Data443 Risk Mitigation, Inc. - August 7, 2020
- 80% INCREASE IN NET BILLINGS
- RECORD SURGE IN NET BOOKINGS
RESEARCH TRIANGLE PARK, NC -- Augist 07, 2020 --
InvestorsHub NewsWire -- Data443 Risk Mitigation, Inc. (“Data443”
or the “Company”) (OTCPK:
ATDS), a leading data security and privacy software company,
today announced record operational and financial results for its
second quarter (ended June 30, 2020), and for its first half of
fiscal year 2020.
Management Commentary
Jason Remillard, CEO of Data443, commented, “Today’s results for
the first half of 2020 truly highlights the strength of our team,
the quality of our product offerings, and the priority positioning
of our industry. Even in this challenging and unprecedented time of
pandemic, we have proven that we continue to serve our clients and
grow our business, highlighting the urgency and value of our
technology offerings. Our name brand global multinational clients,
as well as our regular mom and pop clients, rely on Data443 for
their most sensitive and important data privacy needs. Our
performance is strong evidence of the important role we play in the
security and success of our clients.”
“We have continued to execute on our business plan, building
momentum on both sales and product development. We secured new
contracts with the Pittsburgh Steelers and the Miami Dolphins,
opening a Company initiative to expand our offerings to sports
teams. We also successfully launched our Zoom Chat Privacy canner
and our WordPress Privacy Badge, both of which have shown great
momentum for us in the early going. We anticipate that customer
growth overall will continue to improve as more data-driven demands
shift from central offices to more home and remote-based work
settings.”
“For the greater part of 2020, we have dedicated significant
time and resources to build our internal infrastructure, including
our Data Center capabilities and direct to consumer capabilities.
We continue to realize the benefits of product and technology
investments made in 2018 and 2019. This is reflected in our
continued growth of our deferred revenues, and our continued
extinguishment of short and long-term debt. Our advanced
infrastructure will scale to ensure we can service our continued
expanding client base. We look forward to building on our
relationships with ZM and the NFL – in conjunction with our
existing financial and public services, government and cloud
service providers. As we start the second half of 2020, our new
advisory board member will continue to have special significance
for us, and is already garnering benefits with analysts and
customers alike.”
“I will be holding a business update conference call on
Wednesday, August 12th at 4:30PM ET to provide
greater detail on our plans for the rest of 2020 and going forward.
I believe that Data443 is in the best positioning of its relatively
short history, and we have an impressive story to tell,” concluded
Mr. Remillard.
Business Highlights for the First Half of Fiscal Year
2020 and Year-to-Date
- Concluded litigation settlement resulting in the cancellation
of 2 billion (pre-split) shares
- Completed all payments related to ARALOC acquisition
- Secured shareholder-friendly forbearance agreements for
outstanding convertible notes
- Launched Global Privacy Manager™, industry’s only end-to-end
privacy compliance, governance, and consumer loss-mitigation
platform
- Launched new Data Center in the Raleigh-Durham Research
Triangle Region (adjacent to our headquarters)
- Released new CCPA Framework Plugin for WordPress
- Released Privacy Badge – an industry first, with over 500
subscribers in 2 months
- Launched first Privacy Scanner for the world’s leading online
video communication platform
- Secured contract renewal with the Miami Dolphins for the ARALOC
Secure Sports Management Platform
- Won new contract with the Pittsburgh Steelers for the ARALOC
Secure Sports Management Platform
- Appointed Mr. Omkhar Arasaratnam who currently serves as
Director of Engineering, Assurant Security for Google LLC to our
Advisory Board
Second Quarter 2020 Financial Results:
We recorded net billings of $869,000 for the three months ended
June 30, 2020, compared to $483,000 in the prior year period. We
recognized $466,000 of revenue during the second quarter of fiscal
year 2020, compared to $359,000 of revenue during the second
quarter of fiscal year 2019. Deferred revenues were $1,212,000 as
of June 30, 2020, an increase of $303,000 from $954,000 as of
December 31, 2019.
