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New 8K out with more dilution on the way. Fixed price is .50, however there are nice price protections in place. Refer to the "Subsequent Equity Sales" section in the note and understand that this appears to be a floorless note. Looks like Jason is sacking a new group of shareholders. Surprise!, Surprise! Surprise! as Gomer would say.
8K Filing
https://www.otcmarkets.com/filing/html?id=16253877&guid=PJP-kaZlBdQtB3h
On December 7, 2022, Data443 Risk Mitigation, Inc....
... Pursuant to the Securities Purchase Agreement, the Company sold, and the Investor purchased, $750,000.00 in principal amount of unsecured convertible notes (the “Notes”) and warrants (the “Warrants”)....
...The Notes are convertible into shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), at a conversion price per share of $0.50, subject to adjustment under certain circumstances described in the Notes....
The Note
https://www.otcmarkets.com/filing/html?id=16253877&guid=PJP-kaZlBdQtB3h#ex4-1_htm
Upon the execution and delivery of this Note, the sum of $600,000.00 shall be remitted and delivered to, or on behalf of, the Company, and $150,000.00 shall be retained by the Holder through an OID (original issue discount) (the “OID”) to cover the Holder’s accounting fees, monitoring, and other non-legal transactional costs incurred in connection with the purchase and sale of this Note.
c) Subsequent Equity Sales.
....any shares of Common Stock and/or Common Stock Equivalents (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any securities issued or sold or deemed to have been issued or sold solely in connection with an Exempt Issuance) for a consideration per share (the “New Issuance Price”)less than a price equal to the Conversion Price in effect immediately prior to such issuance or sale or deemed issuance or sale (such Conversion Price then in effect is referred to herein as the “Applicable Price”) (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance Price;...
Sons of bitches at ATDS, besides others brought down this stock from $7 to .70c, this is post split high of 7 to now at .70c!..
And he just hit the Reset button on pps to .50, thru unregistered shares/convertible notes.
Looking at the market the past 18 months, I can’t decide if it’s the economy, or a tidal wave of sociopathic CEOs.
Yes...! No question about it. Part II of your post is interesting, "sustainable" business. It is rather a lucrative and futuristic business, it has got solid future, the only problem is management and CEO fkn it up?.
That said, 2M O/S or below 200M A/S after all the splits can't go any bad now, all bad things already happened. The worst can happen now is increase in O/S and float to another 100 or 200M, max it?...
I think, they will come out with a forward split!!!!....to spruce the buyers!. Yea, I hear you saying "how is that"?, whatever means they can do it!?, they will!..
We didn't believe this would split with 1 million shares outstanding last March. Look at the action today. This is a share selling business with a deteriorating balance sheet. It is however a sustainable business model if they continue to find buyers after every split.
Yes, that is the case. However, it got to change!!.. it is a low float, low O/S and even the A/S is just under 200M!
so it is matter of time for someone to grab a big chunk of this small share structure.....whatever I am saying is not about Fundamental or profitable business, it is about technical stock price, and it is bound to rally on that alone.
If they don't touch the share structure? Doesn't seem likely since revenue is way off year over year. 2,386,166 outstanding share count that was only 125,000 the first week of March after the 3rd split in less than 3 years. It will be interesting to see if traders continue to buy up those shares as they stream off of restricted status. Jason Remillard has shown a shameless contempt for shareholders for years with the constant dilution.
The trend for the last three years have proven to be disastrous. Just look at the ROI and it should provide you with a better picture
Yea!..that is Ok.
This one hit the bottom of the barrel, worst has happened already!..2M O/S, only about .9M on float, it has to recover from this crash landing in the days ahead!
, so there is only one way for it, go up! $2, then to $7 and then to $14!!..
If they do not touch the share structure, those numbers will soon happen Dec-Jan!. July was the peak, since then it crashed and Sept was the most notorious month for the entire stock market, ATDS was destroyed in Sept. Oct, useless month, Nov further down trend....and thats over.
Watch out for a big bounce, the better way to play is to Average it!. Averaging to recover the losses at this damn dirt cheap price.
I grabbed a few shares recently. Not a substantial position at all.
Most of the recent Buys in ATDS seems to be from "Insiders" NSIDER POWER
I
96.788
Last 8 transactions
Buy: 617980 | Sell: 108 (Shares)
3 shares?...how about 100 dollars a pop!!! Lol!
in a blink of an eye, it will go to $7 and then to $14, so go ahead throw away that 3 shares!!!! Lol!!
You have to admit that Jason can really move shares for whatever reason. Even with the dilution clearly coming and the year over year Q3 number down 39%. They have been trying to sell the ransomware product long before the deal to acquire it in the $3.4 million deal and clearly it isn't adding much to the bottom line. PCMag's poor rating after testing reveals what we always have known. That is that Jason buys software that never found its market for the purpose of promoting and selling shares. Traders are still soaking it up once again. I am looking at the 5 year split adjusted chart and the volume today is by far the highest and they are really banking some serious bucks! LOL. The price is up 24% with more than 137K shares traders yet the price really didn't move relative to yesterdays sell off and the price as of last Thursday. All this accumulation can't be very comforting to those who now own more than 800K shares at a $1 stuck in restricted status for another 5 months or so. This is fun to watch even if not tradable.
For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200180&guid=XkP-kK_3v0GAB3h
Where did Jason manage to find a group of investors to put up $1.00 a share for 829K shares? They must see the share dump already in place. Jason took 108,000 of common shares for himself but that likely just puts a small dent in the value of the 150K of Series "A" shares that he owns. According to the 2021 S-1 filing he claimed a ratio of 15,000 :1 of the common to his series "A" shares.
For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200180&guid=2aG-kKevTCFAB3h
Common stock
On August 25, 2022, Data443 Risk Mitigation, Inc initiated a private placement transaction with certain “accredited investors,”...
...we offered and sold to the Investors a total of 829,000 shares of our common stock, par value $0.001 at a purchase price of $1.00 per share...
...private placement exemption from registration provided by Section 4(a)(2) of the Securities Act and by Rule 506 of Regulation D, promulgated thereunder and on similar exemptions under applicable state laws. The Offering closed November 4, 2022, and we will issue the shares to the investors in due course...
As of September 30, 2022 and December 31, 2021, 1,078,173 and 122,044 shares of Common stock were issued and outstanding, respectively.
From the June 2021 S1 filing
https://sec.report/Document/0001493152-21-013614/
"Our sole director and chief executive officer has the ability to control all matters submitted to stockholders for approval, which limits minority stockholders’ ability to influence corporate affairs."
"Our sole director and chief executive officer, Jason Remillard, holds 150,000 shares of our Series A Preferred Stock (each share votes as the equivalent of 15,000 shares of common stock on all matters submitted for a vote by the common stockholders), and as such, Mr. Remillard would be able to control all matters submitted to our stockholders for approval, as well as our management and affairs. For example, Mr. Remillard would control the election of directors and approval of any merger, consolidation, or sale of all or substantially all of our assets."
Haha , hell wait in line
Anyone want to buy my 3 shares after 3 splits for 10 bucks a pop?
Also it would seem to appear that the compliance manager has been removed from the companies profile for the otc .
Needs to receive well-written letters from a few shareholders... and their representatives, it appears...
