Data443 Risk Mitigation, Inc. (ATDS): Entry into a Material Definitive Agreement
Data443 Risk Mitigation, Inc. (ATDS) filed an SEC Form 8-K — Entry into a Material Definitive Agreement. false 0001068689 0001068689 2026-07-16 2026-07-16 iso4217:USD xbrli:shares iso4217:USD xbrli:shares UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Repor
How this was made
The 30-second read
Why it matters
ATDS becomes obligated under a $2.0M promissory note payable in two installments after the Date of Deal Close, with 15% simple interest applying only upon late payment. If not repaid within 12 months, XYDD may convert outstanding amounts into PubCo shares at 80% of prior 20-trading-day VWAP, subject to a 50% VWAP floor and a 19.99% ownership cap, creating potential dilution overhang.
Market read
Traders can reassess ATDS’s near-term financing and dilution risk based on the note’s payment schedule, default interest terms, and conversion mechanics tied to the Date of Deal Close.
What to watch
Conversion is discretionary for XYDD and depends on whether the note is fully repaid within 12 months after the Date of Deal Close; the 19.99% cap and 50% VWAP floor can materially limit worst-case dilution.
Background
The 8-K reports ATDS’s entry into a Compensation Agreement with XYDD after termination of a previously announced business combination between FORL and XYDD, enabling FORL to pursue a proposed combination with ATDS.
Ticker impact
ATDS entered a Compensation Agreement tied to a terminated FORL-XYDD deal, issuing a $2.0M promissory note with 15% default interest and potential equity conversion.
Near-term volatility risk for ATDS around deal-close timing and any subsequent default or conversion decision; direction depends on perceived dilution overhang versus cash needs.
The filing discloses principal, payment schedule, default interest, and a conversion mechanism with a 19.99% cap, which can affect valuation and capital structure expectations even without immediate cash outflow.
Market effects
Limited direct sector read-across; this is primarily a capital-structure and deal-termination consequence for a microcap.
None indicated.
None indicated.
Counterpoint
If ATDS expects the installments to be paid on time, the note may be viewed as a short-dated, low-cost obligation (no interest when timely), reducing dilution fears.
Key entities
- public_companyATDS
Data443 Risk Mitigation, Inc., the registrant issuing the promissory note obligation.
- counterpartyXYDD
Guangzhou Xiaoyu DiDa Technology Co., Ltd., the recipient of the note and potential converter into PubCo shares.
- public_companyFORL
Four Leaf Acquisition Corporation, whose prior business combination agreement with XYDD was terminated to pursue a combination with ATDS.
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