Data443 Risk Mitigation, Inc. (ATDS) Form 10-Q — Aug 14, 2026
Data443 Risk Mitigation's Q2 2026 revenue fell 42% year-over-year to $829,695 while the quarterly net loss nearly tripled to $944,481, with gross margin collapsing to roughly 0% after a one-year TacitRed license drove cost of revenue up 261%. Six-month revenue declined 29% to $1,847,075 and the net loss rose 97% to $1,957,987. The company is in acute distress: it ended the quarter with $0 cash, a $420 bank overdraft, and a working capital deficiency of $19.7 million against total assets of just $4.6 million.
Key figures
- Eps
- -0.001 (six months); -0.0007 (Q2 2026)
- Revenue
- 1847075
- Total Debt
- 9992429 (notes payable $3,451,978 current + $531,773 non-current, net of discount; convertible notes payable $6,008,678, all current)
- Revenue Yoy
- -29% (six months ended June 30, 2026); -42% (Q2 2026)
- Total Assets
- 4606740
- Cash Position
- 0
- Shares Outstanding
- 1313420344
- Q2 Revenue
- 829695
- Bank Overdraft
- 420
- High Cost Notes
- promissory note at 66% with $1,749.00 daily payments; notes at 25% originated Nov 2025 and Mar 2026
- Q2 Gross Margin
- 0% vs 84% prior year
- Interest Payable
- 2950985
- Prior Reverse Split
- 1-for-600 (September 2023)
- Six Month Gross Margin
- 9% vs 77% prior year
- Six Month Gross Profit
- 167673
- Interest Expense Six Months
- 854398
- Convertible Notes In Default
- ["$508,440 (16% default rate)","$50,000 (18%)","$750,000","$300,000","$718,750 (12%)","$812,500 (12%)"]
- Shares Issued For Debt Conversion
- 508375413
- Shares Issued For Warrant Exercise
- 76000000
AI analysis
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