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DATE

Wednesday, Aug. 19, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

• Vice President, Investor Relations - Edward Barger
• Chief Executive Officer - Nathaniel Bradley
• Chief Financial Officer - Brett Moyer

TAKEAWAYS

• Revenue -- $6.7 million for the second quarter, representing 287% growth driven by the Acoustics Group and medical licensing.
• Full-Year Revenue Guidance -- $200 million for 2026, supported by the integration of the Acoustic Science and Data Science divisions.
• Tokenization Pipeline -- $2.5 billion in signed contracts to issue tokens, representing $213 million in total potential fees.
• Banking and Licensing Fees -- $160 million in anticipated fees from the current tokenization contract backlog.
• Technology Fees -- $61 million in fees from signed contracts, representing a 100% margin business for the company.
• Project Qestrel Potential -- $10 billion in projected revenue upon completion, with the first $1 billion in coins already minted.
• CyberCatch Acquisition -- $94 million for an all-cash transaction scheduled to close in the fourth quarter.
• Balance Sheet Asset -- $150 million worth of Phoenix Asia Holdings stock, resulting from a share swap with Vivasor.
• Projected Share Count -- 1 billion shares expected to be outstanding by quarter end, up from 855 million.
• Liquidity Sources -- $200 million in anticipated liquidity for the year from bitcoin sales, receivables, and a $120 million revenue-share deal with Scilex.
• Strategic Metals Initiative -- $700 million in initial project value through a partnership with Patriot Strategic Metals.
• Rare Earth Tokenization Demand -- $1.5 billion in signed demand specifically within the mining and rare earth mineral sector.
• Research and Development Expenses -- $7.2 million for the quarter, an increase of $3 million reflecting the development of the artificial intelligence platform.
• Sales and Marketing Expenses -- $7.2 million for the second quarter, an increase of $5.5 million year over year.
• General and Administrative Expenses -- $14.9 million, compared to $6.5 million in the prior year period.
• Net Loss Attributable to Common Stockholders -- $88.0 million for the quarter, compared to $37.1 million in the second quarter of 2025.
• Crypto Asset Loss -- $8.1 million recorded during the three-month period.
• Available Networks Infrastructure -- 30 sites under construction, providing distributed edge-computing capacity for the company.
• Gross Profit -- $2.9 million for the second quarter, compared to $35,000 in the same period last year.
• Institutional Investment -- $5 million in commitment and engineering support received from IBM.

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RISKS

• Moyer noted that the $200 million revenue target "obviously implies a bump up in Q3, but a very significant bump in Q4," indicating heavy reliance on performance in the final months of the year.
• Bradley stated, "It's really a legal and regulatory challenge around our token exchanges," regarding the complexity of gaining regulator approval for the company's new digital asset classes.

SUMMARY

Management at Datavault AI Inc. (DVLT -3.17%) reported that the company is transitioning from infrastructure development to commercial execution, with a planned launch of multiple data exchanges in mid-September 2026. The company stated that the recent acquisitions of NYIAX, BankWyse, and CyberCatch are intended to provide the exchange infrastructure, banking charters, and quantum-resistant security required for scaled operations. The company confirmed its full-year 2026 revenue target of at least $200 million, citing significant signed contract demand for its tokenization and data monetization platforms. Management reported that the balance sheet was strengthened through stock swaps and financing agreements, providing the capital necessary to complete the buildout of its nationwide edge-computing network.

• Bradley stated, "We've acquired BankWyse, a bank that has a Wyoming State Bank Charter as a special purpose depository institution," which allows the company to offer integrated data monetization and banking services.
• Management reported that the Fiserv integration, expected to be complete by mid-September, will allow users to connect debit or bank accounts directly to the DataVault platform for seamless transactions.
• Bradley noted the company has an "automatic shareholder equity exemption" to maintain its NASDAQ listing through Feb. 2027 without needing a reverse stock split.
• The company is utilizing IBM watsonx technology at its Philadelphia and New York edge nodes to provide AI inference capabilities to enterprise customers.
• Management indicated that the Acoustic Science division is remaining integrated because it is synergistic with the Data Science mission of shareholder value creation.

INDUSTRY GLOSSARY

• Project Qestrel: A tokenization initiative to meter and control access to a planned nationwide network of 1,000 edge data centers.
• SanQtum: The company's secure, distributed computing layer that provides quantum-resilient security and edge AI inference.
• RWA: Real-world assets, which the company converts into digital tokens to enable liquidity and monetization for physical holdings.
• Genius Act: A specific regulatory standard mentioned by management as necessary for the compliant operation of its digital asset exchanges.
• Tokenomics: The economic system and rules governing the issuance and utility of digital tokens within a blockchain ecosystem.

Full Conference Call Transcript

Operator: Greetings and welcome to the DataVault AI second quarter 2026 earnings results. [Operator Instructions] As a reminder, this conference is being recorded. [Operator Instructions] It's now my pleasure to turn the call over to Edward Barger, Vice President, Investor Relations. Please go ahead, sir.

Edward Barger: Thank you, Operator. 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?

Nathaniel Bradley: 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. Our 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.

And I'd like to go into how the Data Sciences division will contribute. We have a special contract with Available Networks. And Available Networks 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's ready for the quantum leap. It's ready to control, contain, and repel cybersecurity attacks. We have a system that allows for our customers to utilize our data value and data score 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 Networks.

In fact, we've entered into Project Qestrel, a project that allows us to mint a coin for Available Networks, 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've already minted the first $1 billion in coins and I'm happy to announce that we've sold coins to a Fortune 500 company. Our DataVault AIP is second to none. It's the #1 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'll 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've 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've enhanced this platform drastically over the last few days through acquisition.

We've 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 DataVault Bank. And we're 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're 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's infused with human talent. Julie Fellows, the CEO, a very talented entrepreneur who's positioned BankWyse at the right place at the right time as digital assets become the key new commodity within businesses. We've 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. Mr.

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've purchased in -- that we've 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 DataVault. Every DataVault 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're bringing to the 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 more sustainable world, create a strategic metal reserve. We have a customer called Patriot 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 Metal Reserve, DataVault 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 is going to be a major player in that space, the global reference and the platform that makes it happen.

I'm 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've also licensed those 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. And 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'm 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've 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 Paul, 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. And as we look at the two divisions, they're becoming so tightly connected and so synergistic that we're not compelled to spin out ADIO at the moment.

We're 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 United States Senate with expected passage in September or thereabout. Along that time line, we will be launching our exchanges. In the middle of September, all exchanges will launch. Our licensed exchanges will become active, and we'll 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 that is IP licensing, tokenization and services, and exchange revenue.

At this point, I'd like to turn over the call to Brett Moyer, who will dig deeper into the financial results of our second quarter and set the table for what comes next. Brett?

Brett Moyer: Thank you, Nate. I appreciate the overview and the summary of all the terrific work the team has made in the last 90 days. Today I'd like to go through briefly some traditional financial metrics, but then drill into some key parts of our balance sheet and our business that we get asked a lot of questions about. So, if you look at the Q2 highlights, we'll file the Q tonight. It'll show $6.7 million of revenue, in Q2, predominantly from the Acoustics Group, but we did have additional licensing into the medical space with the Data Science side. Now, during Q2, for those that have tracked us, we did raise $60 million.

That was primarily used to fund the initial payment into the Available Networks structure that Nate talked about at the top, right? So the Quest token, which is the foundation of the Quest token opportunity. We additionally strengthened the balance sheet with an agreement with -- 2 agreements with Scilex to both buy the Bitcoin for $50 million and to fund the Available Infrastructure network build-out for a rev share later on in the back, which would be non-dilutive. In addition, we announced this morning, which took a lot of work in Q2 and early Q3, we closed the NYIAX transaction.

And as Nate mentioned earlier, we've signed definitive agreements with CyberCatch and BankWyse, which substantially, although do not show up in our revenue today that we're talking about, dramatically increased our ability for revenue in Q4 and 2027. Now to go into some greater detail, we've been reporting signed contracts for tokenization business and let's go through what that means. In total, our signed contracts would like to issue $2.5 billion worth of tokens to fund their businesses. That represents $213 million worth of fees. This is as of today. Those fees break out into 2 components. One is banking and licensing fees.

So who raises the money, who does the licensing, that will be split, either taken entirely by us or split with partners that are doing the investment banking for our issuers. Additionally, there's $61 million of technology fees that go 100% to us, which is for those building models, 100% margin business. Now, where are we getting the traction? Traction is really broad-based. Traditionally, we talked about the mining and rare earth mineral aspect. That's $1.5 billion. But we've also signed agreements for real estate, tort law for legal settlements, music catalog royalties, and energy, which we've talked about in the past on Triton Global.

