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LOL, continue "northward". The trend has been downward for a year. Jason was making acquisition deals in the fall of 2019 when this was trading in the .001s. There is no theoretical bottom to this, only one in which he can no longer sell shares. Then reverse split and start anew.
Busy Bee diluters. Here is Decembers take of the notes with purchase values in the 3s probably getting converted as we speak. Makes me wonder what this company's main business is. This was probably just to fund operations. Some sweet deals there. I wouldn't mind getting $30K worth at .0032. Shmucks like us do not get these deals.
"On December 02, 2020, the Company converted $140,000 of a promissory note into 40,000,000 shares of its common stock."
"On December 08, 2020, the Company converted $140,000 of a promissory note into 40,000,000 shares of its common stock."
"On December 15, 2020, the Company converted $30,000 of a promissory note into 9,375,000 shares of its common stock."
"On December 15, 2020, the Company converted $15,150 of a promissory note into 4,734,375 shares of its common stock."
"On December 17, 2020, the Company converted $45,000 of a promissory note into 12,371,134 shares of its common stock."
https://sec.report/Document/0001493152-20-024298/
If a company's stock would run just because the CEO and his debt holders needs it to, we would all be rich.
Last weeks revenue PR fail last week should have been sobering for most here.
Can't forget about the pool of 80,000 preferred shares that Jason created last November. According to the S-1 he has already pushed 5300 out there with a $10 face value. These convert into common shares per the description and links below.
"...which authorized and established eighty thousand (80,000) shares of the Series B Preferred Stock."
“Stated Value. Each share of Series B Preferred Stock shall has a stated value of $10.00.”
“Each share of Series B Preferred Stock is convertible, at the option of the holder thereof, at any time after one hundred eighty (180) days following the Issuance Date”
“The conversion price shall be 61% multiplied by the lowest trading price for the Company’s common stock during the twenty (20) days of trading ending on the latest complete trading day prior to the conversion date.”
https://sec.report/Document/0001493152-20-022832/
"On November 25, 2020, the Company issued 5,300 shares of its Series B Preferred Stock in exchange for $50,000 of net proceeds from an investor."
https://sec.report/Document/0001493152-20-024298/
New bag holders getting caught in the 7s in my opinion. The debt holders converting from the 3s are doubling their money at this level. I can almost hear the groans from the debt "cartel of four" who are holding off at the moment. They can join the others coming online in February. LOL and assist the decline. February will be very interesting. These low volume days will not do because Jason needs to move his own monthly note conversions. The rare revenue PR last week failed in the 8s and didn't get near the volume of past runs. Remember that only volume counts at this level for the note holders because they hold in the 3s. Retail holding for months will eventually bail as they watch others on their watch list run.
They soaked up a couple of good buys this morning. Looks like something may have dropped somewhere. Let the dilution games begin!! LOL
That is the perception that they want right now,That the floor is in. This allows debt holders to convert nicely in this range. Like I said before this can be a trap for flippers hoping for 20 - 30% who really are the only ones supporting this level. The rare revenue PR last week couldn't even find support in the 8s. Debt holders are typically converting from the 3s, so they are loving this range.
Some additional events will occurre due around the end of February. Sure the Maxim contract expires and once it is done all expenses related to it come due. I'm not sure at what point the 2.5% of the outstanding shares are due to them but they are non-dilutive. So if the price is far below the point of agreement they will be made whole with a true up requiring even more shares.
The recent $300,000 note becomes convertible about the same time, end of February, with "conversion price is equal to 60% of the lower of the lowest trading price during the 20-days immediately preceding the issuance of the Note".
https://sec.report/Document/0001493152-20-017237/
Early in February the purported group of four debt holders who have been holding off will likely start again without an extension.
https://www.otcmarkets.com/stock/ATDS/news/DATA443-SECURES-AGREEMENT-FROM-ITS-LARGEST-INVESTORS-TO-FORGO-ALL-NOTE-CONVERSIONS-FOR-SIXTY-DAYS?id=282856
There are many other notes not only converting monthly but also being put in the pipeline. It is truly ridiculous in my opinion.
