Data443 Risk Mitigation, Inc. (ATDS) 2025 Annual Report: Key Takeaways for Investors

Executive Summary

Data443 Risk Mitigation, Inc. (“Data443”, “ATDS”, or the “Company”) has released its Form 10-K for the fiscal year ended December 31, 2025. The Company, based in Nevada and operating from North Carolina, is a provider of data security and privacy management solutions, serving over 10,000 customers across both private and public sectors. This report provides a detailed breakdown of the company’s current position, risk factors, and future outlook, highlighting crucial points for investors and shareholders.

Key Financial and Corporate Details

• Common Stock Outstanding: As of April 15, 2026, Data443 had 1,313,420,344 shares of common stock outstanding (reflecting a 1-for-600 reverse stock split effective September 20, 2023).
• Public Float: As of June 30, 2022, the aggregate market value of common equity held by non-affiliates was \$1,594,117.
• Trading Status: The Company’s common stock is currently quoted on the OTC Pink and is thinly traded, potentially reducing liquidity for investors. There is no exchange listing for the company’s securities.
• Legal Structure and History: Incorporated in Nevada in 1998, formerly known as LandStar, Inc., and underwent a significant rebranding and business shift in 2018 to focus on data security.
• Filing Status: Data443 is a non-accelerated filer, a smaller reporting company, and an emerging growth company under SEC definitions.

Business Overview

Data443 provides data security and privacy management solutions for enterprises and the cloud, with offerings that help organizations comply with complex and evolving data privacy regulations worldwide. The Company’s solutions help businesses protect data at scale, regardless of format, location, or consumer, and facilitate compliance with US and international privacy standards.

The Company’s customers include both established industry leaders and emerging enterprises across diverse sectors. Data443 positions itself to bridge the gap for organizations that lack in-house privacy and security expertise, providing them with tools to protect data while focusing on core business growth.

Strategic Focus and Growth Strategy

• Acquisitions: The Company identifies strategic acquisitions as a key element of its growth strategy, aiming to expand its product suite and customer base.
• Research & Development (R&D) and Innovation: Data443 plans to increase investment in R&D to enhance and expand its existing product offerings, aiming to proactively address emerging data security needs.
• Customer Base Expansion: The Company intends to capitalize on the growing need for cybersecurity and data privacy by targeting new customers and industry verticals.
• Sales Capacity: An expanded sales and marketing force with a strong focus on customer success is central to Data443’s growth objectives.

Market Dynamics and Competitive Landscape

The data security market is characterized by rapid change, consolidation, and growing complexity due to regulatory pressures and increasing cyber threats. Data443 notes that recent high-profile data breaches and ransomware events underscore the critical importance of their solutions. The competitive environment is intense, with ongoing consolidation through acquisitions and the exit of certain competitors, which Data443 sees as an opportunity to increase its market share.

The Company expects current market conditions to favor its product line, positioning it for strategic IT and board-level opportunities among potential customers.

Key Risk Factors and Price-Sensitive Matters

Investors should pay special attention to the following material risks and factors, which could significantly impact the Company’s share value:

• Going Concern Risk: There is substantial doubt about the Company’s ability to continue as a going concern without additional capital. This is a material uncertainty that is highly price sensitive.
• Need for Additional Capital: Data443 will require additional funding to sustain operations and growth. The ability to raise capital may affect future operations and shareholder value.
• Intense Market Competition: The Company faces strong competition and may lack the financial and operational resources to maintain or improve its market position.
• Reliance on CEO: The continued services of founder and CEO Jason Remillard are critical. Any loss of his leadership would represent a significant risk.
• Thinly Traded Stock: The Company’s common stock is illiquid, making it difficult for investors to sell shares without impacting the price.
• History of Losses: Data443 has a history of operating losses and may continue to incur losses, which may prevent the Company from achieving profitability.
• Volatile Stock Price: The market price of the Company’s stock may be volatile and not necessarily reflect operational performance.
• Preferred Stock Structure: Data443 has issued preferred shares with special rights that could inhibit changes of control, limit corporate transaction flexibility, and reduce proceeds to common shareholders in the event of a change in control.
• No Cash Dividends: The Company has never paid, and does not intend to pay, cash dividends. Investor returns will be realized only through share price appreciation, if any.
• Insider Control: The company’s sole director and CEO effectively controls all matters submitted to shareholders, limiting minority shareholder influence.

These risk factors make the Company’s equity highly speculative. Any developments affecting capital raising, regulatory compliance, or leadership stability could result in material share price movements.

Important Corporate Actions

• Reverse Stock Split: All share and per-share data reflect a 1-for-600 reverse stock split effective September 20, 2023, which was implemented to maintain compliance and improve the capital structure.

Regulatory and Reporting Status

• Data443 is in compliance with SEC reporting requirements.
• The Company is not a well-known seasoned issuer, not a voluntary filer, and has not been required to restate any previous financial statements.
• There are no documents incorporated by reference and there is no indication of any pending litigation or unresolved staff comments that could materially affect the Company at this time.

Forward-Looking Statements

The Company’s management warns that forward-looking statements are subject to substantial risks and uncertainties. Actual results may differ materially from those anticipated or implied due to factors including, but not limited to, those outlined above.

Conclusion: What Investors Should Watch

• Data443 remains in a challenging financial position and will require additional capital to fund ongoing operations and growth initiatives.
• The Company’s strategic response to market consolidation, its acquisition efforts, and its ability to expand its customer base and sales force will be critical to future performance.
• The unique risks relating to management control, illiquidity, and ongoing operating losses make this a speculative investment that may see high volatility in share price based on any material news or capital actions.
• Any developments regarding fundraising, major contract wins, leadership changes, or regulatory compliance could be highly price sensitive and should be closely monitored by shareholders.

Disclaimer: This article is a summary and interpretation of Data443 Risk Mitigation, Inc.’s 2025 Form 10-K based on publicly available filings. It is not investment advice. Investors are encouraged to review the full SEC filing and consult with their financial advisors before making any investment decisions. The Company operates in a highly speculative and volatile sector, and all investments carry risk, including loss of principal.

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