So in total, we got $2.5 billion worth of demand and signed contracts for funding through tokenization. We've got $160 million for licensing and banking fees and $61 million for technology for a total of $213 million. For the balance sheet, we expect to end this quarter with about 1 billion shares outstanding. That's at 855 million currently outstanding. We got 79 million approximately that will go out for NYIAX. And then between BankWyse and the financing that we announced this morning, we'll add approximately 45 million or 50 million shares into the market.

I think what's important about the acquisitions we've done and important for the investors to know, not only did it build out and round out our technology platform that nobody else has, but we also think we've now concluded the majority of acquisition activity. And so going forward, this 1 billion shares and the rapid growth in shares outstanding should abate and we should start driving revenue in the second half of this year and 2027. Okay, so a lot of questions come in on the next topic in terms of liquidity. How are we financing this growth?

Well, we've talked about some of this during the call, but we have about $200 million worth of liquidity coming in this year around support from selling a BTC, receivables that we've previously reported for the licenses to Vivasor and Scilex. We have the $120 million rev share deal with Scilex for funding the SanQtum, which is non-dilutive. And we have the financing that we closed this morning. And with that, we think we can finish funding the Available Network rollout. We can fund the business and hit this growth phase in revenue that we're all projecting. So with that, I'd like to turn it over to Nate.

Nathaniel Bradley: Thank you, Brett. So just to wrap things up today, I would like to just drive some points home. Our revenue momentum, when you look at our bookings and the demand for our services, we are clearly at the right place at the right time with the right product to execute. We have an infrastructure-first approach at DataVault. We really focused on quantum readiness, cybersecurity, and now the delivery of secure systems that allow for exchange. Our partnership ecosystem is second to none. We have a technology stack that includes multibillion-dollar partners and resources that allow our customers to enjoy the best-in-class digital asset platform.

Our IP moat is, again, a very powerful tool for us to exclude others and to become the sole source of the products that we produce. We have a recognition as the tokenization leader. We are the number one international reference for RWA and for rare earth tokenomics. Our balance sheet strength is one in which we are growing to become Genius Act compliant on our exchanges. We'll continue to grow our balance sheet and produce results for our shareholders and stakeholders alike.

We thank you again today for taking the time to learn about our company, and appreciate you taking a look at our demonstration that's available from the press release that was issued earlier this morning about this call. Thank you very much.

Operator: [Operator Instructions] Our first question today is coming from Barry Sine from Litchfield Hills Research.

Barry Sine: Congratulations. A lot of moving pieces today. I want to start by asking you about the status of getting the exchanges up and running in terms of what -- where do we stand with software development? I know you have a very strong CTO down in Atlanta. I think, Nate, you said that you were looking to go live around mid-September. I'm not sure if that's contingent on the CLARITY Act or if you can use the workaround with Perpetual. If you could just give me an update on getting those exchanges, what still needs to be done, what's already done to get those exchanges up and running?

Nathaniel Bradley: The great part about our position there, and thanks for the question, is that we have received over $5 million in investment from IBM. They recently tacked on a bit more in terms of their commitment in engineering with us. That team's been at work now for over a year. The process together has yielded platforms that are up and ready to go. There's one integration that we're completing with Fiserv Corporation, which is a catalyst for the entire launch. That is the ability to connect your debit account or your bank account directly to the DataVault and have seamless interactions between banking and the DataVault. Aside from that, all systems go.

We will version the technology, so things like CyberCatch, BankWyse as it comes online, and other tools that we're putting in place inside the DataVault, some of it with the inference layer being drastically improved with an acquisition that we made out of London, a company called Salieri, that we bought underlying AI technology from and have integrated into the DataVault. So the entire system really is not dependent on the CLARITY Act whatsoever.

CLARITY Act will allow us to expand the amount of digital assets that we're able to put onto our exchanges and it gives us more flexibility and clarity with respect to how to handle complex transactions in token and also manage that from a regulatory standpoint in a compliant modality. We're very focused on Genius Act compliance. Genius Act actually enables our information data exchange, our NIL exchange. These are unhindered by any of the CLARITY Act legislation. CLARITY Act is really instrumental around our strategic metals and other properties that are going to be enhanced with the CLARITY Act passage.

