$ATDS

Data443 Risk Mitigation, Inc.

CIK:0001068689|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 829,695	$ 1,432,027	$ 1,847,075	$ 2,598,616
Cost of revenue	828,551	229,330	1,679,402	602,480
Gross profit	1,144	1,202,697	167,673	1,996,136
Operating expenses
General and administrative	532,017	1,177,987	1,394,855	2,294,780
Sales and marketing	28,760	53,314	47,433	72,238
Total operating expenses	560,777	1,231,301	1,442,288	2,367,018
Loss from operations	(559,633)	(28,604)	(1,274,615)	(370,882)
Other income (expense)
Interest expense	(385,064)	(291,121)	(854,398)	(622,414)
Gain (loss) on settlement of debt			171,490
Gain (loss) on foreign currency exchange	216	1,754	(464)	(1,339)
Total other expense	(384,848)	(289,367)	(683,372)	(623,753)
Income/(loss) before income taxes	(944,481)	(317,971)	(1,957,987)	(994,635)
Provision for income taxes
Net income/(loss)	(944,481)	(317,971)	(1,957,987)	(994,635)
Dividend on Series B Preferred Stock
Net income/(loss) attributable to common stockholders	$ (944,481)	$ (317,971)	$ (1,957,987)	$ (994,635)
Basic income/(loss) per Common Share	$ (0.0007)	$ (0.99)	$ (0.001)	$ (0.00)
Diluted income/(loss) per Common Share	$ (0.0007)	$ (0.99)	$ (0.001)	$ (0.00)
Basic weighted average number of common shares outstanding	1,313,420,344	322,500	1,178,415,166	227,757,139
Diluted weighted average number of common shares outstanding	1,313,420,344	322,500	1,178,415,166	227,757,139

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,957,987)	$ (994,635)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	37,377	641,441
Depreciation and amortization	401,921	417,389
Amortization of debt discount	260,816	95,130
Changes in operating assets and liabilities:
Accounts receivable	49,942	(70,564)
Prepaid expenses and other assets	1,150,000
Accounts payable and accrued liabilities	345,467	364,539
Deferred revenue	(538,657)	(700,189)
Deposits		31,200
Interest payable	460,142	183,642
Net Cash used in by Operating Activities	209,021	(32,047)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets	(13,500)
Net Cash used in Investing Activities	(13,500)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes payable	98,400	132,500
Repayment of convertible notes payable	(131,522)	(50,000)
Proceeds from issuance of notes payable	527,251
Repayment of notes payable	(897,403)	(164,987)
Proceeds from related parties	147,181	25,583
Repayment to related parties	(136,792)	(19,583)
Net Cash used in Financing Activities	(392,885)	(76,487)
Net change in cash	(197,364)	(108,534)
Cash, beginning of period	197,364	168,208
Cash, end of period	0	59,674
Supplemental cash flow information
Cash paid for interest	56,549	126,414
Non-cash Investing and Financing transactions:
Settlement of convertible notes payable through issuance of common stock	2,911	273,175
Common stock issued for exercised cashless warrants	76,000
Conversion of Series A Preferred stock		$ 13,000

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash		$ 197,364
Accounts receivable, net	41,744	91,686
Prepaid expense and other current assets		1,150,000
Total current assets	41,744	1,439,050
Property and equipment, net	85,259	135,954
Advance payment for acquisition	2,726,188	2,726,188
Intellectual property, net of accumulated amortization	1,751,757	2,089,483
Deposits	1,792	1,792
Total Assets	4,606,740	6,392,467
Current Liabilities
Bank overdraft	420
Accounts payable and accrued liabilities	5,858,053	5,504,072
Deferred revenue	1,266,793	1,362,867
Interest payable	2,950,985	2,592,472
Notes payable, net of unamortized discount	3,451,978	2,566,177
Convertible notes payable, net of unamortized discount	6,008,678	6,027,102
Finance lease liability	10,341	10,341
Total Current Liabilities	19,699,594	18,204,989
Notes payable, net of unamortized discount - non-current	531,773	1,553,452
Deferred revenues - non-current	506,279	948,862
Total Liabilities	20,737,646	20,707,303
Commitments and Contingencies
Stockholders’ Deficit
Preferred stock: 443,443,443 authorized; $0.001 par value Series A Preferred Stock, 443,443,443 shares designated; $0.001 par value; 443,429,935 and 443,429,935 shares issued and outstanding, respectively	149	149
Series B Preferred Stock, 80,000 shares designated; $0.001 par value; Stated value $10.00, 0 and 0 shares issued and outstanding, net of discount, respectively
Common stock: 4,443,443,443 authorized; $0.001 par value; 1,313,420,344 and 729,044,931 shares issued and outstanding, respectively	1,374,741	790,366
Additional paid in capital	48,763,952	49,206,410
Accumulated deficit	(66,269,748)	(64,311,761)
Total Stockholders’ Deficit	(16,130,906)	(14,314,836)
Total Liabilities and Stockholders’ Deficit	4,606,740	6,392,467
Related Party [Member]
Current Liabilities
Due to a related party	$ 152,346	$ 141,958