I certainly misstated that number and it is much worse. LOL I haven't been paying much attention to this and apparently those buying big lots the past couple of weeks or haven't either. What a stinking mess. The big bump in the restricted shares was the regulation "D" offering last month. There must be some sort of anti dilution protections in that offering. 1.3 million new shares added to the OS since September 30th. 743K shares held at DTC and 914K of the OS is unrestricted so presumably 171K more are eligible to get into the game. Looking at the 1.4 million restricted minus the 829k that just went restricted we potentially have 642K shares that are eligible to go live on the unrestricted line. Why anyone would touch this with Jason's history is beyond me.
For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200180&guid=0FG-kHadOtpnQth
Common stock
....During the nine months ended September 30, 2022, we issued Common stock as follows:
> 288,885 shares issued for conversion of debt;
> 6,631 shares issued upon the cash-less exercise of warrants;
> 380,952 shares issued for consideration under an asset purchase agreement;
> 108,000 shares issued for conversion of Series A preferred stock;
> 153,491 shares issued for services;
> 18,170 shares issued as a loan fee in connection with the issuance of promissory notes; and
>
829,000 shares were subscribed for cash pursuant to private placement offering.
As of September 30, 2022 and December 31, 2021, 1,078,173 and 122,044 shares of Common stock were issued and outstanding, respectively.
OTC markets show the O/S right around 2.4 million
So the VP is also the CFO who has a pretty lucrative pay package including quarterly options awards which we discussed last week on this board. Those two form 4s are for "options" to buy and it wouldn't surprise me to learn that those big buys of the common the past 2 weeks was based on the notion that they actually bought in.
The fact is that they split this stock at the beginning of March which resulted in 125K outstanding shares. Weeks later Jason issued 800K new shares, most of which went into restricted status. These unregistered shares would require a 6 month holding period. If you look at the current outstanding share count increase it is where it was when it split about 1 million and the restricted share count is almost 1.5 million now. This is but a share selling scam and it appears to be much worse now.
There are many more to come because the 381K shares that Centurion received won't put but a dent in that $3.4 million ransomeware deal. The revenue is way off year over year so that software must be selling as poorly as PCMag rated it's effectiveness. Looks to me like Jason may be pulling his 4th reverse split in less than 4 years early into the new year. Watch the reduction in restricted share count for the timing. Jason has raised millions in the past selling shares at less than a dime so from here he is probably giddy with excitement. LOL Jason took the share price at the beginning of 2020 from the low $0.70s to a $0.01 in less than 4 months. Jason prints shares for free and that is the way that he conducts business.
March 2022 8:1 Stock Split 8K
https://sec.report/Document/0001493152-22-006663/
...The Certificate (i) reduced the number of authorized shares of common stock by a ratio of 1-for-8, resulting in one hundred twenty five million (125,000,000) authorized shares of common stock...
...Split was approved on March 7, 2022 and the Reverse Stock Split was effected on March 8, 2022...
For the quarterly period ended March 31, 2022
https://sec.report/Document/0001493152-22-014062/
NOTE 15: SUBSEQUENT EVENTS
Subsequent to March 31, 2022, the Company issued 807,663 shares of common stock as follows:
> 380,952 shares to Centurion Holdings LLC as part of the acquisition (see Note 1).
> 160,416 shares issued for conversion of debt and interest.
> 108,000 shares to our CEO for conversion of Series A Preferred Stock.
> 146,291 shares issued under a registration statement on Form S-8, to employees
and consultants for services.
> 7,200 shares issued for a restricted stock award.
> 4,804 shares to debt holders for commitment obligations.
Form 4 Jason Remillard
https://www.otcmarkets.com/filing/html?id=16208361&guid=8SG-knIyAU7-B3h
Form 4 McCraw Greg
https://www.otcmarkets.com/filing/html?id=16208351&guid=8SG-knIyAU7-B3h
The VP bought 41,800 shares November 15 at $1.70.
You mean massive buying lots over and over and over again and yet the stock price doesn’t move a damn bit. Haha the ask walls are always around 1-2 thousand and we see buying in the thousands and more and more but the wall doesn’t budge a damn bit. It actually seems that the ask price is then less even though all of the activity has been purchasing shares . I think Jason is shorting the stock the days he isn’t dumping his shares , which happens to be almost every day . But the dark pool activity seems to always be active as well . The market cap is now below a million again and no end in sight . When they move into the new offices I bet you it will take less than a month for an eviction notice to be filed
They have had some big buys go through without dropping the price. I don't get it. Now sell off today on much lower volume. Jason moved early to cash out those shares that he issued himself at .01. Hundreds of thousand of shares still waiting to get into the market and that won't stop Jason from issuing more. The revenue is well off the year over year number so that $3.4 million ransomware must be as useless as PC mag reviewed it to be. Jason may have bought his last pig in poke finally. LOL
He’s willing to risk the future of the company for his own selfish needs . What’s new , right . The fins and the companies future are looking more and more at stake and all he can do is continue to dump more shares
You’re right about that . Nowhere to be found is more like it for the SEC
Jason probably already cashed out that 108,000 shares at a penny. The date exercisable on the form 4 was 11/15/2017 which would probably be the date of the series "A" shares. Then there is the balance of the 800K shares issued two weeks after the reverse split earlier this year. Add another 931K shares with the new regulation "D" offering at a dollar. That is a lot of shares to get into the market before he needs another cash infusion to keep this tragedy operating. I don't know if even an annual reverse split will keep this going.
Where is the SEC when a business model is so clearly and simply about selling shares? The unloading of his controlling series "A" shares tells me that Jason himself admits that this is not sustainable. Looking at the volume for the past 10 days and it appears that traders are still buying into the story. Keep watching that restricted, unrestricted, and held at the DTC counts as it changes before the next date with the reverse split.
Form 4 April 2020
https://www.otcmarkets.com/filing/html?id=15751388&guid=02KwkegWbj3TB3h
For the quarterly period ended March 31, 2022
https://sec.report/Document/0001493152-22-014062/
NOTE 15: SUBSEQUENT EVENTS
Subsequent to March 31, 2022, the Company issued 807,663 shares of common stock as follows:
>380,952 shares to Centurion Holdings LLC as part of the acquisition (see Note 1).
>160,416 sharesissued for conversion of debt and interest.
>108,000 shares to our CEO for conversion of Series A Preferred Stock.
>46,291 shares issued under a registration statement on Form S-8, to employees and consultants for services.
>7,200 shares issued for a restricted stock award.
>4,804 shares to debt holders for commitment obligations.
Regulation "D" Offering 8K
https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=117039830&type=HTML&symbol=ATDS&companyName=Data443+Risk+Mitigation%2C+Inc.&formType=8-K&formDescription=Current+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2022-11-07&CK=1068689
...with each Investor pursuant to which we offered and sold to the Investors a total of 931,000 shares of our common stock, par value $0.001 (the “Common Stock”), at a purchase price of $1.00 per share, for aggregate gross proceeds of approximately $931,000. We intend to use the net proceeds from the sale of the Common Stock for general corporate purposes....
I was referencing the form 4 for the CFO and didn't pay close attention to Jason's form 4. The CFO is entitled to restricted stock and and stock options totaling $80K a quarter? That kind of money could make one as a big a crook as Jason. LOL Would certainly give him incentive to move some shares same as Jason. Looks like that form 4 issuing options for 41,800 shares at $1.70 would cover 2 quarters per the employment agreement.
