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Their debt to revenue deficit has more than doubled since the first of the year despite the huge share count increase. Where did all that money go this year? To losses of course. If I sell cars at half their value to brag about increased sales and record a growing deficit due to borrowing despite free shareholder funds, that isn't growth. They paid $135K for each of the two new acquisitions. It isn't likely that they would be sold for that price if they were big revenue generators. They were products that never found their market. $ATDS cobbled together a $2.8 million deal last year for Dataexpress and that was a huge loser that is still being paid for. They have not demonstrated the ability to do anything other than fund failing operations and more acquisitions in my opinion. They use what they have to promote the stock and sell shares. I loved to flip this stock earlier in the year when it would pop 100+%. But even at .005 I didn't see how it could pop more than 25 or 30% on their best PR push because of the SEC inquiry, Maxims involvement, and the rapidly growing share count. Risk reward wasn't worth it. That is why it is trading at this level. Huge wall of traders looking for the exits at a penny that bought in since August.
Translate the burn rate for this company in shares at sub penny and you will understand why this will languish at this level even if they manage to get the volume up. The outstanding share count has increased every month from 10 million at the beginning of the year to nearly a billion now.
"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."
who would buy this given the dismal financials? They are promoting to raise fund for operations as usual. They need the volume to themselves and won't allow much flipping for profit from here in my opinion. accumulated deficit has more than doubles from the first of the year despite 800 million additional shares to the OS count.
10Q under the heading of "going concern"
"As of September 30, 2020, our Company has an accumulated deficit of $35,865,000. We do not have sufficient working capital to enable us to carry out our plan of operation for the next twelve months".
https://sec.report/Document/0001493152-20-021394/
Yes, I noticed this a while back. When they use the line "The Company is the de facto industry leader in data privacy solutions for All Things Data Security™," in all their PRs and even in the 10K. The little TM at the end of the phrase "All Things Data Security™". This is how they get away with saying it. This is the most dishonest and deceptive company I have ever seen. They primarily promote the stock. Without the ability to sell stock they are no longer a going concern.
I haven't see a $atds run yet that hasn't retreated to new lows. Just look at the YTD chart. The SEC issue isn't going away and I believe they had a change of auditors this year. I would like to see how they explain taking the "impairment" so quickly. Maybe they know how this will go down and are putting it off for as long as possible. This acquisition really screwed the shareholders at time of the reverse split. They essentially lost everything. I hope $ATDS gets a Jason sized wedgie out of this.
"We note that your acquired certain assets collectively known as DataExpressTM on September 16, 2019 for a total purchase price of $2.8 million..."
"We note that you recorded an impairment loss of $1,328,638 during the year ended December 31, 2019. Please expand the disclosure on page 40 and in MD&A to explain the reason for the amount and timing of the impairment"
https://sec.report/Document/0000000000-20-005163/
How does Maxim resolve the SEC matter? Really??? The posted letter from Jason in July to the SEC stated that the $ATDS auditor would respond within 30 days and they didn't follow through. Then came the subsequent letter dated Sept. 1st from the SEC that they have terminated the inquiry and now will move to the action stage. maxim has no role in this. Stayed tune for more SEC comment filings. I have subscribed so I will certainly post it when it comes.
"TON has assured us that it will be able to provide us with the needed detailed response within the next 30-days. As such, we respectfully request that the Staff grant us an additional 30-days from the date of this letter to submit our comprehensive response to the Comment Letter. Please be further advised that TON has also agreed to make itself available for a conference call to specifically address our response, once filed."
https://sec.report/Document/0001493152-20-014049/
"As you have not provided a substantive response, we are terminating our review and will take further steps as we deem appropriate. These steps include releasing publicly, through the agency's EDGAR system, all correspondence, including this letter, relating to the review of your filing, consistent with the staff's decision to publicly release comment and response letters relating to disclosure filings it has reviewed."
https://sec.report/Document/0000000000-20-008234/
The SEC has signaled to traders what they intend to do in the short term with the letter filed on September 1st. They aren't asking anymore and plan to take action. Tic Toc....
"As you have not provided a substantive response, we are terminating our review and will take further steps as we deem appropriate. These steps include releasing publicly, through the agency's EDGAR system, all correspondence, including this letter, relating to the review of your filing, consistent with the staff's decision to publicly release comment and response letters relating to disclosure filings it has reviewed."
https://sec.report/Document/0000000000-20-008234/
This used to be a good flip with an expectation for a double. If you time it perfectly now you might get 25% to 30%. Not worth the risk given that the SEC could post another letter in the filings at any moment. Jason could cooperate with the SEC and put the questionable December 2019 10K to bed but he isn't. In my opinion people should not trade a pink ticker that has the SEC actively investigating and the company not cooperating. Good Luck.
