Form 4: Data443 CEO Acquires 443 Million Preferred Shares

Data443 Risk Mitigation, Inc.'s President and CEO, Jason L M Remillard, acquired over 443 million shares of Series A Preferred Stock at no cost.

Summary

• Jason L M Remillard, President and CEO, and a Director of Data443 Risk Mitigation, Inc. (ATDS), acquired 443,293,443 shares of Series A Preferred Stock.
• The transaction occurred on August 26, 2025, with a deemed execution date also on August 26, 2025.
• The acquisition price for these shares was $0, suggesting a grant, award, or conversion rather than a market purchase.
• Following this transaction, Mr. Remillard directly beneficially owns a total of 443,443,443 shares of Series A Preferred Stock.

Sentiment

Score: 6

Explanation: The acquisition of a substantial number of shares by the CEO, even at a $0 price, generally indicates management's confidence. However, the $0 price and potential for dilution introduce a degree of neutrality, preventing a higher positive score without more context on the preferred stock terms.

Positives

• The significant increase in beneficial ownership by the President and CEO could signal strong confidence in the company's future prospects by its top executive.
• An acquisition at a $0 price often indicates an equity grant or conversion, which can be a form of long-term incentive for management, aligning their interests with shareholders.

Negatives

• The acquisition of a large number of shares at a $0 price could dilute the value of existing common stock, depending on the conversion terms of the Series A Preferred Stock.
• The specific nature of the 'I' transaction code in column 3 is unusual for a standard Form 4 acquisition, which might warrant further clarification.

Risks

• Potential dilution of common shareholders if the Series A Preferred Stock is convertible into common shares, especially given the large volume acquired.
• The lack of a monetary transaction price ($0) means the executive did not invest personal capital in a market purchase, which some investors might view differently than an open market buy.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This Form 4 filing is a routine disclosure of insider trading activity and does not directly provide information on broader industry trends or competitive landscape. However, significant insider ownership changes can be interpreted by the market as a signal of management's internal view of the company's value within its industry.

Related Party Transactions

• Jason L M Remillard, as President, CEO, and Director, is a related party to Data443 Risk Mitigation, Inc. His acquisition of company stock is a related party transaction.

Stakeholder Impact

• Shareholders: The acquisition by the CEO could be seen as a positive signal of confidence, but potential dilution from the Series A Preferred Stock's conversion terms could be a concern.
• Management: The grant of preferred stock at $0 likely serves as a long-term incentive, aligning the CEO's financial interests with the company's performance.

Key Dates

Recommendation

While the CEO's increased stake signals confidence, the $0 acquisition price and the nature of Series A Preferred Stock (which could imply future dilution for common shareholders) warrant a 'hold' recommendation. Investors should seek further details on the terms of the Series A Preferred Stock, including conversion rights and preferences, to fully assess the long-term impact before making a 'buy' or 'sell' decision. This filing alone does not provide enough information for a strong directional call.

Keywords

Data443 Risk Mitigation, ATDS, Jason L M Remillard, SEC Form 4, Insider Ownership, Preferred Stock, Beneficial Ownership, CEO Stock Acquisition, Corporate Governance