Data443 Risk Mitigation Inc (ATDS)

[Peter Penny]

My Microsoft word isn't working, so I will just have to post this here.

The overall plan for the near future is this;

First they are waiting on audited financials. As Matt stated, he is not the auditor, but he "expects" the audit to be finished in the next few weeks. Audits usually take 3-6 weeks, and we are going into our 5th week. Also as mentioned previously and confirmed through Matt, they are in the second and final phase. Here's an article if youre interested in learning more about the audit process.

https://www.councilofnonprofits.org/sites/default/files/documents/YH%20-%20Audit%20Basics%20Final.pdf

Next is their plan to Up-list. As you all know, Pink sheets are comparable to junk bonds, and most investors wont touch them. They want to get the audit done so they can apply for up-listing to OTCQB. Do not be too concerned with the bid test. Matt wasn't concerned stating that the requirements are put in place to filter out the pump and dump scam companies. We have been trading over a penny for 6 months now. They will evaluate Data443 as a whole and we are very well qualified.The following is the list of qualifications and BENEFITS to being on OTCQB;

https://www.otcmarkets.com/files/OTCQB%20Fact%20Sheet%20for%20U.S.%20Companies.pdf

I started researching the OTCQB and I had the idea to act as if I was filling out an application for up-list.

On the third page of the application it asks "Within the last 30 days, FINRA has approved, or a form 211 has been submitted to FINRA for the company's securities on which the market maker has indicated its intention to enter a bid price on OTC link of at least $.01

I looked into the FORM 211 and this is what I found.

1. FINRA’s Form 211 must be completed by a market maker and filed with FINRA to initiate or resume quotations for a security on the OTC Bulletin Board, OTC Markets or any similar quotation medium. Form 211 completion indicates that the market maker has satisfied all applicable requirements of SEC Rule 15c2-11, as well as the filing and information requirements of FINRA Rule 6432.

https://www.investopedia.com/terms/f/form-211.asp

Why is this significant? Remember that picture Jason took in Jersey City on 7/24 talking about humidity dropping?

He was .05 miles or a 10 minutes walk from Knight Capitol. A market maker.

IMO he was meeting with NITE to fill out those forms. This makes sense because "within 30 days" from when he took that picture falls on August 24th, a few days after audited fins are due, completing requirements for up-list.

This leads me to believe that we will Up-list immediately after financials.

If the application and company are organized an up-listing can be granted in as little as 1-2 weeks.

I believe he has already applied.

On the application it DOES NOT require a "pdf" or a link to audited financial statement. It only has a section where you fill out the auditors information. Name, number, etc.

I believe they contact the auditor and once they release the audit the review could go through almost simultaneously.

If the market makers were approached with a FORM 211, they know there is an impending up-list. Wouldn't it make sense for them to keep this hovering right at a penny to gain as many shares as possible before that action takes place?

Maybe that's why they undercut the ask from .0106-.0102? Makes sense to me!!!

Matt also said that there is no active application for ticker change.

he said that they want to get this audit done and up-list before anything else. Once they build that foundation they will make it look pretty.

Tomorrow, Matt has a meeting with the web designer. They will be updating the investor relations page on the website with frequently asked questions.

Jason wants to address these questions.

I will be emailing Matt the following list tonight;

1) Is it in the company's current interest to undergo a reverse stock split, or grow organically?

2) What is the status on the convertible debt note / Is there currently any dilution?

3) What is SVB's role with Data443?

4) What are the terms of the ARALOC and Wordpress acquisition.

5) In the previous Financial disclosure, it was stated that there was credible evidence that 1.5 Billion shares issued to an unknown individual were retired. Have these shares been retired? Is it in the company's plans to decrease the outstanding shares through share retirement?

6) Does the company plan to pay dividends in the future?

7) Will the company have shareholders conference calls on a regular basis?

Hopefully they can answer most of these questions as thoroughly as possible.

Look out for them on the website over the next few days!