Data443 Risk Mitigation Inc (ATDS)

[Bubae]

You are kidding right? Few are buying this trash stock anymore. There is a reason that it went from $10 plus to a few pennies in less than a year. This nothing but a share printing, share selling, machine. True OTC garbage. Jason will need to split this again to keep up with the $6 million annual interest expense.

For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16432850&guid=n44-keSHJML0dth

Net Loss

The net loss for the year ended December 31, 2022 was mainly derived from an operating loss of $3,676,128, and interest expense of $5,979,456 and loss on change in fair value of derivative liability of $57,883. The net loss for the year ended December 31, 2021 was mainly derived from an operating loss of $2,637,239, and interest expense of $3,334,413 and loss on change in fair value of derivative liability of $614,658.

Recent Sales of Unregistered Securities

The following information represents securities sold by us within the past year which were not registered under the Securities Act. Included are sales of reacquired securities, as well as new issues, securities issued in exchange for property, services, or other securities, and new securities resulting from the modification of outstanding securities. All issuances were exempt under Section 4(a)(2) of the Securities Act unless otherwise noted.

> On February 8, 2022, a noteholder converted $27,812 of convertible debt into 6,091 shares of Common Stock.

> On February 11, 2022, noteholders converted $47,997 of convertible debt into 4,150 shares of Common Stock.

> On February 28, 2022, a noteholder converted 6,631 of warrants into 6,631 shares of Common Stock.

> On March 1, 2022, a noteholder converted $14,496 of convertible debt into 1,469 shares of Common Stock.

> On April 7, 2022, we issued 2,402 shares of Common Stock to Root Ventures, LLC pursuant to an agreement with Root Ventures, LLC, in exchange for $15,013.

> On April 7, 2022, we issued 1,852 shares of Common Stock to One44 Capital, LLC pursuant to an agreement with One44 Capital, LLC, in exchange for $11,575.

> On April 7, 2022, we issued 933 shares of Common Stock to GS Capital Partners, LLC pursuant to an agreement with GS Capital Partners, LLC, in exchange for $5,831.

> On April 7, 2022, we issued 6,431 shares of Common Stock to Westland Properties, LLC pursuant to an agreement with Westland Properties, LLC, in exchange for 40,194.

> On April 7, 2022, we issued 2,402 shares of Common Stock to Fast Capital, LLC pursuant to an agreement with Fast Capital, LLC, in exchange for $15,013.

> On April 20, 2022, we issued 380,952 shares of Common Stock to Centurion Holdings I, LLC pursuant to an purchase agreement with Centurion Holdings I, LLC, in exchange for $2,476,188.

> On May 3, 2022, we issued 76,000 shares of our common stock to Allan S. Brantley pursuant to an agreement with SJSS Investments, in exchange for $760 of note payable principal.

> On May 3, 2022, we issued 75,200 shares of Common Stock to SJSS Investments pursuant to an agreement with SJSS Investments, in exchange for $752 of note payable principal.

> On July 26, 2022, we issued 31,019 shares of Common Stock to One44 Capital, LLC pursuant to an agreement with One44 Capital, LLC, in exchange for $30,000 in note payable principal and $1,221 of accrued interest.

> On August 18, 2022, we issued 27,322 shares of Common Stock to Fast Capital, LLC pursuant to an agreement with Fast Capital, LLC, in exchange for $50,000 in note payable principal.

> On August 19, 2022, we issued 23,460 shares of Common Stock to Allan S. Brantley pursuant to an agreement with Allan S. Brantley, in exchange for $235 in note payable principal.

> On September 14, 2022, we issued 11,111 shares of Common Stock to Red Road Holdings Corporation pursuant to an agreement with Red Road Holdings Corporation, in exchange for $20,000 in note payable principal.

> On September 21, 2022, we issued 30,700 shares of Common Stock to SJSS Investments pursuant to an agreement with SJSS Investments, in exchange for $307 in note payable principal.

> On October 8, 2022, we issued 30,700 shares of Common Stock to Red Road Holdings Corporation pursuant to an agreement with Red Road Holdings Corporation, in exchange for $15,000 in note payable principal.

> On November 7, 2022, we issued 54,776 shares of Common Stock to Mast Hill Fund pursuant to an agreement with Mast Hill Fund, in exchange for $54,776 of accrued interest.

> On November 8, 2022, we issued 18,382 shares of Common Stock to Red Road Holdings Corporation pursuant to an agreement with Red Road Holdings Corporation, in exchange for $15,000 in note payable principal.

> On November 15, 2022, we issued 32,895 shares of Common Stock to Red Road Holdings Corporation pursuant to an agreement with Red Road Holdings Corporation, in exchange for $30,000 in note payable principal.

> On November 21, 2022, we issued 27,627 shares of Common Stock to Red Road Holdings Corporation pursuant to an agreement with Red Road Holdings Corporation, in exchange for $21,813 in note payable principal and accrued interest of $6,919.

> On November 23, 2022, we issued 24,038 shares of Common Stock to 1800 Diagonal Lending, LLC pursuant to an agreement with 1800 Diagonal Lending, LLC, in exchange for $25,000 in note payable principal.

> On November 23, 2022, we issued 54,776 shares of Common Stock to Mast Hill Fund pursuant to an agreement with Mast Hill Fund, in exchange for $21,988 in note payable principal and $8,730 of accrued interest.

> On November 28, 2022, we issued 47,753 shares of Common Stock to GS Capital Partners LLC pursuant to an agreement with GS Capital Partners LLC, in exchange for $32,500 in note payable principal and $2,499 of accrued interest.

> On November 28, 2022, we issued 28,846 shares of Common Stock to 1800 Diagonal Lending, LLC pursuant to an agreement with 1800 Diagonal Lending, LLC, in exchange for $30,000 in note payable principal.

> On November 30, 2022, we issued 37,602 shares of Common Stock to 1800 Diagonal Lending, LLC pursuant to an agreement with 1800 Diagonal Lending, LLC, in exchange for $35,562 in note payable principal and $4,157 of accrued interest.

> On November 30, 2022, we issued 30,750 shares of Common Stock to Jefferson Street Capital LLC pursuant to an agreement with Jefferson Street Capital LLC, in exchange for $30,000 in note payable principal and $750 of accrued interest.

> On December 7, 2022, we issued 30,750 shares of Common Stock to Jefferson Street Capital LLC pursuant to an agreement with Jefferson Street Capital LLC, in exchange for $30,000 in note payable principal and $750 of accrued interest.

> On December 7, 2022, we issued 96,432 shares of Common Stock to Fast Capital LLC pursuant to an agreement with Fast Capital LLC, in exchange for $50,000 in note payable principal.

>On December 8, 2022, we issued 83,189 shares of Common Stock to GS Capital Partners LLC pursuant to an agreement with GS Capital Partners LLC, in exchange for $40,000 in note payable principal and $3,134 of accrued interest.

> Between August 25, 2022, and November 7, 2022, we sold 931,000 shares of Common Stock to 39 accredited investors in a private placement offering, in exchange for $931,000.

NOTE 17: SUBSEQUENT EVENTS

In accordance with ASC 855-10, “Subsequent Events”, we analyzed our operations subsequent to December 31, 2022 to February 24, 2023, the date when these consolidated financial statements were issued.

> On January 4, 2023, GS Capital Partners LLC converted $15,000 of principal and $1,209 of accrued interest of the convertible note into 97,761 shares of our common stock.

> On January 9, 2023, Westland Properties, LLC converted $15,000 of principal of the convertible note into 83,333 shares of our common stock.

> On January 16, 2023, Root Ventures LLC converted $23,027 of principal of the convertible note into 139,557 shares of our common stock.

> On January 20, 2023, Fast Capital, LLC converted $20,000 of principal of the convertible note into 139,500 shares of our common stock.

> On January 24, 2023, the Company issued convertible note a total of $300,000, which the term of notes is 1 year and Original Interest Discount of $50,000. Note is convertible at the option of the holder at any time and conversion price are Conversion price is $.25 per share.

> On February 1, 2023, Mast Hill Fund converted $13,023 of principal and $14,949 of accrued interest of the convertible note into 165,000 shares of our common stock.

> On February 6, 2023, Westland Properties, LLC converted $15,000 of principal of the convertible note into 118,858 shares of our common stock.

> On February 17, 2023, Mast Hill Fund converted $21,638 of principal and $4,197 of accrued interest of the convertible note into 179,000 shares of our common stock.