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Fri Oct 23 · markets open6 signals today103 insider buys this week · $208.8MCIRO short report next: Oct 31The week ahead

ATDS

Data443 Risk Mitigation, Inc.
OTC · TECHNOLOGY · SERVICES-PREPACKAGED SOFTWARE
0.00
+0.00 +0.00%
USD · close Oct 22

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How ATDS rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
95%
of sentences unchanged
Added
8
new sentences
Dropped
8
sentences removed
Length
+0
words, now 11,829

New in FY2025

  • Our management has identified a material weakness in our internal control over financial reporting related to lack of segregation of duties resulting from our limited personnel and has concluded that, due to such weakness, our disclosure controls and procedures were not effective as of December 31, 2025.
  • We have had a history of operating losses since our inception and, as of December 31, 2025, we had an accumulated deficit of $64,311,761.
  • Our independent registered public accounting firm has included an explanatory paragraph in their report in our audited financial statements for the fiscal year ended December 31, 2025 to the effect that our losses from operations and our negative cash flows from operations raise substantial doubt about our ability to continue as a going concern.
  • As of December 31, 2025, we had cash balance of $197,364 and our principal sources of liquidity were trade accounts receivable of $91,686 and other current assets of $1,150,000, as compared to cash of $168,208, trade accounts receivable of $31,776 and prepaid and other current assets of $-0- as of December 31, 2024.
  • We currently have 443,429,935 shares of Series A Preferred Stock outstanding, all of which are held by our Chief Executive Officer and no shares of Series B Preferred Stock outstanding.
  • Our Chief Executive Officer, Jason Remillard, holds 443,429,935 shares of our Series A Preferred Stock.
  • We estimate that we will incur approximately $350,000 to $600,000 in 2026 to comply with public company compliance requirements, with many of those costs recurring annually thereafter.
  • Our articles of incorporation authorize the issuance of 4,443,443,443 shares of common stock, of which 1,313,420,344 shares were issued and outstanding as of April 15, 2026.

Gone since FY2024

  • Our management has identified a material weakness in our internal control over financial reporting related to lack of segregation of duties resulting from our limited personnel and has concluded that, due to such weakness, our disclosure controls and procedures were not effective as of December 31, 2023.
  • We have had a history of operating losses since our inception and, as of December 31, 2024, we had an accumulated deficit of $61,744,018.
  • Our independent registered public accounting firm has included an explanatory paragraph in their report in our audited financial statements for the fiscal year ended December 31, 2024 to the effect that our losses from operations and our negative cash flows from operations raise substantial doubt about our ability to continue as a going concern.
  • As of December 31, 2024, we had cash balance of $168,208 and our principal sources of liquidity were trade accounts receivable of $31,776 and other current assets of $-0-, as compared to cash of $84,570, trade accounts receivable of $309,768 and prepaid and other current assets of $29,467 as of December 31, 2023.
  • We currently have 149,492 shares of Series A Preferred Stock outstanding, all of which are held by our Chief Executive Officer and no shares of Series B Preferred Stock outstanding.
  • Our Chief Executive Officer, Jason Remillard, holds 149,492 shares of our Series A Preferred Stock.
  • We estimate that we will incur approximately $350,000 to $600,000 in 2024 to comply with public company compliance requirements, with many of those costs recurring annually thereafter.
  • Our articles of incorporation authorize the issuance of 500,000,000 shares of common stock, of which 134,305,335 shares were issued and outstanding as of April 15, 2025.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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