Data443 Risk Mitigation Inc (ATDS)

[Bubae]

He needed the reverse split to cut more deals not to up-list in my opinion. The share price had declined to .005 even before the reverse split announcement so even with less than 1.5 billion shares outstanding he couldn't make the Centurion purchase without doing another deal like the $2.8 million DataExpress deal. That deal required nearly 2.5 billion shares a bunch of cash and more at the time just before the first reverse split. That deal absolutely kicked Jason's Ars because it turned out to be such a failure. Jason I'm sure has other acquisition targets on his list because that is the business model here. Products for the promotion and selling of shares. The Dataexpress deal may give traders here an idea of what kind of deals Jason makes and we don't yet know what the Centurion deal will cost shareholders. One more thing about the Dataexpress deal, $ATDS is currently being sued by the DMB group for nonpayment for monthly payments under the deal.


Q2 filing 2021
https://sec.report/Document/0001493152-21-018448/

On September 16, 2019, the Company entered into an Asset Purchase Agreement with DMBGroup, LLC to acquire certain assets collectively known as DataExpress™, a software platform for secure sensitive data transfer within the hybrid cloud. The total purchase price of approximately $2.8 million consists of: (i) a $410,000 cash payment at closing; (ii) a promissory note in the amount of $940,000, payable in the amount of $41,661 over 24 monthly payments starting on October 15, 2019, accruing at a rate of 6% per annum; (iii) assumption of approximately $98,000 in liabilities and, (iv) 2,465,754 shares of our common stock. The issuance was exempt under Section 4(a)(2) of the Securities Act.

We recently received a complaint filed against Data443 Risk Mitigation, Inc., a North Carolina corporation and the wholly subsidiary of the Company (the “Subsidiary”), by DMBGROUP, LLC (“DMB”). The action was filed in County Court in Denton County, Texas, and arises out of the purchase by the Subsidiary of assets of DMB, for which the Subsidiary issued to DMB its promissory note (the “Note”). DMB claims that the Subsidiary is delinquent on its payments under the Note and is therefore in default under the Note. While the Subsidiary is late in making payments under the Note, the Company believes that there are a number of significant issues affecting the amounts due under the Note and that the Subsidiary is justified in withholding payments under the Note. While this action has just been commenced, we intend to vigorously dispute all claims asserted by DMB.


DMB deal 8K filing
https://sec.report/Document/0001493152-19-014339/

The note
https://sec.report/Document/0001493152-19-014339/#ex4-2.htm