Datavault AI (NASDAQ:DVLT) held its first-quarter earnings conference call on Friday. Below is the complete transcript from the call.
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The full earnings call is available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=ZgLE77PU
Summary
Datavault AI Inc reiterated its target revenue of $200 million for 2026, with $800 million in tokenization contracts signed, expected to bring $90 million in fees.
The company announced the spin-out of its Acoustic Science division, to be led by David Reese, and expects to operate under the name API Media.
Datavault AI Inc highlighted the completion of a $120 million non-dilutive financing for the nationwide rollout of the Sanctum platform.
The company is integrating recent acquisitions, including Nayax and Cyber Catch, to enhance its cybersecurity and tokenization capabilities.
Management is optimistic about the Clarity Act, which could enhance regulatory clarity for digital assets, and anticipates launching industry-leading exchanges in July.
Full Transcript
OPERATOR
Good morning everyone. Welcome to Datavault AI Inc first quarter of 2026 corporate update call. I’ll now turn the call over to Ed Barger, Vice President of Investor Relations. Thank you, operator.
Ed Barger (Vice President of Investor Relations)
Good morning. Thank you for joining us. My name is Ed Barger. I serve as Vice President of Investor Relations. With me today is our Chief Executive Officer Nathaniel Bradley and our Chief Financial Officer Brett Moyer. Before I turn the call over to our CEO, I would like to remind you that this conference call will include forward looking statements within the meaning of US SEC laws with respect to future operations, financial results, events, trends and performance which are based on management’s beliefs and assumptions as of today’s date. Forward looking statements may involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements. We see Datavault AI Inc’s first quarter press release and SEC filings for information regarding specific risks and uncertainties that could cause actual results to differ. As required by law, Datavault AI Inc undertakes no obligation to update such forward looking statements. I will now pass the call over to our CEO, Nathaniel Bradley.
Nathaniel Bradley (Chief Executive Officer)
Thank you very much, Ed. Very excited to be here today. Good morning and thank you for your interest in Datavault AI Inc. First, before we get started and give you the full update, I’d like to turn the call over to our CFO, Mr. Brett Moyer to give our financial results from quarter one and update us on the spin out of our Acoustic division. Brett.
Brett Moyer (Chief Financial Officer)
Thank you Nate. And thanks everyone for joining us today. First of all, I’d like to reiterate that our Target revenue of 200 million has not changed. We ended the quarter with a very exciting $800 million in tokenization contract signed. These contracts are tied to approximately 90 million in fees. As these projects get funded, they will impact 2026 revenue throughout the year. We still expect to recognize at least 200 million in this calendar year, but as we said back in March, this is more heavily weighted to the second half of the year. Our balance sheet is stronger than ever. We funded the closing of API during Q1, but added 60 million from a private placement early May from large institutional funds, bringing our current working capital to approximately 140 million. Additionally, we announced the execution of a binding term sheet for 120 million in non dilutive financing to accelerate the nationwide rollout of the Sanctum platform. All told, we have over 250 million available funding this year. Regarding the spin out that we announced last week, datavault AI currently operates through two primary business divisions, Acoustic Science and Data Science. What is getting spun out later this year is the Acoustic Science division, and we have appointed an exceptional leader to oversee the business. As you may recall, Datavault AI Inc acquired API Media in January and David Reese, API’s CEO who came over with that acquisition, will assume leadership of the new company. The business is tentatively expected to operate under the name API Media and trade under the ticker symbol ADIO or ADIO. This new company will include ADIO, wisa, Event Citadel, formerly known as csi, and API Media. This is still in the early days, so I do not have a lot of details to share today, notably the specifics on the valuation, but we wanted to take a moment to unpack the two businesses and hopefully clarify what each company will look like in the future. The new Events API Media Company is a terrific standalone entity with significant growth opportunities when combined with ADIO, while datavault AI is a data monetization platform on the cutting edge of Web 3.0. The split will permit leadership to better focus on these two businesses. Last item for me before passing it back to Nate. We expect to close a previously announced Nayax acquisition acquisition here in May. Nayax acquisition adds a fifth exchange to the Data Vault platform for a total of nine when you include the four that we licensed. On that note, I’ll pass the microphone back to Nate.
Nathaniel Bradley (Chief Executive Officer)
Thank you, Brett. Yes, so this is Nate Bradley and I’m very excited to have this opportunity to not only celebrate our success in Q1, our upcoming dividend spin out of our Acoustic division, which now led by David Reese, is poised for an unabashed success. They’re at aeronomic right now at the PGA Tour Championship, and it’s a big event and we’re making a lot of success in that div. So very pleased to have David as a partner moving forward. He’s been a mentor of mine in my career and having him lead API Media is going to be a very, very exciting thing to see coming forward. I would like to take this time to describe to you the solution our Data Vault AI platform a bit further to give all of our shareholders a good understanding of why our company is so well positioned and in a very, very positive position in our market. And that leadership is really defined by our intellectual property. We have a freedom to operate that other companies don’t enjoy. We also have market traction and thought leadership really working to our benefit. Data, as you know, is valuable. It’s largely underutilized by corporations. It lies in waste in silos. It is unappreciated in its value. It’s undetermined how to monetize data vault solves all that Data vault AI has been built to address that head on using AI and blockchain technology. We believe cybersecurity is the central risk facing corporations today. And it’s a prerequisite to data monetization, data management, really cybersecurity, a number one issue facing us all. And with the quantum leap, this is heightened and also accelerated in its urgency. We believe we have a solution that will address this for customers of all types. And our platform has been enabled to value, secure and monetize data. We created an index, a system that allows for the indexing, the structuring and the tokenization and the monetization of data. Through our index, we’re able to understand data better. We’re able to index it on behalf of our clients. And if you want to think of the power of the librarian at a library, really our index achieves that same purpose. It allows for a CEO or for management authorized to look at a data vault and see data how it enters the company from every location that it enters. And we allow for the ability to understand its value finitely. For the first time, as you walk by a server or you see a cell phone on the table, we very rarely understand the value of the data within those particular devices. And by illuminating that value, we become better stewards of it. So, so step one is cybersecurity. Step two is index. Step three is really our ability to see a value. And we created step four, which is our ability to see a score and value and score work in tandem to let us understand the value of our data, but also the veracity of it. Can it be trusted? Is it data that is complete and accurate? And when we have complete inaccurate data, the values increased? The value for actionable intelligence put the value to the world in our ability to monetize it. So we’ve built a platform that addresses all of this. Assets come in many different flavors. We know that derivatives were Approved in the 1980s. Before derivatives, we had the stock market. We had an individual increase in the number of assets that were under management. We have an increase to derivatives, and now we have an increase to digital that that is enabled by our Clarity Act and Genius Act passage. We’re waiting, of course, for this Clarity Act that just passed through the Senate and will be voted on soon. And that that particular piece of legislation enables digital assets. We’ve created a platform that addresses it in a number of genre specific exchanges. We have our information data exchange, our international elements exchange, our American political exchange, our six exchange in development with Sports Illustrated. All of those exchanges designed to index value and score data so that it may be tokenized and managed and ultimately monetized. We have three core revenue streams that derive from our operation of data vault AI. We have the ability to license our technology. We’ve done so into large markets. We’ve identified that we simply don’t have the bandwidth to manage every single detail. And we’ve given a license to third parties that will use our technology to develop high margin revenue for us and develop the use cases for our technology that can be replicated in other licenses. We also have tokenization services, a big driver of value where we’re able to tokenize and create smart contracts for our customers that have high utility and very strong efficacy in the ability to create monetization and value for our clients. Our exchange revenue is nirvana for us. It’s the focal point. We have more margin and high velocity and value that’s created in our exchange. It is passive to our company and its collection. We have the ability to monitor and yield manage and bring our exchange to a very high level. We intend to rival from our operation in Philadelphia, that of Wall Street. We have the ability to tokenize and build volume around a number of key use cases. Geothermal energy, rare earth. The ability to look at real world assets including your own beating heart, the nil, the name, image and likeness on our Sports Illustrated exchange. All monetizable assets when you take into account AI, blockchain and data vault AI technology. We have built a home for our technology in the Sanctum. It’s secure infrastructure. It is for data monetization. It is for the use cases of digital twins and highly securitized use case assets that are derived from data. Data is worth the decisions it informs and when you develop a sanctum for it, it can live and thrive and serve our clients. It can be AI that is subordinate to our clients desires and our our clients needs. And it works for us and for our clients. It is subordinate AI in a cybersecurity sanctum. Our Sanctum initiative with available networks is second to none. We’re building 100 quantum ready data centers across the United States. These are redundant mini data centers that rival their rotund competition. Where individual companies have focused on giant data centers. Data centers that take up city blocks and have enormous power consumption and many other failover and cybersecurity risks that are present when you consolidate data centers into one large location. We are disparate. We have a self healing mesh, a system that is deployed over 100 cities and that will address our customers needs around cybersecurity primarily. And also their ability to use digital twins and our world class data monetization systems. All of which we have patented. All of which we have invested heavily in to create the quantum ready infrastructure, the quantum VPN of the future that will be in our control. Our sanctum has been enhanced with our potential acquisition of Cyber Catch. We’ve announced an acquisition of Cyber Catch out of California. They have a robust pipeline, executive leadership with government contracting backgrounds and huge opportunity for data vault to enhance our cybersecurity footprint and allow for our technology stack to begin with a cybersecurity nest for all of our customers. And when we have that nest in place, when we have our sanctums in place, we’re able to place quantum coins and quantum security into our customers accounts. And we’re able to deliver a system that allows us to not only value score and monetize, but deliver actionable intelligence to our customers. Our platform is enhanced with multi billion dollar partners clear on the front end for KYC and verification develops investor trust. It allows our customers to sort who they want to sell their data to, who qualifies to acquire data assets of our customers and we have the ability to exclude others that are not invited to enjoy the value of our customers data. So the ability to utilize world class KYC systems with their international corollaries clear is our choice. We’ve also been chosen by IBM as a platinum partner. They’ve invested in us, we’ve invested in them. We’ve brought in their team to help enhance our team. And our team out of Atlanta led by Jeff Jones, our CTO is building this platform that now includes …
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