Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Interesting observations. I'm not in but paying attention. I think this is smelly also. I'm trying to figure out why it ran so hard before.
May never see the details of the acquisitions. The rules for reporting can be complicated. Keeping shareholders in the dark is enough to drive this lower. In fact after three acquisitions, who is to say more aren't in the pipeline. Share spending sprees can be fun!
a company need only report a completed acquisition or disposition of assets if the transaction meets the significant asset test as set forth in the item.[57]
[57]This test is the same as the test in former Item 2 of Form 8-K. It states that an acquisition or disposition is deemed significant if (1) the company's and its other subsidiaries' equity in the net book value of the assets or the amount paid or received for the assets exceeded 10% of the total assets of the company and its consolidated subsidiaries, or (2) the transaction involved a business that is significant under Regulation S-X.
https://www.sec.gov/rules/final/33-8400.htm#P205_31955
Yeah, that is the question. Normally fours days and is required with an acquisition is how I read it. These are events that impact shareholders no matter how small. I see the exceptions for 2020 with the COVID so.... Since this is pink sheets who knows. That is three rapid fire acquisitions now and no terms disclosed in what, 60 days? Buyer beware in my opinion. Shareholders do have a right to know.
8K filing loop hole? COVID excuse? acquisition requirement for 8K?
Requirements for Form 8-K
The SEC requires disclosure for numerous changes relating to a registrant's business and operations. Changes to a material definitive agreement or the bankruptcy of an entity must be reported. Other financial information disclosure requirements include the completion of an acquisition, changes in the firm's financial condition, disposal activities, and substantial impairments. The SEC mandates filing an 8-K for the delisting of a stock, failure to meet listing standards, unregistered sales of securities, and material modifications to shareholder rights.
"An 8-K is required to announce significant events relevant to shareholders. Companies usually have four business days to file an 8-K for most specified items.1? Filing deadlines for Form 8-K were temporarily extended for firms meeting specific criteria during the coronavirus crisis in 2020."
https://www.investopedia.com/terms/1/8-k.asp#:~:text=An%208%2DK%20is%20a,and%20Exchange%20Commission%20(SEC).
https://www.sec.gov/corpfin/covid-19-related-faqs
Securities issued in financing the acquisitions. It looks to me like Maxim has some motivation here to pay for the deals with shares. Wonder what kind of dilution is involved in the 3 deals. They are already locking in debt for future shareholders. They need to release the terms of the three acquisitions. If these deals aren't material enough for 8Ks then they are junk in my opinion.
(iv) a 5-year warrant to purchase shares of the Company’s common stock equal to eight percent (8%) of the number of shares of the common stock underlying the securities issued in the financing arranged by Maxim.
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=14377169&RcvdDate=9/3/2020&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
I'm talking about the dilution that is going on at this level to pay for these acquisitions. I'm talking about the expense burn rate of this company that has to be covered by the dilution. Maxim would be out of their minds to want to covert the promised shares in this company in the near future. $ATDS is a train wreck at the moment. Lets not conveniently omit that Maxim is making money right now on this deal. Cash, 8% of capital raised, expenses. $ATDS pays for nothing without dilution. Look at the action on yesterdays PR drop. Do you think that was retail dumping millions of shares in the following hour at this level? They will milk the dilution at this level as long as the PRs will attract buyers. Then they will do it lower because they aren't getting the volume they need in my opinion. The game is pretty much up here and they are going to have to work for the shares they sell. This is all my opinion of course traders here should do their own due diligence. Without the terms of the three acquisitions we won't know how much Maxim is making. That is WTH I'm talking about.
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=14377169&RcvdDate=9/3/2020&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
"Further, cash fees will be paid to Maxim as follows: (i) monthly fee of $2,500; (ii) 8% of the amount of capital raised, invested or committed through or arranged by Maxim; (iii) fee for unallocated expenses of 1% of the amount of capital raised, invested or committed through or arranged by Maxim; and (iv) a 5-year warrant to purchase shares of the Company’s common stock equal to eight percent (8%) of the number of shares of the common stock underlying the securities issued in the financing arranged by Maxim. Lastly, Maxim shall receive a transaction fee equal of 3% of the consideration underlying an acquisitive transaction (such as a merger) arranged by Maxim."
"The net loss for the six months ended June 30, 2020 was $12,754,000 as compared to a gain of $7,224,000 for the six months ended June 30, 2019."
