Mon, Jun 16, 9:21 PM (33 days ago)
### Summary **Company Overview:** - **Ticker:** ATDS - **Name:** DATA443 RISK MITIGATION, INC. - **Industry:** Data security and privacy management solutions. - **Products:** Includes Cyren® Threat Intelligence Service, Data443® Ransomware Recovery Manager, Data443® Data Identification Manager, Data443® Data Archive Manager, Data443® Sensitive Content Manager, Data443® Data Placement Manager, Data443® Access Control Manager, Data443® Blockchain Protection Manager, Data443® Global Privacy Manager, Data443® IntellyWP, Data443® Chat History Scanner, and various GDPR, CCPA, and LGPD Framework WordPress® Plugins. **Financial Performance (2024 vs. 2023):** - **Revenue:** $4,872,422 (2024) vs. $5,578,942 (2023) - **Net Income:** -$6,087,182 (2024) vs. -$4,244,708 (2023) - **Operating Expenses:** $5,913,323 (2024) vs. $6,637,214 (2023) - **Earnings per Share:** -$5.29 (2024) vs. -$15.56 (2023) **Market Position:** - **Customers:** Over 10,000 customers, including established leaders and up-and-coming businesses across various industries. - **Market Strategy:** Focus on strategic acquisitions, research and development, and expanding the sales capacity. **Risk Factors:** - **Financial Risks:** Significant doubt about the ability to continue as a going concern, reliance on additional capital, and intense competition. - **Operational Risks:** Dependence on the founder and CEO, potential breaches in security, and the need to protect proprietary technology. - **Regulatory Risks:** Compliance with federal, state, and industry privacy and data security regulations. **Future Outlook:** - **Growth Strategy:** Aggressive pursuit of acquisitions, increased spending on R&D, and expansion of the sales force. - **Strategic Overview:** Positioning products to meet data privacy concerns, expanding data storage, and meeting telework and remote learning requirements. **Financial Condition:** - **Liquidity:** Significant current period losses and negative working capital, reliance on loans and equity issuances. - **Debt:** Secured debt with potential adverse consequences, including limitations on additional financing and competitive disadvantages. **Market Position Changes:** - **Trading:** Quoted on the OTC Pink, with historical low trading volume and price volatility. - **Customer Base:** Over 10,000 commercial enterprise customers and 200,000 open-source consumers. **Amendments:** - **Corporate Governance:** Amendments to the Articles of Incorporation and Bylaws to align with Nasdaq requirements. - **Preferred Stock:** Amendment to the Certificate of Designation of Series A Preferred Stock to limit conversion and revert to pre-Reverse Stock Split conversion ratio.