数海美股招股说明书(2023-09-13版)

424B51ea185067-424b5_dataseainc.htmPROSPECTUSSUPPLEMENT FiledPursuanttoRule424(b)(5)RegistrationNo.333-272889 PROSPECTUSSUPPLEMENT (TotheProspectusDatedJuly21,2023) DataseaInc. 5,000,000SHARESOFCOMMONSTOCK Pursuanttothisprospectussupplementandtheaccompanyingprospectus,weareoffering5,000,000sharesofourcommonstock,parvalue$0.001pershare.Eachshareofcommonstockisbeingsoldatapriceof$0.40. Unlessthecontextrequiresotherwise,referencestothe“Company,”“we,”“our,”and“us,”refertoDataseaInc.anditssubsidiaries,andreferencesto“Datasea”referstoDataseaInc.,ourNevadaholdingcompany. Datasea’scommonstockislistedontheNasdaqCapitalMarketandtradedunderthesymbol“DTSS.”OnSeptember11,2023,theclosingpriceofDatasea’scommonstockwas$0.6426pershare.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.Asofthedateofthisprospectussupplement,ourCompany,ourVIEanditssubsidiarieshavenotbeeninvolvedinanyinvestigationsoncybersecurityreviewinitiatedbyanyPRCregulatoryauthority,norhasanyofthemreceivedanyinquiry,noticeorsanction.Wedonotbelievethatwearesubjectto:(a)thecybersecurityreviewwiththeCAC,aswedonotpossessalargeamountofpersonalinformationinourbusinessoperations,andourbusinessdoesnotinvolvethecollectionofdatathataffectsormayaffectnationalsecurity,implicatescybersecurity,orinvolvesanytypeofrestrictedindustry;or(b)mergercontrolreviewbyChina’santi-monopolyenforcementagencyduetothefactthatwedonotengageinmonopolisticbehaviorsthataresubjecttothesestatementsorregulatoryactions.OnFebruary17,2023,theChinaSecuritiesRegulatoryCommission(“CSRC”),issuedtheTrialAdministrativeMeasuresofOverseasSecuritiesOfferingandListingbyDomesticCompanies,ortheTrialMeasures,whichbecameeffectiveonMarch31,2023.PursuanttotheTrialMeasures,domesticcompaniesthatseektoofferorlistsecuritiesoverseas,bothdirectlyandindirectly,shouldfulfillthefilingprocedureandreportrelevantinformationtotheCSRC.WearerequiredbytheTrialMeasurestosubmitafilingtotheCSRCandcompletethefilingproceduresofanyoverseaspublicoffering,butthereisnocertaintythatwewillbeabletocompletesuchfilingsinatimelymanner.Anyfailureorperceivedfailurebyu