RESEARCH TRIANGLE PARK, NC, April 15, 2021 – Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, today announced operating results for the quarter ended March 31, 2021.
Business Accomplishments and Highlights for the First Quarter of 2021
- Entered into a new one-year contract with a major global merchant and payment processing provider, part of one of the world’s largest banks.
- Launched Data443 Ransomware Recovery Manager™ built for the modern enterprise with the capabilities to recover a workstation immediately upon infection to the last known business-operable state, without any end-user or IT Administrator efforts.
- Entered into a new collaboration with the leader in the cloud data warehouse market, Actian Corporation.
- Further integrated Data Identification Manager™ (formerly ClassiDocs™) into Microsoft products with membership in the ‘by invite only’ Microsoft Intelligent Security Association (MISA) in late 2020.
- Executed a multi-year, six-figure subscription-based agreement with a leading U.S.-based insurance company for our Data Archiving product set.
- Engaged by a leading global bank headquartered in the Middle East under a six-figure per year, three-year contract to servicing the bank’s more than 10,000 employees for our classification product suite.
- Retired all outstanding debt liabilities with a variable conversion rate feature, resulting in eliminating over $10,000,000 in derivative liabilities.
- Completed our first acquisition of 2021, acquiring all rights to ArcMail® (since rebranded at Data Archive Manager), the culmination of the prior two-year licensing agreement held by Data443.
Jason Remillard, Data443’s founder and Chief Executive Officer, commented, “We continue to see the pandemic recovery resulting in new business activity for the Company. Many large-scale projects on hold from the early stages of the pandemic have been brought back to the table for execution with new urgency. Indeed, in many cases, the urgency has grown, and clients demand faster delivery of solutions.
“Building upon our solid 2020 results, 2021 continues to demonstrate our capabilities and the success of our business plan. Although the world is still very much in a pandemic situation, we continue to retain our customers, deliver value, and grow in key segments. Additionally, we executed key debt management actions to simplify our balance sheet and prepare for more effective and efficient financing vehicles.
“The launch of our streamlined marketing initiatives in 2021 is the foundation with which we will capture new clients, with upgraded messaging and a combined privacy-first storyline that ties in our current and planned acquisitions. Data443 will execute these programs throughout the year. They will be a combination of virtual and hybrid-virtual as the year progresses, and various portions of the world respond to pandemic restrictions easing. Either way, we plan a balanced and effective sales and marketing plan that adjusts to current environments that are appropriate for each region for maximum effectiveness.
“Our new product enhancements and services continue to be industry-leading, and our most recent Ransomware Recovery Manager™ is no exception. Providing clients not only a ransomware protection system, but a full device recovery platform is unique to the industry and places Data443 again at the forefront of senior IT leaders’ minds as providing capabilities that have immediate value and business need.”
Remillard concluded by stating, “The first Quarter of 2021 has delivered as expected. Many projects are being taken back off the shelf, and a new sense of urgency surrounding data privacy with continued breaches, ransomware, and data loss occurring worldwide. Our hundreds of enterprise customers include leading brand names in a diverse set of industries, such as financial services, healthcare, manufacturing, retail, technology, and telecommunications. The rest of 2021 will see further enhancements to our product offerings and a robust go-to-market strategy fueled by new technology alliances within the IT infrastructure and security vendor ecosystem. We feel we are well-positioned to continue to benefit from these market conditions that we have prepared for over a long time. Once again, we thank all of our key stakeholders, including our loyal stockholders, for their continued support.”
First Quarter 2021 Financial Highlights:
- Net billings of $624,000 for the three months ended March 31, 2021, compared to $603,000 of net billings for the three months ended March 31, 2020 – representing an increase of 3.5%. Total revenues were $838,000 during the period ended March 31, 2021, compared to $478,000 of revenue for the period ended March 31, 2020 – representing an increase of 75%. Total deferred revenues were $1,287,000 as of March 31, 2021, compared with $1,518,000 of deferred revenues as of December 31, 2020, representing a decrease of 15%.
- General and administrative expenses for the three months ended March 31, 2021, were $1,434,000, compared to $1,425,000 for the three months ended March 31, 2020, an increase of $9,000 – representing an increase of 0.6%. The expenses for the three months ended March 31, 2021, 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. Expenses for the three months ended March 31, 2020, consisted of primarily the same items.
- The net loss for the three months ended March 31, 2021, was $2,176,000 compared to a net loss of $10,181,000 for the three months ended March 31, 2020. The net loss for the three months ended March 31, 2021, was mainly derived from an operating loss of $858,000, interest expense of $905,000, loss on settlement of debt of $228,000, and a loss from change in fair value of derivative liability of $185,000. The net loss of $10,181,000 in the period ended March 31, 2020, was mainly due to a net operating loss of $1,103,000 and a loss from change in fair value of derivative liability of $8,506,000, associated with convertible notes payable.
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