In addition, in terms of our timing, we're focused on a licensing and a tokenization process that's not the upfront first part of our system. These revenues are largely recognized as we license the technology and as we tokenize the assets. We have a number of deals that are underway with that, and our third quarter will be drastically impacted by that activity with respect to our ability to recognize revenue. So it is really the middle of September that we're looking at having the Fiserv integration completed, at which point we'll do a big announcement around each of the exchanges as we roll out really sell-side inventories and buy-side relationships that we've worked hard to establish on both sides.

Barry Sine: That's really -- similar question on the status of the network construction through Available. Are any of the nodes finished now? What's the target for initial capability and completion, and what do you need from them on that network to do what you just talked about in terms of getting the exchanges up and running?

Nathaniel Bradley: Well, again, a good question. So Available is having a great deal of success in their rollout. Their execution has been on time. We have Philadelphia, New York, Washington, D.C., Atlanta, with a testing server that we're able to stage and work on from Atlanta. That element will be in place by the end of the month in Atlanta, but the fully operational network for AI and supercompute is up and running in Philadelphia, New York, D.C. That is expanding on a daily basis. We're in L.A. and over 30 sites are now under construction simultaneously through Available Networks. Our relationship there is one in which Available Networks provides all the funding, manufacturing, and development of the network.

They're building out each individual node on behalf of the partnership. Our role is tokenomic. We have a system where we plug in through API to the Available system to meter and to manage the consumption of compute. The compute is incredible. PetaFLOPS of throughput is available to us already. We have also the relationship with IBM, which is getting us the highest quality hardware in place at these sites. We'll be adding, of course, our CyberCatch software as well to that system, and the process of selling the compute is already underway and we've achieved sales already that we'll be announcing here in the near future.

Barry Sine: And that's really thorough. Just to clarify, it sounds like with the nodes that are already done, you have what you need to go live with the exchanges you have targeted for completion with Fiserv. It sounds from a network perspective, through Available, you have what you need already to go live and that everything to come is just adding more capacity. Is that correct?

Nathaniel Bradley: That is correct. Adjacency to our customers. So as the sites roll out, municipalities, large Fortune 100s and 500s can access Available's network adjacent to their facilities. So the nearness of our nodes to our customers allows for improved performance and security and other elements that we can bring to the table for our clients. So each rollout of a node will give us a hunting ground in those regions with respect to our highest level clientele. All of these clients are interested in data monetization, digital assets, digital twins, all of those things turn on inside Available. So we have kind of a feast of revenue-generative opportunities around each node that we erect.

At the moment, the Philly and -- the Philly Prime and New York backup have installed IBM watsonx technology. We also have an AI agnostic system there where Anthropic and ChatGPT and others can be installed in these SanQtums to provide subordinate AI systems that are proprietary. We feel that, that is a very strong value proposition and one that's being sought after corporately. So we're focused on that. We are up and ready with our network. Our technology for our exchanges will be incredibly robust and is already up and running.

We're making some final additions, as I mentioned, with Fiserv that will drastically enhance the banking architecture of our systems, allow things like debit cards and other things to be managed through our platform.

Operator: [Operator Instructions] Our next question is coming from Alfred Blakely III from Money Channel NYC.

Unknown Attendee: Hey guys, how are you? Great quarter, great technology, really looking forward to everything coming out in September. Most importantly for the investors, I just wanted to see if you could reiterate how they can go see the demonstration of how the DataVault works. Nate, I think that would really enlighten people to dot-to-dot how this is going to be the best exchange in the world to use for all different types of digital and real-world assets. Can you just let everybody know about the demonstration and encourage them to go see that because it will really put together -- your demo is unbelievable and it'll put together of what this is all about.

Nathaniel Bradley: Well, thank you. Yes. So the -- there is a demonstration available. If you go to dvlt.ai, you can access it directly from our home page. It's a very prominent link on that page. And getting through our demonstrations, we have 2 posted today, one about DataVault and another about our Acoustic division, giving some clarity with respect to how the technologies work together and the underlying technology capabilities are displayed. So hopefully that will allow people to engage. We obviously, from there can take direct appointments for qualified participants to have a deeper dive demo based on their niche or market focus.

Unknown Attendee: Yes, that's great. Thank you so much for that because people need to see to believe, so to speak. And when you see the DataVault and its capabilities and it's live for them, you'll see that the company is extremely undervalued. When you see what you guys have built already, people don't understand that you guys have been building behind the scenes waiting for this launch and doing all that work. It's already caught up to the line here when you launch, you'll be all ready, you'll have your quirks systemed out and you know you guys have been testing this, correct?

