Data Deposit Box Reports Loss of $3,3 Million

Data Deposit Box Inc. reports 2Q15 financial results.

The company reported a loss of $3,325,927 for the 6 months ended June 30, 2015.

The majority of this loss is attributable to the costs associated with the going public transaction earlier in the year which involved listing costs of $1,827,348 and higher professional fees (legal and audit increased by $316,351 from the previous year).

In addition, the company incurred shareholder information charges of $112,067 which were new this year as a result of being a public company.

The company has made significant steps as it transitions its business from direct sales to OEM and MSP sales channels. These efforts are reflected in the increase in sales and marketing costs from $69,167 in 2014 to $233,721 in 2015. The results of these efforts are expected to show beginning in late 2015 and in 2016.

In addition, the company has been directing its efforts towards R&D, and new products/services which it anticipates to be a significant source of its sales growth and revenue in the near future.

The financial results show a slight decline in sales of $294,000 which had been expected given the shift in focus to MSP enabler strategy from direct business and the lag that is anticipated until the revenue from these new efforts is realized.

Data Deposit Box technologies and solutions are currently used daily by over 200,000 customers, 1,000 resellers, 25 MSPs and private label partners for online backup and recovery, archiving, disaster readiness, secure file sharing and remote access.