FalconStor is a data management software company based in Austin, Texas. FalconStor was co-founded in 2000 in New York by Computer Associates veterans ReiJane Huai and Wayne Lam. In 2007 the company started a joint-venture with the Chinese Academy of Sciences for the Blue Whale file system. The joint venture was named Tianjin Zhongke Blue Whale Information Technologies Company, located in Tianjin, China.[citation needed] FalconStor was listed at #5 in the Forbes 2008 list of 25 fastest growing technology companies. In August 2009, FalconStor, in a joint-venture with Nexsan to create the co-branded DeDupe SG. In 2011 CRN added FalconStor to their List of 25 “Need to Know: Storage Vendors”.

Company profile
Ticker
FALC
Exchange
Website
CEO
Todd Brooks
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Microsoft • Oracle • BlackBerry • NortonLifeLock • Activision Blizzard • Vmware • Adobe • Ceridian HCM Holding • McAfee • Electronic Arts ...
Former names
NETWORK PERIPHERALS INC
SEC CIK
Corporate docs
IRS number
770216135
FALC stock data
Calendar
11 May 22
26 Jun 22
31 Dec 22
Financial summary
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Annual (USD) | Dec 21 | Dec 20 | Dec 19 | Dec 18 | |
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Cash burn rate (est.) | Burn method: Change in cash | Burn method: Operating income | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 3.38M | 3.38M | 3.38M | 3.38M | 3.38M | 3.38M |
Cash burn (monthly) | (no burn) | (no burn) | 410.22K | 61.97K | (no burn) | 67.23K |
Cash used (since last report) | n/a | n/a | 1.18M | 178.13K | n/a | 193.25K |
Cash remaining | n/a | n/a | 2.2M | 3.2M | n/a | 3.19M |
Runway (months of cash) | n/a | n/a | 5.4 | 51.7 | n/a | 47.4 |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
17 May 22 | Robert Todd Brooks | Common Stock | Buy | Acquire P | No | No | 1.31 | 3,500 | 4.59K | 78,946 |
17 May 22 | Barry Rudolph | Common Stock | Grant | Acquire A | No | No | 1.39 | 8,500 | 11.82K | 15,116 |
11 Feb 22 | Vincent Sita | Common Stock | Grant | Acquire A | No | No | 0 | 56,615 | 0 | 56,615 |
16 Nov 21 | Robert Todd Brooks | Common Stock | Buy | Acquire P | No | No | 2.92 | 350 | 1.02K | 57,047 |
Institutional ownership, Q4 2021
19.0% owned by funds/institutions
13F holders | Current |
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Total holders | 3 |
Opened positions | 2 |
Closed positions | 0 |
Increased positions | 0 |
Reduced positions | 0 |
13F shares | Current |
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Total value | 1.51M |
Total shares | 1.34M |
Total puts | 0 |
Total calls | 0 |
Total put/call ratio | – |
Largest owners | Shares | Value |
---|---|---|
Nantahala Capital Management | 651.55K | $1.19M |
Bard Associates | 517.95K | $0 |
Herald Investment Management | 175K | $320K |
Financial report summary
?Risks
- Our revenues decreased in 2021 compared to 2020. There is no guarantee that we will be able or to maintain, profitability.
- We have undertaken a restructuring and other cost reduction initiatives to reduce our expenses and to better align our expenses with our business. There can be no assurance that we have made enough reductions or the right reductions.
- The loss of any of our key personnel could harm our business.
- Due to the uncertain and shifting development of the data protection and network storage software markets and our reliance on our partners, we may have difficulty accurately predicting revenue for future periods and appropriately budgeting for expenses.
- Our products must conform to industry standards in order to be accepted by customers in our markets.
- Our products handle mission-critical data for our end-customers and are highly technical in nature. If our products have defects, failures occur or end-customer data is lost or corrupted, our reputation and business could be harmed.
- The failure of our resellers to sell our products effectively could have a material adverse effect on our revenue and results of operations.