CFO employment 8K
https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=117067428&type=HTML&symbol=ATDS&companyName=Data443+Risk+Mitigation%2C+Inc.&formType=4&formDescription=Statement+of+changes+in+beneficial+ownership+of+securities&dateFiled=2022-11-16&CK=1068689
https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=116938596&type=HTML&symbol=ATDS&companyName=Data443+Risk+Mitigation%2C+Inc.&formType=8-K&formDescription=Current+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2022-09-08&CK=1068689
In connection with his appointment, Mr. McCraw will be entitled to an annual base salary in the amount of $180,000, and quarterly grants of restricted stock awards and incentive stock options in amounts equivalent to $45,000 and $35,000, respectively. Mr. McCraw will also be eligible to participate in the Company’s bonus plan, with Mr. McCraw’s eligible bonus payment to be based on achievement of certain performance objectives and goals.
This should clear up any confusions . If he purchased the shares the price of the security purchased wouldn’t be totaling to 0 dollars also the options do expire in 2027 . Jason would
Of had to of purchased the options at certain price in which he didn’t . He’s issued himself around 400-500k shares and the first stock option he purchased earlier in the year was around 108k and he purchased those shares at a penny
Item 1(Title of Derivative Security ) states "Options to Purchase Common Stock". It doesn't appear to me that any actual transaction has taken place as of yet and the options don't expire until 2032. Jason's end game with everything he does is to separate retail traders from their cash through the sales of worthless paper. I'm sure that he didn't expect PC Mag to test his latest $3.4 million ransomware acquisition and rate it so poorly. The revenue is well off 2021 numbers and the liquidity in this market has dried up.
But was he buying? Or received shares in lieu of cash payment??
Looks like 2 form 4s for "options", nothing more to take from it. I probably duped some into buying.
https://www.nasdaq.com/market-activity/stocks/atds/sec-filings
What is Jason up to now? There are a number of filings recently including the S-1. You know Jason is diluting when he releases a lot of filings and starts promoting heavily. I see decent volume today and find it hard to believe that traders would touch this stock.
https://www.nasdaq.com/market-activity/stocks/atds/sec-filings
https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=117039830&type=HTML&symbol=ATDS&companyName=Data443+Risk+Mitigation%2C+Inc.&formType=8-K&formDescription=Current+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2022-11-07&CK=1068689
...In connection with the Offering, we entered into a securities purchase agreement (“Securities Purchase Agreement”) with each Investor pursuant to which we offered and sold to the Investors a total of 931,000 shares of our common stock, par value $0.001 (the “Common Stock”), at a purchase price of $1.00 per share, for aggregate gross proceeds of approximately $931,000....
Statement of Changes in Beneficial Ownership (4)
Source: Edgar (US Regulatory)
FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
OMB APPROVAL
OMB Number: 3235-0287
Estimated average burden
hours per response... 0.5
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
1. Name and Address of Reporting Person *
McCraw Greg 2. Issuer Name and Ticker or Trading Symbol
Data443 Risk Mitigation, Inc. [ ATDS ] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Vice President and CFO
(Last) (First) (Middle)
4000 PARK DRIVE, SUITE 400 3. Date of Earliest Transaction (MM/DD/YYYY)
11/15/2022
(Street)
RESEARCH TRIANGLE PARK, NC 27709
(City) (State) (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)
6. Individual or Joint/Group Filing (Check Applicable Line)
_X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8) 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4) 8. Price of Derivative Security
(Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Options to Purchase Common Stock $1.7 11/15/2022 A 41800 11/15/2022 11/15/2032 Common Stock 41800 $0 41800 D
Explanation of Responses:
Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
McCraw Greg
4000 PARK DRIVE, SUITE 400
RESEARCH TRIANGLE PARK, NC 27709
Vice President and CFO
Signatures
/s/ Greg McCraw 11/16/2022
**Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid
Idk for sure but if the CFO is buying, watch it.
So what you saying. They got their act together?
The CFO bought shares and I reckon he knows what’s going on with the company.
Look at 3 months chart — how pathetic and ill-conceived was that 1/8 RS...
Sure wish they’d get there act together.
$3.4 million Centurion deal for the ransomware product that PC mag rated as fair. They also noted that "Shortly after we published this review, Data443 Ransomware Recovery Manager was pulled from the market. The balance sheet looks as bad as ever now. Those new shares purchased for .01 to pay for the deal and others likely went into restricted status for the rule 144 waiting period of 6 months. Those will be eligible to hit the market soon. One thing is for certain, trading losses will be the source of funding as it always has.
Data443 Reports Second Quarter and First Half 2022 Results and Provides Corporate Update
August 16, 2022 09:53 ET | Source: Data443 Risk Mitigation, Inc.
https://www.globenewswire.com/en/news-release/2022/08/16/2499279/0/en/Data443-Reports-Second-Quarter-and-First-Half-2022-Results-and-Provides-Corporate-Update.html
Liquidity:
As of June 30, 2022, we had no cash and a bank overdraft of $3,781 and our principal sources of liquidity were trade accounts receivable of $231,507 and prepaid, advance payment for acquisition of $2,726,188 and other current assets of $27,950, as compared to cash of $1,204,933, trade accounts receivable of $21,569 and prepaid and other current assets of $70,802 as of December 31, 2021.
The net loss for the six months ended June 30, 2022 was $4,279,531 compared to a loss of $3,721,652 for the six months ended June 30, 2021.
Centurion purchase agreement 8K
https://sec.report/Document/0001493152-22-002091/#index.html
4.3.2. Payment. The Purchase Price, as determined above, shall be payable in the following form and manner:
(a) Two Hundred Fifty Thousand Dollars ($250,000) payable in cash at Closing in the form of a wire transfer of immediately available funds in accordance with instructions to be provided by Seller.
(b) Two Million Nine Hundred Thousand Dollars ($2,900,000) payable pursuant to a promissory note issued by Data443 in favor of Seller at Closing in the form mutually agreed to by the Parties (the “Note”).
(c) Two Hundred Fifty Thousand Dollars ($250,000) in the form of a contingent payment, as further described in Section 4.5, below (the “Contingent Payment”).
PC Magazine Ransomware Review.
https://www.pcmag.com/reviews/data443-ransomware-recovery-manager
...Unfortunately, that ransomware protection didn’t prove out in our hands-on testing...
Editors' Note: Shortly after we published this review, Data443 Ransomware Recovery Manager was pulled from the market. If it becomes available again, we will retest it and update this review accordingly.
For the quarterly period ended March 31, 2022
https://sec.report/Document/0001493152-22-014062/
Subsequent to March 31, 2022, the Company issued 807,663 shares of common stock as follows:
> 380,952 shares to Centurion Holdings LLC as part of the acquisition (see Note 1).
> 160,416 shares issued for conversion of debt and interest.
> 108,000 shares to our CEO for conversion of Series A Preferred Stock.
? 146,291 shares issued under a registration statement on Form S-8, to employees and consultants for services.
> 7,200 shares issued for a restricted stock award.
> 4,804 shares to debt holders for commitment obligations.
Not if it gets above $4 in its own.
Looks like Jason will need another reverse split soon. LOL. Wait, Jason, Centurion, and others own nearly all the stock now. I hope they choke on it.
Someone keeps selling 1,000 shares trades. Is it Jason???
What a complete Sh*tSh*w this has become. This is the first press release that went into such detail about the quarterly numbers and it doesn't look good. One glaring omission in the press release is anything about their latest acquisition. LOL $3.4 million Centurion deal for the ransomware product that PC mag rated as fair. They also noted that "Shortly after we published this review, Data443 Ransomware Recovery Manager was pulled from the market." It doesn't look like traders will be bailing Jason out this time. Karma.
