Replies to post #59477 on Data443 Risk Mitigation Inc (ATDS)

[HokieHead]

I’m all about the forward guidance, to me the completed audit enables them to uplist to OTCQB, that’s what I want to see. This is a 8 month startup, sizzling numbers will be forward, not backwards. They could be signing up hundreds of customers a week, I would completely expect any sales reported at all will pale in comparison to what’s coming. Big investors and WallSt buys on “what will you do”, not “what you did”.

[stockvaper]

Rise, audited financial statements must have a complete balance sheet and income statement.
The balance sheet would show all assets and all liabilities. (All owned and owed).
The income statement must show all income (revenue) the company has earned in the reporting period, and all expenses the company had in order to create the revenue (COGS), operating expenses, taxes, or accrued expenses for the same reporting period. The difference between these two is the net profits or losses.
All significant items in either the balance sheet or income statement must be provided. (Significant would include anything a stockholder would need to see to make a proper determination of the finances of the company.
Confidential information (client names, personal info, etc.) can be excluded by identity but the financial amount must be included.
They need to reflect all of the O/S and authorized shares, profit/loss per share, etc. There are other items that must be included (e.g. anything that could change the balance sheet or income statement significantly either known or could realistically be incurred); but these are the main factors.
It boils down to providing shareholders with all of the significant information they would require to make an accurate decision as to the financial state of the company.