Datavault Expects $92.2 Million Asset Reduction After Four Financial Periods Deemed Unreliable
Key Facts
Datavault AI expects a restatement of its financial statements to reduce total assets by $92.2 million as of December 31, 2025, the largest adjustment among four affected quarterly and annual balances. In an 8-K report signed by its chief financial officer on October 26, 2026, the company said its audit committee and management concluded on October 20 that its financial statements for the periods ended September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026 should no longer be relied upon. The disclosure comes as the company had been unable to complete, as of the report date, a bitcoin withdrawal it requested in June from its Biconomy wallet to an external account. The company said the bitcoin linked to the Scilex deal did not qualify for recognition as its digital asset. The accounting reassessment and liquidity are at the center of the disclosure, while final amounts and the timing of refiling remain undetermined.
The company expects to reduce total assets by $8.1 million as of September 30, 2025, $92.2 million as of December 31, 2025, $57.1 million as of March 31, 2026, and $49.0 million as of June 30, 2026. It said recording the transaction as subscription receivables in exchange for the issuance of shares would be reflected as a reduction in shareholders’ equity, and proceeds from bitcoin exchanges should be offset against amounts due from Scilex. The correction means bitcoin previously presented among the company’s assets will be treated for accounting purposes as part of the transaction receivables and share issuance, rather than as its digital asset. Datavault also said it would reverse the effects of gains and losses on crypto assets associated with the transaction. The company is still determining the necessary effects on income statement and cash flow items and disclosures, so it described its estimated asset reductions as preliminary.
The transaction dates to an agreement Datavault and Scilex signed on September 25, 2025, under which Scilex agreed to purchase 15,000,000 common shares and a pre-funded warrant to purchase 263,914,094 shares. The agreed consideration was $150 million, payable in bitcoin at a spot price of $112,915.52 per coin, equivalent to about 1,328.43 bitcoin. Datavault said Scilex deposited 1,309.04 bitcoin into its Biconomy wallet through off-chain transfers on September 26 and November 25, 2025, after deducting 19.39 bitcoin for cash advances. Between September 26, 2025, and January 30, 2026, the company sold Scilex a further 491.431 bitcoin for about $40.5 million in cash. The company now links the accounting correction for the transaction to amounts due from Scilex and the treatment of the share issuance.
In June 2026, Datavault announced a binding term sheet under which Scilex was expected to buy 837 bitcoin held in a Biconomy wallet for $50 million. The agreement was subject to the execution of a definitive agreement and satisfaction of closing conditions, according to the company’s disclosure. Datavault later requested in June that bitcoin be withdrawn from the wallet to an external account, but said in its October 26 report that it had been unable to complete the withdrawal. The disclosure did not explain why the transfer could not be completed, according to The Block, which said it had sought comment from both companies. The company’s disclosure does not say the bitcoin was permanently lost; it states only that the withdrawal was not completed. Collection of amounts due from Scilex remains uncertain, the company said.
Management reassessed the company’s ability to continue as a going concern because bitcoin balances had been counted among its liquidity sources and collection of amounts due from Scilex is uncertain. Datavault said the final effect of the restatement on its going-concern assessment had not yet been determined. Management’s review to determine whether the errors warranted changing its prior conclusions about the effectiveness of internal controls, including the possibility of a material weakness, was also not complete. The controls assessment is proceeding alongside the financial statement review and was not presented in the report as a final conclusion. The company thus links the correction in asset presentation with its assessment of liquidity and financial reporting controls.
In trading, Datavault shares, listed under the ticker DVLT, closed at $0.067 on October 27, down 49.6% from the previous session’s close of about $0.133, as reported by The Block. EL7 data recorded a close of $0.1328 on October 26 and $0.067 on October 27. Investors traded about 250 million shares in the decline, eight times the previous session’s volume, according to The Block. The stock fell after the disclosure of the withdrawal difficulty and financial statement review, but trading data alone do not establish a single cause for the move. The final results of the financial adjustments and the liquidity assessment remain among the matters the company has yet to complete.
Datavault intends to restate the affected financial statements and refile them with the U.S. Securities and Exchange Commission, but has not set a filing date. It said its financial statement review and internal controls assessment remain underway, and that the discovery of additional errors could cause delays. Risks cited in the report include possible delays in periodic reports, including the quarterly report for the period ended September 30, 2026, and risks to continued compliance with Nasdaq listing requirements. It also cited reliance on an external custodian and cooperation with Biconomy. The company has not set a new date for filing the statements or announced a final review outcome.