Data Storage Corp
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
DTST$2.63+9.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001731122-26-000732
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001731122-26-001066
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 69 previous paragraphs and 81 current paragraphs.
43 unchanged; 23 reworded; 9 added; 3 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
ATM Offering
Current report
On May 26, 2026, we entered into an Equity Distribution Agreement (the “Agreement”), with Maxim Group LLC (“Maxim”), pursuant to which we may offer and sell, from time to time, through Maxim, as sales agent or principal, shares of our common stock, $0.001 par value per share (the “Common Stock”). The terms and conditions of the Agreement are substantially the same as the Equity Distribution Agreement, dated July 18, 2024, by and between the Company and Maxim (the “Original Agreement”).
Current report
Subject to the terms and conditions of the Agreement, Maxim will use commercially reasonable efforts consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations and the rules of the Nasdaq Capital Market to sell shares from time to time based upon the Company’s instructions, including any price, time or size limits specified by the Company. Under the Agreement, Maxim may sell shares by any method deemed to be an “at the market” offering as defined in Rule 415 under the U.S. Securities Act of 1933, as amended, or any other method permitted by law, including in privately negotiated transactions. Maxim’s obligations to sell shares under the Agreement are subject to satisfaction of certain conditions, including the effectiveness of the Registration Statement and other customary closing conditions for transactions of this nature. The Company will pay Maxim a commission of 2.5% of the aggregate gross proceeds from each sale of shares and has agreed to provide Maxim with customary indemnification and contribution rights. The Company also agreed to reimburse Maxim for certain specified expenses in connection with entering into the Agreement in an amount not to exceed $25,000, in addition to $2,500 for Maxim’s legal fees on each Bringdown Date (as such term is defined in the Agreement).
Current report
The Company is not obligated to make any sales of Common Stock under the Agreement and no assurance can be given that the Company will sell any shares under the Agreement, or, if it does, as to the price or amount of shares that the Company will sell, or the dates on which any such sales will take place. The Agreement will terminate upon the earlier of: (i) the sale of all shares pursuant to the Agreement, or (ii) termination of the Agreement as provided therein.
Current report
Offers and sales of shares of Common Stock by the Company, if any, under the Agreement, will be made through a prospectus, dated July 26, 2024 and an accompanying base prospectus, dated July 26, 2024, contained therein (the “ATM Prospectus”), which ATM Prospectus forms a part of the Company’s shelf registration statement on Form S-3 (File 333-280881), initially filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”) on July 18, 2024 (the “Registration Statement”) and declared effective by the SEC on July 26, 2024. The ATM Prospectus relates to the offering of up to $10,600,000 of shares of the Company’s Common Stock. The Company makes no assurances as to the continued effectiveness of the Registration Statement.
Current report
(Loss) income from discontinued operations, net of tax. For the three months ended June 30, 2026, the Company recognized a pre-tax loss of $72,493 ($49,684, net of a $22,809 tax benefit) related to the sale of its Cloud Solutions Business. The activity during the three months consisted of incremental taxes and fees incurred during the period directly related to the sale. For the three months ended June 30, 2025, income from the operations of the CloudFirst Business, net of tax, was $115,532.
Current report
Six months ended June 30, 2026, as compared to June 30, 2025
Current report
Selling, general and administrative expenses
Current report
Interest income. Interest income for the six months ended June 30, 2026, was $199,800, compared to $224,173 for the six months ended June 30, 2025.
Removed paragraphs (3)
Previous report
We recently announced our plan to target AI continuity infrastructure through the establishment of a new wholly owned subsidiary, Sovereign AI Solutions (“SaiS”). SaiS is being developed as a purpose-built AI Continuity Control Plane for regulated industries designed to support recovery, validation, and compliance for sovereign AI and AI Factory environments across sectors such as healthcare, financial services, and insurance.
Previous report
Sales and Gross Profit
Previous report
On May 7, 2026, the Company and the buyer of the Cloud Solutions Business (the “Buyer”) finalized closing date debt and working capital adjustments, and as a result, the Company recorded $225,937 in consideration due from the Buyer, which is included as a component of Gain on sale of discontinued operations, net of tax for the three months ended March 31, 2026. Additionally, in connection with the settlement, $500,000 will be released to the Company from escrow in the second quarter of 2026.