"Jason Remillard, founder and CEO of Data443 commented, “We’re very excited to open our office in Dubai,..."
Good luck finding an address for this.
"Our recent client wins in the Middle East proves that we can offer companies..."
Anyone recall who these new clients were?
"engaged Data Taag Technologies Middle East LLC as the Company’s master distributor for the Middle East, Africa, and India regions..."
I guess "engaged" means that they have asked these guys to try and sell their products. $ATDS aren't trying very hard themselves since they spent only $3000 on sales and marketing last quarter.
Same sort of crap PR, different week in my opinion.
What deal? They never said anything about a deal or contract. Simply engaged? Typical language for these guys.
"Data443 has engaged Data Taag Technologies Middle East LLC as the Company’s master distributor for the Middle East..."
Get your bids in, the trap is being set.They need more volume than that at this level.
Do you ever notice how they always refer to "clients" and never ever name them other than the NFL teams? This isn't a company that misses an opportunity to promote. Maybe someone here knows who their telecommunications, banking, government, and oil & gas company clients are.
Same PR released again today and probably on different outlets the rest of the week as usual. Also the "Company’s recent expansion of data center capabilities" is probably nothing more than adding additional storage space to the leased platform. For normal companies this is a maintenance function, here it is a line item in a PR.
"Data443 portfolio of telecommunications, banking, government, and oil & gas company clients."
Interesting. Looks like the walk up they did some weeks ago. Let the bid build then dump into it. See if they do it again.
Please explain what someone would be buying? An unsettled SEC inquiry? A company that is burning through shareholder cash to sustain operations? According to the 10K the focus is on more acquisitions with Maxim under contract.
This weeks PR is very typical of $ATDS PRs. Nothing to really bite into. The very best one that snagged a LOT of traders here in the .02 to .04 range in August was the ZOOM deception. The PRs led many who didn't look closely to believe that ZOOM was using their product when in fact they had already purchased a competing product and was developing it in house. The $ATDS product was simply a free plugin available on the ZOOM site. Those running this company are very dishonest in my opinion. Buyer beware.
According to the 10K $ATDS doesn't actually own ARCMAIL, they license it for a monthly fee. The same paragraph in the 10K states that it is owned by the creditors of the original owner Mr. Welch and ArcMail.
"On February 7, 2019, the Company entered into an Exclusive License and Management Agreement (the “License Agreement”) with WALA, INC., which conducts business under the name ArcMail Technology (“ArcMail”). Under the License Agreement, the Company was granted the exclusive right and license to receive all benefits from the marketing, selling and licensing, of the ArcMail business products, including, without limitation, the good will of the business. The term of the License Agreement is twenty-seven (27) months, with the following payments to be made..."
"The Company has not purchased any outstanding shares under the Stock Purchase Rights Agreement. As of September 30, 2020, the Company has terminated all agreements with Mr. Welch and ArcMail. The Company continues to use all assets under the License Agreement and is finalizing an agreement with the creditors of Mr. Welch and ArcMail (the creditors have taken ownership of the assets) for the Company’s continued use of all assets."
https://sec.report/Document/0001493152-20-021394/
I wouldn't expect the SEC to release anything outside normal channels. But they did leave their phone number...
As you have not provided a substantive response, we are terminating our review and will take further steps as we deem appropriate. These steps include releasing publicly, through the agency's EDGAR system, all correspondence, including this letter, relating to the review of your filing, consistent with the staff's decision to publicly release comment and response letters relating to disclosure filings it has reviewed.
Please contact Claire DeLabar, Staff Accountant at (202) 551-3349 or Robert Littlepage,Accountant Branch Chief at (202) 551-3361 with any questions.
You really have to pick through an figure out where the deception is in their PRs as usual. I doubt very seriously that they have a physical office in Dubai. What does "Engaged" means here? Maybe had a phone call? I would say the wedding is off after they check the $ATDS credit score. Typical $ATDS flowery PR that boils down to nothing more than a high commission sales outlet in my opinion. Typical disclaimer section at the bottom that reminds us "buyer beware".
"To further strengthen its position, Data443 has engaged Data Taag Technologies Middle East LLC as the Company’s master distributor for the Middle East, Africa, and India regions. Najaf Ali, data security veteran and CEO of Data Taag, will lead Data443’s entry into these markets just as he has with other global leaders such as RedHat, VMWare and Amazon AWS."
The Q3 filing balance sheet shows the increasing debt to revenue deficit despite the huge dilution that has occurred this year. They continue to have a huge credibility deficit as well because of these glossy PRs that no one believes will lead to real income. It has gotten pretty sad for this ticker knowing that any news will not generate the volume needed for at least a 30% flip potential, much less for raising needed funds. People like myself are staying out because the SEC doesn't go sniffing around companies that smell legit.
