Data443 Risk Mitigation Inc (ATDS)

[TROW]

This is going to be a little long, but this is my recent DD.

During these downward times, I encourage all of you to look through:

1. The recent Zack's report.
https://s1.q4cdn.com/…/Zacks_SCR_Research_12102018_LDSR_Mar…

One key point that I would say to take notice on is Zack's put out this report in early December and they absolutely nailed where the share structure was estimated to be for their 2018E. 5,175,364,000. According to the Form 10 recently filed the share structure was 5,112,210,803. (Pretty darn close IMO) Another thing to take interest in, is Zack's is expecting the SS to go down for 2019... Wonder how that's gonna happen with all the shares Blue Citi is supposedly diluting into the marketplace... I believe Zack's is fully aware of the impact of BlueCiti shares btw, otherwise they wouldn't be that great of analysts and no one would pay them to make reports...

2. The FAQ on the Investor Relations Page.

https://www.data443.com/investor-faq/

Anytime you have concerns about this being a scam or an enrichment scheme, take a look over it and realize scam's don't take the time to make pages like this for their shareholders nor do they do conference calls to discuss the direction they want to head in. Both of these things have and continue to answer a ton of investor questions within the realm of reason. I know many of you are disappointed that they haven't answered some direct questions, but ask yourself why that might be. Some things investors ask are very sensitive in nature and depending on how material it may be, (ie their plans of how to deal with the Blue Citi shares), there is no chance they will tell that information to you because that would be considered insider knowledge that had not yet been disseminated to the public. They have to be careful with what they discuss as it could also impact behind the scenes negotiations.

3. The shear amount of partners that we have is in it of itself staggering!!!

https://www.data443.com/our_partners/

Contemplate this for a second please. Most companies without potential (ie Revenue streams or representations thereof) would never.... and I mean never be able to touch the likes of these partners. Maybe they could slide one or two by, but 50 plus???? Teksystems??? Splunk??? I mean it is verifiable nuts and I could go on and on, but I want you to think about how a company with "no revenues" could convince these powerhouse companies to attempt to be vendors of their product stack. It would be a waste of the vendors time and money to train their sales staff on promoting a product that doesn't make revenue. Ie. Jason would have been laughed out the door even before he began his pitch if this wasn't a producer. Zack's is expecting 400k in revenues for Q4. We should too... in Late March.

4. The only reason this is down here, in my humble opinion is because Jason wants it down here for the moment. He is still negotiating a deal with Jay for what should be a large chunk of shares. For all we know, he could also be negotiating a deal with BC to retire a large chunk of shares. Where's the money gonna come from??? Possibly the current banking and financial contacts Jason discussed in the PR of BC restructuring. SVB come to mind? They've been on the data 443 website for a year and SVB has never asked them to take it down..... oh and the way Jason describes them is interesting too. "SVB is a leading provider of financial services for companies in our wheelhouse – rapidly growing technology firm with myriad worldwide capability requirements. SVB is a valued partner of ours that will provide benefits for years to come." Hmm.....

5. Why in the world would not 1 but 2 companies (1 final, 1 pending) join this if there was no revenues or promise??? Also why would they sign up to get shares in something where the financier owns 2.5 billion shares plus a ton more debt? Let's put something in perspective here.

Araloc is a done deal. According to management it brings in 500k operating profit. The terms of the deal were "On or about July 29, we entered into a letter of intent to acquire from Modevity, LLC (“Modevity”),an enterprise cloud-based data storage, protection, and workflow automation platform known as ARALOC™. Included as part of the proposed purchase we would also acquire all technology, sales assets, and customers of Modevity. We have already paid Modevity a deposit of $50,000. Upon closing, we will owe (i) an additional $150,000, payable at closing; (ii) $750,000, in the form of our
10-month promissory note; and, (iii) shares of our common stock in a number equal to the greater of (A) 81,081,081 shares; or, (B) the number of shares necessary to provide a total value of $900,000, based upon the closing share price on the day preceding closing of the transaction.

So the math is 50,000 + 150,000+ 750,000 + $900,000 in shares (164,533,821 X .00547 = $900,000) or $1,850,000

This also is a company that previous PR's stated had a very low COGS, so the profit margin is incredibly solid.

So paying 1,850,000 for something slated to bring in 500k a year. That means the ROI on that is roughly 27%/year. The payback period is 3.7 years!! Are you kidding me? People claim we overpaid for it? Really??!!!??!

Jim Coyne- Issued 164,533,821 at .00547... Currently down $427,787.93 on the stock he was issued and can't sell until October.... And most of us think we got it bad.... If anyone is buying right now, you are buying for prices that are cheaper than insiders!! It doesn't get more insane than that.

On to N8.. Per the Conference Call, it was stated that N8 brought in roughly 900k in Ebit. And we are getting them for 3.1 million dollars in a combination of cash and stock. The ROI is roughly 29% and the payback period would be 3.4 years...

Ladies and gents, even if Jay gets issued his shares call it 2.6 million dollars to .0026 = 1 billion shares. In my opinion the ROI is well worth the return for what Jason, Jay and Jim plan on building here.

I'm hoping you all see why true longs have taken offense to people bashing on Jason and the other insiders. When you say nothing has been done in the past year, please provide things other than an old Q3 report pointing at no revenues..... There is a reason there are no revenues up to this point and I'm sure all of them are legal and will come to light when Jason decides to bring them forth. This thing is just beginning to warm up and if you want to focus on Blue Citi shares that you think are going to sink this, or on the old q3 reports with no revenues, that's your prerogative. But you might miss out on something really special here in my opinion and the 5 points I listed above are just the tip of the iceberg to prove that me feeling that way is not misguided.

Best of luck LDSR longs!