Company has adopted a Code

of Ethics applicable to its Directors, Officers and Employees.

A copy of our Code of Ethics is available on our website at www.datastoragecorp.com .

Stockholder Communications

who are interested in communicating directly with members of the Board, or the Board as a group, may do so by writing directly to the

individual Board member c/o Secretary, Data Storage Corporation, 48 South Service Road, Melville, New York 11747.

The Company’s

Secretary will forward communications directly to the appropriate Board member.

If the correspondence is not addressed to the particular

member, the communication will be forwarded to a Board member to bring to the attention of the Board.

The Company’s Secretary will

review all communications before forwarding them to the appropriate Board member.

Delinquent Section 16(A) Reports.

Section 16(a) of the Exchange Act requires the Company’s

officers and directors, and persons who beneficially own more than 10% of a registered class of the Company’s equity securities,

to file reports of ownership and changes in ownership with the SEC and are required to furnish copies to the Company.

Based solely on

the review of the Changes of Beneficial Ownership disclosures on Forms 3, 4 and 5 filed with the Securities and Exchange Commission, other

than the Form 3 filed by Mark Wyllie on June 15, 2021, there were no delinquent Section 16(a) Reports for the year ended December 31,

EXECUTIVE COMPENSATION

of Executive Officers

Compensation of Executive Officers

The following summary compensation

2 unchanged sentences

Executive Officer.

Compensation Table

Summary Compensation Table

Incentive Plan

Piluso, Chief Executive Officer, Chief Financial Officer, Treasurer and Chairman of the Board

Piluso, Chief Executive Officer, Treasurer and Chairman

Chris Panagiotakos, Chief Financial Officer,

Harold Schwartz – President

Tom Kempster –

President of Operations

Company does not currently have any employment agreements with its named executive officers or directors.

Tom Kempster – Executive Vice President, Strategic Development

Employment Agreements

The Company currently does not

have any employment agreements with any of its named executive officers or directors.

2010 Incentive Award Plan

On August 12, 2010, the Company

adopted the Data Storage Corporation 2010 Incentive Award Plan (the “2010 Plan”) that provided for 2,000,000 shares of common

stock reserved for issuance under the terms of the 2010 Plan;

which was amended on September 25, 2013 to increase the number of shares

On August 12, 2010, the Company adopted the Data Storage

Corporation 2010 Incentive Award Plan (the “2010 Plan”) that provided for 2,000,000 shares of common stock reserved for issuance

under the terms of the 2010 Plan;

which was amended on September 25, 2013, to increase the number of shares of common stock reserved for

issuance under the Plan to 5,000,000 shares of common stock;

which was further amended on June 20, 2017 to increase the number of shares

of common stock reserved for issuance under the Plan to 8,000,000 shares of common stock;

which was further amended on June 20, 2017 to

increase the number of shares of common stock reserved for issuance under the Plan to 8,000,000 shares of common stock;

and further amended

on July 1, 2019 to increase the number of shares of common stock reserved for issuance under the Plan to 10,000,000 shares of common stock.

On April 23, 2012, the Company amended and restated the 2010 Plan to change the name to the “Amended and Restated Data Storage Corporation

Incentive Award Plan”

(the “Plan”).

The Plan was intended to promote the interests of the Company by attracting and

retaining exceptional employees, consultants, directors, officers and independent contractors (collectively referred to as the “Participants”)

and enabling such Participants to participate in the long-term growth and financial success of the Company.

Under the Plan, the Company

had the right to grant stock options, which are intended to qualify as “incentive stock options”

under Section 422 of the

Internal Revenue Code of 1986, as amended, non-qualified stock options, stock appreciation rights and restricted stock awards, which were

restricted shares of common stock (collectively referred to as “Incentive Awards”).

Incentive Awards were granted pursuant

to the Plan for 10 years from the Effective Date.

and further amended on July 1, 2019, to increase

the number of shares of common stock reserved for issuance under the Plan to 10,000,000 shares of common stock.

On April 23, 2012, the

Company amended and restated the 2010 Plan to change the name to the “Amended and Restated Data Storage Corporation Incentive Award

Plan” (the “Plan”).

The Plan was intended to promote the interests of the Company by attracting and retaining exceptional

employees, consultants, directors, officers and independent contractors (collectively referred to as the “Participants”) and

enabling such Participants to participate in the long-term growth and financial success of the Company.

Under the Plan, the Company had

the right to grant stock options, which are intended to qualify as “incentive stock options” under Section 422 of the Internal

Revenue Code of 1986, as amended, non-qualified stock options, stock appreciation rights and restricted stock awards, which were restricted

shares of common stock (collectively referred to as “Incentive Awards”).

Incentive Awards were granted pursuant to the Plan

for 10 years from the Effective Date.

There are 8,305,985 options outstanding under the Plan as of December 31, 2020.

2010 Plan expired on October 21, 2020 and accordingly, there are no shares available for future grants.

March 8, 2021, our Board and stockholders owning in excess of 50% of our outstanding voting securities approved and adopted the 2021

Stock Incentive Plan (the “2021 Plan”).