Reworded paragraphs (23)
Previous wording
Data Storage Corporation (“Data Storage,” “we,” “us,” “our” and the “Company”) has been a leading provider of multi-cloud hosting, fully managed cloud services, disaster recovery, cybersecurity, IT automation, and voice & data solutions for more than twenty years. Following the sale of our cloud solutions business on September 11, 2025, which consisted of the operations of our subsidiaries, CloudFirst Technologies Corporation and CloudFirst Europe Ltd., there has been a strategic shift in our operations. We continue to operate our subsidiary, Nexxis Inc. (“Nexxis”), a telecommunications and data solutions access company. We are currently focused on managing, building, expanding or acquiring synergistic technology companies that provide leading edge solutions that assist businesses and institutions improve their business processes. We are pursuing acquisitions of companies in complementary and high-growth technology sectors.
Current wording
Data Storage Corporation (“Data Storage,” “we,” “us,” “our” and the “Company”) has been a leading provider of multi-cloud hosting, fully managed cloud services, disaster recovery, cybersecurity, IT automation, and voice & data solutions for more than twenty years. Following the sale of our cloud solutions business on September 11, 2025, which consisted of the operations of our subsidiaries, CloudFirst Technologies Corporation and CloudFirst Europe Ltd., there has been a strategic shift in our operations. We continue to operate our subsidiary, Nexxis Inc. (“Nexxis”), a telecommunications and data solutions access company. We are currently focused on strategic investments and are actively evaluating how to build long-term shareholder value. The alternatives under study include: (i) the acquisition of one or more revenue-generating businesses, including potentially by means of a merger in which our public listing and balance sheet serve as the platform for a combined enterprise; and (ii) the study of new organic initiatives. These initiatives remain under study. No acquisition or merger agreement has been entered into, no transaction or new business initiative has been agreed or approved, and there can be no assurance that any will be completed or pursued.
Previous wording
On September 11, 2025, we closed the sale of the CloudFirst business, for which we received $38,068,463 in cash. This amount was based on a contractual base purchase price of $40,000,000, adjusted at closing for a $1,500,000 escrow deposit and $431,537 in net adjustments for estimated closing date debt and working capital. After taking into account selling expenses, estimated taxes on the sale, and other transaction costs, our net proceeds from the sale were $31,600,873.
Current wording
On September 11, 2025, we closed the sale of our cloud solutions business, which consisted of the operations of our subsidiaries, CloudFirst Technologies Corporation and CloudFirst Europe Ltd., including substantially all of the assets held by CloudFirst Technologies Corporation (the “CloudFirst Business”), for which we received $38,068,463 in cash. This amount was based on a contractual base purchase price of $40,000,000, adjusted at closing for a $1,500,000 escrow deposit and $431,537 in net adjustments for estimated closing date debt and working capital. After taking into account selling expenses, estimated taxes on the sale, and other transaction costs, our net proceeds from the sale were $31,600,873. On May 7, 2026, we finalized the post-closing adjustments with the purchaser of the Cloud Solutions Business, and as a result, we recorded $225,937 in additional consideration.
Previous wording
As part of our strategy to return value to our shareholders following the sale of the CloudFirst business, our Board of Directors (the “Board”) determined to engage in a tender offer (the “Tender Offer”) to repurchase from our shareholders up to 85% of our outstanding shares of common stock, par value $0.001 per share (“Common Stock”), using 85% of our cash on hand on the date of commencement of the Tender Offer, inclusive of the net sale proceeds received in connection with the sale of the CloudFirst business, net of certain expenses and taxes.
Current wording
As part of our strategy to return value to our shareholders following the sale of the CloudFirst Business, our Board of Directors (the “Board”) determined to engage in a tender offer (the “Tender Offer”) to repurchase from our shareholders up to 85% of our outstanding shares of Common Stock, using 85% of our cash on hand on the date of commencement of the Tender Offer, inclusive of the net sale proceeds received in connection with the sale of the CloudFirst Business, net of certain expenses and taxes.
