Data443 Risk Mitigation Inc (ATDS)

[Bubae]

There has been an enormous amount of money that went out to those financing the acquisitions and I have always been very suspect of Jason participating on both ends of it. He controls absolutely everything regarding company operations and holds all the principle office including the CFO job so there are no effective internal controls in my opinion. All speculation and simply my opinion, but the guy has proven himself to be just such a person.

The September 2019 Dataexpress deal was so bad that Jason took an impairment loss of $1.3 million against the $2.8 million deal by December, less than 3 months. This action was the subject of a SEC inquiry and by the following month, January 2020, the CFO Steven Dawson left the company and Jason has filled the role since. I believe the CFO leaving at the time of the Dataexpress deal was more than a coincidence.

SEC letter concerning subject matter dated June 10,
2020

https://sec.report/Document/0000000000-20-005163/

"We note that your acquired certain assets collectively known as DataExpressTM on September 16, 2019 for a total purchase price of $2.8 million. We also note in the Form8-K dated September 16, 2019 that the certain assets..."

"...Please revise to provide all disclosures required pursuant to ASC 805-10-50-2. Also, please amend the Form 8-K to provide financial statements required pursuant to Rule 8-04 of Regulation S-X and Article 11 pro forma financial information required by Item 9.01(a) of Form 8-K."

"We note that you recorded an impairment loss of $1,328,638 during the year ended December 31, 2019. Please expand the disclosure on page 40 and in MD&A to explain the reason for the amount and timing of the impairment."




https://sec.report/Document/0001493152-20-001309/

TEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


Departure of Steven Dawson as Chief Financial Officer


Steven Dawson and Data443 Risk Mitigation, Inc. (the “Company”) mutually agreed that Mr. Dawson would depart as the Chief Financial Officer of the Company as of and on 24 January 2020. On December 19, 2019, Mr. Dawson informed the Company that he would pursue other professional opportunities, and that his decision was also based on his completion of numerous objectives established for fiscal 2019. Mr. Dawson and the Company have negotiated for Mr. Dawson’s departure since that time, with Mr. Dawson having minimal involvement with the Company since then. On the 24th of January, 2020, Mr. Dawson and the Company formally agreed on the terms for Mr. Dawson’s departure, and they agreed to execute a mutual release agreement, to be prepared as soon as possible (the “Release Agreement”). It is anticipated that the Release Agreement will provide as follows:



> Mr. Dawson’s employment with the Company, and his Employment Agreement, terminated as of 24 January 2020.

> All equity compensation previously earned by and owed to Mr. Dawson as 31 December 2019 will be deemed cancelled as of 31 December 2019.

> The Company will issue to Mr. Dawson 500,000 shares of common stock as full and complete equity compensation for his services rendered to the Company. The shares will be issued to Mr. Dawson under the Company’s previously filed Form S-8.

> Mr. Dawson and the Company will mutually release each other from all known and unknown claims.


The foregoing description of the terms and conditions of the Release Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, which will be filed by the Company subsequent to its execution by Mr. Dawson and the Company.


Appointment of Jason Remillard as Interim Chief Financial Officer

On, and effective, 24 January 2020, Jason Remillard was appointed as interim chief financial officer of the Company. Mr. Remillard is the chief executive officer of the Company, and is the founder of the Company’s wholly-owned subsidiary, Data443 Risk Mitigation, Inc. Mr. Remillard previously served as the Company’s chief financial officer from December, 2017 up to and until the hiring of Mr. Dawson in May, 2019.