General and administrative expenses for the second quarter of
fiscal year 2020 amounted to $1,666,000 compared to $1,197,000 for
the three months ended June 30, 2019, which is an increase of
$469,000, or 39%. The expenses for the second quarter of fiscal
year 2020 primarily consisted of management costs, costs to
integrate assets we acquired and to expand sales, audit and review
fees, filing fees, professional fees, and other expenses, including
the re-classification of sales-related management expenses, in
connection with the projected growth of the Company’s business.
Sales and marketing expense for the three months ended June 30,
2020 amounted to $27,000, as compared to $156,000 for the three
months ended June 30, 2019, which is a decrease of $129,000, or
83%. The expenses for the second quarter of fiscal year 2020
primarily consisted of developing our sales operation.
The net loss for the three months ended June 30, 2020 was
$2,573,000 compared to a gain of $1,194,000 for the three months
ended June 30, 2019. The net loss for the three months ended June
30, 2020 was mainly derived from a loss on change in fair value of
derivative liability of $773,000 associated with convertible notes
payable and gross margin of $447,000, offset in part by general and
administrative, and sales and marketing expenses incurred. The net
gain for the three months ended June 30, 2019 was mainly derived
from a gain on change in fair value of derivative liability of
$2,421,000 associated with convertible notes payable and gross
margins of $339,000 offset in part by general and administrative,
and sales and marketing expenses incurred.
First Half 2020 Financial Results
We had net billings for the six months ended June 30, 2019 of
$1,535,000, compared to $957,000 in the prior year period. We
recognized $944,000 of revenue during the six months ended June 30,
2020, compared to $501,000 of revenue during the six months ended
June 30, 2019.
General and administrative expenses for the six months ended
June 30, 2020 amounted to $3,091,000, as compared to $1,872,000 for
the six months ended June 30, 2019, an increase of $1,219,000, or
65%. The expenses for the six months ended June 30, 2020 primarily
consisted of management costs, costs to integrate assets we
acquired and to expand sales, audit and review fees, filing fees,
professional fees, and other expenses.
Sales and marketing expense for the six months ended June 30,
2020 amounted to $148,000, compared to $382,000 for the six months
ended June 30, 2019, which is a decrease of $234,000, or 61%. The
expenses for the six months ended June 30, 2020 primarily consisted
of developing a sales operation.
The net loss for the six months ended June 30, 2020 was
$12,754,000 as compared to a gain of $7,224,000 for the six months
ended June 30, 2019. The net loss for the six months ended June 30,
2020 was mainly derived from a loss on change in fair value of
derivative liability of $9,278,000, associated with convertible
notes payable and gross margin of $890,000, offset in part by
general and administrative, and sales and marketing expenses
incurred. The net gain for the six months ended June 30, 2019 was
mainly derived from a gain on change in fair value of derivative
liability of $9,234,000, associated with convertible notes payable
and gross margin of $462,000, offset in part by general and
administrative, and sales and marketing expenses incurred.
Liquidity
As of June 30, 2020, we had cash in the amount of $549,000,
accounts receivable of $34,000, and other current assets of $9,000,
as compared to cash of $19,000, accounts receivable of $64,000, and
other current assets of $9,000 as of December 31, 2019.
Webcast and Conference Call Information
Data443 will host a business update conference call on
Wednesday, August 12th at 4:30PM ET. Investors and
other interested parties may submit their questions ahead of time
by emailing Investor Relations at ir@data443.com – Online registration is available
at: https://us02web.zoom.us/webinar/register/WN_WEsSfumvRuiaejOENugF1w
About Data443 Risk Mitigation, Inc.
