Business Context and Reporting Period
Data Storage Corporation (Nevada) filed a Form 8-K Current Report on September 7, 2012, regarding events occurring on that date and consummated on September 10, 2012. The filing details a material definitive agreement involving the issuance of equity securities to company directors.
Key Financial Metrics
This filing reports a specific capital raise transaction rather than periodic financial performance metrics. The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
- Shares Issued: 1,666,666 shares of Common Stock
- Price Per Share: $0.15
- Total Consideration Raised: $250,000
- Purchasers: John F. Coghlan and Clifford Stein (Directors)
Material Changes
The primary material change is the increase in outstanding common stock and the receipt of $250,000 in cash proceeds from the sale of unregistered securities. The transaction was executed via Stock Purchase Agreements dated September 7, 2012, and closed on September 10, 2012.
Guidance, Outlook, and Risks
The filing does not contain management commentary, forward-looking guidance, or specific risk factors beyond the standard disclosure of unregistered sales. The securities were issued in reliance upon exemptions from registration under Section 4(2) and Regulation D of the Securities Act of 1933.
Investor Verification Checklist
- Verify the total number of outstanding shares post-transaction to assess dilution impact.
- Confirm the use of the $250,000 proceeds in subsequent financial reports.
- Review the full text of Exhibits 2.1 and 2.2 for any restrictive covenants or vesting schedules attached to the shares purchased by directors.
- Check for any related party transaction disclosures in the company's most recent 10-K or 10-Q.