- What is the name of the public company?
LandStar, Inc. It is a Nevada corporation formed in 1998.
- What is the stock symbol?
The stock symbol (“ticker”) for LandStar, Inc. is LDSR. The shares are quoted on the Over-the-Counter Pink Marketplace (OTC PK).
- How is Data443 part of LandStar?
In June, 2018 LandStar acquired Data443, making Data443 a wholly-owned subsidiary of LandStar.
- What does it mean to refer to the “Company”?
The “Company” means LandStar and everything it owns, which includes Data443.
- What is a brief description of the business of the Company?
The Company is in the data security business, seeking to operate as a cybersecurity software and services provider. As cybersecurity is a large market place, the Company is focused primarily on the cyber data security sector of the market, seeking to be a global leader in that market. LandStar, through its wholly owned subsidiary DATA443™ Risk Mitigation, Inc., enables secure data – across local devices, network, cloud, and databases – at rest and in flight. ClassiDocs™, the company’s award-winning data classification and governance technology, provides GDPR compliance, and DSAR management coupled with DLP, CASB, SIEM, and cloud solutions to provide user-enabled, governance-enabled, up-to-date security for every data point, every time. The market leading ARALOC™ platform is a highly 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. The WordPress-based GDPR Framework enables organizations of all sizes to comply with the GDPR and other privacy frameworks. ClassiDocs™ for Blockchain provides an active implementation for the Ripple XRP that protects blockchain transactions from inadvertent disclosure and data leaks.
- Where is the Company headquartered?
The Company is headquartered in Raleigh, North Carolina. Raleigh was recently name a “top tech hub for millennials” by Forbes Magazine. The tech sector in Raleigh is growing almost as quickly as it is in Silicon Valley.
- Who are the directors and officers of the Company?
Jason Remillard is the sole board member of the Company. Although assisted by other members of the Company’s management team, Mr. Remillard acts as the Company’s CEO, CFO and COO.
- Can I purchase Data443 stock?
Since Data443 is owned by LandStar, you can’t buy stock directly in Data443. However, you can buy stock in LandStar, which indirectly gives you ownership of Data443.
- How do I purchase Company stock?
Company stock can be purchased through most brokerage accounts, including online brokers. While some brokers will not place orders for “smaller” public companies, most will.
- Does the Company plan to be an SEC reporting company?
The Company plans on once again being a fully reporting SEC company as soon as practicable.
- Does the Company have plans to “uplist”?
While no time frame or assurances can be provided, it is the intent of the Company to progressively move (“uplist”) to higher trading markets, culminating in an eventual listing on NASDAQ. We will do all we can to satisfy all requirements as quickly as possible.
- Will the Company have audited financials?
The Company has completed its 2-year audit and has posted on OTC Markets as amended statements to our 2017 annual report:
Many of the changes involved accounting treatments related to past due (prior to change of control) state fees and subsequent payments.
- Who has the Company engaged to prepare its audits?
The Company has engaged Thayer ONeal as its independent registered public accounting firm to complete the audits. Contact information is as follows:
101 Parklane Boulevard, Suite 201
Sugar Land, Texas 77478
- What is a stock transfer agent?
A stock transfer agent manages and maintains the records of a company’s shares, and must be registered with the SEC. The agent is responsible for issuing shares of the Company, as well as transferring the ownership of shares from the seller’s name to the buyer’s name. The agent also determines the stockholders of record, ensures all stocks are properly accounted for, and that dividend payments are made to stockholders of record. The transfer agent does not maintain records of shares bought and sold through brokerage accounts; such stock is held in “street name”. Each brokerage firm maintains its own records for the shares bought and sold through it.
- Who is the Company’s transfer agent?
The Company’s transfer agent is Madison Stock Transfer Inc. Contact information is:
Madison Stock Transfer Inc.
2500 Coney Island Avenue, Sub Level
Brooklyn, NY 11223
- Can the transfer agent help me with issues regarding my shares?
Yes. The transfer is your point of contact for all issues regarding your shares, such as changing an address, replacing a lost or destroyed certificate, and transferring shares.
- Will the transfer agent release all information to stockholders?
As is common practice, the Company’s transfer agent will only release to a shareholder information which is unique to the particular requesting shareholder. Other information will not be released. However, the Company’s transfer agent has been instructed to provide to OTC Markets updated information about our issued and outstanding shares on a quarterly basis and as per any requirements forthcoming from regulators.