They always word their PRs very carefully for maximum impact. The intent is to get primarily the volume needed for the dilution. If thee could have said "annual revenue of at least $100K per year" I would fully expect that they would have. Statements like these are why the company has such a a credibility problem. This deal was likely done by, what is referred to in the filings, as a channel partner with all the expenses the relationship suggests. That is why this statement from the PR is also deceptive. This company does not have the resources to staff an office in Dubai and actually operate internationally. Conversion to the US dollar is .27 to 1.
Additionally they get away with saying "leading provider of All Things Data Security!" because they own the trademark phrase "Data Privacy Solutions for All Things Data Security™"
Data443 Risk Mitigation, Inc. (OTCPK: ATDS), is the de facto industry leader in Data Privacy Solutions for All Things Data Security™
"Leveraging the opening of our Dubai office and our new incredible partner in the Middle East, we look forward to continuing to be a leading provider of All Things Data Security!”
https://www.otcmarkets.com/stock/ATDS/news/DATA443-ANNOUNCES-MULTI-YEAR-CONTRACT-TO-PROVIDE-DATA-CLASSIFICATION-AND-PRIVACY-SERVICES-TO-FLAGSHIP-MIDDLE-EAST-BANK?id=285281
Yeah, that has always been the promise. This company's PRs are always deceptive in one way or another. The Dubai currency exchange rate is .27 to the dollar and I believe that is the "six figures" that they are talking about. This deal was also done through a "channel partner" most likely which comes with its own expenses and commissions. I would bet the PR value for moving shares was worth more than the deal itself.
This stock has a ton of dilution in the pipeline and they need to convert every month to stay viable. Less than 200 million shares outstanding in July to a billion now. Started 2020 with less than 10 million. The rate will increase more rapidly now because of the sub penny price.
If Jason can pull the close over .009, rabbit out of his hat, it will Trigger the first Triton tranche of the 166+ million available shares and slap it down quickly. They only have five days per tranche to unload and they will as soon as possible because all runs here fail. This could go on until June 31st according to the agreement. Look at the one year chart for all the failed runs.
Could be dead money until the end of June when the Triton deal expires. Jason couldn't get the .009 close with the latest revenue PR. Everyone knows that the price will get slapped hard after .009 so Jason has essentially put a cap on this. If they do not get some volume soon or the price will decline because they need to convert every month to stay afloat. I'm surprised they didn't have follow-up PRs this week. Sure to get one next week in my opinion. Not that the price will move much, but they need the volume.
Latest fire sale dilution numbers since the those revealed in the last quarterly. This goes on monthly aside from the major debt holders. Data from the S-1. Looks that those conversion rates. Might suggest the real value of this stock and how much shareholders are paying for these funds. range of conversions as low as .003. Instead of buying this stock at current market and taking the risk, just get with Jason and he will sell you $100K worth at .003.
https://sec.report/Document/0001493152-20-024298/
"Subsequent to September 30, 2020, the following transactions occurred:"
On October 02, the Company issued a total of 119,155,869 shares of its common stock to three individuals in connection with the transaction closed on September 16, 2019, in which we acquired certain assets collectively known as DataExpress™ from DMBGroup, LLC. This represented the final issuance of shares due from the purchase of the DataExpress™ assets.
On October 07, the Company converted $92,600 of a promissory note into 30,866,666 shares of its common stock.
On October 08, the Company entered into an Asset Purchase Agreement with Resilient Network Systems, Inc. (“RNS”) to acquire the intellectual property rights and certain assets collectively known as Resilient Networks™, a Silicon Valley based SaaS platform that performs SSO and adaptive access control “on the fly” with sophisticated and flexible policy workflows for authentication and authorization. The total purchase price of $305,000 consists of: (i) a $125,000 cash payment at closing; and, (ii) the issuance of 19,148,936 shares of our common stock to RNS.