Data443 Reports Second Quarter and First Half 2022 Results and Provides Corporate Update
August 16, 2022 09:53 ET | Source: Data443 Risk Mitigation, Inc.
https://www.globenewswire.com/en/news-release/2022/08/16/2499279/0/en/Data443-Reports-Second-Quarter-and-First-Half-2022-Results-and-Provides-Corporate-Update.html
Liquidity:
As of June 30, 2022, we had no cash and a bank overdraft of $3,781 and our principal sources of liquidity were trade accounts receivable of $231,507 and prepaid, advance payment for acquisition of $2,726,188 and other current assets of $27,950, as compared to cash of $1,204,933, trade accounts receivable of $21,569 and prepaid and other current assets of $70,802 as of December 31, 2021.
The net loss for the six months ended June 30, 2022 was $4,279,531 compared to a loss of $3,721,652 for the six months ended June 30, 2021.
https://sec.report/Document/0001493152-22-002091/#index.html
4.3.2. Payment. The Purchase Price, as determined above, shall be payable in the following form and manner:
(a) Two Hundred Fifty Thousand Dollars ($250,000) payable in cash at Closing in the form of a wire transfer of immediately available funds in accordance with instructions to be provided by Seller.
(b) Two Million Nine Hundred Thousand Dollars ($2,900,000) payable pursuant to a promissory note issued by Data443 in favor of Seller at Closing in the form mutually agreed to by the Parties (the “Note”).
(c) Two Hundred Fifty Thousand Dollars ($250,000) in the form of a contingent payment, as further described in Section 4.5, below (the “Contingent Payment”).
PC Magazine Ransomware Review.
https://www.pcmag.com/reviews/data443-ransomware-recovery-manager
...Unfortunately, that ransomware protection didn’t prove out in our hands-on testing...
Editors' Note: Shortly after we published this review, Data443 Ransomware Recovery Manager was pulled from the market. If it becomes available again, we will retest it and update this review accordingly.
I wouldn't exactly call that messy write-up an official looking filing. They file the 8K on the SEC EDGAR site but not the 2021 annual or the Q2. As usual something always stinks with this stock. It sure looks to me like he is hiding something.
The price is back to the level before the split with nearly the same outstanding share count. Looking at my notes I had 1,063,068 on 02/28/2022 taken from the OTC site. Looking at the share structure the bulk of the new shares issued went into the restricted column. Not sure how that works but are restricted shares that are not vested affected by another reverse split?
Anyone at this point who doesn't believe Jason would do another split is a fool in my opinion. Look at the difference between the Unrestricted and the DTC number. Looks like there are a lot of shares waiting to get into the game. If he splits again those will be dumped before hand.
https://www.otcmarkets.com/stock/ATDS/security
Outstanding Shares 1,078,173 09/30/2022
Restricted 542,985 09/30/2022
Unrestricted 535,188 09/30/2022
Held at DTC 356,716 09/30/2022
For the quarterly period ended March 31, 2022
https://sec.report/Document/0001493152-22-014062/
NOTE 15: SUBSEQUENT EVENTS
Subsequent to March 31, 2022, the Company issued 807,663 shares of common stock as follows:
> 380,952 shares to Centurion Holdings LLC as part of the acquisition (see
Note 1).
> 160,416 shares issued for conversion of debt and interest.
> 108,000 shares to our CEO for conversion of Series A Preferred Stock.
> 146,291 shares issued under a registration statement on Form S-8, to
employees and consultants for services.
> 7,200 shares issued for a restricted stock award.
> 4,804 shares to debt holders for commitment obligations.
I don’t but it’s on IHub
I see, I have to wonder why it isn't posted on the SEC EDGAR site.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
? QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 2022
OR
? TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number: 000-30542
DATA443 RISK MITIGATION, INC.
(Exact name of registrant as specified in its charter)
Nevada 86-0914051
(State of
incorporation)
(I.R.S. Employer
Identification No.)
4000 Park Drive, Suite 400
Research Triangle Park, North Carolina
27709
(Address of principal executive offices) (Zip Code)
(919) 858-6542
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol(s) Name of each exchange on which registered
N/A N/A N/A
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and, (2) has been subject to such filing requirements for the past 90 days.
Yes ? No ?
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ? No ?
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ? Accelerated filer ?
Non-accelerated filer ? Smaller reporting company ?
Emerging growth company ?
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ?
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes ? No ?
The outstanding number of shares of common stock as of August 15, 2022 was 954,561.
DATA443 RISK MITIGATION, INC.
FORM 10-Q
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements 2
Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (unaudited) 2
Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (unaudited) 3
Consolidated Statements of Stockholders’ Deficit for the three and six months ended June 30, 2022 and 2021 (unaudited) 4
Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited) 6
Notes to the Unaudited Consolidated Financial Statements 7
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 20
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 29
ITEM 4. Controls and Procedures 29
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings 30
ITEM 1A. Risk Factors 30
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 30
ITEM 3. Defaults Upon Senior Securities 31
ITEM 4. Mine Safety Disclosures 31
ITEM 5. Other Information 31
ITEM 6. Exhibits 31
SIGNATURES 35
1
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DATA443 RISK MITIGATION, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2022 2021
Assets
Current assets
Cash $ - $ 1,204,933
Accounts receivable, net 231,507 21,569
Advance payment for acquisition 2,726,188 -
Prepaid expense and other current assets 27,950 70,802
Total current assets 2,985,645 1,297,304
Property and equipment, net 305,196 288,406
Operating lease right-of-use assets, net 134,198 174,282
Intellectual property, net of accumulated amortization 809,275 1,269,819
Deposits 21,026 31,440
Total Assets $ 4,255,340 $ 3,061,251
Liabilities and Stockholders’ Deficit
Current Liabilities
Bank overdraft 3,781 -
Accounts payable and accrued liabilities 417,466 115,673
Deferred revenue 1,510,827 1,035,185
Interest payable 309,180 204,915
Notes payable, net of unamortized discount 1,799,147 1,720,777
Convertible notes payable, net of unamortized discount 1,942,774 993,931
Due to a related party 277,033 247,366
Operating lease liability 118,848 112,322
Finance lease liability 41,914 72,768
Total Current Liabilities 6,420,970 4,502,937
Series B Preferred Stock, 80,000 shares designated; $0.001 par value; Stated value $10.00; 0 and 29,750 shares issued and outstanding, net of discount as of June 30, 2022 and December 31, 2021, respectively - 278,811
Notes payable, net of unamortized discount - non-current 1,734,439 1,770,989
Convertible notes payable, net of unamortized discount - non-current 98,488 22,357
Deferred revenues - non-current 1,071,761 573,411
Operating lease liability - non-current 64,072 125,640
Finance lease liability - non-current - 10,341
Total Liabilities 9,389,730 7,284,486
Stockholders’ Deficit
Preferred stock: 337,500 authorized; $0.001 par value Series A Preferred Stock, 150,000 shares designated; $0.001 par value; 149,892 and 150,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively 150 150
Common stock: 125,000,000 authorized; $0.001 par value 954,561 and 122,044 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively 954 122
Additional paid in capital 40,842,698 37,810,380
Accumulated deficit (45,978,192 ) (42,033,887 )
Total Stockholders’ Deficit (5,134,390 ) (4,223,235 )
Total Liabilities and Stockholders’ Deficit $ 4,255,340 $ 3,061,251
See the accompanying notes, which are an integral part of these unaudited consolidated financial statements.