- How many shares of the Company’s stock are currently outstanding?
As of September 27, 2018, 2018, the Company had 4,447,676,982 shares of its common stock issued and outstanding, of which (i) 1,606,347,924 shares were restricted; and, (ii) 2,841,329,058 were free-trading. As of September 27, 2018, the Company had 1,000,000 shares of its Series A Preferred Stock issue and outstanding.
- Why is the shell risk flag still on OTC Markets listing?
You should recall that the Company was previously considered to be a “shell” (a company which has (i) no or nominal operations; and, (ii) no or nominal assets (or, assets consisting mostly of cash). When the Company ceased to be a shell in January, 2018, the designation as a “shell” was removed by OTC Markets.
However, it is the policy of OTC Markets to leave the “shell risk” flag on companies until the next year financial filing is completed.
Thus, we expect the shell risk to be removed after our FY 2018 filing is posted.
It should be noted – we are not considered a shell company.
- What is status of the long-term debt which has been on the Company’s books?
The $125,000 convertible note was acquired in a private transaction between the existing note holder and another organization that has had no previous interactions with the Company or Mr. Remillard. The current note holder has communicated its intent to be supportive of the Company and expressed its approval of our plan to be a major power in the global cyber data security marketplace.
- What is the story behind the 8-K improperly filed with the SEC on April 6, 2018?
On or about April 9, 2018, a Current Report on Form 8-K (the “8-K”) was filed under the name “LandStar, Inc.” The filing was not authorized by the Company and the Company has had no communication with the named filer. The 8-K purports to present financial statements for the years ended December 31, 2017 and 2016 and includes an entry for “long-term debt with interest” for $1,000,000 on the balance sheet. Although the Company is aware of an unsubstantiated claim for a $500,000 debt obligation, the Company is not familiar with the allegations that form the basis for this claim. The Company has yet to initiate action in response, though the Company intends to vigorously dispute this claim.
- Who handles investor relations for the Company?
The Company has engaged the firm of Porter, LeVay & Rose to handle investor relations. Our account representative is Matthew Abenante. His contact information is:
PORTER, LeVAY & ROSE, INC.
Porter, LeVay & Rose is a premier full-service investor relations and corporate communications firm that has functioned as a principled and responsible liaison with its clients’ stakeholders for more than 48 years. Porter, LeVay & Rose represents both private and public companies in a wide range of industries, including technology, biotech, medical devices, manufacturing, mining, business services, and retail.
- How can I be notified when new information about the Company becomes available?
All official announcements from the Company will be posted to our mailing list and Twitter Account (@data443Risk). To sign up to be on our mailing list, visit:
- What is the plan to improve the stock price?
We believe that a combination of growing the business, maintaining our full transparency and regularly updating investors when conditions warrant, and growing our shareholder base will all lead to a market valuation that’s more in-line to what we believe is the value of our company. The Company will NOT undertake, support, or permit any programs of “promotion” with regard to the Company’s common stock.
- When is our CEO, Jason Remillard, scheduled to meet with outside investor groups?
We intend on having a busy rest of 2018, which will include multi-city investor meetings and, of course, we will continue to have analyst briefings and remote calls.
- What purpose does the shareholder conference call satisfy for the company?
Management has made it a firm-wide commitment to provide full transparency in terms of building this business. We wanted to take the opportunity to update shareholders on what we’ve been doing and what we’re working towards for the rest of the year, as well as introducing Data443 to new potential investors. It is also important to communicate the strategy (within reason) for our actions and demonstrate our completion of commitments. Additionally, we use these calls to solicit feedback from private and larger investors. We believe we are unique in this approach for this marketplace.
- Will the Company provide a revenue forecast soon?
Providing forecasts or guidance at this stage of development is a bit early. As the business grows, and revenues become more predictable, we’ll re-evaluate guidance.
- Is WordPress commercially viable?
