Investment Thesis
Data443 is in severe financial distress with negative stockholders' equity of -$13.5M, indicating liabilities exceed assets. The company is burning cash with negative free cash flow of -$76.4K despite minimal capex, and operating losses of -$932.7K on just $3.5M in revenue demonstrate unprofitable operations at scale. Critical liquidity crisis with current ratio of 0.01x and only $49.1K in cash against $18.8M in liabilities makes immediate solvency a pressing concern.
ATDS Strengths
- Gross margin of 72.7% indicates strong unit economics on revenue generated
- Positive operating cash flow of $109.1K suggests some underlying cash generation despite net losses
- Operating in software services sector with potential for scalability
ATDS Risks
- Negative stockholders' equity of -$13.5M indicates technical insolvency and potential bankruptcy risk
- Critically low liquidity with current ratio of 0.01x and only $49.1K cash versus $18.8M liabilities
- Negative free cash flow and inability to fund operations or debt service from cash generation
- Operating losses consuming 26.7% of revenue with negative net margin of -45.7%
- Long-term debt of $4.5M represents significant leverage burden for distressed company
- Zero insider purchases in last 90 days suggests management lacks confidence
Key Metrics to Watch
- Quarterly revenue trends and ability to achieve profitability at operating level
- Cash position depletion rate and timeline to potential liquidity exhaustion
- Debt restructuring negotiations or refinancing outcomes with creditors
- Operating expense control and path to positive operating cash flow generation
ATDS Financial Metrics
ATDS Profitability Ratios
ATDS Balance Sheet & Liquidity
ATDS 5-Year Financial Trend
5-Year Trend Summary: Data443 Risk Mitigation, Inc.'s revenue has grown significantly by 125% over the 5-year period, indicating strong business expansion. The most recent EPS of $-15.56 indicates the company is currently unprofitable.
ATDS Growth Metrics (YoY)
ATDS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $899.1K | -$602.4K | $0.00 |
| Q2 2025 | $1.1M | -$318.0K | $0.00 |
| Q1 2025 | $1.2M | -$676.7K | $-0.01 |
| Q3 2024 | $693.8K | -$1.3M | $-3.98 |
| Q2 2024 | $619.0K | $89.5K | $1.88 |
| Q1 2024 | $1.4M | -$737.9K | $5.34 |
| Q3 2023 | $693.8K | -$1.6M | $-21.97 |
| Q2 2023 | $619.0K | $89.5K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ATDS Capital Allocation
ATDS SEC Filings
Access official SEC EDGAR filings for Data443 Risk Mitigation, Inc. (CIK: 0001068689)