Datavault AI Inc. Common Stock 2026 Q2 Earnings Call

Good morning, and thank you all 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 U.S. 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. Please see Datavault's second 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 undertakes no obligation to update such forward-looking statements. I will now pass the call over to our CEO, Nathaniel Bradley.

Nate? Thank you, Ed. Nathan Bradley here.

Thank you everyone for joining today to go over our Q2 financial results. I'm happy to announce that we are today reiterating our $200 million target revenue for 2026. Brett will go in deeper into the financials, but I'm very excited about the progress that we've made with customers on both sides of our business. I am very confident in this number moving forward. Datavault has now created an artificial intelligence platform that lives within the Datavault QPN, our Quantum Private Network. Both divisions, our acoustic science and our data science divisions, will contribute to the $200 million in revenue for the year. I'd like to go into how the data sciences division will contribute.

We have a special contract with Available Infrastructure, and Available Infrastructure is in the process of building over 100 cities and 1,000 locations, America's first AI supercompute network. This AI supercompute network is quantum ready. It is ready for the quantum leap. It is ready to control, contain, and repel cybersecurity attack. We have a system that allows for our customers to utilize our DataValue and DataScore in a method that allows us to value data the moment it is born, at the edge of the internet. This process has led us to become a key partner of Available Infrastructure. In fact, we have entered into Project Qestrel, a project that allows us to mint a coin for Available Infrastructure that allows them to meter and control the access to their systems. We believe that this system will generate over $10 billion in revenue upon completion.

We have already minted the first $1 billion in coins, and I am happy to announce that we have sold coins to a Fortune 500 company. Our Datavault AI AIP is second to none. It is the number one tokenomic IP stack in the business. It has international KYC capabilities from CLEAR. It has a team of developers from IBM and our own in Atlanta, Georgia, led by our CTO, Jeff Jones. We have a system that has now incorporated the technology of Fiserv. Fiserv will be fully integrated mid-September at the time in which we intend to launch our networks and our exchanges. We will be doing a comprehensive demo following the call. To access the demo, please go to the press release announcing this call. Our platform will, once exhibited, show you the ability that our customers possess to value, score, and exchange their data assets for cash.

We have created a number of very distinct marketed advantages within our platform, including our use of Fiserv for international clearing, CLEAR for KYC, and the Nasdaq Financial Infrastructure for trading. We have enhanced this platform drastically over the last few days through acquisition. We have acquired BankWyse, a bank that has a Wyoming State Bank charter as a special purpose depository institution. The bank, upon a regulatory approval of name change, will change its name to Data Vault Bank. We are going to use the tagline "Checking, savings, and data" to represent the mission of the bank, which is to create a third bank account for Americans where they can value, score, and monetize their data assets. From one button, extract all the data that we left in our wake in cloud-based systems, at our doctor's offices, and all throughout our lives.

We are able to now collect, curate, and manage that data in digital form. We can now score it, value it, and monetize it, and we can do so for our businesses and for ourselves. BankWyse opens up a number of unique opportunities, but it is infused with human talent. Julie Fellows, the CEO, a very talented entrepreneur who has positioned BankWyse at the right place at the right time as digital assets become the key new commodity within businesses. We have also acquired CyberCatch. CyberCatch is a quantum-ready security system that allows for us to deliver for all of our clients the ability to catch and remediate cybersecurity attacks. The CyberCatch system is also infused with talent. Sai Huda, who took over as CEO and is one of the most talented cybersecurity professionals in our country.

He has a system that we have signed definitive agreement to purchase in an all-cash transaction that will close in our fourth quarter. In the meantime, CyberCatch software will be infused into Data Vault. Every Data Vault will have a CyberCatch capability, and that capability will allow our clients to keep safe their digital assets and repel cyber attacks from them. We have a number of unique exchanges that we are bringing to marketplace. These exchanges will offer utilities and systems and investments that have never been seen before. The Information Data Exchange allows our clients to monetize data systematically, scoring it for validity, scoring it for trustability. Having the ability to know the value and score of your data will become the standard. We have also the International Elements Exchange focused on RWA and rare earth and strategic minerals, well-aligned with our government initiative to create a strategic metal reserve.

We have a customer called Patriot Strategic Metals, and they are enabling us to participate in a large opportunity around rare earth and strategic metals. As our country creates the American Strategic Critical Minerals Reserve, Datavault AI is a catalyst, a system that allows for increased production and greater access to these metals that are sought after around the world. NYIAX, our advertising exchange, and the American Political Exchange will both be launched to provide new opportunities within those marketplaces. There are many compelling reasons why tokenomics is now and why real assets have become in vogue. There is over $18.9 trillion worth of RWA tokenomics going on right now, and Datavault AI is going to be a major player in that space, the global reference and the platform that makes it happen. I am also pleased to be able to describe to you a few key transactions in licensing.

In addition to those exchanges that we plan to run and own and operate, we have also licensed those in which reach very specific niche markets where we do not operate but have utility. Scilex has licensed our technology for the use of creation of a biotech exchange. DataMEDS has licensed the technology for the data monetization within the medical field. Vivasor has entered into a special licensing relationship with us where they will monetize medical images and quantum scans, which will become very valuable medical artifacts. The Vivasor opportunity also came with a balance sheet enhancement capability. We swapped 50 million shares of our stock for 50 million shares of Vivasor, and I am happy to announce that we have now been converted in that Vivasor trade into $150 million worth of Phoenix Asia Holdings stock.

This will provide a balance sheet enhancement, allowing our company to qualify for GENIUS Act compliance and allow for our exchanges to freely trade in a compliant way. That balance sheet, as we continue to build it, will allow us to trade more and more upon our exchanges in a compliant fashion. We have also received a number of foundational patents. We have over 100 in our possession that protect our invention and our products in both divisions. Our acoustics division has had a number of successes in this space. A big shout-out to Josh Paugh, who runs our intellectual property department. He has been exceptional at obtaining new patents for both our WiSA and our ADIO operations. These patents are now foundational to an industrial standard within the acoustics. We have our acoustic science division driven by intellectual property and capability that is world-renowned.

We have an ability to leverage this in the future. As we look at the two divisions, they are becoming so tightly connected and so synergistic that we are not compelled to spin out ADIO at the moment. We are going to keep both divisions working as two divisions working on one mission, which is the value creation for our shareholders. The regulatory tailwinds are at our back. The GENIUS Act is law. The CLARITY Act is pending in our U.S. Senate with expected passage in September or thereabout. Along that timeline, we will be launching our exchanges. In the middle of September, all exchanges will launch, our licensed exchanges will become active, and we will be able to clear a number of backlogged opportunities within our exchange and data sciences division. We have three core revenue streams in our data sciences division.