The WordPress ecosystem is quite unique in how it operates and contributes to the Internet and information sharing globally. Outside of being one of the largest content management platforms – it is also used significantly as an ecommerce engine for many companies – big and small. More importantly, it continues to demonstrate the value of open source in a commercial world. Many examples abound – Redhat being one of the more popular ones about how open source and commercial needs can be part of the same equation. WordPress has a thriving commercial component – almost always driven from the open source side of the business. Much like the ‘freemium’ and ‘trial’ options you see with commercial software and services today – WordPress plugins generally have a limited use/free component offering a commercial component as an upgrade. The models vary – it can be for better support, more features or more capacity – but certainly WordPress is an excellent brand recognition platform and an extremely cost-effective way to reach hundreds and thousands of IT Administrators, Security engineers and small business owners. In our case currently, when we refresh our code (fixes, enhancements or attachments to our other products such as ClassiDocs) – over 10,000 active Web Developers, SMB owners and other associated folks are exposed to our brand and capability. As our mission is to provide data security and protection services for organizations of all sizes, in all locations – WordPress is the perfect distribution method for us. CodeCanyon, ThemeForest, WooCommerce and thousands of others generate tens of millions of dollars annually in the commercial WordPress space. One great study to review: https://freemius.com/blog/codecanyon-wordpress-plugins-analysis/. It should be noted, the official WordPress plugin repository is indeed open source only and non-commercial – all commercial transactions happen on the plugin owners’ site/page/ordering engine. A great example of this is the WP Security Audit Log plugin: https://wordpress.org/plugins/wp-security-audit-log/.
- When did ClassiDocs become available?
The core product itself has been built starting from September 2016 and for almost 2 years heavy development continued and was piloted with select organizations that were early adopters of the vision of a combined Data Classification and Governance product – one that replaced several existing or to be purchased products. Having spent 1.5 years in constant development and design in conjunction with pilot installations – it became commercially available only earlier in 2018. ClassiDocs continues to be piloted and demonstrated on a daily basis to many different types of customer opportunities. The Enterprise IT Security sales cycle is long (6-24 months sometimes) and is expensive to engage on (sales people, support for the pilots, fixes and deployments, compute cycles, etc.) As well – with any long-term sales cycle – there is always risk (macro markets, competitors, etc.) Our continued efforts on the product stack include extensions to new areas (that may or may not drive specific revenues but are important strategically – like Ripple or Facebook), and integrations to instances where the sales cycle is much faster – such as a transactional interaction like a WordPress Plugin. Driving cost, time and complexity out of technology is our mission – engineering the product and implementation to be as simple as a ‘one click exercise’ is our end goal – for many reasons.
- Did the ARALOC Stock portion of the deal change?
No. If we review the filings, Q3 filings clearly state (Page 4):
On our amended 2017 filing recently posted (subsequent events – page 18):
As indicated, by Q3 filings we had not closed the deal yet – however the valuation on the shares was to be $900,000 and no less than 81,081,081 common shares. In our amended 2017 filings (which include future events) the ARALOC deal had closed and the final calculation based on the stock price was 164,533,821 shares.
These shares are common shares and are restricted for at least 1 year from issuance.
- Can the Company’s officers and employees sell their LDSR stock?
All stock issued to Company officers and employees is restricted for a minimum of 1 year and generally vests over several years afterwards. These issuance’s of stock cannot be sold into the market until restrictions are lifted. Additionally, Stock Options have monetary value only once a certain stock price is met. Company officers are subject to additional restrictions on selling in general, and more specifically on amounts sold during certain time frames.
Since Mr. Remillard took over control of the Company, no employee (including Mr. Remillard) has sold any shares of Company stock.
- How does DATA443 pay for the acquisitions it has closed, and plans to close in the future?
While every deal is different, generally, our acquisitions are paid for with a combination of cash, vendor debt, and restricted company stock. The restricted company stock cannot be sold into the market for at least one year after the transaction close and in some cases is tied to performance metrics post-acquisition. As well, the debt instrument is held by the seller of company for a period of time, as indicated in our recent filings.
- Since DATA443 is not yet cash flow positive yet, how does the Company fund its operations?
The Company maintains financial arrangements with one or more financing organizations. The Company has to date chosen this method of financing over preferred stock issuance, venture capital, and private investments. The company continues to review additional and different financing as received that have merit.
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 subject to numerous risks and uncertainties, many of which are beyond LandStar’s control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to the operations of LandStar; 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 in integrating acquisitions; product liability; cybersecurity risk; and, anti-takeover measures in our charter documents.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained, from time-to-time, in LandStar’s filings with the Securities and Exchange Commission and postings on the OTC Markets news and information website. LandStar undertakes no obligation to publicly update or revise any forward-looking statement.
Data443™, ClassiDocs™ and ARALOC™ are registered trademarks of Data443 Risk Mitigation, Inc.
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