Quarterly ResultMay 14, 2026, 04:22 PM
Data443 Q1 Net Loss $(1.01M); Going Concern Doubt Raised
AI Summary
Data443 Risk Mitigation, Inc. reported a net loss of $(1.01) million for Q1 2026, a significant increase from $(0.68) million in Q1 2025. Revenue decreased to $1.02 million from $1.17 million year-over-year, while gross profit fell sharply. The company also disclosed substantial doubt about its ability to continue as a going concern due to significant losses, negative working capital, and an accumulated deficit. Several convertible notes are in default, and cash balances have significantly declined.
Key Highlights
- Net loss increased to $(1,013,506) in Q1 2026 from $(676,664) in Q1 2025.
- Revenue decreased to $1,017,380 in Q1 2026 from $1,166,589 in Q1 2025.
- Gross profit declined to $166,529 in Q1 2026 from $793,439 in Q1 2025.
- Cash balance at period end was $40,812, down from $197,364 at Dec 31, 2025.
- Total Stockholders’ Deficit increased to $(15,109,880) from $(14,314,836).
- Net cash used in operating activities was $(169,833) in Q1 2026.
- Converted $104,540 of debt into 508,375,413 common shares in Q1 2026.
- Multiple convertible notes payable are currently in default.