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=14331074&RcvdDate=8/13/2020&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
Maxim can milk this range for a while with the constant PRs. Most retail equate the PRs with hope and stay put in their position as the dilution grows. Sort of like boiling the frog story. Maxim knows the game in my opinion. They can do the same all the way down, it just takes more shares.
Yeah really. What we don't know is the problem. It does need some juice at the moment so I understand the promo buy.
"if ATDS’s public disclosures are 10% of what’s going on below the surface, just wait till we get a glimpse of the other 90%."
So lets examine the buyout potential. Could happen actually but shareholders will need to be dumped. Maybe the acquisitions were nearly all done with shares that need yet to be converted. Once the funds are raised with the shares converted they could do a huge reverse split resulting in a very low OS as before. Might be attractive to buyer to rename and run the same scheme if nothing else. Pure speculation and my opinion of course. But there is a plan being executed as we speak. Maxim makes a lot of money on an uplist according to their contract. No uplist without a reverse split and a new buyer would also be attracted to the listing status. Maxim may do a great job here for someone. But it won't be shareholders. Maxim could cash in on finding a buyer as well.
Instead of speculating on earning why don't we just look at what has been filed to answer the question. From the Seeking Alpha article, oddly enough, titled "DATA443 REPORTS RECORD SECOND QUARTER RESULTS:" Dated August 7, 2020. Who do you think pays for these reported losses?
"The net loss for the three months ended June 30, 2020 was $2,573,000 compared to a gain of $1,194,000 for the three months ended June 30, 2019."
"The net loss for the six months ended June 30, 2020 was $12,754,000 as compared to a gain of $7,224,000 for the six months ended June 30, 2019."
https://seekingalpha.com/pr/17964256-data443-reports-record-second-quarter-results
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=14331074&RcvdDate=8/13/2020&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
Maxim is making pretty good money with this contract. Shareholders are a means to an end. They paid a lot for Dataexpress a year ago before the reverse split. Purchased others before that and posted $12 million loss the first of the year. They got a nice reset after the reverse split at the end of 2019 with less than 10 million shares outstanding. Looks like a rinse and repeat now with Maxim in charge with executing the plan. Shareholders represent free money and as long as they pony up the funds they can do it forever. People are willing to fork it over even knowing the history of this company and seeing what is going on now. I have learned a lot watching this in recent months. I don't understand how the promoting here can be so deceptive and brazen and others that I hold are very careful about what they say. I would like to see the SEC shut this one down. In my opinion this batch of shareholders will lose nearly all just like the last group before the reverse split anyway.
Yeah, I was referring to a comment from another poster here about an .003 gap up. The only one that I can see is around the third of June at .003. We just closed one from July first at .005. If you buy into the gap idea that is. Gaps aren't why this is falling of course but may indicate where it gets support in my opinion. If this level fails I wouldn't be surprised to see the next stop at .003. I will be loading for the average if it does unless there is negative news out. Others will as well and is why I would only expect a brief visit in the .003s.
Sorry that the accurate read here since mid July is negative. It is what it is.
Sarcasm, I wasn't promoting I'm sure you know. This BOOB continues to be correct however. I bet you aren't buying at these bargain prices. Maxim will take this down with the dilution and there will be no money made flipping while they are under contract in my opinion. Makes no difference to them because they know the end game. I don't expect any filings until absolutely necessary. Expect to see a very late Q3 filing as well. Everyone promoting this above the .02s should be fat with shares now.
I have been doing the DD that you suggested and much of it reinforces my notion that this may be cheap. Closing the .003 gap as one has suggested here wouldn't surprise me either. This is my entry and if it goes lower then I decide to dump or average as usual. I suspect it it does close the gap that it is a fairly quick inconsequential bounce event. Only my opinion as well of course.
Nobody has a good explanation why this is down like this from what I have seen. Some people get pretty grumpy when they are seriously under water and out of powder. Been loading up the .055s and under. Rolling the dice. Wouldn't be the first time that I thought something was cheap only to find out later that I was wrong. Speculation is the game here though isn't it.
It is sad that we may need to start promoting this even if we have to make stuff up. The promoters are all gone now and this is a pretty gloomy board. It doesn't even look like those who loaded up in the .01s are buying now to average down. They need to sign a team or something, hold a tupperware party... anything with revenue.
