RALEIGH, N.C., April 20, 2020 (GLOBE NEWSWIRE) -- 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
Management Commentary:
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. Continued high margin-based product lines are contributing to our growing bottom line. 2019 represents these roll up businesses reporting only approximately 1.5 and 2.75 quarters contributing for the fiscal – thus enabling for significant expected contributions for 2020.”
“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 ClassiDocs™ 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.
Liquidity
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.
About Data443 Risk Mitigation, Inc.
Data443 Risk Mitigation, Inc. (OTCPK: ATDS), is an industry leader in the data security and privacy business, 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 Protect™, which provides nearly instant Cloud-deployed Data Loss Prevention capabilities with false positive rates unmatched enabled by ClassiDocs™; (vii) Data443 Virtual Data Protection Officer program that offers a turnkey and outsourced DPO capability for smaller organizations; (viii) DATAEXPRESS™, the leading Data transport, transformation and delivery product trusted by leading financial organizations worldwide; (ix) the WordPress GDPR Framework with over 30,000 active users 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; 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 and amended on April 24, 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.
Data443™, ClassiDocs™, ARALOC™ and DATAEXPRESS™ are registered trademarks of Data443 Risk Mitigation, Inc.
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