Landstar Inc. Reports Full Year 2018 Audited Financial Results and Provides Corporate Update


RALEIGH, N.C., April 12, 2019 (GLOBE 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-K with the U.S. Securities and Exchange Commission (the “SEC”) to disclose its financial results for the fourth quarter and fiscal year ended December 31, 2018.

Key Takeaways:

  • Company emerges with Data Privacy & Cloud software focused product line
  • Key major customer wins and awards continue to roll in
  • Accretive acquisitions delivering value
  • SaaS offering ready for CCPA, GDPR and Social Privacy revolution
  • Strong product and acquisition pipeline growing

Management Commentary:
Jason Remillard, Founder of Data443 and CEO of LandStar, commented, “2018 was much more than a transitional year for LandStar; it was a major foundational year in which we established the platform that the Company is being built upon. I’m excited to say that we are now at the point where we can accelerate the pace of our planned corporate actions, as well as continue on our product development and acquisition roadmap.”

“These results only validate what has been our growth strategy all along; to acquire highly successful companies with complementary technologies and skill-sets that can easily fit and rapidly enhance our market positioning, provide a healthy customer base, and that are accretive to our bottom-line. I’m happy to report our initial revenues, and look forward to subsequent quarterly reports, when the full-quarter’s contribution of revenues from our acquired businesses will be reflected in our financial statements.” 

“Being a cyber security software vendor with hundreds of customers, a growing product and SaaS offerings catalogue with significant market leading capabilities – we are very well positioned to take advantage of coming market and acquisition opportunities.”

“With the building blocks we’ve put in place in 2018, we are highly confident that 2019 is shaping up to be another significant year for the Company, with meaningful improvements to revenue and EBIT. I’d like to thank our amazing (and rapidly growing) team for their continued efforts in growing the business, along with our loyal shareholders. I remain fully committed towards growing our business prudently, and delivering value to our shareholders and stakeholders,” concluded Mr. Remillard.

Corporate and Financial Highlights for Fiscal Year 2018 and Year to Date:

  • Acquired data classification, governance and GDPR compliance product – ClassiDocs
  • Acquired the leading GDPR Framework for WordPress, doubling the active website base to over 20,000 active sites
  • Acquired enterprise cloud-based Digital Rights Management, distribution, data storage, protection, and workflow automation platform - ARALOC™, which continues to have 100% expected renewal rates with leading global brand names
  • Signed exclusive global agreement with ArcMail, a leading provider of enterprise information and email archiving solutions, with a purchase option after two years
  • Signed letter of intent to acquire N8 Identity, a leader in agile, cloud-based identity governance solutions
  • Completed shareholder-favorable renegotiation of major debt components, achieving more favorable terms for the company
  • Terminated existing equity purchase agreement, resulting in the cancellation of $100,000 of common shares which were to be issued, and reduced derivative liabilities by over $1,500,000 due to the related termination of the embedded beneficial conversion feature
  • Completed 2016, 2017, 2018 audits and filings
  • Opened new headquarters office in Research Triangle Park, North Carolina
  • OTC Markets - “Shell” status removed - became a fully reporting company, subject to the reporting requirements of the Securities and Exchange Commission
  • Generated and reported initial revenues in the fourth quarter of 2018

Operational Highlights for Fiscal Year 2018 and Year to Date:

  • Secured ARALOC contract renewals:
    -- A large customer based in the education sector
    -- A global private investment management firm that manages billions of dollars in assets
    -- WellStar Health System
    -- FleetPride, Inc.
    -- Southern States Cooperative
    -- Boston University
    -- The Miami Dolphins of the National Football League
  • Secured ArcMail contract renewals, including one with a major hospital and operator of family medical clinics
  • Secured new ArcMail appliance and Cloud-based Archiving & eDiscovery product sales, including a mid-west municipality and an east-coast major k-12 educational institution
  • Established strategic services partnerships with leading organizations such as: TEKSystems, Online Business Systems, Head Technology, Halodata, Caretower and others.  This capability affords us over 40 countries of direct sales and delivery support options.
  • Established sales partnerships with 15+ firms, covering nearly every continent
  • Launched and supported the Ripple XRP framework – later named to the highly coveted Unique Node List
  • Rolled out the industry’s first Blockchain Data Classification & Sensitivity Monitoring platform
  • Introduced the industry’s first online purchasing platform for Data Governance and Classification product capabilities
  • Introduced the industry’s first SaaS-based delivery of Data Governance and Classification capabilities – enabling a new implementation to be completed in minutes – instead of months.
  • Released 5 new versions of ClassiDocs™, 6 releases of the WP GDPR Framework with updates and enhancements slated this quarter for ARALOC™ and ArcMail.
  • Established strategic platform partnerships including co-development and marketing activities with global name brands such as: CyberArk, Citrix Systems, Ripple.
  • Successfully completed significant Third-Party Cyber Risk assessment on behalf of a major global ARALOC client.  Assessment will be leveraged for other client organizations as a net benefit to facilitate their risk requirements, accelerating product acquisition and deployment. 
  • Advanced the development of our social media privacy services capabilities and expansion of our beta program, with a planned complete launch in 2019 – Facebook being the first network.
  • Launched Data443™ Privacy Manager, a CCPA compliance management solution that integrates a growing library of privacy laws expected to be enacted throughout California and the United States

Industry Recognition for Fiscal Year 2018 and Year to Date:

  • Won four awards at the 2019 Cybersecurity Excellence Awards, including two gold awards in the categories of Fastest Growing Cybersecurity Company (Between 10 to 49 Employees) and Mobile Device Management (MDM)
  • Recognized again by The Cybersecurity Excellence Awards for best GDPR WordPress Plugin, best DLP, EndPoint Security, Data Governance and CCPA products.  ARALOC™ Corporate Solutions was recognized as the best Board Management SaaS offering.
  • Invited to participate in the leading Security Technology Conference RSA Conference as part of the RSA Early Stage Expo
  • Data443 itself was featured in numerous media pieces, including BankInfo Security, Medium.com and MightyGuides
  • Invited to present at numerous financial and industry conferences including: Microcap and Ascent Conferences in NYC, Gartner IAM conference, Cyber Expo Ireland, Romsym Day Romania, Cyber Security Summit in NYC, Headlight International Partner Conference
  • Mr. Remillard was invited to participate and lead a working group for a major financial services non-profit organization in Washington, DC whose members serve approximately 85 million 401(k) plan participants.

Full Year 2018 Financial Results:
Total revenues in 2018 were $28,772, as compared to $0 in 2017. Revenues consisted of ARALOC contract renewals that closed in the last few weeks of 2018 after the close of the ARALOC acquisition on October 25, 2018.

General and administrative expenses for the year ended December 31, 2018 were $1,067,901, compared to $24,284 for the year ended December 31, 2017, an increase of $1,043,617. The expenses for the years ended December 31, 2018 and 2017 primarily consisted of management costs, audit and review fees, filing fees, legal & professional fees, and sales expenses in connection with the projected growth of the Company’s business.

The Company incurred an operating and net loss of $15,091,333, or $0.00 per share in 2018, compared to an operating or net loss of $328,462, or $0.00 per share in 2017. The net loss for 2018 was mainly derived from the fair value of derivative liability of $13,271,308 associated with convertible notes payable.

The Company had $324,935 in cash and cash equivalents as of December 31, 2018, compared to $4,478 in cash and cash equivalents as of December 31, 2017.

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.

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