DatChat, Inc. (NASDAQ:DATS), a micro-cap secure messaging company with a market capitalization of $5.36 million, announced the results of its annual shareholder meeting held on Thursday. According to InvestingPro analysis, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though it faces challenges with cash burn. The meeting concluded with the re-election of the company's board of directors and the approval of an amendment to increase the number of shares reserved for its equity incentive plan.
Shareholders re-elected Darin Myman, Peter Shelus, Carly Luogameno, Joseph Nelson, and Wayne Linsley as board members. Each director will serve until the next annual meeting or until their successor is elected. The re-election saw a majority of votes cast in favor, with the remainder withheld and a significant number of broker non-votes.
In addition to the board re-election, shareholders ratified the appointment of Salberg & Company, P.A. as DatChat's independent registered public accounting firm for the fiscal year ending December 31, 2024. The decision was nearly unanimous, with a vast majority voting in favor.
The third proposal, which involved an amendment to the DatChat, Inc. Amended and Restated 2021 Omnibus Equity Incentive Plan, was also passed. This amendment increases the number of shares available for issuance under the plan to 600,000 from the previous 300,000. The approval of this proposal indicates shareholder support for the company's plans to incentivize employees through stock-based compensation.
The meeting's outcomes reflect shareholder confidence in the current management and the strategic direction of the company. DatChat's focus remains on enhancing its secure communication technology in a market that increasingly values privacy and data security. While the stock has shown significant volatility, posting a 40% gain over the past six months, InvestingPro data reveals the company maintains a healthy current ratio of 8.96, indicating strong short-term financial stability.
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In other recent news, DatChat, Inc. has been making significant strides in its business operations. The company has secured a new US Patent for its upcoming Myseum platform, a secure method for users to store and share digital media content. This addition brings DatChat's intellectual property portfolio to a total of 14 patents.
DatChat's subsidiary, Dragon Interact, has also recently completed the acquisition of RPM Interactive, Inc., a publisher of AI-driven gaming and podcasting applications. As part of this acquisition, Dragon Interact is rebranding to RPM Interactive, signaling a strategic shift towards AI-powered technologies. Michael Mathews, a veteran in the technology and marketing sectors, has been appointed as the Chairman of the newly named RPM Interactive Inc.
Moreover, DatChat has secured a Notice of Allowance for a U.S. patent related to blockchain-based communication systems, a significant step for the development of its Myseum platform. The company also acquired an AI-driven tool to enhance the media library organization capabilities of this platform.
Furthermore, DatChat's board of directors has approved an amendment to its bylaws, revising the voting rights of shareholders for company proposals. This is part of the company's commitment to transparency and fairness in its corporate governance.
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