Data443 Risk Mitigation Inc (ATDS)

[H2004]

On the topic of $LDSR financing, these two entities seem to have sprung out from nowhere...

4. On October 12, 2018, the Company issued to AFT Funding Corp. the Company’s promissory note in the amount of $110,000 in exchange for $100,000 in net proceeds. The note provides for a maturity date of July 16, 2019; 8% interest; and, the right of the holder to convert all amounts due into shares of the Company’s common stock at a price equal to 70% of the lesser of (i) the lowest price for our common stock during the 20-days preceding the conversion; or, (ii) the lowest price for our common stock for the 20-days preceding the issuance of the note.

5. On October 23, 2018, the Company issued to Smea2z LLC the Company’s promissory note in the amount of $220,000 in exchange for $200,000 in net proceeds. The note provides for a maturity date of July 23, 2019; 8% interest; and, the right of the holder to convert all amounts due into shares of the Company’s common stock at a price equal to 70% of the lesser of (i) the lowest price for our common stock during the 20-days preceding the conversion; or, (ii) the lowest price for our common stock for the 20-days preceding the issuance of the note. The issuance of the note was exempt under Section 4(a)(2) of the Securities Act.

Each of these convertible notes (collectively the “Convertible Notes”) contains an embedded conversion feature that the Company has determined is a derivative requiring bifurcation.

It appears that at the time the promissory notes were issued, Landstar, Inc. was for both business entities, their only customer. Hardly any information on AFT Funding Corp. to speak of. Also, Smea2z LLC was incorporated in the stunning state of Wyoming, on May 22, 2018, only six months before the promissory not was issued.

https://wyobiz.wy.gov/Business/FilingDetails.aspx?eFNum=135007230199220088163162242123186125021175224052

Two of the positions that I cashed in $LDSR for will be reporting results in the next couple of weeks. Anxious times ahead. A good tasting Tiramisu would do wonders just about now....will save that for tomorrow.

Cheers!!!

Note: I do hold a small position (or what little of it that's left) in $LDSR. This completes my one permitted post of the day.