Nathaniel Bradley: Well, blockchain and AI systems are ones in which individuals ran out to market because of the incredible breakthrough of these technologies and what the utilities that they represent drive. So I would say to you that, yes, we've been working for years, both patenting and reducing to practice these inventions. The purpose is to unlock the power of data as a cost center and a liability generator that it is today to turn it into the incredible wealth generation that Bloomberg taught us. The ability to monetize data now in every company's bailiwick because of DataVault.

The ability to understand assets, to score them, value them, and exchange them is something that we're well positioned to provide and the reference in the space. So then that -- the commitment to quality, and you mentioned waiting, we did wait. We've been waiting for regulatory clarity. We're Americans. We're building an American exchange, the first of its kind in digital assets. And we're really excited about the assets that we're going to bring to the marketplace, because our customers have been so creative using our platform to create objects of interest and very valuable utilities around our systems. So I appreciate the question.

Unknown Attendee: Thank you very much. This is the exchange that everybody can come to worldwide. This is the exchange that when other people make digital assets, they can bring them to you, correct?

Nathaniel Bradley: That is right. Yes, absolutely. So our customers provide the content, we provide the mechanism. Our mechanism values, scores, allows them to see and experience their data, have data inference layer run by our artificial intelligence platform that is increasing capabilities, including cybersecurity and data monetization.

Operator: Next question is coming from Peter Ruggieri from Craft Capital.

Unknown Attendee: You got a lot going on. I have a question. Where are you coming up with $94.5 million to buy this company you just announced?

Nathaniel Bradley: Thank you for the questions. The announcement was regarding CyberCatch and a $94 million acquisition. The cash is actually, well, four to fivefold in terms of how we get there. We have announced Qestrel. That coin has already minted $1 billion in access to the Available Networks. Our deal there is 50-50 with respect to the revenue split. So $1 billion in coins would generate $500 million in revenue for DataVault. That is over time. That is cash with respect to our collections there. So that's one source. You can also see that the arrangements that we have around $150 million from Scilex. We also have a receivable of about $190 million around our collection of licensing cash.

That, coupled with the Helmex deal that we've announced, where we get further access to balance sheet enhancement and capital, and a number of other transactions that we've lined up. One that we've announced already called Patriot Strategic Metals. PSM is a well-positioned organization with government contacts and contracting into the Department of Strategic Capital of our United States government. This is related to the acquisition of Strategic Metals. It ties into our contracts with American Strategic Metals out of Nevada. We have a number of other contracts, California, Arizona, and other mines coming online with respect to that program. That program is cash accretive to our company. We've announced $700 million in that initiative at the first throw.

The total first project is $3.2 billion and is related to American Strategic Metals and the use cases around tokenomics for the purpose of real-world asset monetization and rare earth monetization. So those are the primary sources.

Unknown Attendee: Okay. Another question, if you don't mind. So you said after the first quarter call, the majority of revenue is going to hit the second half of the year. So being that we're in the third quarter right now, should we see a very big jump in revenue to hit this $200 million? Is it going to fall more in the third quarter? Or like will it hit the fourth quarter? Trying to get an idea of how to gauge it.

Brett Moyer: Listen, Peter, this is Brett. So we did say we're reaffirming guidance for $200 million. We said the exchanges will go live mid-September. So that obviously implies a bump up in Q3, but a very significant bump in Q4.

Nathaniel Bradley: We have a number of projects that you will see us announce in Q3. And revenue recognition is something that is obviously subject to audit and to the regulatory overview of the company's book of business. We're getting very good at understanding tokenomics. It's new to our auditors. It's new to the SEC. It's new in many aspects, and there is the challenge. It's really a legal and regulatory challenge around our token exchanges, and we're being extremely careful to get the proper experts and the proper thumbs up from regulators with respect to these assets and how they are being brought to market. So we're being very careful with respect to that.

We're also being conservative in the way that we are approaching it. The key to our third quarter and fourth quarter revenues will be manifest in a number of announcements you'll see from us this quarter. And this quarter will reveal, even on the acoustic side, I mentioned the standards body approach we're taking there, and we have a number of other unique revenue streams coming from that side of our business on events and others that you'll see that are tied to dates on the calendar and events that we deliver. So there's a very specific revenue recognition process that's been identified around that to ensure that we're able to recognize $200 million or more this year.

