Datavault AI expects US$92.2M asset reduction in restatements
Four reporting periods are affected, and management is reassessing liquidity because collection from Scilex is uncertain.
Julian Okafor
An uncompleted bitcoin withdrawal has put four sets of financial statements and a previously reported source of operating liquidity in doubt. Datavault AI Inc. NASDAQDVLT, a Philadelphia technology company providing data monetization and audio technologies, disclosed on Oct. 26 that it expects corrections to reduce its year-end 2025 assets by an estimated US$92.2 million.
The audit committee and management reached their non-reliance conclusion on Oct. 20. It covers the September 2025 quarter, the full 2025 year and the first two quarters of 2026. The expected asset reduction for the June 30 balance sheet is US$49.0 million.
Datavault shares closed at US$0.067 on Nasdaq on Oct. 27, according to Google Finance's NASDAQDVLT page as of 4 p.m. EDT. The filing preceded that session, but the quoted price alone does not establish how much of the trading reflected the accounting disclosure.
Management had treated the bitcoin balances as a source of liquidity when assessing the company's ability to continue operating. It is now reassessing that evaluation for the year ended Dec. 31, 2025, and the March 2026 quarter because collection from the share purchaser is uncertain.
Four Reporting Periods Are Affected
The Oct. 26 filing says Datavault requested a transfer from its Biconomy wallet to an external account in June 2026. The withdrawal remained incomplete at the filing date. The document does not establish a recoverable cash amount or give a completed withdrawal date.
Datavault determined that the bitcoin associated with the equity purchase did not qualify for recognition as its digital asset. It says the transaction should instead have created a subscription receivable, presented as a reduction of shareholders' equity under the accounting rules for receivables arising from equity issuance.
The preliminary correction would also reduce assets by US$8.1 million at September 2025 and US$57.1 million at March 2026. Datavault expects to reverse associated cryptocurrency gains and losses, while continuing to determine effects on income statements, cash flows and disclosures.
The non-reliance warning extends to earnings releases, presentations and other communications insofar as they reflect the affected accounts. Datavault says the review is preliminary and unaudited, and additional errors may emerge during the restatement process.
"The ultimate effect of the restatement on those evaluations has not yet been determined," Datavault said in the filing, referring to its going concern assessments.
Scilex Cash Receipts Reduced The Receivable
The purchaser was Scilex Holding Company NASDAQSCLX, which describes its business as developing and commercializing non-opioid pain treatments. Datavault's filing says their Sept. 25, 2025 agreement provided for US$150 million of consideration, payable in bitcoin, for common shares and a pre-funded warrant.
Scilex credited 1,309.04 bitcoin to Datavault's Biconomy wallet on Sept. 26 and Nov. 25, 2025. Datavault describes those credits as off-chain transfers. The credited amount reflected a deduction for cash advances Scilex made between signing and the final closing.
The filing identifies sales back to Scilex between Sept. 26, 2025, and Jan. 30, 2026. Those off-chain transfers covered 491.431 bitcoin in exchange for approximately US$40.5 million in cash. Datavault says the cash received should reduce the subscription receivable owed by Scilex.
Scilex's own September 2025 release separately said it had engaged Biconomy for cryptocurrency treasury management and strategy implementation. That establishes a disclosed relationship between the exchange and the share purchaser; it does not establish the recoverability of Datavault's receivable.
Financing Plans Preceded The Accounting Warning
Datavault had already announced another capital-raising plan before the non-reliance determination. Its Sept. 23 rights-offering release proposed up to US$50 million of common-unit subscriptions and US$75 million of preferred-unit subscriptions. The release described its terms as incomplete and subject to change.
The Sept. 23 announcement proposed using net proceeds for working capital and general corporate purposes, potentially including acquisitions or investments. It did not establish subscriptions or cash receipts, so those proposed amounts cannot supply a current liquidity balance alongside accounts now awaiting correction.
The distinction between reported coins and available funds also runs through Mugglehead's earlier coverage of bitcoin treasury reporting. Bitdeer Technologies Group NASDAQBTDR, a bitcoin miner, reported on Oct. 24 that it sold all 283.4 bitcoin in its latest weekly tally. Its post did not disclose sale proceeds.
Read more: Bitdeer Technologies Group sells all 283.4 BTC in weekly tally
For Datavault, the next test is the restated accounts and revised liquidity assessment. The Oct. 26 filing set no timetable for those submissions, and its investor calendar, checked Oct. 28, listed no upcoming events.
