Business Context and Reporting Period
This Form 8-K Current Report was filed by Data Storage Corporation on December 13, 2016. The filing discloses a corporate governance change involving the appointment of a new officer and director.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on personnel appointments and related transaction history rather than financial performance.
Material Changes
- Appointment: Thomas Kempster was appointed as Secretary and a Director of the Company on December 13, 2016.
- Related Transaction: The appointment follows an Asset Purchase Agreement closed on October 25, 2016, between the Company and ABC Services Inc. (ABC). The Company acquired assets from ABC in exchange for 64,669,936 shares of common stock.
- Ownership: Mr. Kempster owns 32,334,968 of the shares issued in the transaction.
Management Commentary and Risks
Management highlights Mr. Kempster's background as a veteran IT entrepreneur with over 20 years of experience as President of ABC Services Inc. The filing states there are no undisclosed understandings or arrangements regarding his appointment. It confirms that, aside from the ABC transactions, Mr. Kempster has no family relationships with other directors or officers and has not had material interests in other transactions exceeding $120,000.
Investor Verification Checklist
- Verify the total number of shares outstanding post-issuance to assess dilution from the 64,669,936 shares issued to ABC.
- Confirm the specific assets acquired from ABC Services Inc. in the October 2016 transaction.
- Review the Company's subsequent filings to determine if the acquired assets have generated revenue or improved operational metrics.
- Check for any related party transaction disclosures regarding the valuation of the assets exchanged for stock.