RALEIGH, N.C., April 20, 2020 – Data443 Risk Mitigation, Inc. (OTCPK: ATDS), a leading data security and privacy software company, today announced operating results for the year ended December 31, 2019:
Recent Business Highlights:
- Launched Global Privacy Manager™ the industry’s only end-to-end privacy compliance, governance and consumer loss-mitigation platform
- Executed letter of intent to acquire the assets and customer base of Internet Software Sciences with over 100,000 installations and over 1 million end users worldwide from corporations, educational institutions, non-profits and government agencies
- Announced series of transactions with convertible note holders to reduce short-term debt and potential dilution to shareholders
- Completed the cancelation of 2,000,000 common shares as part of a previous litigation settlement
Business Highlights for the Fourth Quarter of 2019:
- Announced major client win – a leading global payments technology company that operates in over 200 countries and territories worldwide, within DataExpress™ NonStop (DXNS) Secure Managed File Transfer Service
- Completed the acquisition of DataExpress™, one of the world’s leading vendors for secure sensitive data transfer for the hybrid cloud
- Completed a series of significant corporate milestones, including formal name change to “Data443 Risk Mitigation,” ticker change to “ATDS,” and reverse stock split
Jason Remillard, CEO of Data443, commented, “2019 is in the books as a watershed year for the company. We delivered strong results that were on target and to our forecasts. We continue to make solid progress toward achieving our long-term goals in delivering a complete data privacy, security and governance ecosystem that is unique and unrivaled in the marketplace. Our product portfolio continues to deliver value to the marketplace and provide diversified revenue streams for the company – especially valuable particularly at these challenging times.”
“We have made great strides in executing on our vision for success, to position Data443 as a leading provider of data privacy and security services that meet the growing challenges faced by organizations in highly regulated, risk and compliance-intensive markets. We’ve acquired long-standing businesses with high quality intellectual property and talent, producing monthly recurring revenue with very strong renewal rates. We’ve successfully integrated these businesses within Data443, providing our clients with a growing portfolio of services at their disposal.
“In the current COVID-19 environment, we are fortunate that our services continue to be used by a diverse group of customers whose businesses are continuing to operate, with several considered to be an essential service. We are highly engaged with our customers helping them to navigate the new challenges they are facing, continuing to fully service their needs during these difficult times. Our employees remain fully engaged, and we believe our business continuity plan is working well.
“We are the only organization in the marketplace that provides the effective end to end solution for privacy compliance management. Our most recent launch of the Global Privacy Manager™ back ended by the leading ClassDocs™ product is indicative of the end to end solution – providing a privacy management solution for clients of all sizes, in all locations with clients of all types. Our mission is to provide capabilities for all of these customers and enable them immediately at prices and onboarding times that are consumable and relevant to their needs. As the California AG has reiterated as recently as last week – the CCPA will be enforced with rigor starting July 2020 and we look forward to helping our customers through these trying times.”
“In conclusion, I want to thank our loyal employees, customers and shareholders for your continued support. Much like many other microcap companies, our stock price today clearly doesn’t represent what I believe to be the underlying value of Data443. We continue to improve execution, drive additional revenue and close acquisitions that are accretive and fit within our unique framework,” concluded Mr. Remillard.
Fiscal Year 2019 Financial Results:
Total revenues were $1,453,000 during the year ended December 31, 2019, compared to $29,000 of revenue for the year ended December 31, 2018. Total deferred revenues were $729,000 as of December 31, 2019, compared with $29,000 as of December 31, 2018.
General and administrative expenses for the year ended December 31, 2019 were $4,797,000, compared to $1,068,000 for the year ended December 31, 2018, an increase of $3,729,000. The increase in general and administrative expense was primarily due to an increase in amortization of intangible assets, payroll expense, professional fees, and other expenses related to SEC reporting, including the re-classification of sales-related management expenses, in connection with the projected growth of the Company’s business. The Company became a fully-reporting company with the SEC in March 2019.
The net loss for the year ended December 31, 2019 was $607,000 as compared to a loss of $15,091,000 for the year ended December 31, 2018. The net loss for the year ended December 31, 2019 was mainly derived from an operating loss of $5,270,386, due in part by increased general and administrative costs and reduced by other net income of $3,326,708, which was mainly from a gain on change in fair value of derivative liability. The net loss for the year ended December 31, 2018 was mainly derived from a loss on change in fair value of derivative liability of $13,271,308 associated with convertible notes payable and an operating loss of $2,201,253.
As of December 31, 2019, we had cash in the amount of $19,000 and other current assets in the amount of $73,000, compared to cash in the amount of $325,000, and other current assets in the amount of $1,500 as of December 31, 2018.
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