RALEIGH, N.C., May 15, 2019 – LandStar, Inc. (OTCPK: LDSR) (“LandStar” or the “Company”), the parent company of Data443™ Risk Mitigation, Inc. (“Data443”), a leading data security and privacy software company, today filed its Form 10-Q with the U.S. Securities and Exchange Commission (the “SEC”) to disclose its financial results for the first quarter ended March 31, 2019.
- Strong billings and positive revenue growth
- Operational capacity ramping in line with growth
- Investment community continues to engage in our story
- Accretive product acquisitions continue delivering value
Jason Remillard, Founder of Data443 and CEO of LandStar, commented, “I consider the first quarter 2019 to be the start of our three-phase program to reach the critical scale and revenue volumes that support our aggressive business plan. As per the results, these capabilities – both product and corporate – are delivering. Our performance in the first quarter was predicated on the growing demand for our suite of products and services, particularly as data security continues to dominate the news today.
“On the acquisition front, we expect to announce an updated pipeline of new strategic acquisition opportunities during Q2. These acquisitions reflect our efforts to providing additional products and services to our existing and expanding customer base.
“Great customer wins, renewals, product and strategic partnerships all helped to round out a great Q1. I believe we are on the cusp of a major operational inflection point in our business and look forward to the anticipated creation of long-term value for our shareholders and customers,” concluded Mr. Remillard.
Business Highlights for First Quarter of 2019 and Year to Date:
- Signed exclusive global agreement with ArcMail, a leading provider of enterprise information and email archiving solutions
- Opened new headquarters office in Research Triangle Park, North Carolina
- SEC completed its review of the Company’s Form 10 Registration Statement, and became a fully reporting company, subject to the reporting requirements of the Securities and Exchange Commission
- Appointed Steven Dawson as our Chief Financial Officer
- Secured numerous ARALOC™ contract renewals, including Boston University and the Miami Dolphins of the National Football League
- Secured ArcMail contract renewals, including one with a major hospital and operator of family medical clinics
- Launched Data443 Hybrid Cloud ArcMail Archiving Services, and secured first customer win
- Secured new ArcMail appliance and Cloud-based Archiving and eDiscovery product sales, including a mid-west municipality and an east-coast major K-12 educational institution
- Launched Data443™ Privacy Manager, a CCPA compliance management solution that integrates a growing library of privacy laws enacted in California and expected to be enacted throughout the United States
- Formed strategic alliance with CYNOKS Information Technologies, a leading Turkish technology services company to directly address growing requirements of the Turkish Data Protection Law (DPL)
- Presented at InfoSec World 2019 (covered Privacy Compliance Case Studies), at the longest running conference dedicated to the business of information security
- Presented atthe Planet MicroCap Showcase 2019, an investor event dedicated to growth-oriented companies engaging with the investment community
Q1 2019 Financial Results:
We recognized $143,000 of revenue during the three months ended March 31, 2019, compared to zero revenue for the three months ended March 31, 2018. We had net billings for the three months ended March 31, 2019 of $417,000 compared to zero in the prior year period. Deferred revenues are $303,000 as of March 31, 2019, an increase of $274,000 from $29,000 as of December 31, 2018.
General and administrative expenses for the three months ended March 31, 2019 amounted to $691,000 as compared to $276,000 for the three months ended March 31, 2018, an increase of $415,000, or 150%. The expenses for the three months ended March 31, 2019 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, 2018 consisted of primarily the same items with the exception of costs to integrate assets we acquired.
The net gain for the three months ended March 31, 2019 was $6,030,000 as compared to a loss of $6,205,000 for the three months ended March 31, 2018. The net gain for the three months ended March 31, 2019 was mainly derived from a gain on change in fair value of derivative liability of $6,813,000 associated with convertible notes payable and gross margins of $138,000, offset in part by general and administrative, and sales and marketing expenses incurred. The net loss for the three months ended March 31, 2018 was mainly derived from the loss on change in fair value of derivative liability of $5,632,000 associated with convertible notes payable, as well as general and administrative, and sales and marketing expenses incurred.
As of March 31, 2019, we had cash or cash equivalents of $16,000, trade accounts receivable of $301,000, and other current assets of $3,000, as compared to cash or cash equivalents of $325,000, zero trade accounts receivable, and other current assets of $1,000 as of December 31, 2018.
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About LandStar, Inc.
LandStar, Inc. (OTCPK: LDSR), through its wholly owned subsidiary DATA443™ Risk Mitigation, Inc., provides SaaS-based software solutions that secure data – across local devices, network, cloud, and databases – at rest and in flight. Its expanding suite of software products is highlighted by: (i) ArcMail, which is a leading provider of simple, secure and cost-effective enterprise data retention management, archiving and management solutions; (ii) 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; (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 Privacy Manager™, which is integrated with ClassiDocs to do the delivery portions of GDPR and CCPA as well as process DSARs – removal request – with inventory by ClassiDocs; (vi) Data443 virtual Data Protection Officer, our virtual solution for privacy laws requiring a Data Protection Officer; and (vii) the WordPress GDPR Framework with over 20,000 active site owners, enables organizations of all sizes to comply with the GDPR and other privacy frameworks. For more information, please visit https://www.data443.com.
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 LandStar’s plans, objectives, future opportunities for LandStar’s services, future financial performance and operating results and any other statements regarding LandStar’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 LandStar’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; and, anti-takeover measures in our charter documents. 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 “Part I, Item 1A. Risk Factors”, in our Registration Statement on Form 10 filed with the SEC on January 11, 2019.
Any forward-looking statement is made only as of the date of which such statement is made. 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.
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