Business Context and Reporting Period
Data Storage Corporation filed this Form 8-K on May 5, 2021, to disclose preliminary unaudited results for the three months ended March 31, 2021. The company is incorporated in Nevada and operates from Melville, New York. The financial statements for this period are not yet finalized, and the figures provided are management estimates subject to significant adjustments upon the completion of the quarter-end close.
Key Financial Metrics
| Metric | Q1 2021 (Estimated) | Q1 2020 (Actual) |
|---|---|---|
| Sales | $2,450,000 - $2,600,000 | $2,098,710 |
| Gross Profit | $1,000,000 - $1,100,000 | $882,593 |
| Gross Margin | Approx. 40% - 42% | Approx. 42% |
| Cash Flow, Debt, Liquidity | Not provided in filing | Not provided in filing |
Material Changes
- Revenue Growth: Estimated sales for Q1 2021 represent an increase of approximately 16.7% to 23.9% compared to the prior year period.
- Gross Profit Expansion: Estimated gross profit for Q1 2021 shows an increase of approximately 13.2% to 24.7% year-over-year.
- Margin Stability: Gross margins remain relatively stable, with the estimated range for 2021 closely tracking the 42% margin achieved in 2020.
Guidance, Outlook, and Risks
Management Commentary: Management emphasizes that these figures are preliminary estimates based on current assumptions and are not a comprehensive statement of financial results. The independent registered public accounting firm has not audited or reviewed these estimates.
Outlook: The company expects to file its Form 10-Q containing the finalized unaudited financial statements in a timely fashion. Actual results may differ materially from these estimates due to significant judgments required during the financial close process.
Risks and Contingencies: The estimates are subject to significant business and economic conditions, competitive uncertainties, and contingencies beyond the company's control. Investors are cautioned against placing undue reliance on these preliminary figures.
Investor Verification Checklist
- Verify the final sales and gross profit figures in the upcoming Form 10-Q filing.
- Review the full risk factors in the Annual Report on Form 10-K for the year ended December 31, 2020.
- Monitor for any material adjustments to the preliminary estimates once the quarter-end close is finalized.
- Confirm the absence of audited assurance on the current estimates from the independent accounting firm.