LANDSTAR,
INC.
REPORTS
Q1
2019 FINANCIAL
RESULTS AND
PROVIDES CORPORATE UPDATE
RALEIGH, N.C. -- May
15, 2019 -- InvestorsHub NewsWire -- 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.
Key
Takeaways:
-
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
Management
Commentary:
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 at
the
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.
About
LandStar, Inc.
LandStar,
Inc. (OTCPK:
LDSR), through its wholly
owned subsidiary DATA443™ Risk Mitigation, Inc., enables secure
data – across local devices, network, cloud, and databases – at
rest and in flight. Its suite of products and services is
highlighted by: (i) ArcMail, which is a leading provider of simple,
secure and cost-effective email and enterprise 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) the
WordPress GDPR Framework with over 20,000 active users enables
organizations of all sizes to comply with the GDPR and other
privacy frameworks; (vi) The Virtual Data Protection Officer
program that offers a turnkey and outsourced DPO capability for
smaller organizations; and, (vii) Data443™ Privacy Manager which
enables the full lifecycle of Data Privacy Access Requests,
Remediation, Monitoring and Reporting. 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 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.
Data443™,
ClassiDocs™, ARALOC™ are registered trademarks of Data443 Risk
Mitigation, Inc.
All product names,
trademarks and registered trademarks are property of their
respective owners. All company, product and service names used in
this website are for identification purposes only. Use of these
names, trademarks and brands does not imply endorsement.
All
other trademarks cited herein are the property of their respective
owners.
For
Further Information:
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Investor
Relations Contact:
Matthew
Abenante
Porter,
LeVay & Rose, Inc.
data443@plrinvest.com
212.564.4700
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