FALC Falconstor Software

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

Todd Brooks
Fiscal year end
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IRS number

FALC stock data



5 May 21
13 Jun 21
31 Dec 21
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Mar 21 Dec 20 Sep 20 Jun 20
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Dec 20 Dec 19 Dec 18 Dec 17
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Financial data from company earnings reports.

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
30 Sep 20 Michael P Kelly Common Stock Grant Aquire A No No 0 73,600 0 125,450
30 Sep 20 William D Miller Common Stock Grant Aquire A No No 0 73,600 0 117,758
30 Sep 20 Barry Rudolph Common Stock Grant Aquire A No No 0 73,600 0 117,758
30 Sep 20 Brad Wolfe Common Stock Grant Aquire A No No 0 14,720 0 88,317
16 Jan 20 Michael P Kelly Common Stock Grant Aquire A No No 0 44,158 0 51,797

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

9.7% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 1 1
Opened positions 0 1 EXIT
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares
Current Prev Q Change
Total value 3.91M 3.91M
Total shares 579.05K 579.05K
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
Nantahala Capital Management 579.05K $3.91M 0.0%
Largest transactions
Shares Bought/sold Change
Nantahala Capital Management 579.05K 0 0.0%

Financial report summary

  • Our revenues decreased in 2020 compared to 2019. 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.
  • If actual results or events differ materially from our estimates and assumptions, our reported financial condition and results of operations for future periods could be materially affected.
  • 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.
  • We rely on our resellers and our OEM partners for most of our sales.
  • 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.
  • Our agreements with the holders of the Series A Preferred Stock and/or the Term Loans contain covenants that could limit our ability to obtain financing using our equity. In addition, if we engage in future financings, we may have to use the proceeds to redeem the preferred stock held by such holders. This could cause us to have difficulty in obtaining capital necessary to run our business.
  • Our agreements with the holders of the Series A Preferred Stock and/or the Term Loans prevent us from undertaking certain transactions or incurring certain indebtedness without such holders’ consent or unless the Series A Preferred Stock held by such holders is repurchased and or the Term Loans are repaid. This could hurt our ability to sell underperforming assets or lines of business or to obtain financing.
  • 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.
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