Datavault AI will restate earlier financial statements after failing to withdraw Bitcoin received from Scilex in a share deal. The company no longer counts that BTC as available funding for its operations.
Datavault AI says Bitcoin received from Scilex in exchange for shares was credited to its account with BICONOMY PTE. LTD., but it has been unable to withdraw the assets to an external wallet. In its October 26 SEC filing, the company said its June withdrawal request remained unfulfilled and that it should not have recorded the Bitcoin as a digital asset in its financial statements.
After consulting management, the audit committee decided on October 20 that earlier financial statements needed to be restated. Datavault works in artificial intelligence, data valuation and tokenization; The Block reported on the disclosure on October 27. The company did not explain why it could not withdraw the assets or disclose the exact amount requested and current on-chain balance. It did not report that the Bitcoin had been stolen or permanently lost.
How Bitcoin was recorded in the $150 million deal
Under the September 25, 2025 agreement, Datavault agreed to issue Scilex 15 million common shares and a pre-funded warrant for 263,914,094 shares. The $150 million purchase price was payable in Bitcoin. At the agreed price of $112,915.52 per BTC, Scilex was to pay approximately 1,328.43 BTC.
Datavault says 1,309.04 BTC was credited off-chain to its Biconomy wallet account on September 26 and November 25, 2025. Cash advances Scilex provided between signing and final closing covered the 19.39 BTC difference. Off-chain transactions are recorded in the platform’s own accounts. Sending Bitcoin across the network to an external wallet is a separate transaction.
Between September 26, 2025 and January 30, 2026, Datavault sold 491.431 BTC back to Scilex off-chain for approximately $40.5 million in cash. However, the external-wallet withdrawal it requested in June remained unfulfilled.
Four reporting periods will be restated
The company says investors should no longer rely on statements covering the three and nine months ended September 30, 2025, full-year 2025, the first quarter of 2026, and the three and six months ended June 30, 2026. The affected reports were filed on November 14, 2025, March 18, 2026, May 15, 2026 and August 19, 2026, respectively. The annual statements had been audited; the three interim reports were unaudited. Earnings releases, investor presentations and other communications are also affected, but only where they reflect or rely on those statements.
Datavault will remove the Bitcoin from its reported digital assets. It will record the payment due from Scilex for the shares as a subscription receivable deducted from stockholders’ equity, rather than adding it to assets. The approximately $40.5 million already received in cash will reduce the payment still owed by Scilex. The company cites US accounting rule ASC 505-10-45-2 and Regulation S-X 5-02.29.
Datavault expects its total assets to fall by the following amounts, based on preliminary calculations. Each row refers to a different balance-sheet date; the amounts cannot be added together to calculate a total loss.
| Balance-sheet date | Expected reduction |
|---|---|
| September 30, 2025 | $8.1 million |
| December 31, 2025 | $92.2 million |
| March 31, 2026 | $57.1 million |
| June 30, 2026 | $49.0 million |
The company will also reverse the crypto-asset gains and losses it previously recorded. It has not yet calculated the final changes to its income and cash-flow statements. Management says the estimates are preliminary and unaudited, and the review could uncover additional errors or adjustments.
Datavault is reassessing how it will fund operations
Datavault previously expected to use the Bitcoin to fund its operations. It no longer assumes it can use those assets and says it is uncertain whether Scilex will pay the amount owed. Management is reviewing its conclusions in the 2025 annual report and first-quarter 2026 report about the company’s ability to continue operating. It has not announced the outcome.
The company is reviewing whether the accounting errors point to deficiencies in its financial-reporting controls, including material weaknesses. It has not determined whether its earlier conclusions about the effectiveness of those controls need to change. It has discussed the matter with current auditor CBIZ CPAs P.C. and former auditor BPM LLP. The controls review is unfinished, and the October 26 filing contains no new auditor’s opinion.
Datavault will file the restated reports with the SEC but has not set a date. It lists potential additional accounting adjustments, delays to its third-quarter 2026 report, Nasdaq continued-listing requirements, financing needs and possible litigation or inquiries among the risks. Datavault says it needs cooperation from third parties, including Biconomy, to collect the amount Scilex owes. The company has not announced that it has been delisted or declared bankrupt.
DVLT fell almost 50% on October 27
According to the QuoteMedia price table on Datavault’s investor site, DVLT closed October 27 at $0.067, down 49.55% from the previous close of $0.1328. Trading volume reached 249.41 million shares, approximately 8.2 times the previous day’s 30.30 million shares.
The October 28 quote displayed at 1:54 p.m. US Eastern time, or 17:54 UTC, was $0.0839, up 25.22% from the previous close. The provider supplies data with a 15-minute delay. The session was still open, so $0.0839 was not a closing price. The stock had recovered only part of its October 27 decline.
