Datavault AI disclosed that a Bitcoin withdrawal requested from Biconomy in June remains incomplete. Datavault's October 26 Form 8-K says the request sought to transfer Bitcoin to an external account, without explaining the obstacle. Datavault also said investors should no longer rely on four previously issued financial reports.
Datavault shares fell 49.55% to $0.067 on October 27 following the disclosure. The Nasdaq-listed company's shares closed Tuesday at $0.06 after a decline exceeding 50%. Datavault shares recovered to nearly $0.085 on Wednesday.
The Bitcoin originated in a September 25, 2025 agreement under which pain-medicine company Scilex Holding agreed to pay Datavault $150 million in Bitcoin. Scilex agreed to purchase 15 million Datavault shares and a pre-funded warrant for another 263.9 million shares. A pre-funded warrant allows a stock purchase with almost the entire purchase price paid in advance. The agreement valued Bitcoin at $112,915.52 each, producing a total of approximately 1,328.43 BTC.
Datavault's filing says Scilex credited 1,309.04 BTC to Datavault's Biconomy account on September 26 and November 25, 2025. The credited amount excluded 19.39 BTC to account for cash advances previously provided by Scilex. The transfers changed account balances within Biconomy rather than transferring coins through the Bitcoin blockchain. Datavault resold 491.431 BTC to Scilex through the same process between September 26, 2025, and January 30, 2026, receiving approximately $40.5 million in cash.
Datavault concluded after reviewing the arrangement that the Bitcoin had never met the requirements for recognition as Datavault's digital assets. Datavault will instead recognize a subscription receivable, an amount owed by a purchaser of newly issued shares, as a deduction from stockholders' equity. The $40.5 million cash payment will reduce Scilex's outstanding obligation. Datavault expects to remove previously recognized cryptocurrency gains and losses.
The restatements are expected to lower total assets by $8.1 million at September 30, 2025. The expected reduction reaches $92.2 million at year-end 2025. The expected reductions are $57.1 million at March 31 and $49 million at June 30. The affected reports comprise the 2025 annual report and three quarterly reports submitted between November 2025 and August 2026.
Datavault management is reassessing the company's going-concern status because Datavault had included the Bitcoin balances among available sources of liquidity. The going-concern assessment examines whether a business can maintain operations and meet obligations. Datavault's filing says collection of Scilex's outstanding obligations is uncertain. The filing identifies risks involving Scilex's creditworthiness, dependence on a third-party custodian, Nasdaq listing requirements, and potential litigation or regulatory inquiries concerning the restatements.
Scilex's quarterly filing says Scilex sold Biconomy 12.5 million shares in Scilex subsidiary Semnur Pharmaceuticals on September 23, 2025, for $200 million in Bitcoin. Scilex said $150 million of those proceeds funded the Datavault stock purchase. Scilex's effective purchase price under the 2025 Datavault agreement was $0.5378 per share.
Scilex signed a binding term sheet on June 24, 2026, to purchase 837 BTC in Datavault's Biconomy wallet for $50 million, subject to a definitive agreement. Scilex agreed to pay $30 million initially. Scilex agreed to pay the remaining $20 million through quarterly installments ending December 31, 2028, using cash or Scilex securities at Scilex's discretion.
Datavault has not announced a filing date for the revised financial statements. Datavault warned that the delays could also affect the quarterly report covering the period ended September 30, 2026.