数海美股招股说明书(2023-09-12版)

424B51ea183967-424b5_dataseainc.htmPROSPECTUSSUPPLEMENT FiledPursuanttoRule424(b)(5)RegistrationNo.333-272889 Theinformationinthispreliminaryprospectussupplementisnotcompleteandmaybechanged.ThispreliminaryprospectussupplementandtheaccompanyingprospectusarepartofaneffectiveregistrationstatementfiledwiththeSecuritiesandExchangeCommissionundertheSecuritiesActof1933.Thispreliminaryprospectussupplementandtheaccompanyingprospectusarenotanoffertosellthesesecuritiesandarenotsolicitinganoffertobuythesesecuritiesinanystateorotherjurisdictionwheretheofferorsaleisnotpermitted. SUBJECTTOCOMPLETION PRELIMINARYPROSPECTUSSUPPLEMENTDATEDSEPTEMBER11,2023 PRELIMINARYPROSPECTUSSUPPLEMENT (TotheProspectusDatedJuly21,2023) DataseaInc. SHARESOFCOMMONSTOCKANDPRE-FUNDEDWARRANTS Pursuanttothisprospectussupplementandtheaccompanyingprospectus,weareofferingsharesofourcommonstock,parvalue$0.001pershare.Eachshareofcommonstockisbeingsoldatapriceof$.Wearealsoofferingpre-fundedwarrants(eacha“Pre-fundedWarrant”)topurchaseuptosharesofcommonstock,exercisableatanexercisepriceof$0.001pershare,tothosepurchaserswhosepurchaseofsharesinthisofferingwouldotherwiseresultinthepurchaser,togetherwithitsaffiliatesandcertainrelatedparties,beneficiallyowningmorethan4.99%or9.99%ofoursharesimmediatelyfollowingtheconsummationofthisoffering.ThepurchasepriceofeachPre-fundedWarrantis$,whichequalsthepricepersharebeingsoldtothepublicinthisoffering,minus$0.001.ThePre-fundedWarrantswillbeimmediatelyexercisableuponissuanceuntilexercisedinfull. Unlessthecontextrequiresotherwise,referencestothe“Company,”“we,”“our,”and“us,”refertoDataseaInc.anditssubsidiaries,andreferencesto“Datasea”referstoDataseaInc.,ourNevadaholdingcompany. Datasea’scommonstockislistedontheNasdaqCapitalMarketandtradedunderthesymbol“DTSS.”ThereisnoestablishedtradingmarketforthePre-fundedWarrantsandwedonotintendtoapplyforlistingofthepre-fundedwarrantsonanynationalsecuritiesexchange.OnSeptember8,2023,theclosingpriceofDatasea’scommonstockwas$0.5101pershare.ThetotalaggregatemarketvalueofallofDatasea’soutstandingcommonstockisapproximately$31,673,912,andtheaggregatemarketvalueofDatasea’soutstandingcommonstockheldbynon-affiliatesisapproximately$12,838,701,basedon27,784,133totalsharesofoutstandingcommonstockasofSeptember11,2023,ofwhich11,262,018sharesareheldbynon-affiliates,16,522,115sharesareheldbyaffiliates,andapersharepriceof$1.14whichistheclosingpriceonAugust7,2023.PursuanttoGeneralInstructionI.B.6ofFormS-3,innoeventwillDataseasellsecuritiesregisteredontheregistrationstatementofwhichthisprospectusisapartwithavalueofmorethanone-thirdoftheaggregatemarketvalueofDatasea’scommonstockheldbynon-affiliatesinany12-monthperiod,solongastheaggregatemarketvalueofDatasea’scommonstockheldbynon-affiliatesislessthan$75,000,000.DataseahasnotofferedanysecuritiespursuanttoGeneralInstructionI.B.6.ofFormS-3duringtheprior12calendarmonthperiodthatendsonandincludesthedateofthisprospectussupplement. DataseaisnotaChineseoperatingcompanybutaNevadaholdingcompanywithoperationsconductedbyoursubsidiariesbasedinChina.Wecurrentlyconductourbusinesssubstantiallythroughourvariableinterestentity,orVIE,ShuhaiInformationTechnologyCo.,Ltd.(“ShuhaiBeijing”),andtheVIE’ssubsidiariesincorporatedinChina.Thisstructureinvolvesuniqueriskstoinvestors.ThecontractualarrangementsthroughwhichwecontrolourVIEhavealsonotbeentestedinthecourtsofthePeople’sRepublicofChina(“PRC”orChina)andthereissubstantialuncertaintyastowhethertheyarelegallyenforceableinthePRC.SuchVIEstructureisusedtoprovideinvestorswithexposuretoforeigninvestmentinChina-basedcompanieswhereChineselawprohibitsdirectforeigninvestmentintheoperatingcompanies,andinvestorsmayneverholddirectequityinterestsinourChineseoperatingsubsidiaries.ThereisapossibilitythatChineseregulatoryauthoritiescoulddisallowthisstructure,whichwouldlikelyresultinamaterialchangeinouroperationsand/oramaterialchangeinthevalueofthesecuritiesweareregisteringforsale,andthiscouldcausethevalueofsuchsecuritiestosignificantlydeclineorbecomeworthless.See“ProspectusSupplementSummary—CautionaryStatementRegardingourVariableInterestEntityStructure”inthisprospectussupplementand“RiskFactors—RisksRelatingtoOurCorporateStructure”inItem1A.ofourAnnualReportonForm10-KforthefiscalyearendedJune30,2022. OurbusinessoperationsareprimarilybasedinChina,andourVIEanditssubsidiariesaresubjecttocertainlegalandoperationalrisksassociatedwithbeingbasedinChina.OnDecember28,2021,theCyberspaceAdministrationofChina(“CAC”),and12otherrelevantPRCgovernmentauthoritiespublishedtheamendedCybersecurityReviewMeasures,whichcameintoeffectonFebruary15,2022.ThefinalCybersecurityReviewMeasuresprovidethata“networkplatformoperator”thatpossessespersonalinformationofmorethanonemillionusersandseeksalistinginaforeigncountrymustapplyforacybersecurityreview.Further,therelevantPRCgovernmentalauthoritiesmayinitiateacybersecurityreviewagainstanycompanyiftheydeterminecertainnetworkproducts,services,ordataprocessingactivitiesofsuchcompanyaffectormayaffectnationalsecurity.Asofthedateofthisprosp