So $ATDS isn't generating revenue in the U.S. so they open an office in Dubai where renting a broom closet probably fetches a fortune. Now we are to believe that this is good and that they they wrangled up some international clients on a $3000 sales and marketing expenditure last quarter. I honestly do not believe anything that they put out anymore. The only thing that will move this up and maintain is if when they put out some positive revenue numbers. All that I see in this PR is more on the expense side of the ledger. Sell the news as usual if you can in my opinion. It is likely that this will drop again on the news to new lows. I find it hard to believe that they have the resources to operate internationally and question their judgement for trying.
According to this September first filing of the SEC letter, dated April seventeenth, they should be updating shareholders. So where are they? It took five months for them to file the letter. Could the SEC drop news soon? Maybe the promised client PR's will be timed for this eventuality? This is either a bold or very stupid company.
"As you have not provided a substantive response, we are terminating our review and will take further steps as we deem appropriate. These steps include releasing publicly, through the agency's EDGAR system, all correspondence, including this letter, relating to the review of your filing, consistent with the staff's decision to publicly release comment and response letters relating to disclosure filings it has reviewed."
https://sec.report/Document/0000000000-20-008234/
I don't see how giving the SEC the run around ends well. The issue that they are looking at related to last years $2,000,000 plus acquisition deal is very smelly and can't image a responsible answer for such a bad math. I would hope that since Jason has positioned himself as CEO, the only board member, and through his exclusive ownership of the class "A" preferred shares makes all decisions, that he isn't able to avoid personal liability. It would be nice to see him snared in a sarbanes oxley trap.
https://sec.report/Document/0000000000-20-005163/
"As you have not provided a substantive response, we are terminating our review and will take further steps as we deem appropriate. These steps include releasing publicly, through the agency's EDGAR system, all correspondence, including this letter, relating to the review of your filing, consistent with the staff's decision to publicly release comment and response letters relating to disclosure filings it has reviewed."
https://sec.report/Document/0000000000-20-008234/
Better hurry before they turn into .04s. Where is that weekly PR?
If memory serves that .13 run was on very little volume.Something like a bit over 20 million shares over a few days. The huge volume of over 255 million or so in August briefly cracked .04. Dilution selling since then for various reasons so this is trading totally different now. It used to be great for flipping but not anymore since it is being controlled. Remember my old buy target of .075 that most here mocked? I stayed out because by then it was clear what they are doing.
Nice salary for company this size that burns cash. He is basically the sole proprietor so he doesn't have to worry about keeping his job over performance. Also nice to be able to issue yourself preferred class "A"shares on a whim. I'm sure that he considers it a performance bonus. Who knows what other perks he endows on himself at shareholder expense. The debt to revenue deficit is growing. If he isn't careful he will kill the golden goose by turning off traders and the money spigot as the price declines.
Its going to be hard for whoever is diluting to pass up that huge and growing bid at 16. Sad.
Jason wins no matter what happens here. He awarded himself nearly another 150,000 series "A" preferred shares this past quarter and makes all decisions. I would like to know what kind of a paycheck he cuts for himself. Shareholders have always been the losers with this ticker.
Single line on the 10K balance sheet that indicates that their debt to earnings has grown substantially as the outstanding share count also grows substantially. They aren't even treading water. Started the year with around 10 million shares after the reverse split and now well over 800 million. During the same period their Accumulated deficit has also grown from $21,610,915 to $35,865,250 despite the funds from shareholders. Do they look like someone (Jason), company (Jason), that you would merge with?
Accumulating a deficit is the opposite of accumulating gain. It means that over time, the business's debts are greater than the earnings reported on the balance sheet.
You are so right!! Pay no attention to the gibberish on this board or the company's (Jason's) history. Grab all the cheapies you can. Good Luck! ;o)
Are you referring to a letter of intent as he did at the end of March? Then learn in the 10K that the deal was abandoned. Not that it was good for shareholders but I'm sure the news sold shares. Or a LOI for some revenue generating client? I would rather see a signed contract than learn that someone "intends to". Either way traders better look very closely before jumping on the buy button. The reality with this stock is to be in the position to sell the news. Never buy on the promoed pump. These guys are really something else.
DATA443 EXECUTES LETTER OF INTENT WITH LEADING SERVICE DESK SOFTWARE PROVIDER WITH OVER 1,000,000 ACTIVE USERS
https://finance.yahoo.com/news/data443-executes-letter-intent-leading-191634773.html
From the 10K
"Two of these proposed acquisitions, (i) N8 Identity, Inc.; and, (ii) Internet Software Sciences, have become problematic for the Company in that the proposed seller in each transaction has resisted the Company’s efforts to effect a final closing. After providing each proposed seller with a final offer to close, the Company has decided it is in the Company’s best interest to no longer pursue these proposed acquisitions."
https://sec.report/Document/0001493152-20-021394/
I agree. Sorry that I missed this before my latest post.