2
DATA443 RISK MITIGATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2022 2021 2022 2021
Revenue $ 750,989 $ 762,352 $ 1,363,505 $ 1,600,220
Cost of revenue 78,593 96,830 278,272 263,824
Gross profit 672,396 665,522 1,085,233 1,336,396
Operating expenses
General and administrative 2,116,220 1,311,396 3,089,782 2,744,961
Sales and marketing 59,635 49,220 180,030 144,644
Total operating expenses 2,175,855 1,360,616 3,269,812 2,889,605
Loss from operations (1,503,459 ) (695,094 ) (2,184,579 ) (1,553,209 )
Other income (expense)
Interest expense (942,753 ) (671,862 ) (2,037,069 ) (1,577,288 )
Gain (loss) on settlement of debt - - - (227,501 )
Change in fair value of derivative liability - (178,398 ) (57,883 ) (363,654 )
Total other expense (942,753 ) (850,260 ) (2,094,952 ) (2,168,443 )
Loss before income taxes (2,446,212 ) (1,545,354 ) (4,279,531 ) (3,721,652 )
Provision for income taxes - - - -
Net loss $ (2,446,212 ) $ (1,545,354 ) $ (4,279,531 ) $ (3,721,652 )
Dividend on Series B Preferred Stock - (5,492 ) (104,631 ) (9,441 )
Net loss attributable to common stockholders $ (2,446,212 ) $ (1,550,846 ) $ (4,384,162 ) $ (3,731,093 )
Basic and diluted loss per Common Share $ (3.25 ) $ (16.90 ) $ (9.62 ) $ (44.33 )
Basic and diluted weighted average number of common shares outstanding 753,561 91,430 444,824 83,948
See the accompanying notes, which are an integral part of these unaudited consolidated financial statements.
3
DATA443 RISK MITIGATION, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(Unaudited)
Six months ended June 30, 2022
Series A Additional Total
Preferred Stock Common Stock Paid in Accumulated Stockholders’
Shares Amount Shares Amount Capital Deficit Deficit
Balance - December 31, 2021 150,000 $ 150 122,044 $ 122 $ 37,810,380 $ (42,033,887 ) $ (4,223,235 )
Cumulative-effect adjustment from adoption of ASU 2020-06 - - - - (517,500 ) 439,857 (77,643 )
Common stock issued for acquisition of Centurion assets - - 380,952 381 2,475,807 - 2,476,188
Common stock issued for conversion of preferred stock (108 ) - 108,000 108 (108 ) -
Common stock issued for conversion of debt - - 165,273 165 29,160 - 29,325
Common stock issued in conjunction with convertible notes - - 18,170 18 140,918 - 140,936
Common stock issued for exercised cashless warrant - - 6,631 7 (7 ) - -
Common stock issued for service - - 153,491 153 844,048 - 844,201
Resolution of derivative liability upon exercise of warrant - - - 57,883 - 57,883
Warrant issued in conjunction with debts - - - 47,628 - 47,628
Stock-based compensation - - - (45,511 ) - (45,511 )
Net loss - - - - (4,384,162 ) (4,384,162 )
Balance - June 30, 2022 149,892 $ 150 954,561 $ 954 $ 40,842,698 $ (45,978,192 ) $ (5,134,390 )
Three months ended June 30, 2022
Series A Additional Total
Preferred Stock Common Stock Paid in Accumulated Stockholders’
Shares Amount Shares Amount Capital Deficit Deficit
Balance - March 31, 2022 150,000 $ 150 148,367 $ 148 $ 37,353,357 $ (43,531,980 ) $ (6,178,325 )
Common stock issued for acquisition of Centurion assets - - 380,952 381 2,475,807 - 2,476,188
Common stock issued for conversion of preferred stock (108 ) - 108,000 108 (108 ) - -
Common stock issued for conversion of debt - - 151,200 151 1,361 - 1,512
Common stock issued for service - - 153,491 153 844,048 - 844,201
Common stock issued in conjunction with convertible notes - - 12,551 13 78,431 - 78,444
Warrant issued in conjunction with debts - - - - 47,628 - 47,628
Stock-based compensation - - - - 42,174 - 42,174
Adjustment of reverse stock split - - - -
Net loss - - (2,446,212 ) (2,446,212 )
Balance - June 30, 2022 149,892 150 954,561 954 40,842,698 (45,978,192 ) (5,134,390 )
See the accompanying notes, which are an integral part of these unaudited consolidated financial statements.
4
DATA443 RISK MITIGATION, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(Unaudited)
Six Months Ended June 30, 2021
Total
Series A
Preferred Stock
Common Stock
Additional
Paid in
Accumulated
Stockholders’
Equity
Shares Amount Shares Amount Capital Deficit (Deficit)
Balance - December 31, 2020 150,000 $ 150 522,006 $ 522 $ 32,027,240 $ (35,518,584 ) $ (3,490,672 )
Common stock issued for cash - - 83,336 83 846,718 - 846,801
Common stock issued for conversion of preferred stock - - 14,533 15 312,908 312,923
Common stock issued for conversion of debt - - 101,748 102 1,523,156 - 1,523,258
Common stock issued in conjunction with convertible note - - 2,863 3 88,735 - 88,738
Common stock issued for exercised cashless warrant - - 8,923 9 (9 ) - -
Resolution of derivative liability upon exercise of warrant - - - - 139,067 - 139,067
Stock-based compensation - - 9,168 9 680,435 - 680,444
Adjustment of reverse stock split - - 669 - - - -
Net loss attributable to common stockholders - - - - - (3,731,093 ) (3,731,093 )
Balance - June 30, 2021 150,000 $ 150 743,246 $ 743 $ 35,618,250 $ (39,249,677 ) $ (3,630,534 )
Three Months Ended June 30, 2021
Series A Additional Total
Preferred Stock Common Stock Paid in Accumulated Stockholders’
Shares Amount Shares Amount Capital Deficit Deficit
Balance - March 31, 2021 150,000 150 721,032 721 34,864,967 (37,698,831 ) (2,832,993 )
Cash received for issued stock - - - - 193,196 - 193,196
Common stock issued for conversion of preferred stock - - 8,934 9 144,707 - 144,716
Common stock issued for exercised cashless warrant 8,923 9 (9 ) - -
Resolution of derivative liability upon exercise of warrant - - 139,067 - 139,067
Stock-based compensation - - 3,688 4 276,322 - 276,326
Adjustment of reverse stock split - - 669 - - - -
Net loss attributable to common stockholders - - - - (1,550,846 ) (1,550,846 )
Balance - June 30, 2021 150,000 150 743,246 743 35,618,250 (39,249,677 ) (3,630,534 )
See the accompanying Notes, which are an integral part of these unaudited Consolidated Financial Statements
5
DATA443 RISK MITIGATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (4,279,531 ) $ (3,721,652 )
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of derivative liability 57,883 363,654
(Gain) loss on settlement of debt - 227,501
Stock-based compensation expense 798,690 680,444
Loss on impairment of intangible asset - -
Depreciation and amortization 540,714 554,557
Amortization of debt discount 1,549,752 1,448,308
Lease liability amortization (14,958 ) (13,107 )
Changes in operating assets and liabilities:
Accounts receivable (209,938 ) 22,233
Prepaid expenses and other assets 42,852 (24,425 )
Accounts payable and accrued liabilities 308,642 3,616
Deferred revenue 973,992 (428,116 )
Accrued interest 105,577 63,912
Deposit 10,414 -
Net Cash used in Operating Activities (115,911 ) (823,075 )
CASH FLOWS FROM INVESTING ACTIVITIES:
Advance payment for acquisition (250,000 ) -
Purchase of property and equipment (96,960 ) (79,020 )
Net Cash used in Investing Activities (346,960 ) (79,020 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft 3,781 -
Proceeds from issuance of convertible notes payable 1,207,800 100,000
Repayment of convertible notes payable (758,346 ) -
Proceeds from issuance of common stock - 846,801
Proceeds from issuance of Series B Preferred Stock 75,000 250,000
Redemption of Series B Preferred Stock (487,730 ) -
Finance lease payments (41,195 ) (43,931 )
Proceeds from issuance of notes payable 1,186,453 2,574,647
Repayment of notes payable (1,957,492 ) (2,734,275 )
Proceeds from related parties 116,238 271,464
Repayment to related parties (86,571 ) (414,187 )
Net Cash provided by (used in) Financing Activities (742,062 ) 850,519
Net change in cash (1,204,933 ) (51,576 )
Cash, beginning of period 1,204,933 58,783
Cash, end of period $ - $ 7,207
See the accompanying notes, which are an integral part of these unaudited consolidated financial statements.
