Datavault AI (DVLT) announced that its financial statements for four prior periods should no longer be relied upon due to an accounting error. The error relates to the improper recognition of Bitcoin received as part of a $150 million equity sale to Scilex. The company has been unable to withdraw the Bitcoin from a third-party digital wallet, and will now reclassify the transaction as a subscription receivable, significantly reducing previously reported assets.
Key Details
- Affected Periods: The non-reliance determination, made on October 20, 2026, impacts financial statements for the periods ending Sep. 30, 2025; Dec. 31, 2025; Mar. 31, 2026; and Jun. 30, 2026.
- Accounting Error: The company determined it should not have recognized Bitcoin from the Scilex equity purchase as a digital asset. The transaction will be restated as a subscription receivable, reducing stockholders' equity instead of increasing assets.
- Financial Impact: The restatement is expected to reduce total assets by approximately $92.2M (as of Dec. 31, 2025) and $49.0M (as of Jun. 30, 2026), among other adjustments. The company is also reassessing its "going concern" evaluation as the Bitcoin is no longer considered a source of liquidity.