Pursuant to the terms of the 2021 Plan we can grant stock options, restricted stock

unit awards and other awards at levels determined appropriate by our Board and/or compensation committee.

The 2021 Plan also allows us

to utilize a broad array of equity incentives and performance cash incentives in order to secure and retain the services of our employees,

directors and consultants, and to provide long-term incentives that align the interests of our employees, directors and consultants with

the interests of our stockholders.

An aggregate of 15,000,000 shares of our common stock may be issued under the 2021 Plan, subject to

equitable adjustment in the event of future stock splits, and other capital changes.

Equity Awards at Fiscal Year-End December 31, 2020

The 2010 Plan expired

on October 21, 2020 and accordingly, there are no shares available for future grants.

On March 8, 2021, our Board and stockholders owning

in excess of 50% of our outstanding voting securities approved and adopted the 2021 Stock Incentive Plan (the “2021 Plan”).

Pursuant to the terms of the 2021 Plan we can grant stock options, restricted stock unit awards and other awards at levels determined

appropriate by our Board and/or compensation committee.

The 2021 Plan also allows us to utilize a broad array of equity incentives and

performance cash incentives in order to secure and retain the services of our employees, directors, and consultants, and to provide long-term

incentives that align the interests of our employees, directors and consultants with the interests of our stockholders.

An aggregate of

15,000,000 shares of our common stock may be issued under the 2021 Plan, subject to equitable adjustment in the event of future stock

splits, and other capital changes.

Outstanding Equity Awards

at Fiscal Year-End December 31, 2021

Exercisable(1)

Unexercisable

Vested options under the

Unvested options under

On March 23, 2011 (the

“Stock Grant Date”), Mr.

Piluso was issued a stock grant of 571,429 shares of common stock at $0.35 per share (the “Stock

Grant”).

Options (2) Unexercisable

Vested options under the Plan.

Unvested options under the Plan.

On March 23, 2011 (the “Stock Grant Date”), Mr.

Piluso was issued a stock grant of 14,286 shares of common stock at $0.35 per share (the “Stock Grant”).

Piluso received the Stock Grant in lieu of his annual compensation for 2010.

The Stock Grant was fully vested

on the Stock Grant Date.

The Stock Grant was fully vested on the Stock Grant Date.

The Stock Grant was issued to Mr.

Piluso pursuant to the 2008 Plan.

On June 18, 2012, the Stock Grant issuance

was rescinded and replaced with a stock option to acquire 548,780 shares of common stock at an exercise price of $0.39 per share.

On June 18, 2012, the Stock Grant issuance was rescinded and replaced with a stock option to acquire 13,720 shares of common stock at an exercise price of $15.60 per share.

In addition, on June 18, 2012, Mr.

Piluso received a stock option to acquire 357,143 shares of common stock at an exercise price

of $0.39 per share.

The stock options were

issued in consideration for services provided as a member of the Board.

The stock options were

issued in consideration for services provided as a member of the Board of Advisors.

These option awards vested

100% three months from the grant date.

These option awards vested/vest

33.33% on each of the one- year, two- year and three- year anniversary following the grant date.

following summary compensation table sets forth all compensation awarded to, earned by, or paid to the Company’s directors during

the fiscal year ended December 31, 2020.

Piluso received a stock option to acquire 8,929 shares of common stock at an exercise price of $15.60 per share.

The stock options were issued in consideration for services provided as a member of the Board.

The stock options were issued in consideration for services provided as a member of the Board of Advisors.

These option awards vested 100% three months from the grant date.

These option awards vested/vest 33.33% on each of the one- year, two- year and three- year anniversary following the grant date.

Compensation of Directors

The following summary compensation

table sets forth all compensation awarded to, earned by, or paid to the Company’s directors during the fiscal year ended December

During the year ended December 31, 2021, no compensation was paid to any Company director.

Director Name

Harold Schwartz

Lawrence Maglione

Clifford Stein

Matthew Grover

table below shows the aggregate number of option awards outstanding at fiscal year-end for each of our current non-employee directors

and former non-employee directors who served as directors during the year ended December 31, 2020.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The table below shows the aggregate

number of option awards outstanding at fiscal year-end for each of our current non-employee directors and former non-employee directors

who served as directors during the year ended December 31, 2021.

of Shares Subject to

Outstanding Options as of December 31, 2021

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

AND RELATED STOCKHOLDER MATTERS

following table sets forth certain information, as of March 30, 2022, with respect to the beneficial ownership of the outstanding common

stock by (i) any holder of more than five (5%) percent;

(ii) each of the Company’s executive officers and directors;

and (iii) the

Company’s directors and executive officers as a group.

Except as otherwise indicated, each of the stockholders listed below has

sole voting and investment power over the shares beneficially owned.

Except as otherwise indicated, each of the stockholders listed

below has sole voting and investment power over the shares beneficially owned.

The address for each person is 48 South Service Road, Melville,

New York 11747 except for Jan Burman, 67 Clinton Road, Garden City, NY 11530.

