Datavault AI Inc. (DVLT) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Datavault AI Inc. operates two synergistic platforms: Data Sciences (data management, valuation, and monetization) and Acoustic Sciences (audio technologies and live event data capture). The company is a smaller reporting company listed on the Nasdaq Capital Market. As of August 19, 2026, there were 949,728,605 shares of common stock outstanding.
Key Financial Metrics
| Metric (in thousands) | Q2 2026 (3 Months) | YTD 2026 (6 Months) | Q2 2025 (3 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Net Revenue | $6,717 | $10,133 | $1,735 | $2,364 |
| Gross Profit | $2,878 | $2,989 | $35 | $104 |
| Gross Margin | 43% | 30% | 2% | 4% |
| Net Loss | $(88,025) | $(141,156) | $(37,116) | $(46,679) |
| Net Loss Per Share (Basic/Diluted) | $(0.12) | $(0.22) | $(0.54) | $(0.77) |
| Cash and Cash Equivalents (End of Period) | $1,400 | $1,400 | $662 | $662 |
| Crypto Assets (Fair Value) | $49,016 | $49,016 | N/A | N/A |
| Total Current Liabilities | $27,266 | $27,266 | N/A | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 287% QoQ and 329% YoY, driven by the acquisitions of CompuSystems, Inc. (CSI) and API Media Innovations Inc., and new patent license revenue ($2.5M in Q2 2026 vs. $0 in Q2 2025).
- Operating Expenses: Total operating expenses surged to $29.3M in Q2 2026 from $12.5M in Q2 2025. Increases were driven by R&D (IBM/SanQtum subscriptions), Sales & Marketing (headcount and advertising), and G&A (amortization of intangibles from acquisitions).
- Non-Operating Items:
- Impairment Losses: A significant $56.4M impairment charge was recorded in Q2 2026, primarily related to the investment in Vivasor, Inc.
- Crypto Losses: Loss on crypto assets totaled $8.1M in Q2 2026 due to fair value remeasurement and disposals.
- Warrant Liability: A gain of $3.9M was recognized from the change in fair value of warrant liabilities.
- Liquidity: Net cash used in operating activities was $80.0M for the six months ended June 30, 2026. Financing activities provided $96.5M, primarily from a Registered Direct Offering ($55.7M) and ATM sales ($32.4M).
Guidance, Outlook, Risks, and Contingencies
- Going Concern: The filing explicitly states that substantial doubt exists regarding the Company's ability to continue as a going concern for the next 12 months due to recurring losses and cash burn. Additional equity or debt financing is required.
- Nasdaq Compliance: The Company received notice of non-compliance with the $1.00 minimum bid price requirement on February 24, 2026. It has a compliance period until August 24, 2026, to regain compliance or risk delisting.
- Legal Proceedings:
- Li et al v. Datavault AI Inc.: Filed March 2026 alleging breach of contract and securities violations. Motion to dismiss is pending.
- Aramouni v. Datavault AI Inc.: Class action filed August 2026 alleging false/misleading statements regarding business and operations.
- Commitments:
- Helmex Financing: Committed to pay $25.0M in non-refundable transaction fees for a proposed $2.0B financing. $5.0M paid as of June 30, 2026. Transaction is not guaranteed.
- IBM Commitments: Approximately $15.2M remaining purchase commitments for IBM programs and cloud services.
- Short-Term Debt: A $2.0M loan with an effective interest rate of 183.5% per annum, guaranteed personally by the CEO and CFO.
- Subsequent Events: Completed acquisition of NYIAX (August 2026); entered definitive agreements to acquire CyberCatch ($86.2M cash) and BankWyse ($22M mixed consideration).
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $1.4M cash balance against the $80M operating cash burn and upcoming $86M CyberCatch acquisition payment.
- Going Concern Status: Assess the likelihood of securing additional financing given the high-cost debt and Nasdaq delisting risk.
- Impairment Validity: Review the valuation methodology for the $55.4M Vivasor impairment and the $25M Helmex fee risk.
- Related Party Transactions: Scrutinize the $18.7M Scilex advances repaid via Bitcoin and the $5.4M patent acquisition from related parties.
- Revenue Quality: Confirm the sustainability of the 329% revenue growth, which is heavily reliant on recent acquisitions (CSI, API Media) and one-time patent licensing.