The acquisitions are like your unemployed wife pulling into the driveway with a new car for a paper route and she doesn't understand why you aren't happy for her.
Many did ignore what I have been saying. now they are stuck. Are you loading up on this bargain?
I guess you know the details of the acquisitions then or you also believe these products are basically worthless other than their PR value for selling shares. I wouldn't release the details until I had to either if I needed to sell more shares. Maxim Group are pros at the manipulation for the benefit of their client.
I am not telling anyone to sell. I have been doing this since it hit .04 in mid July so I know that many traders will gamble regardless. That is also why $ATDS believes it can repeat the acquisitions through dilution routine again. It would be different if they actually did something profitable with the past deals. Those deals resulted in 12 million in reported losses for the first half of this year. Not to mention the shareholder losses after the 1:750 reverse split. New traders should know what they are buying and financing though. This is an ugly history for shareholders. People who have bought in the .02s and .03s already know that they have been had. Maxim is in control of the deals and dilution and there will be no money made by retail flipping this in my opinion until it is done and the details of the acquisitions is revealed..
Just pointing out what happened last year at this time. The DataExpress acquisition included nearly 2 billion shares, cash, debt. Reverse split in October 2019. We haven't seen the details of three acquisitions now.
On September 16, 2019, the Company entered into an Asset Purchase Agreement (the “APA”) with DMB to acquire certain assets collectively known as DataExpress.
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=13650495&RcvdDate=9/20/2019&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
On October 15, 2019, FINRA announced on its Daily List that Data443 Risk Mitigation, Inc., then known as LandStar, Inc. (the “Company”) (i) effected a reverse split (“Reverse Stock Split”) of its issued common stock and preferred stock in a ratio of 1-for-750
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=13706094&RcvdDate=10/30/2019&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
Rapid fire deals and acquisitions were done this way for a reason in my opinion. I believe they want to get it wrapped up before they have to release the filings. Once the details are known this will tank like crazy. There had to be heavy dilution and new debt. Look back a year ago for the future in this in my opinion. How far down the road is the reverse split and new name? No uplist possibility without the reverse split. I'm sure Maxim wants that extra 2.5% of OS with an uplist. Shareholders here will be paying Maxim nicely for their services. I wonder if there are any more acquisitions in the pipe line. If there are the hole gets deeper for those who bought into this. I don't think there is any chance of flipping this for a profit as long as Maxim is running the show. Slow spiral down from here.
Don't believe it. But if it were true, is that a good thing after a PR?
8K from a year ago as an example of the types of deals they put together. This is when they purchased the DataExpress product when they were Landstar. They used almost 2 billion shares in this deal and can't currently be holding much cash with 12 million in reported losses for the first half of the year. They aren't revealing details of these current deals yet. Anyone want to guess when they increase the authorized share count again? This deal was just a few months before the reverse split.
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=13650495&RcvdDate=9/20/2019&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
Maxim in charge. They are soaking up all the buys with the dilution in my opinion. That is their job! It is going nowhere. All those holding over a penny have to be hating the repeat of this action. Lower highs will lead to lower lows in my opinion.
No volume and they need it badly. They may take it down a level to get more interest from the perception that it is cheap. This will not be flipped for a profit as long as Maxim is controlling it in my opinion. It is looking like the same game as before. A string of acquisitions through heavy dilution which leads into a reverse split. Wipe out current shareholders and start again fresh with a low outstanding share count with more stuff to promote. I bet they change the name of the company again like before as well.
yeah, Maxim wants this selling space to themselves from what I see. They are in charge of the marketing and dilution of shares until their contract is up. At 2.5% of the current outstanding share count, they have a lot to move themselves. They will soak all they buying up in this space.
I don't know what they are thinking. This share spending spree is in unsustainable. Especially if shareholders finally wise up to the game here. The lower it goes the more shares that they need to move and they aren't getting the volume they need on these PRs now. This is very interesting to watch.
Yep, yet another promo. Look at the volume getting soaked up with the dilution. If they are promoting they are selling. Maxim is controlling this in my opinion. New buyers beware. The price will not get much out of this range below a penny. The more this gets diluted below a penny the more those over a penny are locked in as bag holders. Another acquisition to add to the expense side of the ledger. I wonder how many shares will be needed to cover that now. This is dead money for a long while. They are on a share spending spree, LOL.
