Data443 Risk Mitigation Inc (ATDS)

[Bubae]

This is the lesson to learn with Jason. Few have trashed this company in the past 2 years than I did and even when I bought after the 2021 split. I actually thought that the stock was a buy for a short term bounce after it lost 80% post split. Went from $10 to $2. I bought some at $2 only to see it drop below $1 where I purchased a second group. I sold the $1 group when it worked its way back to $2. Sold the balance $2s for a loss right after the last reverse split.

I reasoned that they only had an outstanding share count of less than 830K, $1.4 million cash on hand, $1.5 million revenue and the cost of that revenue was only $150K for the quarter. Reduced current liabilities to $3.2 million from the same period 2020 which was $18 million. The bad at that time was the unknown price tag for Centurion and how Jason would choose to pay for it.

So what happened? Jason of course as always. Shareholders are ATM machines for this guy. Why pay $4 for it now that it is already back to 1 million OS with Jason and Centurion holding most of the float. We all know that the last thing Jason and Centurion wants is to be holding shares of the common. They won't stop with what they have in my opinion because it won't be enough to either buy out Jason Series "A" shares or pay out the $3.4 million Centurion deal.

Form S1 December 2021
https://sec.report/Document/0001493152-21-030620/#pri_004

Our chief executive officer has the ability to control all matters submitted to stockholders for approval, which limits minority stockholders’ ability to influence corporate affairs.

Our chief executive officer, Jason Remillard, holds 150,000 shares of our Series A Preferred Stock (each share votes as the equivalent of 15,000 shares of common stock on all matters submitted for a vote by the common stockholders), and as such, Mr. Remillard would be able to control all matters submitted to our stockholders for approval, as well as our management and affairs. For example, Mr. Remillard would control the election of directors and approval of any merger, consolidation, or sale of all or substantially all of our assets.


Series A Preferred Stock

All issued and outstanding shares of Series A Preferred Stock are held by Jason Remillard, Chief Executive Officer and director of the Company. The terms of the Series A Preferred Stock are set forth below:

Seniority. The shares of Series A Preferred Stock rank senior to the common stock.

Dividends. The shares of Series A Preferred Stock are not entitled to receive any dividends in any amount.

Liquidation Preference. In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, the holders of Series A Preferred Stock are entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of the Company to the holders of common stock, an amount equal to $0.125 per share (the “Liquidation Preference”). If upon such liquidation, dissolution, or winding up of the Company, the assets of the Company available for distribution to the holders of the Series A Preferred Stock are insufficient to permit payment in full of the Liquidation Preference, then all such assets of the Company shall be distributed ratably among the holders of the Series A Preferred Stock. Neither the consolidation or merger of the Company nor the sale, lease or transfer by the Company of all or a part of its assets shall be deemed a liquidation, dissolution, or winding up of the Company for these purposes.




[color=red]Q3 2021 filing.
https://sec.report/Document/0001493152-21-026340/

Total Current Liabilities $3,890,393

Cash $1,377,579

Revenue $1,495,059
Cost of revenue $148,721
Gross profit $1,346,338

Share count 829,518



https://sec.report/Document/0001493152-21-008743/

"As of March 31, 2021, we had assets of cash in the amount of $53,000 and other current assets in the amount of $46,000. As of March 31, 2021, we had current liabilities of $3,236,000. The Company’s accumulated deficit was $37,699,000.

As of March 31, 2020, we had assets of cash in the amount of $70,000 and other current assets in the amount of $40,000. As of March 31, 2020, we had current liabilities of $17,899,000. The Company’s accumulated deficit was $31,792,000"