Data443 Risk Mitigation, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in revenue, with figures reaching $1,146,937 for the three months ended September 30, 2024, compared to $693,835 for the same period in 2023, marking a 65% increase. For the nine months ended September 30, 2024, revenue totaled $3,807,080, up 41% from $2,692,681 in the prior year. This growth is attributed to heightened customer engagement with Cyren-related offerings following the acquisition completed in December 2023, as well as organic growth in services with storage or volume components.

Despite the revenue growth, the company reported a net loss of $(1,281,999) for the three months ended September 30, 2024, an improvement from $(1,979,676) in the same quarter of 2023. However, the net loss for the nine months increased to $(4,421,955) from $(2,628,029) year-over-year, reflecting a 68% rise in losses. The gross profit for the three months was $774,286, up from $503,410, while for the nine months, gross profit slightly decreased to $2,014,400 from $2,048,393.

The company’s total current assets significantly declined to $58,134 as of September 30, 2024, from $423,805 at the end of 2023. Total liabilities also increased to $17,793,305, up from $15,450,491, with current liabilities rising to $16,032,861 from $13,801,416. The accumulated deficit grew to $(60,078,791) from $(55,656,836), and total stockholders’ deficit increased to $(11,615,698) from $(7,996,868).

Operationally, the company reported a loss from operations of $(814,646) for the three months ended September 30, 2024, an improvement from $(1,002,044) in the prior year. Interest expenses decreased significantly to $(466,200) from $(983,100) in the same quarter of 2023. The company’s management indicated that additional capital is necessary to sustain operations and fund growth initiatives, with no assurance of securing such funding.

Strategically, Data443 continues to focus on enhancing its product offerings and expanding its market presence, particularly in the data security sector, which is experiencing increased demand due to rising cybersecurity threats. The company is also addressing financial challenges through potential debt or equity financing and has plans for further acquisitions to bolster its capabilities.