- Our growth depends in part on the success of our strategic relationships with third parties.
- We rely on channel partners to sell our solutions, and disruptions to, or our failure to develop and manage our channel partners would harm our business.
- We face intense competition in our market, especially from larger, well-established companies, and we may lack sufficient financial or other resources to maintain or improve our competitive position.
- Adverse economic conditions or reduced IT spending may adversely impact our business.
- Our future quarterly results may fluctuate significantly, which could cause our stock price to decline.
- The ability to predict our future effective tax rates could impact our ability to accurately forecast future earnings.
- Our business could be materially affected as a result of a natural disaster, terrorist acts, or other catastrophic events.
- We are dependent on a variety of IT and telecommunications systems, and any failure of these systems could adversely impact our business and operating results.
- United States government export restrictions could impede our ability to sell our software to certain end users.
- The international nature of our business could have an adverse effect on our operating results.
- Foreign currency fluctuations may impact our revenue.
- If we are unable to protect our intellectual property, our business will suffer.
- Our efforts to protect our intellectual property may cause us to become involved in costly and lengthy litigation, which could seriously harm our business.
- Our redemption obligation under the Series A Preferred Stock and indebtedness could adversely affect our financial health.
- To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. As such, we may not be able to generate sufficient cash to service the Term Notes or our other indebtedness, and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
- We are subject to a number of covenants and other conditions, which may restrict our business and financing activities.
- The likelihood of a change of control in our company could be impacted by the fact that we have a significant amount of authorized but unissued preferred stock, protective provisions in our charter, outstanding Series A Preferred Stock, a staggered board of directors and change of control agreements as well as certain provisions under Delaware law.
- The conversion and exercise of our outstanding securities and the anticipated grant of restricted stock to our employees will dilute the then-existing stockholders’ percentage ownership of our common stock.
- There may be a limited public market for our securities; we presently fail to qualify for listing on any national securities exchanges.
- Our stock price may be volatile.
- The holders of the Series A Preferred Stock are entitled to dividends on the Series A Preferred Stock they hold. Depending on whether these dividends are paid in cash or stock, the payment of these dividends will either decrease cash that is available to us to invest in our business or dilute the holdings of all other stockholders.
- The potential concentration of equity ownership by Hale Capital and ESW Capital LLC may limit your ability to influence corporate matters.
Content analysis
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H.S. junior Avg
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New words:
Alucria, Bulletin, consideration, consulting, correct, correction, earlier, entity, error, face, fact, Gladstone, healthy, incidental, joint, month, MRR, par, Peapack, previously, Regulation, reseller, revised, routine, Sita, step, strategic, understatement
Removed:
Administration, aggressive, Aid, Amazon, annum, area, attrition, Austin, Brad, British, Canadian, ceased, collectively, covering, developed, disbursement, disposal, downsized, drew, Euro, evidenced, exist, expiration, functional, furloughed, geographic, governing, group, implemented, inventory, Japanese, Korean, leased, lesser, light, located, meant, mortgage, North, objective, opposite, pension, posed, postretirement, Pound, prepaid, production, promissory, Qualifying, reinstated, Relief, rent, resulting, Risk, run, satisfy, september, simplify, Small, structure, substantial, test, tighter, Update, utility, Web, Wolfe, Won, Yen, York