Name of Beneficial Owner

(ii) each of the Company’s executive officers and directors;

the Company’s directors and executive officers as a group.

Except as otherwise indicated, each of the stockholders listed below

has sole voting and investment power over the shares beneficially owned.

Except as otherwise indicated, each of the stockholders

listed below has sole voting and investment power over the shares beneficially owned.

The address for each person is 48 South Service

Road, Suite 203, Melville, New York 11747.

of Beneficial Owner

Piluso and affiliated entities (2)

Schwartz (5) (14)

Kempster (9) (10) (14)

Lawrence Maglione, Jr.

John Argen (7) (14)

Joseph Hoffman (8) (14)

Matthew Grover (11) (14)

Todd Correll (12) (14)

All Executive Officers and Directors as a group (8 persons)

5% or More Stockholders

Clifford Stein (13)

Jan Burman (15)

Based on 128,539,418 shares of common stock outstanding as of March 31, 2021.

Under the rules of the SEC, a person is deemed to be the beneficial owner of a security if such person has or shares the power to vote or direct the voting of such security or the power to dispose or direct the disposition of such security.

A person is also deemed to be a beneficial owner of any securities if that person has the right to acquire beneficial ownership within 60 days of March 31, 2021.

Unless otherwise indicated by footnote, the named entities or individuals have sole voting and investment power with respect to the shares of common stock beneficially owned.

Based on 1,401,786 shares of Series A Preferred Stock outstanding as of March 31, 2021.

Each share of Series A Preferred Stock converts to one share of common stock and is entitled to one vote per share of common stock into which it is convertible and votes together with the common stock.

Based on 128,539,418 shares of common stock outstanding as of March 31,

2021 and 1,401,786 shares of Series A Preferred Stock for a total of 129,941,204 votes.

Percent of Total Voting Power for each beneficial

owner is derived by dividing the (i) sum of the common stock votes, the number of votes of Series A Preferred Stock such holder has to

cast and all securities such person has the right to acquire beneficial ownership of within 60 days of March 31, 2021, by (ii) 129,941,204

plus the amount of any securities such person has the right to acquire beneficial ownership within 60 days of March 31, 2021.

Includes (i) 13,625,634 shares of common stock held individually, (ii) 3,269,863 shares of common stock held by Piluso Family Associates, (iii) 9,204,614 shares of common stock held by The Bella Vita 2012 Trusts, (iv) 9,204,614 shares of common stock held by The Lasata 2012 Trusts, (v) stock options to acquire 1,139,254 shares of common stock at exercise prices ranging from $0.060 to $0.39, and (vi) a common stock purchase warrant exercisable to acquire 66,667 shares of common stock exercisable at $0.01.

Piluso is the co-manager and has shared voting control with his spouse over the shares of common stock of the Company held by Piluso Family Associates, LLC.

Piluso and his wife are the trustees of the trusts.

Includes (i) 32,334,968 shares of common stock, (ii) 300,000 shares of common stock held by Systems Trading, Inc., and (iii) 169,202 shares of common stock issuable upon the exercise of stock options at exercise prices ranging from $0.060 to $0.39.

Schwartz is the owner of and has voting control over the shares of common stock of the Company held by Systems Trading, Inc.

Includes (i) 33,172 shares of common stock held individually and (ii) options to acquire 233,331 shares of common stock at exercise prices ranging from $0.05 to $0.35 per share.

Includes options to acquire 233,331 shares of common stock at exercise prices ranging from $0.05 to $0.35 per share.

Includes (i) 31,934,968 shares of common stock and (ii) 99,999 shares of common stock issuable upon the exercise of stock options at exercise prices ranging from $0.050 to $0.060 per share.

Kempster made open market sales of an aggregate of 20,000 shares of common stock between January and February 2019.

Includes options to acquire 8,333 shares of common stock exercisable at $0.054.

Includes (i) 25,000 shares of common stock and (ii) 8,333 shares of common stock issuable upon the exercise of stock options exercisable at $0.054.

Maglione, Jr.

Executive Officers and Directors as a group (10 persons)

The securities “beneficially

owned” by a person are determined in accordance with the definition of “beneficial ownership” set forth in the regulations

of the SEC and accordingly, may include securities owned by or for, among others, the spouse, children or certain other relatives of

such person, as well as other securities over which the person has or shares voting or investment power or securities which the person

has the right to acquire within 60 days.

Includes 882,627 shares

of common stock and 31,821 shares of common stock underlying stock options

Includes 815,876 shares

of common stock and 5,067 shares of common stock underlying stock options.

Includes 798,376 shares

of common stock and 3,335 shares of common stock underlying stock options.

Includes 830 shares of

common stock and 6,670 shares of common stock underlying stock options.

Includes 3,334 shares of common stock and 3,336 shares of common

stock underlying stock options.

Includes 6,670 shares

of common stock underlying stock options.

Includes 418 shares of common

stock underlying stock options.

Includes 625 shares of common stock.

Current officer and/or director of the Company.