Previous wording
On December 8, 2025, we commenced the Tender Offer to purchase up to 6,192,990 shares of Common Stock, representing approximately 83% of our issued and outstanding shares as of December 1, 2025, at the maximum aggregate purchase price for shares purchased in the Tender Offer of $32,203,548. The Tender Offer expired on January 12, 2026.
Current wording
On December 8, 2025, we commenced the Tender Offer to repurchase up to 6,192,990 shares of Common Stock, representing approximately 83% of our issued and outstanding shares as of December 1, 2025, at the maximum aggregate purchase price for shares purchased in the Tender Offer of $32,203,548. The Tender Offer expired on January 12, 2026.
Previous wording
In accordance with the terms and conditions of the Tender Offer, based on the final count, on January 15, 2026, we accepted for purchase 5,625,129 shares of Common Stock at a purchase price of $5.20 per share, for an aggregate cost of $29,250,671, excluding fees, excise taxes, and expenses relating to the Tender Offer. The shares accepted for purchase represent approximately 72.0% of the total number of shares of Common Stock outstanding as of December 8, 2025. Following payment for the tendered shares, we had 2,167,138 shares of Common Stock outstanding. After completing the Tender Offer and related payments, we retained over $10.0 million in cash. Included in the tendered shares were an aggregate of 895,876 shares of Common Stock tendered by our directors and officers.
Current wording
In accordance with the terms and conditions of the Tender Offer, based on the final count, on January 15, 2026, we accepted for repurchase 5,625,129 shares of Common Stock at a purchase price of $5.20 per share, for an aggregate cost of $29,250,671, excluding fees, excise taxes, and expenses relating to the Tender Offer. The shares accepted for repurchase represent approximately 72.0% of the total number of shares of Common Stock outstanding as of December 8, 2025. Following payment for, and our repurchase of, the tendered shares, we had 2,167,138 shares of Common Stock outstanding. Included in the tendered shares were an aggregate of 895,876 shares of Common Stock tendered by our directors and officers.
Previous wording
Sales from continuing operations were $346,707 for the three months ended March 31, 2026, an increase of $33,963, or 10.9%, compared to $312,744 in the prior year period. The increase was primarily attributable to continued growth in our Nexxis voice and data solutions business, driven by the addition of new customers and increased spending from existing customers. Revenue growth during the period reflects continued demand for our voice and data connectivity solutions and expansion of services within our existing customer base.
Current wording
Sales from continuing operations were $358,530 for the three months ended June 30, 2026, an increase of $30,579, or 9.3%, compared to $327,951 in the prior year period. The increase was primarily attributable to continued growth in our Nexxis voice and data solutions business, driven by the addition of new customers and increased spending from existing customers. Revenue growth during the period reflects continued demand for our voice and data connectivity solutions and expansion of services within our existing customer base.
Previous wording
In addition, revenue generated from existing customers increased year over year, reflecting higher utilization of our services and incremental service adoption. The Company also continued to diversify its customer base during the year.
Current wording
In addition, revenue generated from existing customers increased during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, reflecting higher utilization of our services and incremental service adoption. The Company also continued to diversify its customer base during the three months ended June 30, 2026.
Previous wording
Gross profit for the three months ended March 31, 2026 was $186,019, an increase of $45,242, or 32.1%, compared to $140,777 in the prior period. Our gross profit margin improved to 53.7% from 45.0% in the prior period, driven by favorable sales mix and operating leverage.
Current wording
Gross profit for the three months ended June 30, 2026 was $168,481, an increase of $30,299, or 21.9%, compared to $138,182 in the prior period. Our gross profit margin improved to 47.0% from 42.1% in the prior period, driven by favorable sales mix and operating leverage.
Previous wording
For the three months ended March 31, 2026, selling, general and administrative expenses increased $615,198, or 71.8%, to $1,472,113 from $856,915 for the three months ended March 31, 2025. The increase was primarily driven by a $424,808, or 311.0%, increase in non-cash stock-based compensation as a result of grants to certain employees during the three months ended March 31, 2026. Professional fees increased $134,733, or 73.6%, attributable to higher fees paid relating to legal and consulting services during the period.