On October 21, the Company converted $131,250 of a promissory note into 37,500,000 shares of its common stock.
On November 4, the Company issued 12,711,503 shares of its common stock upon the cashless exercise of a warrant.
On November 16, 2020, the Company converted $118,000 of a promissory note into 40,000,000 shares of its common stock.
On November 23, 2020, the Company converted $44,900 of a promissory note into 15,482,759 shares of its common stock.
On November 23, 2020, the Company converted $44,900 of a promissory note into 15,482,759 shares of its common stock.
On November 25, 2020, the Company issued 5,300 shares of its Series B Preferred Stock in exchange for $50,000 of net proceeds from an investor.
On December 02, 2020, the Company converted $140,000 of a promissory note into 40,000,000 shares of its common stock.
On December 08, 2020, the Company converted $140,000 of a promissory note into 40,000,000 shares of its common stock.
On December 15, 2020, the Company converted $30,000 of a promissory note into 9,375,000 shares of its common stock.
On December 15, 2020, the Company converted $15,150 of a promissory note into 4,734,375 shares of its common stock.
On December 17, 2020, the Company converted $45,000 of a promissory note into 12,371,134 shares of its common stock.
As usual you have to read the PRs with a critical eye and look for the deceptions.They aren't out right lies but it always appears that they the deceive by omission. There is a very detailed description of the companies operations and financials is the latest S-1. I see nothing about the Dubai operations and an office. What I do see is references to "Channel partners". it appears that these are commission sales associates that represent the companies products. After expenses I have to wonder how much actually is received by the company considering the exchange rate. When the PR talks about a "six figure" deal it doesn't say dollars. The current exchange rate for the Dubai currency is 1 USD to 3.67 AED. That is a huge difference given what the statement suggests.
DATA443 ANNOUNCES MULTI-YEAR CONTRACT TO PROVIDE DATA CLASSIFICATION AND PRIVACY SERVICES TO FLAGSHIP MIDDLE EAST BANK
This six-figure per year, initial three-year term deal will service the bank’s more than 10,000 employees.
https://www.otcmarkets.com/stock/ATDS/news/DATA443-ANNOUNCES-MULTI-YEAR-CONTRACT-TO-PROVIDE-DATA-CLASSIFICATION-AND-PRIVACY-SERVICES-TO-FLAGSHIP-MIDDLE-EAST-BANK?id=285281
From the S-1
“We intend to rely on channel partners, such as distribution partners and resellers, to sell licenses and support and maintenance agreements. Our ability to achieve revenue growth in the future may depend in part on our success in maintaining successful relationships with our channel partners. Agreements with channel partners tend to be non-exclusive, meaning our channel partners may offer customers the products of several different companies. If our channel partners do not effectively market and sell our products and services, choose to use greater efforts to market and sell their own products or those of others, or fail to meet the needs of our customers, our ability to grow our business may be adversely affected. Further, agreements with channel partners generally allow them to terminate their agreements for any reason upon 30 days’ notice. A termination of the agreement has no effect on orders already placed. The loss of a substantial number of our channel partners, our possible inability to replace them, or the failure to recruit additional channel partners could materially and adversely affect our results of operations. If we are unable to maintain our relationships with these channel partners, our business, results of operations, financial condition, or cash flows could be adversely affected.”
“Because our long-term success depends, in part, on our ability to expand the sales and marketing of our technology and solutions to customers located outside of the United States, our business will be susceptible to risks associated with international operations.”
https://sec.report/Document/0001493152-20-024298/
Every one should keep flipping into the kill zone and help fill it up. That is the only retail money that will be made. Same as always. Thank all those that are long for the retail profits!