6
DATA443 RISK MITIGATION, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business
Data443 Risk Mitigation, Inc. (the “Company”, “we”, “us” and “our”) was incorporated as a Nevada corporation on May 4, 1998. On October 15, 2019, the Company changed its name from LandStar, Inc. to Data443 Risk Mitigation, Inc. within the State of Nevada.
We deliver solutions and capabilities that businesses can use in conjunction with their use of established cloud vendors such as Microsoft® Azure, Google® Cloud Platform (GCP) and Amazon® Web Services (AWS), as well as with on-premises databases and database applications with virtualization platforms, such as those hosted or configured using VMWare®, Citrix® and Oracle® clouds/products).
On January 19, 2022, we entered into an Asset Purchase Agreement with Centurion Holdings I, LLC (“Centurion”) to acquire the intellectual property rights and certain assets collectively known as Centurion SmartShield Home and SmartShield Enterprise, patented technology that protects and recovers devices in the event of ransomware attacks. The total purchase price of $3,400,000 consists of: (i) a $250,000 cash payment at closing; (ii) a $2,900,000 promissory note issued by Data443 in favor of Centurion (“Centurion Note”); and (iii) $250,000 in the form of a contingent payment. The Centurion Note matures January 19, 2027 but provides that Data443’s repayment obligation would accelerate on the occurrence of events. One of those events was a financing event that did not occur within the originally anticipated timeframe. If that event had occurred, then Data443’s repayment obligation would have been to repay the balance of the outstanding principal and interest as follows: (i) $500,000 of the then-outstanding amount due in cash; and (ii) the remaining balance, at Data443’s option, in Common Stock or a combination of Common Stock and cash, with the number of shares of Common Stock to be determined according to a specified formula. In April 2022, Data443 and Centurion agreed that, even though the trigger for this acceleration event did not occur, Data443 would issue shares of Common Stock to Centurion in an amount then-equivalent to $2,400,000, as partial repayment of the obligation due under the Centurion Note. The number of shares of Common Stock Data443 issued to Centurion on April 20, 2022, was 380,952. Because Data443 still has some repayment obligations to fulfill under the Centurion Note, as of the filing date of these financial statements, the acquisition that is the subject of the Centurion Asset Purchase Agreement is still not completed.
Basis of Presentation
These unaudited consolidated financial statements have been prepared in accordance rules and regulations of the Securities and Exchange Commission (“SEC”) and generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, we have included all adjustments considered necessary for a fair presentation and such adjustments are of a normal recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2021 and notes thereto and other pertinent information contained in our Form 10-K as filed with the SEC on March 31, 2022. The results of operations for the six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2022.
Basis of Consolidation
The accompanying unaudited consolidated financial statements as of June 30, 2022 include our accounts and those of our wholly-owned subsidiary, Data 443 Risk Mitigation, Inc., a North Carolina operating company. These unaudited consolidated financial statements have been prepared on the accrual basis of accounting in accordance with GAAP.
7
Stock-Based Compensation
Employees – We account for share-based compensation under the fair value method which requires all such compensation to employees, including the grant of employee stock options, to be calculated based on its fair value at the measurement date (generally the grant date), and recogniz
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New $300k toxic note courtesy of maxim
Latest 10-Q observation
NOTE 3: LIQUIDITY AND GOING CONCERN
The accompanying consolidated financial statements have been prepared (i) in accordance with accounting principles generally accepted in the United States, and (ii) assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. After a period of no income, the Company has recently generated increasing income. However, the Company is subject to the risks and uncertainties associated with a business with growing revenue, as well as limitations on its operating capital resources. These matters, among others, raise substantial doubt about the ability of the Company to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. In light of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to raise capital and generate revenue and profits in the future.
Summary
Data443 Rik Mitigation (ATDS: OTC) is a solid and fast-growing cyber security company that has seen its shares falling from $1.09 in the past 12 months to 1 cent within the past week. The company has been growing, but convertible note holders have been liquidating without regard to price and have consequently created an extremely undervalued opportunity for investors.
Adds Sophisticated Content Analysis and Intelligent Content Migration Capabilities to Growing Software-as-a-Service (SaaS) Portfolio
RESEARCH TRIANGLE PARK, NC, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, is pleased to announce that it has acquired the intellectual property rights and assets of FileFacets®, a Software-as-a-Service (SaaS) platform that performs sophisticated data discovery and content search of structured and unstructured data within corporate networks, servers, content management systems, email, desktops and laptops.
The acquisition has closed, and all assets have been transferred. Terms of the transaction were not disclosed.
8K Filing August 21st 2020
On August 17, 2020, following receipt of written approval from stockholders acting without a meeting and holding at least the minimum number of votes that would be necessary to authorize or take such action at a meeting, Data443 Risk Mitigation, Inc. (the “Company”) filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the State of Nevada to increase the number of authorized shares of common stock from 750,000,000 to 1,500,000,000, effective August 17, 2020. The Certificate of Amendment is attached to this Current Report as Exhibit 3.1. All descriptions of the Certificate of Amendment herein are qualified in their entirety to the text of Exhibit 3.1 hereto, which is incorporated herein by reference.
On August 17, 2020, the holders of 86% of the issued and outstanding shares of stock of the Company entitled to vote took action by their written consent and without a meeting, pursuant to Nevada Revised Statute 78.320. The number of shares entitled to vote was deemed to be 2,620,701,789, representing the total number of issued and outstanding shares of (i) common stock; and, (ii) Series A Preferred Stock converted into common stock for purposes of voting. The Certificate of Amendment to the Company’s Articles of Incorporation to increase the number of authorized shares of common stock from 750,000,000 to 1,500,000,000 was approved. 2,250,000,000 shares were voted in favor of the Amendment, and such stockholders signed a written consent taking such action without a meeting or involvement of the Company. The written consent was delivered to the Company on August 17, 2020. | SUBJECT TO |
Rapidly combining some of the best DRM, eDiscovery, Classification, Identity Governance and DLP technologies into a solution positioned for Privacy and Compliance activities – across virtually any data source and device. The only provider to offer a full GDPR/CCPA request management platform, and an open sourced platform that has over 10,000 active installations.