New 8K. Anyone care to speculate what Jason is doing now? Not good for the common shareholders. I like the way they refer to a board of directors. I believe the 10K stated that Jason is the only board member and holder of preferred "A" shares with exclusive voting rights. He runs this as a sole proprietorship with cheap funding from shareholders.
https://sec.report/Document/0001493152-20-022832/
Over due for the weekly PR.
These funny spikes usually means someone saw something somewhere. Fence sitters pounce on the buy button when a new PR comes in on the latest breeze.
Twitter seems to be indicative of their sales and marketing efforts these days. They only spent $3000 on it last quarter and maybe even less this quarter.
I'm talking about whatever deals he has going. Maxim has several more months on the contract and he has them doing something. Most anything they do requires share selling. They dropped 2 billion shares on a single acquisition deal last year so anything is possible. Jason just issued himself nearly 150,000 additional shares of preferred stock this past quarter which is equal to 15,000 of common voting rights. He is CEO and the only board member and makes all decisions. He runs this company as a sole proprietorship and pays for his wish list and expenses from the shareholder piggy bank. $ATDS might get a volume spike on manufactured news but the price will remain in this range in my opinion.
"During the nine months ended September 30, 2020, the Company issued a total of 148,666 shares of Series A preferred stock to our CEO."
https://sec.report/Document/0001493152-20-021394/
It appears to me that they need funds badly. If they get slapped by the SEC they will need funds even more so. I find it hard to believe that the price will rise because of some SEC action. If they do manage to manufacture a some sort of positive news I expect to see large volume and only a marginal price increase. Maxim and those other entities that have been issued large blocks of shares for debt will sell into any significant volume in my opinion.
Why is the SEC inquiry concerning the acquisition just noise? They Purchased Dataexpress in a $2.8 million deal in September 2019 presumably after doing their due diligence and then almost immediately take a $1.3 million write down by the end of 2019? I see smoke more than noise and that is why the SEC has questioned it. Shareholders will continue to see share selling associated with this deal. So why did they intentionally pay too much for this and where did the money really go?
"On September 16, 2019, the Company entered into an Asset Purchase Agreement (the “APA”) with DMBGroup, LLC (“DMB”) to acquire certain assets collectively known as DataExpress™, a software platform for secure sensitive data transfer within the hybrid cloud. The total purchase price of approximately $2.8 million consists of:..."
"During the year ended December 31, 2019 and 2018, the Company recorded impairment loss of $1,328,638 and $46,800, respectively. During the year ended December 31, 2019, we determined that the implied fair value of the intellectual property of DataExpress™ was substantially below the carrying value of the asset. This determination was based upon estimating the future income over the useful life of the asset and discounting it using an internal rate of return. Accordingly, we recognized an impairment loss of $1,328,638. This was based upon the following facts: (i) impairment loss is the difference of the purchase cost for DataExpress™ and the estimated fair value of DataExpress™; (ii) DataExpress™ fair value was determined using an income approach model."
https://sec.report/Document/0001493152-20-021394/
Makes sense. That is a very short period after the acquisition to make the statement.
These small companies developed their applications using venture and angle funding. They never gained traction in the market and they put themselves up for sale. The two recent acquisitions were priced at $135,000 each. Do you have any revenue number that suggest these were a bargain even at $135,000? It appears to me that $ATDS is simply an integrator of products and do not develop anything in- house and is why they look for acquisitions. A couple of lines from the latest 10K that shows that the Dataexpress acquisition last year was a huge loser. Makes no difference to Jason however since the funding was free through the dilution that wiped out shareholders last year after the reverse split.
https://sec.report/Document/0001493152-20-021394/
NOTE 4: INTELLECTUAL PROPERTY
"On September 16, 2019, the Company entered into an Asset Purchase Agreement (the “APA”) with DMBGroup, LLC (“DMB”) to acquire certain assets collectively known as DataExpress™, a software platform for secure sensitive data transfer within the hybrid cloud. The total purchase price of approximately $2.8 million consists of:..."
"During the year ended December 31, 2019 and 2018, the Company recorded impairment loss of $1,328,638 and $46,800, respectively. During the year ended December 31, 2019, we determined that the implied fair value of the intellectual property of DataExpress™ was substantially below the carrying value of the asset. This determination was based upon estimating the future income over the useful life of the asset and discounting it using an internal rate of return."