Financial reports
Current reports
8-K
FalconStor Software Announces First Quarter of 2022 Results
11 May 22
8-K
FalconStor Software Announces Fourth Quarter and Full Year 2021 Results
9 Mar 22
8-K
Departure of Directors or Certain Officers
17 Feb 22
8-K
Regulation FD Disclosure
10 Nov 21
8-K
FalconStor Software Announces Third Quarter of 2021 Results
10 Nov 21
8-K
FalconStor Software Announces Second Quarter and First Half 2021 Results
4 Aug 21
8-K
FalconStor Software Announces Pricing of Its Public Offering of Common Stock
27 Jul 21
8-K
Results of Operations and Financial Condition
20 Jul 21
8-K
Amendments to Articles of Incorporation or Bylaws
28 Jun 21
8-K
FalconStor Software Announces Pricing of its Public Offering of Common Stock
23 Jun 21
Registration and prospectus
Other
EFFECT
Notice of effectiveness
23 Jul 21
CORRESP
Correspondence with SEC
20 Jul 21
CORRESP
Correspondence with SEC
20 Jul 21
CORRESP
Correspondence with SEC
19 Jul 21
UPLOAD
Letter from SEC
19 Jul 21
EFFECT
Notice of effectiveness
22 Jun 21
CORRESP
Correspondence with SEC
16 Jun 21
CORRESP
Correspondence with SEC
16 Jun 21
CORRESP
Correspondence with SEC
14 Jun 21
CORRESP
Correspondence with SEC
14 Jun 21
Ownership
4
FALCONSTOR SOFTWARE / Barry Rudolph ownership change
17 May 22
4
FALCONSTOR SOFTWARE / Robert Todd Brooks ownership change
17 May 22
4
FALCONSTOR SOFTWARE / Vincent Sita ownership change
2 Mar 22
3
FALCONSTOR SOFTWARE / Vincent Sita ownership change
2 Mar 22
SC 13G
FALCONSTOR SOFTWARE / BARD ASSOCIATES ownership change
14 Feb 22
SC 13G/A
FALCONSTOR SOFTWARE / Nantahala Capital Management ownership change
14 Feb 22
4
FALCONSTOR SOFTWARE / Robert Todd Brooks ownership change
18 Nov 21
SC 13G/A
FALCONSTOR SOFTWARE / Nantahala Capital Management ownership change
16 Feb 21
4
FALCONSTOR SOFTWARE / Brad Wolfe ownership change
13 Oct 20
4
FALCONSTOR SOFTWARE / Barry Rudolph ownership change
13 Oct 20
Patents
Utility
Data Deduplication Cache Comprising Solid State Drive Storage and the Like
2 Dec 21
Methods and systems for retrieving deduplicated data by a system having a first storage device and a second storage device to store deduplicated data are described, wherein data is retrievable from the first storage faster than data is retrievable from the second storage, in including receiving a request from a client machine for deduplicated data and determining a location the requested deduplicated data.
Utility
Virtual Storage Container for Data Storage and Archiving
2 Sep 21
A method of storing data, comprises extracting data from a first storage of a storage system; containerizing the data to form a container image, the container image being self-contained and configured to be moved and stored as a unit; and storing the container image in at least one second storage different from the first storage.
Utility
Automated Disaster Recovery System and Method
19 Aug 21
Methods and systems for recovering a host image of a client machine to a recovery machine comprise comparing a profile of a client machine of a first type to be recovered to a profile of a recovery machine of a second type different from the first type, to which the client machine is to be recovered, by a first processing device.
Utility
Systems and Methods for Host Image Transfer
5 Aug 21
Methods and systems for transferring a host image of a first machine to a second machine, such as during disaster recovery or migration, are disclosed.
Utility
Data deduplication cache comprising solid state drive storage and the like
15 Jun 21
Methods and systems for deduplicating data by a system having a first storage device and a second storage device to store deduplicated data are described, wherein data is retrievable from the first storage faster than data is retrievable from the second storage.
Transcripts
2022 Q1
Earnings call transcript
11 May 22
2021 Q4
Earnings call transcript
10 Mar 22
2021 Q3
Earnings call transcript
13 Nov 21
2020 Q4
Earnings call transcript
11 Mar 21
2020 Q2
Earnings call transcript
7 Aug 20
2020 Q1
Earnings call transcript
12 May 20
2019 Q4
Earnings call transcript
12 Mar 20
2019 Q3
Earnings call transcript
19 Nov 19
2019 Q2
Earnings call transcript
14 Aug 19
2019 Q1
Earnings call transcript
15 May 19