The first real revenue PR since early summer and it bombed. I have my doubts that Jason will receive any funds from the Triton agreement. If he floats another acquisition this will sell off just like the last two. These represent more debt and liabilities in the short term. More debt, that is what is needed here.
A scam wouldn't try to trick traders to but into the kill zone so that they can unleash the dilution. They did tell everyone what they were doing in the S-1 but you really had to dig for it. They gave a vague description in the section for it at the beginning and buried the details way down below the history intermingles with misc. crap.
The word is out now. As soon as this closes .009 and higher they will be hammering it with the dilution. They only have five days to convert the shares in the latest "purchase agreement" and they will do it quickly because no run here lasts very long. How low it goes depends on the volume but they will unload what they have before the five days. Who wants to try and trade into that manipulation? Kill zone is 7s and 8s. This is where the new bag holders will be created if Triton is able to convert those 166+ million shares..
https://sec.report/Document/0001493152-20-024298/
The four largest note holders agreed to hold off the dilution for 60 days. This is a great space for those not holding off to raise funds. If Jason can not pull off the Triton fund raiser the debt cartel of four will not be happy. They will be holding off long enough for the next tranche of dilution to kick in and competing with that.
Could be. The thing with this stock is that things never are as advertised. I guess I never thought much of ClassiDocs™. Looked to me like something Jason unloaded on this company for money and control.
This doesn't have a chance. In July when there were less than 200 million shares outstanding that news would have run this to several pennies, no more. Traders aren't going to buy in this kill zone knowing that Triton is standing by to slap it down. Nearly a billion shares outstanding now.
Very typical. They release a very vague PR about this Monday to get some volume and then again today with the details. This will get dropped on multiple platforms this week and their surrogates will pump it. We will see if they can trigger the Triton dilution with the .009 close.
Their product failures and debt are why this is trading where it is. This isn't suddenly an overlooked Gem. These products are very dated technology.
If this manages to crack .009 it will get slapped hard because Triton knows that it won't hold long.
That is funny. Their products aren't able to get traction anywhere because of competing products. But for some reason they have a niche in the middle east? So we finally get some detail about this user. Maybe they will get some volume in the 7s and 8s kill zone. We know this zone will get dumped into when this closes above .009, and quickly.
Jason doesn't even believe this is going up and there is a lot of evidence out there. Remember this flowery PR last November? Referred to as the “Smea2z Note”. This is actually a $220K note from 2018 that matured in 2019 and has such wonky terms that it grew to over $600K. This is a disputed note so they settled for $400K note with a fixed conversion price of .0035 due July 2021. If the price stays where it is the note holder will come out much better than the original note. The reality is that there is doubt that the note can convert at .0035 because of the default clause. If share price closes five consecutive days below .0035 the note is in default. So this is debt that originated in 2018 that somehow wasn't retired with nearly 1 billion in dilution this year trading at prices much higher. The dilution in the pipeline will drag this down.
"DATA443 ANNOUNCES FURTHER REDUCTION IN DEBT, WITH MORE SHAREHOLDER-FRIENDLY TERMS, AND SIGNIFICANT REDUCTION IN DERIVATIVE LIABILITIES"
MAJOR HIGHLIGHTS OF THE TRANSACTION:
> A 33% reduction in amount owed under the existing convertible note.
> Fixed conversion price eliminates the derivative liability component
under the convertible note, positively impacting our financial
statements.
> Leak out provision removes downward pressure on our stock price by
limiting the amount to be converted during any week for the life of
the note if it is converted.
