Datavault AI to restate four financial periods after excluding bitcoin from its assets
Key Facts
Datavault AI said in a filing with the U.S. Securities and Exchange Commission dated October 26 that its financial statements for four prior periods should no longer be relied upon, after reassessing its accounting for bitcoin transactions related to Scilex. The company expects the restatement to reduce total assets in those periods by amounts ranging from $8.1 million to $92.2 million. It said the bitcoin tied to a share purchase transaction with Scilex did not meet the criteria for recognition as a digital asset owned by the company. The amount due from the share issuance will be recorded as a deduction from shareholders’ equity, it said, while proceeds from bitcoin exchanges will be deducted from that amount due. The company disclosed on October 20 that its audit committee and management had concluded the statements should no longer be relied upon, six days before the current filing.
The expected adjustments cover the periods ended September 30, 2025, December 31, 2025, March 31, 2026 and June 30, 2026. Datavault estimates total assets will fall by $8.1 million at the end of September 2025 and $92.2 million at the end of December that year. It also expects to reduce assets by $57.1 million at the end of March 2026 and $49.0 million at the end of June. The changes relate to a reassessment of digital asset recognition and the accounting treatment of amounts due and exchange proceeds. The company also said it will reflect the impact of gains and losses associated with cryptocurrency assets in the restated statements.
One of the transactions under review took place between September 26, 2025 and January 30, 2026, when Datavault sold Scilex approximately 491.431 bitcoin recorded in its account at Biconomy. It said the consideration was approximately $40.5 million in cash and that the transfer took place off-chain. In June 2026, the company requested a bitcoin withdrawal from its Biconomy wallet to an external account, but said it had been unable to complete the withdrawal as of the filing date. This places the status and accessibility of the digital assets among the issues in the ongoing accounting review. The company also did not specify in the filing when it expects to collect any amounts due related to its transactions with Scilex.
Previous Scilex disclosures said the second tranche of the investment was completed after Datavault shareholders approved it at their annual meeting on November 24, 2025, and Scilex announced its completion on November 26. At completion of the tranche, Scilex said the shares it received from exercising the instrument were worth approximately $583.3 million, based on Datavault’s closing share price of $2.21 on November 25. This shows the valuation announced for the shares when that tranche was executed, while the current review focuses on how assets and amounts due associated with the arrangements were recorded. Datavault said any prior statements or earnings releases, investor presentations or communications describing results for the affected periods should not be relied upon to the extent they were based on those statements. The company intends to reissue the statements after correcting them.
Datavault AI shares closed at $0.1328 on October 26, according to EL7 data. The filing did not specify when the reissued financial statements would be filed, with the company saying it had not determined the timing of those filings. It added that its review of the financial statements and assessment of internal control over financial reporting were ongoing and could lead to the discovery of additional errors or delay the filings. Management had also not completed its assessment of whether the accounting errors indicated deficiencies in internal control, or whether its previous conclusions about the effectiveness of those controls needed to be revised. The company is also reassessing its ability to continue as a going concern, according to the filing, and gave no date for completing that assessment.