{
  "timestamp": "2025-02-05T21:39:31.771316",
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        "content": "You are a security advisor providing end-user guidance on data security and protection.\n            Focus on practical, easy-to-follow security recommendations."
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        "content": "\n            Provide clear security guidance based on:\n            \n            Content to reference:\n            Search Free Trial Get Demo Data443 Risk Mitigation Reports Operating Results for the Quarter Ended March 31, 2020 May 15, 2020 RALEIGH, N.C., May 15, 2020  Data443 Risk Mitigation, Inc. OTCPK ATDS, a leading data security and privacy software company, today announced operating results for the quarter ended March 31, 2020 Recent Business Highlights No customer or contract losses due to COVID-19 conditions Staff and business operations retained and on scope Released the CCPA version of the GDPR Framework for WordPress to the public Rapidly changed business operations to adapt to new conditions due to COVID-19 emergency New Data Center online and consolidation project nearing completion Second version of Global Privacy Manager available for private beta Public shopping cart ordering platform launched  more product line being added weekly Larger SMB  B2C marketing campaigns being launched starting Q2 Financial Highlights from Q1 2020 Continued significant gross of deferred revenues to 1,032,000 234 growth in revenue growth from same reporting period last year to 478,000 Net loss mainly attributable to change in fair value of derivative liability reporting Combined SGA includes new product development, Data Center build out and sales force as well as listed items Management Commentary Jason Remillard, CEO of Data443, commented, The first quarter of 2020 reflects the combined business operations of all 5 reporting product lines. We incurred greater costs this quarter due to the extensive strategic planning and development undertaken, which included the launch of our new Data Center in the Raleigh-Durham Research Triangle Region near our headquarters. This initiative was taken to reduce our spend on the public cloud and provide our customers more options for their longer term and high capacity spend options, particularly for the ultra-high density orders we are seeing now. The build was made more complicated by challenges due to the COVID-19 pandemic  with component availability issues starting in December of 2019 and lasting throughout the last 4 months. However, it is now in full operation. Outside of the Data Center build out, we continue to refine our product lines to facilitate the growing data privacy capabilities that we believe are required in todays marketplace. Even within the current pandemic, we continue to validate the pricing, fit and capability requirements for both the Global Privacy Manager product, along with the additional capabilities that are available for our product lines  Classification, Governance, Secure Document Delivery and Distribution, large scale data lake for eDiscovery and search and massive file transfer services  ad hoc and scheduled. The emergent data privacy requirements are in many cases simply good data security and compliance practices  exercised at new business and risk levels. We are bringing many of these existing capabilities to new visibility and new availability. For example, consider the problem faced by a medium size business owner who could never afford  cash or staffing wise  the ability to deploy a large-scale classification or eDiscoverydata lake capability. Today, due to our our redeployment and engineering efforts  they are able to do so in just a few mouse clicks and pay for it on a monthly or yearly basis, while also enabling not just a new security and compliance stance, but also comply with the myriad privacy laws across the US and around the world. As the California Attorney General recently reiterated  the CCPA will be enforced with rigor starting July 2020 and new modifications to the law are already slated for later this year. We fully expect more to come from California  and additional frequent and aggressive actions for different states in the next 6-18 months. The ongoing emergency with COVID-19 continues to highlight the privacy risks associated with personal information, the blurring lines between employer, government, community and data sharing and processing parties. This area of data privacy and processing will continue to see significant activity. In conclusion, the ongoing emergency has highlighted the continued need for a multi-legged approach to our business. A solid foundation of multiple products that contribute to diversified revenue streams that we already take advantage of, as well as diverse staff capabilities and infrastructure that support the overall business in different ways. Throughout the past 8 weeks, we have seen our products used in many unique ways  and our staff members jump in to support and contribute in many ways as well. I am proud of our whole team, as theyve done an incredible job, reacting swiftly and professionally in these highly evolving times. Our survival and our ability to thrive is no small feat in this climate, and I appreciate everyones support, including our loyal shareholders and service providers who continue to support us! concluded Mr. Remillard. Q1 2020 Financial Results Revenue We recognized 478,000 of revenue during the three months ended March 31, 2020, compared to 143,000 in revenue for the three months ended March 31, 2019. We had net billings for the three months ended March 31, 2020 of 603,000 compared to 417,000 in the prior year period. Deferred revenues are 1,032,000 as of March 31, 2020, an increase of 303,000 from 729,000 as of December 31, 2019. General and Administrative Expenses General and administrative expenses for the three months ended March 31, 2020 amounted to 1,425,000 as compared to 691,000 for the three months ended year ended March 31, 2019, an increase of 734,000, or 106. The expenses for the three months ended March 31, 2020 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 Companys business. Expenses for the three months ended March 31, 2019 consisted of primarily the same items. Sales and Marketing Expenses Sales and marketing expense for the three months ended March 31, 2020 amounted to 121,000 as compared to 226,000 for the three months ended year ended March 31, 2019, a decrease of 105,000, or 46. The expenses for the three months ended March 31, 2020 primarily consisted of developing a sales operation, with some previously reported expenses, primarily management costs, reclassified to general and administrative expenses. Expenses for the three months ended March 31, 2019 consisted of primarily the same items with the exception of previously mentioned costs reclassified to general and administrative expenses. Net Income Loss The net loss for the three months ended March 31, 2020 was 10,181,000 as compared to net income of 6,030,000 for the three months ended March 31, 2019. The net loss for the three months ended March 31, 2020 was mainly derived from an 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. The net income 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 of 921,000. 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 DATAEXPRESS, the leading data transport, transformation and delivery product trusted by leading financial organizations worldwide 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 organizations confidential content and intellectual property assets from leakage  malicious or accidental  without impacting collaboration between all stakeholders iii ArcMail, which is a leading provider of simple, secure and cost-effective email and enterprise archiving and management solutions iv ClassiDocs, the Companys award-winning data classification and governance technology, which supports CCPA, LGPD and GDPR compliance v ClassiDocs for Blockchain, which provides an active implementation for the Ripple XRP that protects blockchain transactions from inadvertent disclosure and data leaks vi 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 vii Data443 Protect enabled by ClassiDocs, which provides nearly instant Cloud-deployed Data Loss Prevention capabilities with unmatched false positive rates viii Data443 Virtual Data Protection Officer program, which offers a turnkey and outsourced DPO capability for smaller organizations and, ix the WordPress GDPR Framework, with over 30,000 active users it enables organizations of all sizes to comply with the GDPR and other privacy frameworks. For more information, please visit  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 Data443s plans, objectives, future opportunities for Data443s services, future financial performance and operating results and any other statements regarding Data443s 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 Data443s 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 and, ii Part I, Item 1A. Risk Factors, in our Annual Report on Form 10-K filed with the SEC on 17 April 2020. 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. 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  Follow us on Twitter  Follow us on Facebook  Follow us on LinkedIn  Signup for our Investor Newsletter  Investor Relations Contact Matthew Abenante  919.858.6542 Try it for Free Instant Data Classification Cyren URL Category Chacker Prev Data443 Releases New CCPA Framework Plugin for WordPress Data443 Risk Mitigation Releases Industry First Privacy Badge  Over 250 Subscribers in Less Than 1 Week Next Company Partners Resources Investor Relations Products Freeware Demo Solutions Contact Us Privacy Management Service by Data443\n            \n            Your guidance should include:\n            1. Easy-to-follow security best practices\n            2. Data protection recommendations\n            3. Safe usage guidelines\n            4. Common security risks and prevention\n            5. Privacy protection measures\n            6. When to seek additional security support\n            "
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  "response": {
    "content": "To enhance the security guidance provided, here is a structured and organized response, incorporating additional tips and considerations for each section:\n\n### 1. Security Best Practices\n- **User Training:** Recommend specific phishing simulation tools like KnowBe4 or Security Awareness Training by Infosec. Suggest resources such as free phishing test emails from PhishMe.\n- **Regular Updates:** Emphasize the importance of enabling automatic updates, especially for operating systems and critical software. Provide examples like enabling Windows Update or macOS updates.\n\n### 2. Data Protection Recommendations\n- **Backups:** Highlight the 3-2-1 backup rule (three copies, two different media, one offsite) and suggest cloud backup services like Backblaze or iDrive.\n- **Encryption:** Suggest tools like VeraCrypt for disk encryption and Signal for encrypted messaging. Mention encrypting data both at rest and in transit.\n\n### 3. Safe Usage Guidelines\n- **Phishing Awareness:** Provide tips on spotting phishing emails, such as checking for urgency, generic greetings, and suspicious sender addresses. Include steps like hovering over links to verify URLs.\n- **Password Management:** Encourage the use of password managers like LastPass or Dashlane. Advise on creating strong, unique passwords and avoiding password reuse.\n\n### 4. Common Security Risks and Prevention\n- **Ransomware:** Offer steps to take if hit by ransomware, including isolation from the network and not paying ransoms immediately. Stress the importance of backups for recovery.\n- **Cloud Storage Risks:** Discuss common risks like misconfigured buckets and suggest using access controls and encryption for cloud data.\n\n### 5. Privacy Protection Measures\n- **Social Media Privacy:** Advise on managing privacy settings, such as limiting friend lists and avoiding oversharing. Suggest using privacy tools like Privacy Badger.\n- **Browsers:** Recommend privacy-focused browsers like Tor or Brave, and suggest using VPNs like NordVPN for enhanced privacy.\n\n### 6. When to Seek Additional Security Support\n- **Incident Response:** Advise seeking help immediately after a breach. Suggest reaching out to cybersecurity firms or local IT support groups.\n- **Compliance Scenarios:** Emphasize seeking help when navigating new regulations like CCPA or GDPR. Recommend consulting with legal experts or using compliance checklists.\n\n### Additional Tips\n- **Mobile Device Management (MDM):** As remote work increases, mention MDM solutions like Microsoft Intune to secure mobile devices.\n- **Regular Audits:** Suggest conducting regular security audits, possibly using tools like Nessus for vulnerability scanning. Provide a simple risk assessment checklist for small businesses.\n\nBy organizing these points clearly and simply, end-users can follow the guidance without feeling overwhelmed, ensuring they are well-protected in a user-friendly manner.",
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