> No issuance of any additional consideration or material change in
terms of the convertible note in exchange for the settlement
Maintains cooperative and positive relationship with investor.
https://www.otcmarkets.com/stock/ATDS/news/DATA443-ANNOUNCES-FURTHER-REDUCTION-IN-DEBT-WITH-MORE-SHAREHOLDER-FRIENDLY-TERMS-AND-SIGNIFICANT-REDUCTION-IN-DERIVATIVE?id=280863
Effective 17 November 2020, Data443 Risk Mitigation, Inc. (the “Company”) entered into an agreement with an existing lender to settle a dispute regarding a convertible promissory note, and exchanged that note for a newly issued note. The disputed note, referred to herein as the “Smea2z Note”, was originally issued on 23 October 2018 in favor of SMEA2Z LLC in the original principal amount of Two Hundred Twenty Thousand Dollars ($220,000), with a variable conversion feature at discount to the market price, and a maturity date of 23 July 2019. Subsequent to the issuance of the Smea2z Note, a series of agreements were executed which amended various terms and conditions of the Smea2z Note, resulting in, among other things, a purported current principal balance of Six Hundred Thousand Eight Hundred Fifty Dollars ($608,850), a variable conversion feature at a deeper discount to the market price, and a maturity date of 30 June 2021. The Smea2z Note was recently acquired by the current holder.
The Exchange Note was issued as of 17 November 2020 in the reduced original principal amount of Four Hundred Thousand Dollars ($400,000). The Exchange Note further provides as follows:
(1) No further interest shall accrue so long as there is no
event of default.
(2) Maturity date remains the same: 30 June 2021.
(3) No right to prepay.
(4) Conversion price is fixed at $0.0035.
(5) Typical events of default for such a note, as well as a
default in the event the closing price for the Company’s
common stock is less than $0.0035 for at least 5-
consecutive days.
(6) Leak out provision:
(a) One conversion per week, for no more than forty million
shares;
(b) If the trading volume for the Company’s common stock
exceeds fifty million shares on any day, a second
conversion may be exercised during that week, again for
no more than forty million shares (a total of eighty
million shares for that week).
The foregoing descriptions of the Settlement Agreement and the Exchange Note do not purport to be complete and are qualified in their entirety by the actual language contained in the Settlement Agreement and the Exchange Note, respectively.
https://sec.report/Document/0001493152-20-022064/
I have to say that this is an interesting discussion. Not like other boards.
Per my previous post. What the hell does this mean as a shareholder??? This is strange to me. Especially since Jason owns all class "A" preferred shares, is the only board member, and makes all decisions for this company. Maybe Jason just gets a million dollar bonus! Who the hell knows. In my opinion, this guy is a F$%K@*G crook. This is the actual quote from the section that I posted from the s-1 filing. No Shit! Is this really something your would invest in? The SEC doesn't care as long as they are being "Transparent". One would think that they would be paying down debt.
From the S-1
"Our management will have broad discretion in the use of the net proceeds from this offering and may invest or spend the proceeds in ways with which you do not agree and in ways that may not yield a return."
Our management will have broad discretion in the application of the net proceeds from this offering, including for any of the purposes described in the section titled “Use of Proceeds”, and you will not have the opportunity as part of your investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from this offering, their ultimate use may vary from their currently intended use. The failure by our management to apply these funds effectively could harm our business. Pending their use, we may invest the net proceeds from this offering in investment-grade, interest-bearing securities. These investments may not yield a favorable return to our security holders.
https://sec.report/Document/0001493152-20-024298/
Nice find BC!! It was buried down under all the the history crap. Did someone tell you where it was? However, it only reinforces my argument about this deal. The description here states that .009 triggers the purchase obligation. From there Triton must start converting to realize their profit. This selling depending on the amount of the "purchase notice" may result in a decline in share price. They have five days to convert those shares. Again, how is this good for share holders? I am even more correct about the kill zone in the 7s and 8s because of these conversions and those flipping for a profit. How do you convince traders to buy in this zone which in the end will be heavily diluted? There is no chance of a short term run beyond .009. Whats more is the latest PR didn't even come close to generating the volume needed for the required close price of .009. In my opinion if they can not get this million dollar conversion they have a real problem. I believe that Jason convinced the four largest shareholders to hold off with the possibility of getting paid with these proceeds. The four "debt cartel" members were dropping this so hard that it cracked below .005. If this scheme doesn't work they will be back online with the addition of the Maxim and additional note holders coming online at the end of February. Do you believe this can hold .005 under those conditions?