The ARALOC Boardroom by Data443™ Content Distribution and Board Management System provides custom configured and branded native apps to streamline your corporate board governance and security guidelines. The only product on the market that features an array of user-friendly board content publishing and distribution automation controls, Boardroom requires minimal training and support. Using THE ARALOC Content Library, board members can use dedicated apps to view board materials from their mobile or desktop devices online or offline. With industry-leading fully enabled Rich Media Support, members are able to upload and encrypt all file formats for distribution. System notifications and automatic synchronization ensure board members always have the most recent board content materials. Multi-level views allow multiple boards to be houses and controlled from one central location.
GDPR Compliance
The GDPR Framework WordPress Plugin by Data443 allows for an easy, fast and cost-effective compliance solution for the GDPR. Achieve a fast time-to-value with 12 GDPR articles being met straight out-of-the-box. In a few clicks you can handle DSARs, consent, report and many other GDPR requirements. We are developer-friendly. Everything can be extended; every feature and template can be overridden. We are excited to announce we just hit 100k downloads and 10k active installations.
CCPA Compliance
Data443 ClassiDocs™ allows for an easy, fast and cost-effective compliance solution for the new CCPA. Achieve a fast time-to-value with the five key requirements of CCPA being met straight out-of-the-box. Data443 ClassiDocs™ supports over 200 file types and 400 databases while integrating with your existing DLP/CASB/SIEM/Cloud Solutions. Data443 ClassiDocs™ is the solution for classification, governance, and discovery across all data sources.
ClassiDocs™ takes the effort out of classifying your data by applying the same rules, technology, machine learning, and ongoing classification stewardship throughout the organization. This ensures always-accurate, continually relevant data security for your whole IT estate. ClassiDocs™ is purposefully user-centric to increase adoption and adherence with no training. Ease-of-use control with minimal interruptions and your-company-specific branding allows users to engage quickly and make fewer mistakes. Administration is simple via an easy-to-understand, centralized control panel that delivers both preset and customizable analytics.
RESEARCH TRIANGLE PARK, NC, July 29, 2020 – Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, today announced that it has appointed Mr. Omkhar Arasaratnam, a 20-year expert in information technology and leadership in global cybersecurity projects to its Advisory Board effective immediately.
Mr. Arasaratnam currently serves as Director of Engineering, Assurant Security for Google LLC, and is a Senior Fellow with the NYU Center for Cybersecurity at the NYU Tandon School of Engineering, and a member of the NYU Cyber Fellow Advisory Council. Previously, Mr. Arasaratnam served as Executive Director of Data Project Engineering at JPMorgan Chase, and has previously led security organizations at financial and technology institutions, such as Credit Suisse, Deutsche Bank, TD Bank Group, and IBM. In this capacity, he has revolutionized the effectiveness of cybersecurity controls. He is an accomplished author with several granted patents and has led contributions to many international standards.
DATA443 RISK MITIGATION PROVIDES BUSINESS UPDATE
RESEARCH TRIANGLE PARK, NORTH CAROLINA – (July 13, 2020) – Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, today provided updates on its current business and financing arrangements:
Completed Payments to Modevity, LLC for the ARALOC™ platform, the Secure Private Data Storage, Protection, and enablement platform
As previously disclosed, on October 22, 2018, Data443 acquired all technology, sales assets, and customers of Modevity’s enterprise cloud-based data storage, protection, and workflow automation platform, ARALOC™. ARALOC continues to lead the industry with Digital Rights Management, Secure Content Distribution and nearly instant large organization implementation. Data443 continues to innovate with the product and will have forthcoming product and customer announcements in the near term. Additionally, Data443 has now remitted to Modevity all amounts due under the purchase transaction (over $1.2MM USD) and owes no further amounts or any other consideration to Modevity.
Reached Shareholder-Friendly Forbearance Agreements for Outstanding Convertible Notes
Effective July 1, 2020, Data443 entered into privately negotiated agreements with a number of existing holders of the company’s outstanding convertible notes, which is intended to reduce short-term debt obligations of the company, while also deferring a significant amount of debt which otherwise could have been converted into common stock. The revised terms of these existing convertible notes can be found in the Form 8-K that was filed by the Company on July 10, 2020, which can be accessed at:
https://www.sec.gov/Archives/edgar/data/1068689/000149315220013083/form8-k.htm
Data443 Risk Mitigation, Inc. (OTCPK: ATDS), a leading data security and privacy software company, announced today that it has completed its corporate actions with FINRA and began trading today with its new symbol – ATDS: All Things Data Security™.
Key Takeaways:
Over only the past two years, the company has combined the technology, people and revenue assets of 5 product lines to form one of the fastest growing data privacy organization on the market. These products on their own are market leaders in individual segments of the data security, compliance and governance marketplace.
Jason Remillard, Founder and CEO of Data443 stated, “The wide operating platform we have built has two main purposes – provide a foundation for operating revenues for the company and provide a supporting platform for our forthcoming privacy enablement platforms. We have more announcements coming in both areas in the near term – I am proud of the work of the whole team bringing this all together with all of our constraints – it is a considerable accomplishment!”
Data443 Risk Mitigation, Inc. (OTCPK: LDSRD), a leading data security and privacy software company, today reported operating results for the three and nine months ended September 30, 2019, including net revenue of $628,000 for the quarter, and strong billings growth quarter over quarter. Net billings represent actual sales which include revenues to be deferred over the term of the contract periods.
Jason Remillard, CEO of Data443, commented, “We delivered strong third quarter and nine-month results and continue to make solid progress towards achieving our long-term goals in delivering a complete data privacy, security and governance ecosystem that is unique and unrivaled in the marketplace. I’m very pleased with the seamless integration of DataExpressTM into the Company, along with achieving a significant customer renewal, and more to come! There’s no question that the last several months have been challenging in terms of our recent corporate actions, but I’m very proud of our team for keeping focused on the tasks at hand.”
“As we look towards the end of 2019, we expect to end the year at a very active pace, both commercially, as well as at the corporate level. As of today, we are less than two months away from the California Consumer Privacy Act (CCPA) taking effect, the first significant data consent and privacy legislation in the United States, perhaps the most comprehensive regulations since GDPR. Many companies don’t understand that preparations need to be made now, before the regulation (and enforcement) goes into effect on January 1, 2020. This poses an incredible opportunity to drive home the importance of mitigating these compliance risks, positioning our sales staff to deliver more education and demos, with the goal of increasing our already growing customer base.
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443 Risk Mitigation, Inc. (“Data443”), a leading data security and privacy software company, today announced another major client win within its DataExpress™ NonStop (DXNS) Secure Managed File Transfer Service. The customer is a leading global payments technology company that operates in over 200 countries and territories worldwide.
The customer approached Data443 with the following key business challenges:
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443 Risk Mitigation, Inc. (“Data443”), a leading data security and privacy software company, today announced it has completed the acquisition of DataExpress™, one of the world’s leading vendors for secure sensitive data transfer for hybrid cloud.
Key Takeaways:
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443 Risk Mitigation, Inc. (“Data443”), a leading data security and privacy software company, today announced continued momentum in its product line with the addition of high-profile new data sources to enable in CCPA, GDPR, eDiscovery, archiving and data retention requirements.
The growing platform list of integrations include support for leading social media channels such as Twitter, Facebook, Instagram and LinkedIn. These platforms are rife with potential privacy information and have a large part to play in any litigation response.