Data443 Risk Mitigation, Inc. (OTCPK:
ATDS), is the de facto industry leader in Data Privacy
Solutions for All Things Data Security, providing
software and services to enable secure data across local devices,
network, cloud, and databases, at rest and in flight. Its suite of
products and services is highlighted by: (i) ARALOC™,
which is a market leading secure, cloud-based platform for the
management, protection and distribution of digital content to the
desktop and mobile devices, which protects an organization’s
confidential content and intellectual property assets from leakage
— malicious or accidental — without impacting collaboration between
all stakeholders; (ii) ArcMail ™, which is a
leading provider of simple, secure and cost-effective email and
enterprise archiving and management solutions; (iii)
ClassiDocs™, the Company’s award-winning data
classification and governance technology, which supports CCPA, LGPD
and GDPR compliance; (iv) ClassiDocs™ for
Blockchain, which provides an active implementation for the Ripple
XRP that protects blockchain transactions from inadvertent
disclosure and data leaks; (v) Data443™ Global
Privacy Manager, the privacy compliance and consumer loss
mitigation platform which is integrated with
ClassiDocs™ to do the delivery portions of GDPR and
CCPA as well as process Data Privacy Access Requests – removal
request – with inventory by ClassiDocs™; (vi)
Data443™ Chat History Scanner, which scans chat
messages for Compliance, Security, PII, PI, PCI & custom
keywords; (vii) DATAEXPRESS®, the leading data
transport, transformation and delivery product trusted by leading
financial organizations worldwide; (viii) The CCPA Framework
WordPress plugin, which enables organizations of all sizes to
comply with the CCPA privacy framework; and (ix) the GDPR Framework
WordPress plugin, with over 30,000 active users it enables
organizations of all sizes to comply with the GDPR and other
privacy frameworks. For more information, please
visit https://www.data443.com
Forward-Looking Statements
The statements contained in this release that are not historical
facts are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Words such as “may,”
“will,” “could,” “should,” “expect,” “plan,” “project,” “intend,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“pursuant,” “target,” “continue,” and similar expressions are
intended to identify such forward-looking statements. The
statements in this press release that are not historical
statements, including statements regarding Data443’s plans,
objectives, future opportunities for Data443’s services, future
financial performance and operating results and any other
statements regarding Data443’s future expectations, beliefs, plans,
objectives, financial conditions, assumptions or future events or
performance that are not historical facts, are forward-looking
statements within the meaning of the federal securities laws. These
statements are not guarantees of future performance and are subject
to numerous risks, uncertainties, and assumptions, many of which
are beyond Data443’s control, and which could cause actual results
to differ materially from the results expressed or implied by the
statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict, and include, without limitation, results
of litigation, settlements and investigations; actions by third
parties, including governmental agencies; volatility in customer
spending; global economic conditions; ability to hire and retain
personnel; loss of, or reduction in business with, key customers;
difficulty with growth and integration of acquisitions; product
liability; cybersecurity risk; anti-takeover measures in our
charter documents; and, the uncertainties created by the ongoing
outbreak of a respiratory illness caused by the 2019 novel
coronavirus that was recently named by the World Health
Organization as COVID-19. These and other important risk factors
are described more fully in our reports and other documents filed
with the Securities and Exchange Commission (“the SEC”), including
under (i) “Part I, Item 1A. Risk Factors”, in our Registration
Statement on Form 10 filed with the SEC on January 11, 2019 and
amended on April 24, 2019; (ii) “Part I, Item 1A. Risk Factors”, in
our Annual Report on Form 10-K filed with the SEC on 17 April 2020;
and, (iii) subsequent filings. All information provided in this
release is as of July 30, 2020. Undue reliance should not be placed
on the forward-looking statements in this press release, which are
based on information available to us on the date hereof. Except as
otherwise required by applicable law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
because of new information, future events, or otherwise.
The Data443™ logo,
ClassiDocs™ logo, ARALOC™ logo and
DATAEXPRESS® are registered trademarks of Data443
Risk Mitigation, Inc.
All product names, trademarks and registered trademarks are
property of their respective owners. All company, product and
service names used in this website are for identification purposes
only. Use of these names, trademarks and brands does not imply
endorsement.
All other trademarks cited herein are the property of
their respective owners.
For Further Information:
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Signup for our Investor Newsletter: https://www.data443.com/investor-relations/
Investor Relations Contact:
Matthew Abenante
ir@data443.com
919.858.6542
DATA443 Risk Mitigation (PK) (USOTC:ATDS)
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