RESEARCH TRIANGLE PARK, NC, April 15, 2021 (GLOBE NEWSWIRE) -- 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.
Management Commentary:
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.
About Data443 Risk Mitigation, Inc.
Data443 Risk Mitigation, Inc. (OTCPK: ATDS), is an industry leader in 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) Data443® Ransomware Recovery Manager™, built for the modern enterprise, its capabilities are designed to recover a workstation immediately upon infection to the last known business-operable state, without any end user or IT Administrator efforts;
(ii) Data Identification Manager™ (previously marketed as ClassiDocs™ and FileFacets®), the Company’s award-winning data classification and governance technology, which supports CCPA, LGPD and GDPR compliance in a Software-as-a-Service (SaaS) platform that performs sophisticated data discovery and content search of structured and unstructured data within corporate networks, servers, content management systems, email, desktops and laptops;
(iii) Data Archive Manager™ (previously marketed as ArcMail®), a leading provider of simple, secure and cost-effective enterprise data retention management, archiving and management solutions;
(iv) Sensitive Content Manager™ (ARALOC™), 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;
(v) Data Placement Manager™ (previously marketed as DATAEXPRESS®), the leading data transport, transformation and delivery product trusted by leading financial organizations worldwide;
(vi) Access Control Manager™ (previously marketed as Resilient Access™), enables fine-grained access controls across myriad platforms at scale for internal client systems and commercial public cloud platforms like Salesforce, Box.Net, Google G Suite, Microsoft OneDrive and others;
(vii) Data Identification Manager™ (previously marketed as ClassiDocs™) for Blockchain, provides an active implementation for the Ripple XRP that protects blockchain transactions from inadvertent disclosure and data leaks;
(viii) Data443® Global Privacy Manager™, the privacy compliance and consumer loss mitigation platform which is integrated with Data Identification Manager to do the delivery portions of GDPR and CCPA as well as process Data Privacy Access Requests – removal request – with inventory enables the full lifecycle of Data Privacy Access Requests, Remediation, Monitoring and Reporting;
(ix) IntellyWP, a leading purveyor of user experience enhancement products for webmasters for the world’s largest content management platform, WordPress;
(x) Data443® Chat History Scanner, which scans chat messages for Compliance, Security, PII, PI, PCI & custom keywords; and
(xi) GDPR Framework, The CCPA Framework and LGPD Framework WordPress plugins, with over 30,000 active site owners combined, enables organizations of all sizes to comply with European, California and Brazilian privacy rules and regulations.
For more information, please visit http://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 March 23, 2021; and, (iii) subsequent filings. 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, ARCMAIL®, DATAEXPRESS® and FILEFACETS® are all registered trademarks of Data443 Risk Mitigation, Inc.
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