Includes 1,401,786 shares of Series A Preferred Stock held individually.

Securities Authorized for Issuance Under Equity Compensation Plans

6 unchanged sentences

plans (excluding

Plan Category

Equity compensation plans approved by security holders

Equity compensation plans not approved by stockholders

During the year ended December 31, 2020, we had awards outstanding under the 2010 Plan.

As of the end of fiscal year 2020, we had 8,305,985 shares of our common stock issuable upon the exercise of outstanding options granted pursuant to the 2010 Plan.

The securities available under the Plan for issuance and issuable pursuant to exercises of outstanding options may be adjusted in the event of a change in outstanding stock by reason of stock dividend, stock splits, reverse stock splits, etc.

As of end of fiscal year 2020, there were warrants outstanding to purchase 133,334 shares of common stock at a weighted average exercise price of $0.001, none of which were granted pursuant to the 2008 Plan or the 2010 Plan.

compensation plans approved by security holders

compensation plans not approved by stockholders

During the year ended December 31, 2021, we had awards outstanding under

the 2010 Plan.

As of the end of fiscal year 2021, we had 185,309 shares of our common stock issuable upon the exercise of outstanding

options granted pursuant to the 2010 Plan.

The securities available under the Plan for issuance and issuable pursuant to exercises of

outstanding options may be adjusted in the event of a change in outstanding stock by reason of stock dividend, stock splits, reverse stock

As of end of fiscal year 2021, there were warrants outstanding to purchase 3,333 shares of common stock at a weighted average

exercise price of $0.40, none of which were granted pursuant to the 2008 Plan or the 2010 Plan.

The 2010 Plan expired on October 21, 2020.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The Board of Directors has determined,

after considering all the relevant facts and circumstances, that during the fiscal year ended December 31, 2020 each of Messrs.

Hoffman, Coghlan, Stein, Correll, Maglione and Grover were independent directors, as that term is defined in the federal securities laws

and the Nasdaq Marketplace Rules.

On March 8, 2021, our Board and stockholders owning in excess of majority of our outstanding

voting securities approved and adopted the 2021 Stock Incentive Plan (the “2021 Plan”).

Pursuant to the terms of the 2021

Plan we can grant stock options, restricted stock unit awards, and other awards at levels determined appropriate by our Board and/or compensation

The 2021 Plan also allows us to utilize a broad array of equity incentives and performance cash incentives in order to secure

and retain the services of our employees, directors and consultants, and to provide long-term incentives that align the interests of our

employees, directors, and consultants with the interests of our stockholders.

An aggregate of 375,000 shares of our common stock may be

issued under the 2021 Plan, subject to equitable adjustment in the event of future stock splits, and other capital changes.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR

The Board of Directors has determined, after considering

all the relevant facts and circumstances, that during the fiscal year ended December 31, 2021, each of Messrs.

Argen, Hoffman, Coghlan,

Stein, Correll, Maglione, and Grover were independent directors, as that term is defined in the federal securities laws and the Nasdaq

Marketplace Rules.

On April 1, 2018, the Company

entered into an equipment lease agreement with Systems Trading Inc.

(“Systems Trading”), a company for which Mr.

Schwartz, our President and Director, serves as the Chief Executive Officer and President (“Systems Trading”) to refinance

(“Systems Trading”), a company for which Mr.

Schwartz, our President and Director, serves as the Chief Executive Officer and President (“Systems Trading”) to refinance

all leases into one lease.

3 unchanged sentences

The term of the lease ends April 16, 2022.

Systems Trading is owned and operated by

the Company’s President, Hal Schwartz.

Systems Trading is owned and operated by the

Company’s President, Harold Schwartz.

On January 1, 2019, the Company

3 unchanged sentences

The term of the lease ends December 31, 2023.

On April 1, 2019, the Company

entered into two equipment lease agreements with Systems Trading to add new data center equipment.

On April 1, 2019, the Company entered

into two equipment lease agreements with Systems Trading to add new data center equipment.

The first lease calls for monthly payments

12 unchanged sentences

ends January 1, 2023.

On March 4, 2021, the Company

entered into a new equipment lease agreement with Systems Trading effective April 1, 2021.

This lease obligation is payable to Systems

Trading with monthly installments of $1,566.82 and expires on March 31, 2024.

On March 4, 2021, the Company entered

into a new equipment lease agreement with Systems Trading effective April 1, 2021.

This lease obligation is payable to Systems Trading

with monthly installments of $1,566.82 and expires on March 31, 2024.

The lease carries an interest rate of 8%.

The Company received funds of

$37,954 and $12,794 during the years ended December 31, 2020 and 2019, respectively from Nexxus Capital LLC, a company owned by Charles

Piluso and Harold Schwartz.

Nexxus Capital LLC was formed to purchase equipment and provide equipment leases to the Company’s customers.

The Company received funds of $37,954 and $12,794

during the years ended December 31, 2021 and 2020, respectively from Nexxis Capital LLC, a company owned by Charles Piluso and Harold

Nexxis Capital LLC was formed to purchase equipment and provide equipment leases to the Company’s customers.

