In This Story
Data443 Risk Mitigation, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $1,146,937 from $693,835 in the same quarter the previous year. This increase is attributed to new customer acquisitions and increased consumption of services.
Cost of revenue for the quarter was $372,651, representing 32% of sales, compared to 27% in the same quarter of the previous year. This increase is due to costs associated with the acquisition of Cyren intellectual property.
The company reported a gross profit of $774,286 for the quarter, compared to $503,410 in the previous year, with the increase attributed to higher revenues.
General and administrative expenses increased to $1,560,087 from $1,471,024, primarily due to increased payroll expenses and professional service fees.
Net loss for the quarter was $1,281,999, down from $1,979,676 in the previous year. The decrease is primarily due to increased revenue and reduced interest expenses.
Cash provided by operating activities was $814,503, while cash used in investing and financing activities was $0 and $899,073, respectively.
Data443 had a working capital deficiency of $15,974,728 as of September 30, 2024. The company acknowledges its dependence on additional capital to continue operations.
The filing also details various financial agreements, including convertible notes and promissory notes issued in fiscal years 2020 through 2024.
The company identified material weaknesses in its internal controls over financial reporting due to a lack of segregation of duties and written documentation of internal control policies.
Data443 continues to focus on expanding its customer base and enhancing its product offerings, particularly in the areas of data security and privacy management.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Data443 Risk Mitigation, Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.