Within ArcMail’s recently released Hybrid Cloud/On-Premise Software Subscription service, customers are enabled to search faster, store smarter, and protect better in light of increasing data privacy and compliance requirements. For highly-regulated industries like education, financial services, and government, ArcMail’s Hybrid Cloud/On-Premise Software Subscription service allows the organization to leverage a subscription-based service for full and continuous coverage, while reducing IT burden and spend.
TheAccessHub™ accelerates Identity Governance time-to-value by more than 2,600 percent
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443™ Risk Mitigation, Inc. (“Data443”), a leading data security and privacy company, and N8 Identity, Inc. the leader in agile, cloud-based identity governance solutions, today announced a major client win following a three-month pilot.
The new client, a global NYC-based 1.4B market cap NYSE-traded organization, approached Data443 and N8 Identity with the following key business challenges...
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443™ Risk Mitigation, Inc. (“Data443”), a leading data security and privacy company, today announced the completion of joint efforts with finance partners resulting in the favorable new terms on existing debt. Additionally, the Company has received notice of final conversion of the $125,000 legacy convertible note issued by the Company in 2014 and subsequently acquired by Blue Citi LLC (“Blue Citi”).
Effective June 19, 2019 the Company and three existing note holders have agreed as follows:
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443™ Risk Mitigation, Inc. (“Data443”), a leading data security and privacy company, announced today that it has received notice from the Securities and Exchange Commission (the “SEC”) that the SEC has completed its review of the Form 10 Registration Statement as filed with the SEC on January 11, 2019; and, amended on April 24, 2019. The Form 10 was effective as of March 12, 2019. The completion of review by the SEC further confirms the Company’s commitment to being subject to the reporting requirements of the SEC, and specifically of the Exchange Act of 1934, as amended. While the Company has already filed an Annual Report on Form 10-K and five (5) periodic reports on Form 8-K since the filing of the Form 10, the Company will not be required to file any further amendments to the Form 10.
Jason Remillard, Chief Executive Officer of the Company and founder of Data443, said, “The completion of the review of our Form 10 by the SEC is yet another milestone achieved in our continued growth. We view it as a validation of our reporting process and financial management, which continues to evolve. Similar to when the Form 10 went effective back in March, this also underscores our commitment to provide our investors with transparency and accountability.”
“We are excited to bring Mr. Dawson onto the Data443 team to help us achieve our growth goals and support both our investor and client communities,” said Jason Remillard, founder and CEO of Data443. “His expertise will make an immediate and long-term impact on our business and we are especially enthusiastic about his ability to build and manage finance and accounting practices within complex, highly-regulated industries.”
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443™ Risk Mitigation, Inc. (“Data443”), a leading data security and privacy software company, today filed its Form 10-K with the U.S. Securities and Exchange Commission (the “SEC”) to disclose its financial results for the fourth quarter and fiscal year ended December 31, 2018.
Key Takeaways:
Management Commentary:
Jason Remillard, Founder of Data443 and CEO of LandStar, commented, “2018 was much more than a transitional year for LandStar; it was a major foundational year in which we established the platform that the Company is being built upon. I’m excited to say that we are now at the point where we can accelerate the pace of our planned corporate actions, as well as continue on our product development and acquisition roadmap.”
“These results only validate what has been our growth strategy all along; to acquire highly successful companies with complementary technologies and skill-sets that can easily fit and rapidly enhance our market positioning, provide a healthy customer base, and that are accretive to our bottom-line. I’m happy to report our initial revenues, and look forward to subsequent quarterly reports, when the full-quarter’s contribution of revenues from our acquired businesses will be reflected in our financial statements.”
LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443™ Risk Mitigation, Inc. (“Data443”), a leading data security and privacy company, announced that it is has launched its online ordering platform for the ARALOC™ Board Management product.
Jason Remillard, Chief Executive Officer of LandStar and founder of Data443™, commented, “As we continue our marketing campaigns, the ability to order and provision online is an important step in the customer buying journey. Our trial and buy portal has been long planned and we are pleased to offer several different editions of the leading ARALOC Board Management Software platform. We will introduce more purchase options for the ARALOC platform and the rest of our product catalogue over the near Our existing stockholders may experience significant dilution from the sale of our common stock pursuant to the Financing Agreement.
The sale of our common stock to PAG Group, LLC in accordance with the Financing Agreement may have a dilutive impact on our stockholders. As a result, the market price of our common stock could decline. In addition, the lower our stock price is at the time we exercise our put options, the more shares of our common stock we will have to issue to PAG in order to exercise a put under the Financing Agreement. If our stock price decreases, then our existing stockholders would experience greater dilution for any given dollar amount raised through the offering.
The perceived risk of dilution may cause our stockholders to sell their shares, which may cause a decline in the price of our common stock. Moreover, the perceived risk of dilution and the resulting downward pressure on our stock price could encourage investors to engage in short sales of our common stock. By increasing the number of shares offered for sale, material amounts of short selling could further contribute to progressive price declines in our common stock.
PAG Group, LLC will pay less than the then-prevailing market price of our common stock, which could cause the price of our common stock to decline.
Our common stock to be issued under the Financing Agreement will be purchased at a ten percent (10%) discount, or ninety percent (90%) of the lowest closing price for our common stock during the ten (10) consecutive trading days immediately preceding the date on which we issue a Put Notice to PAG (as provided for in the Financing Agreement).
PAG has a financial incentive to sell our shares immediately upon receiving them to realize the profit between the discounted price and the market price. If PAG sells our shares, the price of our common stock may decrease. If our stock price decreases, PAG may have further incentive to sell such shares. Accordingly, the discounted sales price in the Financing Agreement may cause the price of our common stock to decline.
We may not have access to the full amount under the Financing Agreement.
The lowest closing price of our common stock during the ten (10) consecutive trading day period immediately preceding the filing of this Registration Statement was approximately $0.26. At that price we would be able to sell shares to PAG under the Financing Agreement at the discounted price of $0.234. At that discounted price, the 4,046,995 shares would only represent $946,997, which is far below the full amount of the Financing Agreement.
"Data443 has joined forces with Business Partner Solutions, Inc. (BPS), a U.S.-based security focused value-added reseller (VAR). Founded in 2005, BPS is a certified CPUC and Woman Owned and Operated enterprise, a proven go-to for security VAR focused on providing emerging but proven security and compliance solutions to its customers. These clients include many Fortune 500 companies, public utilities, healthcare and retail. The partnership expands U.S. market coverage for Data443’s growing portfolio of products and aligns the company with a leading reseller that has specific expertise in data security, privacy compliance, and risk mitigation."
Data443, a leading data security and privacy company, announced today the completion of the audit of its Consolidated Annual Financial Statements for the fiscal years ending December 31, 2016 & 2017. An independent auditor (which is a PCAOB registered accounting firm) completed two consecutive years of the audits of the Company’s financial statements within the guidelines of Generally Accepted Accounting Principles (GAAP). The results will be filed without delay with OTC Markets as an amendment to the Company’s previously filed financials for its year ending December 31, 2017.
https://www.data443.com/pr-n8-letter-of-intent/
Recorded audio of the session can be accessed here:
https://www.data443.com/investor-faq/
Data443/ClassicDocs Competitive Review
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Data443 Secures Global Rights to Leading WordPress GDPR Solution
https://wordpress.org/plugins/gdpr-framework/advanced/
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