So the perspectus states;
The sale of our common stock to Triton in accordance with the CSPA and the Warrant Agreement may have a dilutive impact on our stockholders. As a result, the market price of our common stock could decline. 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.
Triton 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 CSPA will be purchased at a discount of at least 33.33%; the purchase price under the CSPA is $0.006 per share, and the closing price for our Common Stock must be at least at $0.009 per share.
Triton has a financial incentive to sell our shares immediately upon receiving them to realize the profit between the purchase price and the market price. If Triton sells our shares, the price of our Common Stock may decrease. If our stock price decreases, Triton may have further incentive to sell such shares. Accordingly, the discounted sales price in the CSPA may cause the price of our Common Stock to decline.
We may not have access to the full amount under the CSPA.
The closing price of our Common Stock on December 22, 2020 was $0.0064. The minimum share price for a share purchase under the CSPA is $0.009. As such, unless the closing price of our Common Stock is at least $0.009, we will not have access to amount under the CSPA. At the current share price for our Common Stock, there will be no purchase under the CSPA.
Our management will have broad discretion in the use of the net proceeds from this offering and may invest or spend the proceeds in ways with which you do not agree and in ways that may not yield a return.
Our management will have broad discretion in the application of the net proceeds from this offering, including for any of the purposes described in the section titled “Use of Proceeds”, and you will not have the opportunity as part of your investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from this offering, their ultimate use may vary from their currently intended use. The failure by our management to apply these funds effectively could harm our business. Pending their use, we may invest the net proceeds from this offering in investment-grade, interest-bearing securities. These investments may not yield a favorable return to our security holders.
https://sec.report/Document/0001493152-20-024298/
Nonsense! I can understand how traders got fooled over a year ago before Jason dropped the reverse split and the Dataexpress debacle. No excuse for those that have been getting burned here since August. This is transparently Junk. All you have to do is read the filings and not the PRs.
That latest PR tells you how difficult it is going to be to convince traders to buy into the 07s and 08s for conversions and flippers. The killing zone. Keep your head down. LOL
Looks like the stops got taken out. As highly manipulated as this is the one thing they can't control is retail dumping. There is no way in my opinion that this should have real support in the 7s and 8s. The support back in July with only around 188 million outstanding was .01. Now nearly a billion shares later and the increasing debt and expenses. Not to mention the additional dilution in the pipe line. Debt holders are literally being lined up. Don't forget all the debt and warrants that was recently pushed out to next summer. I still don't understand what they spend all that dilution money on other than past mistakes.
Negative. If they have a purchase notice in hand they can convert. They just aren't obligated to until it closes over .009. By then they make 50% minimum on their money so it is a no brainer. No risk for Triton what so ever. If you see a PR like Monday's I would assume that the have a purchase notice. Maxim isn't going to waste a PR on retail.
Each time the Company wishes to issue and sell common stock to Triton under the Purchase Agreement, the Company is required to provide Triton with a purchase notice (the “Purchase Notice”), which Purchase Notice sets forth the total number of shares of common stock that the Company elects to sell to Triton (the “Purchased Shares”). The total purchase price to be paid by Triton at each closing will be determined by multiplying the number of Purchased Shares to be sold by the Company in the Purchase Notice by the purchase price per share, which is $0.006 per share. However, in no event will Triton be obligated to purchase common stock when the closing price for the Company’s common stock is less than $0.009 per share. Triton is obligated to acquire no more than an aggregate offering price of $1 million. Further, the Company shall not effect any sales to Triton, and Triton shall not have the right to purchase any shares, to the extent that after giving effect to such sales, Triton (together with its affiliates, and any other persons acting as a group together with Triton or any of Triton affiliates) would beneficially own in excess of 9.99% of the outstanding shares of the Company’s common stock.
https://sec.report/Document/0001493152-20-023852/
How can many be "way in the green" when it went from .70s last January to a low of .0049 in December? Those who are smart flippers traded out of those positions quickly. 30% really isn't worth the risk with this one down here if timed perfectly. It is clearly a pump and dump. Maxim will do their job to keep this pumped up in the 7s and 8s and Triton will do theirs by dumping the 166+ million in conversions. As this space fills into March the flipping channel will be much lower. Those holding above a penny... Forget about it. LOL. Watch the others on your watch list run while this continues to disintegrate.
