Datavault AI Says Four Sets of 2025-2026 Financials Can No Longer Be Relied On

Datavault AI (Nasdaq: DVLT) told investors in an 8-K accepted Monday, Oct. 26, 2026, that four sets of its financial statements should no longer be relied upon. The company's Audit Committee and management reached that conclusion on Oct. 20, and the company plans to restate the statements.

The affected filings are the quarterly report for the three and nine months ended Sept. 30, 2025, the annual report for 2025, the quarterly report for the three months ended March 31, 2026, and the quarterly report for the three and six months ended June 30, 2026. The filing also says earnings releases and investor presentations based on those statements should not be relied upon.

How the Scilex deal was recorded

On Sept. 25, 2025, the company agreed to sell Scilex 15,000,000 common shares and a pre-funded warrant for 263,914,094 shares, for $150 million payable in Bitcoin at a spot rate of $112,915.52, or about 1,328.43 Bitcoin. Scilex credited 1,309.04 Bitcoin to the company's account at Biconomy, after a reduction of 19.39 Bitcoin for cash advances Scilex had made.

Between Sept. 26, 2025, and Jan. 30, 2026, the company sold 491.431 Bitcoin back to Scilex in exchange for about $40.5 million in cash. In June 2026 it requested a withdrawal of Bitcoin from the Biconomy wallet to an external account, and as of the filing date it had been unable to complete that withdrawal.

After reviewing the transaction, the company determined the Bitcoin tied to the sale did not meet the requirements to be recognized as its digital asset. It now plans to record the sale as a subscription receivable, shown as a reduction of stockholders' equity, and to apply the cash from the Bitcoin sales against that receivable.

The size of the adjustments

The company expects the restatements to cut total assets by $8.1 million as of Sept. 30, 2025, $92.2 million as of Dec. 31, 2025, $57.1 million as of March 31, 2026, and $49.0 million as of June 30, 2026. It also expects to reverse the crypto asset gains and losses tied to the transaction. The December figure alone is more than twice the company's 2025 revenue of $39.1 million.

The corrections are preliminary. The company said they may change and that additional errors could be identified. Its reported figures already show losses growing: the 2025 net loss was $79.0 million, compared with $51.4 million a year earlier, and the net loss for the quarter ended June 30, 2026, was $88.0 million, compared with $37.1 million. Cash and equivalents were $1.4 million as of June 30, 2026.

Going concern and internal controls

Management is reassessing its going concern evaluation for 2025 and the quarter ended March 31, 2026. Those earlier assessments treated the Bitcoin balances as a source of liquidity. Because those balances will no longer be presented as an asset, and because collecting amounts owed by Scilex is uncertain, the company said the effect on its evaluation has not been determined.

Management, overseen by the Audit Committee, is also evaluating whether the errors point to deficiencies in internal control over financial reporting, including a possible material weakness. It has not completed that work or decided whether its earlier conclusions on control effectiveness need revision. The company discussed the matters with its current auditor, CBIZ CPAs P.C., and its former auditor, BPM LLP.

What comes next

The company has not set a date for the restated filings. It said its review is ongoing and that delays are possible, including for its quarterly report for the period ended Sept. 30, 2026. The filing lists risks including Nasdaq continued listing compliance, the company's ability to continue as a going concern and raise financing, collection from Scilex, cooperation from Biconomy, and possible litigation or regulatory inquiries. The company said investors should not rely on the affected statements until restated figures are available.