Except as disclosed herein and

under the section titled “Executive Compensation,”

there were no related party transactions during the two year’s ended

December 31, 2020 or the current year.

under the section titled “Executive Compensation,” there were no related party transactions during the two years ended December 31,

2020 or the current year.

On December 11, 2019, we issued

3 unchanged sentences

(ii) each of Messrs.

Kempster, Coghlan, Argen, Hoffman, Stein and Maglione options to purchase 100,000 shares of common stock having an

exercise price of $.54 per share, vesting over three years on the one, two and three year anniversary of the grant date and terminating

Kempster, Coghlan, Argen, Hoffman, Stein and Maglione options to purchase 100,000 shares of common stock having

an exercise price of $.54 per share, vesting over three years on the one, two and three year anniversary of the grant date and terminating

on December 10, 2029;

3 unchanged sentences

PRINCIPAL ACCOUNTANT FEES AND SERVICES

following table sets forth the aggregate audit related fees including expenses billed to us for the years ended December

31, 2020 and 2019 by Rosenberg Rich Baker Berman & Company P.A.

The following table sets forth

the aggregate audit-related fees including expenses billed to us for the years ended December 31, 2021 and 2020 by Rosenberg Rich

Baker Berman & Company P.A.

Audit Fees and Expenses (1)

fees and expenses were for professional services rendered for the audit and reviews of the consolidated financial statements

of the Company, professional services rendered for issuance of consents and assistance with review of documents filed with

Audit Committee has adopted procedures for pre-approving all audit and non-audit services provided by the independent registered

public accounting firm, including the fees and terms of such services.

These procedures include reviewing detailed back-up documentation

for audit and permitted non-audit services.

The documentation includes a description of, and a budgeted amount for, particular

categories of non-audit services that are recurring in nature and therefore anticipated at the time that the budget is submitted.

Audit Committee approval is required to exceed the pre-approved amount for a particular category of non-audit services and to

engage the independent registered public accounting firm for any non-audit services not included in those pre-approved amounts.

For both types of pre-approval, the Audit Committee considers whether such services are consistent with the rules on auditor

independence promulgated by the SEC and the PCAOB.

The Audit Committee also considers whether the independent registered public

accounting firm is best positioned to provide the most effective and efficient service, based on such reasons as the auditors

familiarity with our business, people, culture, accounting systems, risk profile, and whether the services enhance our ability

to manage or control risks, and improve audit quality.

The Audit Committee may form and delegate pre-approval authority to subcommittees

consisting of one or more members of the Audit Committee, and such subcommittees must report any pre-approval decisions to the

Audit Committee at its next scheduled meeting.

All of the services provided by the independent registered public accounting firm

were pre-approved by the Audit Committee.

audit committee pre-approves all services provided by our independent auditors.

All of the above services and fees were reviewed

and approved by the entire audit committee before the respective services were rendered.

fees and expenses were for professional services rendered for the audit and reviews of the consolidated financial statements of the Company,

professional services rendered for issuance of consents and assistance with review of documents filed with the SEC.

The Audit Committee has adopted

procedures for pre-approving all audit and non-audit services provided by the independent registered public accounting firm, including

the fees and terms of such services.

These procedures include reviewing detailed back-up documentation for audit and permitted non-audit

The documentation includes a description of, and a budgeted amount for, particular categories of non-audit services that are

recurring in nature and therefore anticipated at the time that the budget is submitted.

Audit Committee approval is required to exceed

the pre-approved amount for a particular category of non-audit services and to engage the independent registered public accounting firm

for any non-audit services not included in those pre-approved amounts.

For both types of pre-approval, the Audit Committee considers whether

such services are consistent with the rules on auditor independence promulgated by the SEC and the PCAOB.

The Audit Committee also

considers whether the independent registered public accounting firm is best positioned to provide the most effective and efficient service,

based on such reasons as the auditor’s familiarity with our business, people, culture, accounting systems, risk profile, and whether

the services enhance our ability to manage or control risks, and improve audit quality.

The Audit Committee may form and delegate pre-approval

authority to subcommittees consisting of one or more members of the Audit Committee, and such subcommittees must report any pre-approval

decisions to the Audit Committee at its next scheduled meeting.

All of the services provided by the independent registered public accounting

firm were pre-approved by the Audit Committee.

Our audit committee pre-approves

all services provided by our independent auditors.

All of the above services and fees were reviewed and approved by the entire audit committee

before the respective services were rendered.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

Exhibits and Financial Statement Schedules

following financial statements are included in this Annual Report for the fiscal years ended December 31, 2020 and

of Independent Registered Public Accounting Firm

Balance Sheets as of December 31, 2020 and 2019

Statements of Operations for the years ended December 31, 2020 and 2019

Statements of Cash Flows for the years ended December 31, 2020 and 2019

Statements of Stockholders Equity for the years ended December 31, 2020 and 2019

Consolidated Financial Statements

financial statement schedules have been omitted as the required information is either inapplicable or included in the Consolidated

Financial Statements or related notes.

exhibits set forth in the accompanying exhibit index below are either filed as part of this report or are incorporated herein

by reference:

of Incorporation (incorporated by reference to Exhibit 3.1 to the Registrants Registration Statement on Form SB-2 (File

The following financial

statements are included in this Annual Report for the fiscal years ended December 31, 2021 and 2020:

Report of Independent Registered

Public Accounting Firm

Consolidated Balance Sheets

as of December 31, 2021 and 2020.