Holding the largest four debt holders off and the Triton deal has created a great space for Jason to raise money. The note conversions for those not holding off is great and I'm sure Jason will pay some additional bills as long as volume holds up. This space is artificial and not supported by the fundamentals. Maxim needs to maintain this level after they receive their shares equivalent to 2.5% of the outstanding shares around the end of February. Also that $300,000 become eligible to convert around the same time. they will keep this pumped up in the 7s and 8s and they will make great money. As this space fills it ensures that those eager to flip this will become the new bag holders. same game as 2019 until the next reverse split. The only good news is that maybe Jason pays those four holding off. Maxim, the $300,000 note holder, and others need them gone from the scene to make room at the trough.
Would you mind sharing your due diligence that indicates that they are doing anything other than selling shares? A ton of dilution already in the pipeline besides the 166+ million shares that Triton has to dump. Jason adds more all the time. The acquisitions are short term liabilities and unlikely to perform any better than the past acquisitions.
From the S-1
We intend to acquire or invest in companies, which may divert our management’s attention and result in additional dilution to our stockholders. We may be unable to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions.
Our success will depend, in part, on our ability to expand our solutions and services and grow our business in response to changing technologies, customer demands and competitive pressures. It is our express plan to do so through the acquisition of, or investment in, new or complementary businesses and technologies rather than through internal development. The identification of suitable acquisition or investment candidates can be difficult, time-consuming, and costly, and we may not be able to successfully complete identified acquisitions or investments. The risks we face in connection with acquisitions and/or investments include:
> an acquisition may negatively affect our operating results
because it may require us to incur charges or assume
substantial debt or other liabilities, may cause adverse tax
consequences or unfavorable accounting treatment, may expose
us to claims and disputes by stockholders and third parties,
including intellectual property claims and disputes, or may not
generate sufficient financial return to offset additional costs
and expenses related to the acquisition;
> we may encounter difficulties or unforeseen expenditures in
integrating the business, technologies, products, personnel or
operations of any company that we acquire;
> an acquisition or investment may disrupt our ongoing business,
divert resources, increase our expenses, and distract our
management;
> an acquisition may result in a delay or reduction of customer
purchases for both us and the company acquired due to customer
uncertainty about continuity and effectiveness of service from
either company;
> we may encounter difficulties in, or may be unable to,
successfully sell any acquired products or effectively
integrate them into or with our existing solutions;
> our use of cash to pay for acquisitions or investments would
limit other potential uses for our cash;
> if we incur debt to fund any acquisitions or investments, such
debt may subject us to material restrictions on our ability to
conduct our business; and
> if we issue a significant amount of equity securities in
connection with future acquisitions, existing stockholders may
be diluted and earnings per share may decrease.
The occurrence of any of these risks could adversely affect our business, operating results and financial condition.
https://sec.report/Document/0001493152-20-024298/
The S-1 filing states the reality for ATDS and is their cover as far as the SEC is concerned. The statements in it are as close to honesty as this company can muster. The real reason why they are unable get any market traction is in the "Risks Related to Our Business and Industry" section and is why this has dropped from .70s to half a penny post reverse split since last January.
We will face intense competition in our market, especially from larger, well established companies, and we may lack sufficient financial and other resources to maintain and improve our competitive position.