Current wording
For the three months ended June 30, 2026, selling, general and administrative expenses increased $361,607, or 33.2%, to $1,450,551 from $1,088,944 for the three months ended June 30, 2025. The increase was primarily driven by a $328,429, or 99.1%, increase in non-cash stock-based compensation as a result of grants to certain executives and employees during the first quarter of 2026. Professional fees increased $58,252, or 26.2%, attributable to higher fees paid relating to legal and consulting services during the period.
Previous wording
Loss from continuing operations, net of tax. Loss from continuing operations, net of tax was $768,258 for the three months ended March 31, 2026, compared to a loss of $595,232 in the prior year period. The higher loss was primarily driven by an increase in non-cash stock-based compensation expense.
Current wording
Loss from continuing operations, net of tax. Loss from continuing operations, net of tax was $1,175,376 for the three months ended June 30, 2026, compared to a loss of $847,495 in the prior year period. The higher loss was primarily driven by an increase in non-cash stock-based compensation expense.
Previous wording
Interest Income. Interest income for the three months ended March 31, 2026, was $118,385, compared to $120,906 for the three months ended March 31, 2025.
Current wording
Interest income. Interest income for the three months ended June 30, 2026, was $81,415, compared to $103,267 for the three months ended June 30, 2025.
Previous wording
Other Income. Other income was $119,215 for the three months ended March 31, 2026, which represents the non-cash adjustments related to the change in fair value of the warrant liability offset by the change in fair value of equity investment during the period.
Current wording
Other (expense) income. Other (expense) income was income of $80,857 for the six months ended June 30, 2026, which represents the non-cash adjustments related to the change in fair value of the warrant liability partially offset by the change in fair value of equity investment during the period.
Previous wording
Income from discontinued operations, net of tax. For the three months ended March 31, 2026, the gain on sale of discontinued operations was $148,991, primarily related to the final post-closing adjustment of $225,937, partially offset by taxes and fees directly related to the sale. For the three months ended March 31, 2025, pre-tax income from the operations of the CloudFirst business was $621,620.
Current wording
(Loss) income from discontinued operations, net of tax. For the six months ended June 30, 2026, the Company recognized a pre-tax gain of $130,845 ($99,307, net of a $31,538 tax provision) related to the sale of its Cloud Solutions Business. The activity during the three months consisted of incremental taxes and fees incurred during the period directly related to the sale, offset by the final post-closing adjustments of $225,937. For the six months ended June 30, 2025, income from the operations of the CloudFirst Business, net of tax, was $737,152.
Previous wording
The Company’s working capital (excluding the amounts payable to the purchaser of the CloudFirst business included as discontinued operations and income taxes payable) in the Company’s continuing operations was $11,052,387 on March 31, 2026, decreasing by $30,732,066 from $41,784,453 at December 31, 2025. The decrease was primarily driven by the sale of marketable securities during the period of $29,560,400, which was largely used for the purchase of shares and payment of costs totaling $29,528,957 in connection with the Tender Offer. The marketable securities utilized for the Tender Offer were originally purchased using net proceeds from the sale of the CloudFirst business in the second half of the year ended December 31, 2025.
Current wording
The Company’s working capital (excluding the amounts payable to the purchaser of the CloudFirst Business included as discontinued operations and excise taxes payable) in the Company’s continuing operations was $10,261,306 on June 30, 2026, decreasing by $31,523,147 from $41,784,453 at December 31, 2025. The decrease was primarily driven by the sale of marketable securities during the period of $30,205,420, which was largely used for the purchase of shares and payment of costs totaling $29,528,957 in connection with the Tender Offer. The marketable securities utilized for the Tender Offer were originally purchased using net proceeds from the sale of the CloudFirst Business in the second half of the year ended December 31, 2025.
Previous wording
On December 8, 2025, we commenced a fixed price tender offer to purchase up to 6,192,990 shares of our Common Stock at a maximum aggregate purchase price of $32.2 million. The Tender Offer expired on January 12, 2026, and on January 15, 2026, we accepted for purchase 5,625,129 shares of Common Stock at $5.20 per share, for an aggregate purchase price of $29,250,671, excluding fees, excise taxes, and expenses relating to the Tender Offer. Following payment for the tendered shares, we had 2,167,138 shares outstanding and retained over $10.0 million in cash.
