Data443 Q2 10-Q: Going Concern, Zero Cash, 80% Share Dilution
ATDS is trading near its 52-week low of $0 (0.0% above the low).
Summary
Data443's Q2 10-Q reveals a going concern warning, zero cash, an 80% increase in shares outstanding, and multiple debt defaults.
Key Events · Earnings and Guidance · ATDS
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Going Concern Warning
Management states substantial doubt about the company's ability to continue as a going concern due to significant losses, negative working capital, and accumulated deficit.
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Zero Cash Balance
Cash fell to $0 as of June 30, 2026, from $197,364 at December 31, 2025, with current liabilities of $19.7 million.
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80% Share Dilution
Shares outstanding increased 80% to 1,313,420,344 from 729,044,931, driven by 508.4 million shares issued for debt conversion and 76 million shares from cashless warrant exercises.
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Net Loss Widens
Net loss for six months ended June 30, 2026 was $1,957,987, up 97% from $994,635 in the prior year period.
Analysis · ATDS · Technology
Data443 Risk Mitigation reported a net loss of $1.96 million for the first half of 2026, with cash falling to zero and current liabilities of $19.7 million. The company states substantial doubt about its ability to continue as a going concern. Shares outstanding surged 80% to 1.31 billion due to debt conversions and warrant exercises, heavily diluting existing holders. Multiple convertible notes are in default, and management disclosed material weaknesses in internal controls. The stock trades near its 52-week low at $0.0001.
How filings like this one have moved
In the 30 days to Sep 12, 2026, 42.7% of the 487 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.39%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ATDS was trading at $0.00 on OTC in the Technology sector, with a market capitalization of approximately $131.3K. The 52-week trading range was $0.00 to $0.00. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.