Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY,
RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
The Company’s Common Stock trades on The Nasdaq
Capital Market under the symbol “DTST.”
Holders of the Company’s Common Stock
As of April 13, 2026, we had 23 shareholders of record
of the Company’s Common Stock, one of which was Cede & Co., a nominee for Depository Trust Company (“DTC”). All
the shares of the Company’s Common Stock held by brokerage firms, banks and other financial institutions as nominees for beneficial
owners are deposited into participant accounts at DTC and are therefore considered to be held or recorded by Cede & Co. as one stockholder.
Dividend Policy
The Company has not declared or paid dividends on
Common Stock since its formation and does not anticipate paying dividends in the foreseeable future. The declaration or payment of dividends,
if any, in the future, will be at the discretion of the Company’s Board of Directors and will depend on the then- current financial
condition, results of operations, capital requirements and other factors deemed relevant by the Board. Each share of Series A Preferred
Stock entitles its holder to receive cash dividends at a rate of ten percent (10%) per annum on the original issue price, compounding
annually, in preference to holders of Common Stock. Preferred dividends are accrued quarterly. No shares of Series A Preferred Stock are
outstanding, and no dividends have been paid to date since May 2021 when all of the then outstanding shares of Series A Preferred Stock
were converted into shares of the Company’s Common Stock.
Recent Sales of Unregistered Securities
The Company did not sell any equity securities during
the three months ended, or the fiscal year ended, December 31, 2025, that were not registered under the Securities Act, other than as
previously disclosed in its filings with the Securities and Exchange Commission (the “SEC”).
Issuer Purchases of Equity Securities
On December 8, 2025, we commenced a fixed-price issuer
tender offer to repurchase up to 6,192,990 shares of Common Stock at a per share price of $5.20, representing approximately 83% of
our issued and outstanding shares of Common Stock as of December 1, 2025, for a maximum aggregate purchase price of $32,203,548.
The Tender Offer expired on January 12, 2026. All shares purchased pursuant to the Tender Offer settled in January 2026.
In accordance with the terms and conditions of the
Tender Offer, and based on the final count, on January 15, 2026, we accepted for purchase 5,625,129 shares of Common Stock
at a fixed purchase price of $5.20 per share, for an aggregate cost of $29,250,971, excluding fees, excise taxes, and expenses related
to the Tender Offer. The shares purchased represent approximately 72.0% of the total number of shares of Common Stock
outstanding as of December 8, 2025. Following payment for all tendered shares, we had 2,167,138 shares of Common Stock
outstanding. After completing the Tender Offer and all related payments, we retained over $10.0 million in cash.
Other than routine shares withheld to satisfy tax-withholding
obligations upon vesting of equity awards, we did not repurchase any other shares during the quarter ended December 31, 2025
31
On January 14, 2026, our directors and officers tendered
the following number of shares of Common Stock beneficially owned by them in connection with the Tender Offer:
John Argen
57,207
Todd Correll
—
Matthew Grover
43,340
Thomas Kempster
881,472
Lawrence Maglione
24,752
Uwayne Mitchell
11,248
Charles Piluso
865,841
Nancy Stallone
11,248
Clifford Stein
280,850
Harold Schwartz
895,876
Securities Authorized for Issuance Under Equity Compensation Plans
See Part III, Item 12 “Equity Compensation
Plan Information” for certain information regarding our equity compensation plans.
ITEM 6. RESERVED