Consolidated Statements of

Operations for the years ended December 31, 2021 and 2020.

Consolidated Statements of

Cash Flows for the years ended December 31, 2021 and 2020.

Consolidated Statements of

Stockholders’ Equity for the years ended December 31, 2021 and 2020.

Notes to Consolidated

Financial Statements.

All financial statement

schedules have been omitted as the required information is either inapplicable or included in the Consolidated Financial Statements or

related notes.

The exhibits set

forth in the accompanying exhibit index below are either filed as part of this report or are incorporated herein by reference:

EXHIBIT INDEX

of Incorporation (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form SB-2 (File No.

filed on December 19, 2007).

of Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.1 to Form 8-K (File No.

333-148167) filed

on October 24, 2008).

Certificate of Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.1 to Form 8-K (File No.

333-148167) filed on October 24, 2008).

Certificate of Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.1 on Form 8-K (File No.

333-148167) filed

on January 9, 2009).

(incorporated by reference to Exhibit 3.2 to the to the Registrants Registration Statement on Form SB-2 (File No.

333-148167) filed on January 9, 2009).

Bylaws (incorporated by reference to Exhibit 3.2 to the to the Registrant’s Registration Statement on Form SB-2 (File No.

333-148167) filed on December 19, 2007).

Bylaws (incorporated by reference to Exhibit 3.2 to Form 8-K (File No.

Amended Bylaws (incorporated by reference to Exhibit 3.2 to Form 8-K (File No.

333-148167) filed on October 24, 2008).

of Certificate of Amendment to the Articles of Incorporation (incorporated by reference to Appendix A to the Information Statement

on Schedule 14C (File No.

Form of Certificate of Amendment to the Articles of Incorporation (incorporated by reference to Appendix A to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated October 7, 2008 (incorporated

by reference to Appendix C to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and

Exchange Commission on March 8, 2021).

of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles

of Incorporation dated October 7, 2008 (incorporated by reference to Appendix C to the Information Statement on Schedule 14C

Form of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated October 7, 2008 (incorporated by reference to Appendix C to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated October 16, 2008 (incorporated

by reference to Appendix D to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and

Exchange Commission on March 8, 2021).

of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles

of Incorporation dated October 16, 2008 (incorporated by reference to Appendix D to the Information Statement on Schedule

14C (File No.

Form of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated October 7, 2008 (incorporated by reference to Appendix C to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated January 6, 2009 (incorporated

by reference to Appendix E to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and

Exchange Commission on March 8, 2021).

of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles

of Incorporation dated January 6, 2009 (incorporated by reference to Appendix E to the Information Statement on Schedule 14C

Form of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated October 16, 2008 (incorporated by reference to Appendix D to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated June 24, 2009 (incorporated

by reference to Appendix F to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and

Exchange Commission on March 8, 2021).

of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles

of Incorporation dated June 24, 2009 (incorporated by reference to Appendix F to the Information Statement on Schedule 14C

Form of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated October 16, 2008 (incorporated by reference to Appendix D to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

of Designations, Preferences and Rights of Series A Preferred Stock of Data Storage Corporation (incorporated by reference

to Appendix F to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission

on March 8, 2021).

Exchange Agreement, dated October 20, 2008, by and among Euro Trend Inc., Data Storage Corporation and the shareholders of

Data Storage Corporation named on the signature page thereto (incorporated by reference to Exhibit 10.1 to Form 8-K (File

Form of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated January 6, 2009 (incorporated by reference to Appendix E to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

Form of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated January 6, 2009 (incorporated by reference to Appendix E to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

Form of Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated June 24, 2009 (incorporated by reference to Appendix F to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

Form of Certificate of Validation and Ratification of the Certificate of Correction to the Certificate of Amendment to the Articles of Incorporation dated June 24, 2009 (incorporated by reference to Appendix F to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

Certificate of Designations, Preferences and Rights of Series A Preferred Stock of Data Storage Corporation (incorporated by reference to Appendix F to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

Share Exchange Agreement, dated October 20, 2008, by and among Euro Trend Inc., Data Storage Corporation and the shareholders of Data Storage Corporation named on the signature page thereto (incorporated by reference to Exhibit 10.1 to Form 8-K (File No.

333-148167) filed on October 24, 2008).

Exchange Agreement, dated October 20, 2008, by and among, Euro Trend Inc., Data Storage Corporation and the shareholders of

Data Storage Corporation named on the signature page thereto (incorporated by reference to Exhibit 10.1 to Form 8-K/A (File

333-148167) filed on June 29, 2009) .

