Data443 Risk Mitigation Inc (ATDS)

[Bubae]

Something else that is different this time around is the financing of the last couple of debt deals. Before the first reverse split Jason threw 2 billion shares and cash at the DataExpress deal. This time he financed the Arcmail purchase of $959K at 4% with payments heavily weighted on the later years of the 5 year note. Almost like a legitimate company, LOL. Second, the cash raised in the recent $832 Auctus note is financing secured by warrants valued at (.0075) or current valuationof $15 a share. So this helps support the NASDAQ prep work if you consider that they are changing the nature of their debt obligations. In the past they just threw shares at whatever they wanted with conversion dates.

Arcmail Deal

https://sec.report/Document/1068689/000149315221006652/ex10-29.htm

Auctus Note

https://sec.report/Document/0001493152-21-009857/

"On 23 April 2021, Data443 Risk Mitigation, Inc. (the “Company”) entered into and closed a financing transaction pursuant to the terms and conditions of a Securities Purchase Agreement (the “Purchase Agreement”) with Auctus Fund, LLC, a Delaware limited liability company (“Auctus”). Pursuant to the Purchase Agreement, Auctus purchased from the Company a Senior Secured Promissory Note (the “Note”) in the aggregate principal amount of $832,000.00 (the “Principal Amount”), and delivered gross proceeds of $750,000.00 (excluded were legal fees for Auctus and a transaction fee charged by Auctus). The Note is secured by a security interest in the assets of the Company and its subsidiaries, pursuant to the terms and conditions of a Security Agreement (the “Security Agreement”). Timely payment under the Note is further secured by the issuance of a Common Stock Purchase Warrant (the “Second Warrant”) to Auctus for 110,933,333 shares of the Company’s common stock at an exercise price of $0.0075, exercisable only in the event of a default under the Note."

"Interest on the Principal Amount of the Note accrues at the rate of 12% per annum, which amount is fully due and owing upon the issuance of the Note. Repayment of all amounts due under the Note shall be tendered on the 12-month anniversary of the Note. The Note may be prepaid in whole at any time without prepayment penalty or premium. If the Company fails to meet its obligations under the terms of the Note, the Note shall become immediately due and payable and subject to penalties provided for in the Note."