Current wording
On December 8, 2025, we commenced a fixed price tender offer to repurchase up to 6,192,990 shares of our Common Stock at a maximum aggregate purchase price of $32.2 million. The Tender Offer expired on January 12, 2026, and on January 15, 2026, we accepted for repurchase 5,625,129 shares of Common Stock at $5.20 per share, for an aggregate purchase price of $29,250,671, excluding fees, excise taxes, and expenses relating to the Tender Offer. Following payment for, and our repurchase of, the tendered shares, we had 2,167,138 shares outstanding and retained over $10.0 million in cash.
Previous wording
We believe our current cash position and expected cash flows from operations will be sufficient to fund working capital needs, capital expenditures, and operating commitments for at least the next 12 months from the date of the filing of this Quarterly Report on Form 10-Q.
Current wording
As of June 30, 2026, we had cash of $1,270,691 (including escrow funds receivable), marketable securities of $9,008,914, and working capital of $10,261,306 (excluding excise taxes payable). We believe our current cash position of approximately$9.0 million (including escrowed funds), as of August 13, 2026, proceeds from the sale of marketable securities, and our expected cash flows from operations will be sufficient to fund working capital needs, capital expenditures, and operating commitments for at least the next 12 months from the date of the filing of this Quarterly Report on Form 10-Q.
Previous wording
Cash Flows for the three months ended March 31, 2026, as compared to March 31, 2025
Current wording
Cash Flows for the six months ended June 30, 2026, as compared to June 30, 2025
Previous wording
Cash used in operating activities of continuing operations was $1,778,062 for the three months ended March 31, 2026, compared to $137,528 for the prior year period. The cash used in 2026 was primarily driven by the loss from continuing operations, net of tax, of $768,258 and cash paid for income taxes of $1,024,137 related to the sale of the CloudFirst business during the year ended December 31, 2025.
Current wording
Cash used in operating activities of continuing operations was $2,644,827 for the six months ended June 30, 2026, compared to cash provided by operating activities of $224,386 for the prior year period. The cash used in 2026 was primarily driven by the loss from continuing operations, net of tax, of $1,943,634 and cash paid for income taxes of $1,711,787 primarily related to the sale of the CloudFirst Business during the year ended December 31, 2025.
Previous wording
Cash provided by investing activities of continuing operations was $29,432,287 for the three months ended March 31, 2026, compared to $852,938 for the prior year period. The cash provided in 2026 was driven by marketable securities, as reflected in purchases of $128,113 and sales of $29,560,400 during the period.
Current wording
Cash provided by investing activities of continuing operations was $29,995,210 for the six months ended June 30, 2026, compared to $749,671 for the prior year period. The cash provided in 2026 was driven by marketable securities, as reflected in purchases of $210,210 and sales of $30,205,420, originally purchased using proceeds from the sale of the CloudFirst Business in 2025, during the period.
Previous wording
Cash used in financing activities of continuing operations was $29,528,957 for the three months ended March 31, 2026, compared to $0 for the prior year period. The significant cash use in 2026 represents our purchase, on January 15, 2026, of 5,625,129 shares of Common Stock in the Tender Offer, at a purchase price of $5.20 per share, for an aggregate cost of $29,250,671, excluding fees, excise taxes, and expenses relating to the Tender Offer, using funds from sales of marketable securities. The repurchased shares are now held as treasury stock, as reflected in our unaudited financial statements attached to this Quarterly Report on Form 10-Q.
Current wording
Cash used in financing activities of continuing operations was $29,569,046 for the six months ended June 30, 2026, compared to cash provided by financing activities of $38,267 for the prior year period. The significant cash use in 2026 represents our purchase, on January 15, 2026, of 5,625,129 shares of Common Stock in the Tender Offer, at a purchase price of $5.20 per share, for an aggregate cost of $29,250,671, excluding fees, excise taxes, and expenses relating to the Tender Offer, using funds from sales of marketable securities. The repurchased shares are now held as treasury stock, as reflected in our unaudited financial statements attached to this Quarterly Report on Form 10-Q.
Previous wording
Cash used in discontinued operations was $1,080,162 for the three months ended March 31, 2025, which represents the net cash flows from the CloudFirst business.