Exchange Agreement, dated October 20, 2008, by and among, Euro Trend Inc., Data Storage Corporation and the shareholders of Data Storage

Corporation named on the signature page thereto (incorporated by reference to Exhibit 10.1 to Form 8-K/A (File No.

333-148167) filed

on June 29, 2009).

Storage Corporation 2010 Incentive Award Plan (incorporated by reference to Exhibit 10.1 on Form S-8/A (File No.

filed on October 25, 2010).

and Restated Data Storage Corporation 2010 Incentive Award Plan (incorporated by reference to Exhibit 10.1 to Form 8-K (File

333-169042) filed on

October 25, 2010).

and Restated Data Storage Corporation 2010 Incentive Award Plan (incorporated by reference to Exhibit 10.1 to Form 8-K (File No.

filed on April 26, 2012).

Storage Corporation 2021 Stock Incentive Plan (incorporated by reference to Appendix B to the Information Statement on Schedule

14C (File No.

Data Storage Corporation 2021 Stock Incentive Plan (incorporated by reference to Appendix B to the Information Statement on Schedule 14C (File No.

001-35384) filed with the Securities and Exchange Commission on March 8, 2021).

of Securities.

Purchase Agreement by and between ABC Services Inc., and Data Storage Corporation as of October 25, 2016 (incorporated by

reference to Exhibit 10.1 to Form 8K filed on October 31, 2016).

Purchase Agreement by and between ABC Services II Inc., and Data Storage Corporation as of October 25, 2016 (incorporated

by reference to Exhibit 10.2 to Form 8K (File No.

Representative’s Warrant dated May 18, 2021 (incorporated by reference to Exhibit 4.1 to Form 8-K (File No.

001-35384) filed on May 18, 2021).

Form of Common Stock Warrant (incorporated by reference to Exhibit 4.2 to Form 8-K (File No.

001-35384) filed on May 18, 2021).

Warrant Agency Agreement, dated May 18, 2021, by and between the Company and VStock Transfer LLC (incorporated by reference to Exhibit 4.3 to Form 8-K (File No.

001-35384) filed on May 18, 2021).

Form of Warrant (incorporated by reference to Exhibit 4.1 to Form 8-K (File No.

001-35384) filed on July 20, 2021).

Description of Securities

Asset Purchase Agreement by and between ABC Services Inc., and Data Storage Corporation as of October 25, 2016 (incorporated by reference to Exhibit 10.1 to Form 8K filed on October 31, 2016).

Asset Purchase Agreement by and between ABC Services II Inc., and Data Storage Corporation as of October 25, 2016 (incorporated by reference to Exhibit 10.2 to Form 8K (File No.

001-35384) filed on October 31, 2016).

of Stockholders Agreement by and between Data Storage Corporation, Nexxis Inc., and John Camello dated November 13, 2017 (incorporated

by reference to Exhibit 10.23 to Form 10Q (File No.

Form of Stockholders Agreement by and between Data Storage Corporation, Nexxis Inc., and John Camello dated November 13, 2017 (incorporated by reference to Exhibit 10.23 to Form 10Q (File No.

001-35384) filled November 19, 2018).

of Employment Agreement between Data Storage Corporation, Nexxis Inc., and John Camello dated November 13, 2017 (incorporated

by reference to Exhibit 10.23 to Form 10-Q (File No.

Form of Employment Agreement between Data Storage Corporation, Nexxis Inc., and John Camello dated November 13, 2017 (incorporated by reference to Exhibit 10.23 to Form 10-Q (File No.

001-35384) filed November 19, 2018).

Lease Agreement between Data Storage Corporation and Systems Trading, Inc.

Buyout Lease Agreement between Data Storage Corporation and Systems Trading, Inc.

dated March 15, 2018.

Lease Agreement between Data Storage Corporation and Systems Trading, Inc.

FMV Lease Agreement between Data Storage Corporation and Systems Trading, Inc.

dated September 14, 2018.

Lease Agreement DSC003 between Data Storage Corporation and Systems Trading, Inc.

Buyout Lease Agreement DSC003 between Data Storage Corporation and Systems Trading, Inc.

dated December 18, 2018.

Lease Agreement DSC004 between Data Storage Corporation and Systems Trading, Inc.

Buyout Lease Agreement DSC004 between Data Storage Corporation and Systems Trading, Inc.

dated December 18, 2018.

1 to Lease DSC003 between Data Storage Corporation and Systems Trading, Inc.

Addendum 1 to Lease DSC003 between Data Storage Corporation and Systems Trading, Inc.

dated March 20, 2019.

3 unchanged sentences

dated November 12, 2019.

and Plan of Merger by and between Data Storage Corporation and Flagship Solutions, LLC dated February 4, 2021 (incorporated

by reference to Exhibit 10.1 to Form 8-K (File No.

Agreement and Plan of Merger by and between Data Storage Corporation and Flagship Solutions, LLC dated February 4, 2021 (incorporated by reference to Exhibit 10.1 to Form 8-K (File No.