The market for data security and data governance solutions is intensely competitive and is characterized by constant change and innovation. We face competition from both traditional, larger software vendors offering enterprise-wide software frameworks and services, and smaller companies offering point solutions for specific identity and data governance issues. We also compete with IT equipment vendors and systems management solution providers whose products and services address identity and data governance requirements. Our principal competitors vary depending on the product we offer. Many of our existing competitors have, and some of our potential competitors could have, substantial competitive advantages, such as:
> greater name recognition and longer operating histories;
> more comprehensive and varied products and services;
> broader product offerings and market focus;
> greater resources to develop technologies or make
acquisitions;
> more expansive intellectual property portfolios;
> broader distribution and established relationships with
distribution partners and customers;
> greater customer support resources; and
> substantially greater financial, technical, and other
resources.
Given their larger size, greater resources, and existing customer relationships, our competitors may be able to compete and respond more effectively than we can to new or changing opportunities, technologies, standards, or customer requirements. Our competitors may also seek to extend or supplement their existing offerings to provide data security and data governance solutions that more closely compete with our offerings. Potential customers may also prefer to purchase, or incrementally add solutions, from their existing suppliers rather than a new or additional supplier regardless of product performance or features.
https://sec.report/Document/0001493152-20-024298/
Record Year? Here is how the first nine months went.
from the latest 10Q
"The net loss for the three and nine months ended September 30, 2020 was $1,500,000 and $14,254,000 as compared to a net loss of $3,196,000 and a net income of $4,027,000 for the three and nine months ended September 30, 2019, respectively."
"As of June 30, 2020, we had assets of cash in the amount of $549,000 and other current assets in the amount of $42,000. As of June 30, 2020, we had current liabilities of $16,558,000. The Company’s accumulated deficit was $34,365,000, largely due to derivate liability treatments."
"As of June 30, 2019, we had assets of cash in the amount of $241,000 and other current assets in the amount of $521,000. As of June 30, 2019, we had current liabilities of $3,401,000. The Company’s accumulated deficit was $13,780,000, largely due to derivate liability treatments."
https://sec.report/Document/0001493152-20-014876/
Triton has the Arbitrage play.Somehow this helps traders? Traders are being played.
Multi year 6 figure deal. The history of lies and deception is the problem with this company. Could be a hundred years of renewal rights for a $1000 a year to one of his buddies. The only thing that will move the needle on this stock as always is real revenue. Their tech products are bottom shelf dated crap competing in a market of big players. The product mix or scraps thrown together is simply to sell stock in my opinion. The best evidence is the rapid increase in outstanding shares after the reverse split. 9-10 million last January and they cracked a billion in December. Yet their debt and expenses increase. Where is all that money going?
You ever notice that they only ever say the very basic things about any deals. Bottom line is the share price went from the .70s post split to a half penny in a year because they have dated tech products that do not sell well enough to keep the lights on.
Monthly dilution is required. The share count went from 9-10 million last January to over a billion now and will grow even more rapidly because of the sub penny price. At the same time their debt and expenses have grown.
Huge shares in the pipeline. Four largest shareholders holding off on their dilution at the moment. Triton beginning their 166+ million share dump. Maxim will soon be awarded their shares equal to 2.5% of the outstanding shares. The $300,000 note inked at the same time as the Maxim service contract will soon be eligible to convert. They issue cash for notes monthly to pay the bills and have another year to pay on the 2019 Dataexpress debacle. We aren't even covering all the smaller notes out there.
No, it isn't a surprise to get the run and neither is the retrace a surprise. Jason always gets a bump from the newbie PR traders. They need some volume though in the .07s and .08s if Triton is to dump those 166 millions shares. That is the first client add PR, if real, that he has released since the lame football team addition in early summer. So how many of those do you think he has? Pretty vague PR at that. He will drop it again this week and their surrogates on those platforms can talk it up.
Oh look, another run died. surprise, surprise. Need some support follow-up guys, this isn't going to get it done.