Current wording
Cash used in discontinued operations was $1,481,048 for the six months ended June 30, 2025, which represents the net cash flows from the CloudFirst Business. There was no cash used in discontinued operations for the six months ended June 30, 2026.
Previous wording
To supplement the Company’s consolidated financial statements presented in accordance with GAAP and to provide investors with additional information regarding the Company’s financial results, the Company considers, and is including herein, Adjusted EBITDA, a Non-GAAP financial measure. The Company views Adjusted EBITDA as an operating performance measure and, as such, the Company believes that the GAAP financial measure most directly comparable to it is loss from continuing operations, net of tax. The Company defines Adjusted EBITDA as loss from continuing operations, net of tax adjusted for income taxes, interest and financing fees, depreciation, amortization, stock-based compensation, and other non-cash income and expenses. The Company believes that Adjusted EBITDA provides an important measure of operating performance because it allows management, investors, debt holders and others to evaluate and compare ongoing operating results from period to period by removing the impact of the Company’s asset base, any asset disposals or impairments, stock-based compensation and other non-cash income and expense items associated with its reliance on issuing equity-linked debt securities to fund its working capital.
Current wording
To supplement the Company’s consolidated financial statements presented in accordance with GAAP and to provide investors with additional information regarding the Company’s financial results, the Company considers, and is including herein, Adjusted EBITDA, a Non-GAAP financial measure. The Company views Adjusted EBITDA as an operating performance measure and, as such, the Company believes that the GAAP financial measure most directly comparable to it is loss from continuing operations, net of tax. The Company defines Adjusted EBITDA as loss from continuing operations, net of tax adjusted for income taxes, interest, depreciation, amortization, stock-based compensation, and other non-cash income and expenses. The Company believes that Adjusted EBITDA provides an important measure of operating performance because it allows management, investors, debt holders and others to evaluate and compare ongoing operating results from period to period by removing the impact of the Company’s asset base, any asset disposals or impairments, stock-based compensation and other non-cash income and expense items.
Previous wording
The following table shows the Company’s reconciliation of loss from continuing operations, net of tax to Adjusted EBITDA for the three months ended March 31, 2026, and 2025:
Current wording
The following table shows the Company’s reconciliation of loss from continuing operations, net of tax to Adjusted EBITDA for the three and six months ended June 30, 2026, and 2025:
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Other (expense) income. Other (expense) income was expense of $38,358 for the three months ended June 30, 2026, which represents the non-cash adjustment related to the change in fair value of equity investment during the period.
Current report — wording carried from elsewhere
Sales from continuing operations were $705,237 for the six months ended June 30, 2026, an increase of $64,542, or 10.1%, compared to $640,695 in the prior year period. The increase was primarily attributable to continued growth in our Nexxis voice and data solutions business, driven by the addition of new customers and increased spending from existing customers. Revenue growth during the period reflects continued demand for our voice and data connectivity solutions and expansion of services within our existing customer base.
Current report — wording carried from elsewhere
In addition, revenue generated from existing customers increased during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, reflecting higher utilization of our services and incremental service adoption. The Company also continued to diversify its customer base during the six months ended June 30, 2026.
Current report — wording carried from elsewhere
Gross profit for the six months ended June 30, 2026 was $354,500, an increase of $75,541, or 27.1%, compared to $278,959 in the prior period. Our gross profit margin improved to 50.3% from 43.5% in the prior period, driven by favorable sales mix and operating leverage.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, selling, general and administrative expenses increased $976,805, or 50.2%, to $2,922,664 from $1,945,859 for the six months ended June 30, 2025. The increase was primarily driven by a $753,237, or 160.9%, increase in non-cash stock-based compensation as a result of grants to certain executives and employees during first quarter of 2026. Professional fees increased $192,985, or 47.6%, attributable to higher fees paid relating to legal and consulting services during the period.
Current report — wording carried from elsewhere
Loss from continuing operations, net of tax. Loss from continuing operations, net of tax was $1,943,634 for the six months ended June 30, 2026, compared to a loss of $1,442,727 in the prior year period. The higher loss was primarily driven by an increase in non-cash stock-based compensation expense.