Unknown Attendee: Yes, just to go, like a couple of quarters back, you made a comment that you do -- I believe it was north of $400 million or $500 million in revenue for next year. Are you still comfortable with that?

Brett Moyer: Peter, we have given the guidance for '26. We have not given official guidance for 2027. Nate has his aspirations and that's where we stand. We have full year guidance for this year. We don't have quarterly guidance and when we're ready to announce '27, we will do so. In the meantime, you got an exciting back half of the year coming given all the acquisitions we put together, the balance sheet strengthening that we did. So with that, we're going to give one more person who's patiently sat in the queue for the entire call, the opportunity to ask a question and then we gotta sign off.

Operator: Certainly, our next question is coming from Lee Allen, a private investor.

Unknown Attendee: Yes, great. Thank you for the information and taking the call. I just -- as an individual investor with a 6-figure account worth of shares with you guys, I'm just inquiring about the initial email that came out early this year in terms of the delisting threat of the stock languish below $1. And also, with respect to Available Networks, it's really exciting with you guys have going on with them. But are we like the only tenant for them to use their networks? Or are there other companies working out the same arrangement that you guys are with them. So it just will be one of a few people who are using their networks?

Nathaniel Bradley: Thank you. So I'll take the last one first just because it's easy. We're exclusive partners of Available. We have an extremely special position with them in terms of managing the tip of the spear, the way that they sell their product is through our tokens, and those tokens are sold at a 50-50 split. So a very special relationship that's exclusive to us with respect to that work that we're doing around Project Qestrel. I'd also want to address, first of all, the amount of commitment that you've made to the company to have such a large portfolio of our stock. It's quite an honor.

And I'd like to point out the institutional buying as our company has focused around creating an incredibly powerful stock for our company, we've also resisted the temptation to reverse split the stock. It's something that has been talked about quite a bit out there. We will not split our stock. And the reason why is that this is not the moment to do that. We have a number of key investments that we've made that are coming to fruition. And our focus is around bringing in the revenues around that. Now the regulatory environment in which we operate does have the requirement of trading, obviously, above $1.

We believe we're incredibly undervalued right now, and we want our shareholders to be able to see the results that we are going to present in our Q filings and the Q and the K that remain for this year will be illustrative of why we've done what we've done. I think it's very important for that result to hit the tape for our public to really understand what we're performing here at DataVault, which is creating a platform in Web3 that provides more and more capabilities.

I think if you look at the shift from retail to institutional investors, you can see that the very learned investors that are part of funds and higher level groups that can endorse our company by buying our stock, we're qualifying for this. Available Networks works with some of the biggest companies in the world. Our technology is foundational to that work. We've been able to get introduced to some of the highest level corporations in America, and we're going to be able to show that by them adopting our technologies and using our technologies to create wealth for their investors, for their companies, and as a result, ours, that -- those results will speak for themselves.

And we're resisting the idea that we need to reverse split our stock to stay up. We would like for investors to have the opportunity to own our shares wholly. We are going to post our results and get that done. Now in terms of the timing and requirement, we have an automatic shareholder equity exemption to stay traded on the NASDAQ through February without the need for a reverse split. And so my position as CEO is to not reverse split, but to post results and revenues to hit our guidance for this year and see where we are at the end of this year with respect to our stock price, which I believe will be much, much higher.

Unknown Attendee: I tell everybody, Nate Bradley is my retirement plan, so I'm counting on you.

Nathaniel Bradley: Man, that means a lot to me, and I won't let you down. I really appreciate that very much. Okay, next question.

Operator: Our final question today is coming in from Alan Gornstein from JPMorgan.

Unknown Attendee: I'm just calling as a private investor having nothing to do with the company, and I was hoping to get an update on Helmex.

Brett Moyer: So we have partially funded the $25 million that we owe in the first tranche. We are actively discussing when we fund the remaining $20 million and when we go live, as you know, it's a European firm. July and August are a little sacrosanct in terms of holidays in Europe, as well as we were busy with these 3 acquisitions. So we'll be actively working on that later this quarter.

Nathaniel Bradley: One exciting aspect of that relationship is the amount of business opportunity and pipeline and introduction. So we're looking at that as well.

Operator: We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further closing comments.

Nathaniel Bradley: Thank you, everyone, for the interest in our company. Thanks for participating in our quarterly call. We're very excited about our results and look forward to the next steps with everyone. Thank you very much.

Operator: Thank you. That does conclude today's teleconference. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.