Looks like they bought the typical venture capital funded idea that never found its place in the market AGAIN. Technology now moves so fast in this space and the big players are dominating. $ATDS needs to start communicating and explain how this addition helps. To date they have not been very successful integrating any of the acquisitions.
Maxim is running the whole show at the moment and will keep this propped up in this range in my opinion. if they let it go too low they have to compete with flippers who will sell into runs. Too high and they compete with sellers wanting to exit. they are in the sweet spot at the moment for selling shares with little competition in my opinion. One thing is for sure $ATDS needs to push as many shares into the market as possible before the Maxim contact is up. Not touching this thing the rest of the year.
"for Maxim to provide general financial advisory, investment banking, and digital marketing services for the Company for an initial term of 6-months. "
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=14377169&RcvdDate=9/3/2020&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
Wow, There is a lot of money going to Maxim. Starting with the 2.5% of outstanding shares. Notice that the OS was doubled to 1.5 billion just before this agreement? This company is all about marketing the shares. How are they going to get the price up? Sustainably that is. This is going to be a tough one to flip with all the selling that needs to be done.
https://secfilings.nasdaq.com/filingFrameset.asp?FilingID=14350418&RcvdDate=8/21/2020&CoName=DATA443%20RISK%20MITIGATION,%20INC.&FormType=8-K&View=html
All I see is activity on the expense side. Acquisitions cost money, new adviser costs money, maxim costs money, all the relationships announced that are perceived as positive don't exist without the expectation of being paid. Integrating new products requires money. They already are selling shares to help pay operating expenses.
I believe that they loaded up the sales figures for Q2 to divert attention from the losses first half of the year of $12 million. Their business model is one of software licensing. They can go ahead and realize nice sales number for a single quarter if they like at the expense of future quarters. Their motivation is the promotion / dilution period that started mid July to pay for all this.
I'm thinking that Q3 will really stink and investors are no longer giving them the benefit of the doubt. At least not to the volume of buying that $ATDS needs. Maybe the bandaid gets ripped off for Q3 report and tax selling. Just my thoughts on this. No more flipping until the first of the year unless they post something for the revenue side of the ledger. You will need to enter much lower than it is currently at to make money however.
All I see is activity on the expense side. Acquisitions cost money, new adviser costs money, maxim costs money, all the relationships announced that are perceived as positive don't exist without the expectation of being paid. Integrating new products requires money. They already are selling shares to pay operating expenses.
I believe that they loaded up the sales figures for Q2 to divert attention from the losses first half of the year of $12 million. Their business model is one of software licensing. They can go ahead and realize nice sales number for a single quarter if they like at the expense of future quarters. Their motivation is the promotion / dilution period that started mid July to pay for all this.
I'm thinking that Q3 will really stink and investors are no longer giving them the benefit of the doubt. At least not to the volume of buying that $ATDS needs. Maybe the bandaid gets ripped off for Q3 report and tax selling. Just my thoughts on this. No more flipping until the first of the year unless they post something for the revenue side of the ledger. You will need to enter much lower than it is currently at to make money however.
I get it and agree. I do not advocate holding these OTC stocks long either.
Everything is a flip in my opinion. about the price level here??? I'm confident enough that I have loaded in the last couple of days. It is hard to just watch when it hits .005. We shall see.
Funny when I read that. if you are convinced of the pump and dump then you are endorsing that this may be a good buy level. I'm not saying that you are wrong, I would just say play the game according to the requisite protocol. That would mean buy now and prepare for the next pump. You make it sound like such a bad thing when I view it as a potential opportunity.
politicians drop bad news after hours on Fridays. Probably good here as well to prevent a knee jerk reaction. Good news best before open. Of course $ATDS releasing anything in a way of a filing is just speculation at the moment, No?
I'm on the bench at the moment. This is a game of being out for long periods and in just for the action when ever possible. A player none the less. If you have to hold this for very long at all it means you have been caught holding. Those that have been in since mid July and August are in a spot. I doubt I get a flippable entry without some bad news or until the end of year tax selling.
Yeah, that is the question. Are these acquisition deals being handled by the Maxim group? $ATDS seems to be operating in the shadows as far as shareholders are concerned. We need a little sunlight on this situation in the form of some filings. Shareholders didn't even have a say when the outstanding share count was doubled.
Jason Remillard has been a winner since this thing started unless he paid himself in shares. LOL.