001-35384) filed on February 10, 2021).

1 unchanged sentence

001-35384) filed on February 16, 2021).

Lease Agreement DSC007 between Data Storage Corporation and Systems Trading, Inc.

Buyout Lease Agreement DSC007 between Data Storage Corporation and Systems Trading, Inc.

dated March 4, 2021.

of Subsidiaries of Data Storage Corporation (incorporated by reference to Exhibit 21.1 to the Registration Statement on Form

S-1 (File No.

Employment Agreement with Mark Wyllie (incorporated by reference to Exhibit 10.2 to Form 8-K (File No.

001-35384) filed on June 3, 2021).

Offer Letter entered into between Data Storage Corporation and Chris H.

Panagiotakos (incorporated herein by reference to Exhibit 10.14 to the Company’s Registration Statement on Form S-1 as filed with the Securities and Exchange Commission on April 28, 2021 (File Number 333-253056)).

Form of Securities Purchase Agreement dated July 19, 2021 between Data Storage Corporation and certain purchasers (incorporated by reference to Exhibit 10.1 to Form 8-K (File No.

001-35384) filed on July 20, 2021).

Form of Placement Agency Agreement dated July 19, 2021 between Data Storage Corporation and Maxim Group LLC (incorporated by reference to Exhibit 10.2 to Form 8-K (File No.

001-35384) filed on July 20, 2021).

of Subsidiaries of Data Storage Corporation (incorporated by reference to Exhibit 21.1 to the Registration Statement on Form S-1 (File

333-179396) filed on February 6, 2012).

of Rosenberg Rich Baker Berman P.A., Independent Registered Accounting Firm

Certification of President, Chief Executive Officer, Chief Financial Officer, Chairman of the Board of Directors Pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Exchange Act.

Certification of President, Chief Executive Officer, Chief Financial Officer, Chairman of the Board of Directors Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Consent of Rosenberg Rich Baker Berman P.A., Independent Registered Accounting Firm

Certification of Principal Executive Officer Pursuant to Exchange Act Rule 13a-14(a), As adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of Principal Financial Officer Pursuant to Exchange Act Rule 13a-14(a), As adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of Principal Executive Officer pursuant to 18 U.S.C.

Section 1350, As adopted Pursuant to Section 906 of the Sarbanes-Oxley Act 2002

Certification of Principal Financial Officer pursuant to 18 U.S.C.

Section 1350, As adopted Pursuant to Section 906 of the Sarbanes-Oxley Act 2002

Filed herewith

# Indicates management contract or compensatory plan.

to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report

to be signed on its behalf by the undersigned, there unto duly authorized.

STORAGE CORPORATION

Executive Officer

Financial Officer

Executive Officer

Financial Officer

Accounting Officer)

Item16 Form 10-K Summary

Not applicable.

Pursuant to the requirements of Section 13 or 15(d)

of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, there

unto duly authorized.

/s/ Charles M.

Chief Executive Officer

March 31, 2021

Know all persons by these presents

that each individual whose signature appears below constitutes and appoints Charles M.

Piluso, our Chief Executive Officer and Chief Financial

Officer as a true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him and in his name,

place and stead, in any and all capacities, to (i) act on, sign and file with the Securities and Exchange Commission any and all amendments

to this Report together with all schedules and exhibits thereto, (ii) act on, sign and file with the Securities and Exchange Commission

any and all exhibits to this Report and any and all exhibits and schedules thereto, (iii) act on, sign and file any and all such certificates,

notices, communications, reports, instruments, agreements and other documents as may be necessary or appropriate in connection therewith

and (iv) take any and all such actions which may be necessary or appropriate in connection therewith, granting unto such agent, proxy

and attorney-in-fact, full power and authority to do and perform each and every act and thing necessary or appropriate to be done, as

fully for all intents and purposes as he might or could do in person, and hereby approving, ratifying and confirming all that such agent,

proxy and attorney-in-fact, or any of his or their substitute or substitutes may lawfully do or cause to be done by virtue hereof.

to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf

of the registrant and in the capacities and on the dates indicated.

Executive Officer,

Financial Officer,

Executive Officer,

Financial Officer and

Accounting Officer)

(Principal Executive Officer)

/s/ Chris Panagiotakos

Chief Financial Officer (Principal Financial Officer

March 31, 2021

Chris Panagiotakos

and Principal Accounting Officer)

Harold Schwartz

President, Director

March 31, 2021

Harold Schwartz

/s/ Thomas Kempster

Executive Vice President of Strategic Development, Director

March 31, 2021

Thomas Kempster

Vice President, Director

/s/ John Argen

March 31, 2021

/s/ Joseph Hoffman

March 31, 2021

Joseph Hoffman

Lawrence Maglione

March 31, 2021

Lawrence Maglione

/s/ Matthew Grover

March 31, 2021

Matthew Grover

/s/ Todd Correll

March 31, 2021

/s/ Mark Wyllie

Executive Vice President, Director

March 31, 2021

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures