secwatch.observer — SEC 8-K summary
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Issuer:     Data443 Risk Mitigation, Inc. (ATDS)
CIK:        0001068689
Form:       8-K
Filed at:   2023-07-24T23:59:59+00:00
Accession:  0001493152-23-025395
Event type: debt
Sentiment:  negative
Materiality: 0.85
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Data443 closes $1.5M convertible note financing with massive potential dilution; exchanges $5.4M debt for $665K new note
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- Issued $812,500 note (30% OID) and $718,750 note (15% OID, 12% interest) both maturing June 2024.
- Warrants granted to purchase up to 325M common shares at $0.001; placement agent gets 32.5M warrants on same terms.
- Exchanged two prior notes totaling $5.4M for a new $665K note with payments tied to listing or $4M+ funding.
- Amended prior noteholder to exclude Cyren assets from security; issued 25M share warrants at $0.001 as consideration.
- All securities unregistered under Regulation D; conversion/exercise prices ($0.005 note, $0.001 warrant) imply extreme dilution.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1068689/000149315223025395/0001493152-23-025395-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1068689/000149315223025395/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-23-025395

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer