Good morning, everyone. Welcome to the Datavault AI Fourth Quarter and Full Year 2025 Corporate Update Call. I will now turn the call over to Ed Barger, Vice President of Investor Relations.

Thank you, operator. Good morning, and thank you for joining us. My name is Ed Barger. I recently joined Datavault AI as Vice President of Investor Relations. I'm pleased to be here today and look forward to speaking with all of you in the investment community over the coming weeks and months. 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'd 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. We see Datavault's fourth quarter press release and SEC filings for information regarding specific risks, uncertainties that could cause actual results to differ materially. Except 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, and thank you all for joining us today. This was a strong year for our company, and I'm excited to review our results with you today. We'll begin with key highlights and accomplishments, followed by our business outlook and conclude with expectations for 2026 before opening the call for Q&A. As you can see from the chart, we delivered significant sequential revenue growth, which resulted from our first ever profitable quarter on a GAAP basis with adjusted EBITDA exceeding $8 million. In addition, we took decisive steps in 2025 to fund our future growth. Through strategic financing initiatives, we substantially eliminated our debt and strengthened our balance sheet, ending the year with over $115 million in working capital. 2025 was a transformative period for the company as we executed on our strategic vision. We completed the acquisitions of CompuSystems Inc., or CSI as well as API Media in early 2026. We are now operating an internal initiative of the joint companies under a project known as Event Citadel. These highly complementary businesses enable us to unify data from events, capture audience engagement and monetize across both physical and digital environments. This creates a scalable ecosystem for tokenized data asset creation and recurring revenue generation through our exchanges. As we integrate these platforms, we increasingly are positioned to deliver end-to-end solutions that combine AI, data analytics, and blockchain-based monetization, strengthening our competitive position across multiple high-growth vertical markets. We believe that the blockchain and Web 3 ecosystems represent a large and rapidly expanding market opportunity driven by the shift towards data ownership, tokenization, and the decentralized monetization. Datavault AI is positioned to provide end-to-end platform that enables enterprises to securely transform their data into monetizable assets through our exchanges. Data is our commodity and data has always been…

[Operator Instructions] Our first question comes from the line of Jack Vander Aarde with Maxim Group.

Okay. Great. Great update, guys. Congrats on all the positive momentum in the recent acquisitions as well. It sounds like there's quite a bit of progress that's been made since the last quarter. So congrats on all the momentum. Nate, can you talk to me a little bit more about NYIAX and then also just the whole licensing revenue stream that's really kicked in here. How does NYIAX fit into your overall strategy and what we're seeing so far with the tokenization strategy. Can you maybe just help us understand and tie that together?

Yes, sure. There's been a number of movements in this space. You can see a $27 billion valuation just across on other exchanges where they brought in token technology that gives them exchange. And one thing that I consider important in our space is the freedom to operate. You wouldn't just wander into health care or pharmaceuticals or any other technology without the freedom to operate. And what we have here is a union with NYIAX that really starts with IP. We met each other and have been working with each other now for years around intellectual property. And that culminated into a license that we've had kind of time to kick the tires and realize that there's a real deal and that their relationship with the NASDAQ Stockholm Sweden index gives us a technology layer that endears us to the exchange. It brings us closer. It gives us the ability to do all the things that in our trade for that technology, if you look at the historic deal there, it's really the ability for the NASDAQ to trade stocks and bonds, ETFs and all the great work that they do and us saying that, hey, we'll likely never do those things, but we'd like to do all other things that are data related. And data relations to RWA into the image and likeness of human beings if you have a beating heart in this country, you have data that's valuable. And that's the message that we carry as a company. Also, the fact that human beings and their name, image, likeness need a mechanism to be able to monetize it, and we provide that. So people being real-world assets that are obviously the most precious, but that, indeed, precious metals and the treasurers of this world that are indeed finite, not infinite. They have a scarcity and a value that is very well known and well published. And we give a mechanism to bring that to market. NYIAX gives us the best name in the business, the best exchange in the business, the most trust we could garner from a brand name and from a technology, from a system, and that's what we're going to bring to market. So NYIAX to us is talent, it's people, it's technology and preeminently brand affiliation and a partnership that's long forwarded around this tokenomic phenomenon, the ability to tokenize real-world assets. So that's what that's about.

Excellent. I appreciate that. And just maybe if you could touch on a little bit more about, I guess, the relationship with IBM. And also, this has been ongoing, and there's a few moving parts here in terms of licensing arrangements and payments. Can you talk to me a little bit about the San Quantum AI as well, the SanQtum cities? And just kind of how that fits into the strategy? Where does this fit in terms of your priorities? I mean also importance for the company's strategy?

Thanks for the question. Again, I really appreciate you following our company this closely and asking that question. Look, IBM special to us. It's a chosen partner of us because we believe AI should be subordinate to human beings. We believe that this is a long known name in AI that's built watsonx. And early in my career, there were right upstairs from me at the Arizona, University of Arizona Science and Tech Park, where they were building the face of watsonx and some of the concepts that IBM brings to the table, none were more important than cybersecurity and you can't really say IBM and Datavault without saying available and their CEO, Dan Gregory, who is responsible for cybersecuring a lot of our energy grid and helped foreign countries do the same. He's brought his intelligence and his infrastructure to really what is a VPN for Quantum, and he's a partner of both IBM and Datavault AI and that partnership it's about creating SanQtum and how it fits into our strategy is that as I described in the call, data can create extreme value. It can also be an extreme threat. If you have a digital twin of a city, it'd be making that mayor more exceptional in the management of that city. But if it fell into the hands of individuals, that meant us harm or that meant to jam a system or understand a city for nefarious means that data becomes precious to the entire community that remains cybersecure and in the hands of elected officials that work in our best interest. And so these are all things that the blockchain exposes and our technology fits around these communities where we're using tokenomics to solve American problems. We have True Valor that ends for the stolen valor of individuals. We have NIL systems that monetize for people but none of it would manage to mean anything without cybersecurity. And so SanQtum is about job one, taking care of home-based cybersecurity. And when you have cybersecure SanQtums, you can invite the mayor in to use a tool that can revolutionize his effectiveness and give communities a promising efficiency that raises the bar in how we can do more for less and move forward in systems that are much more efficient. And that goes hand in glove with the tokenomic strategies where we're eliminating fraud and identifying systems simply through the nature of using blockchain and using AI to aid us in perfecting our democracy and our communities.

That's fine. And maybe if I just follow up on the -- there's quite a few different pillars here, we could talk about here. I want to save some room for others on the call if there's any other questions. But maybe you just touch on the verticals that you have in terms of the tokenization strategy. Which sort of these verticals do you see being the most meaningful, I guess, with pharmaceuticals, for instance, with Scilex, is this a larger area? Is there any particular area that you're focused on more? Or is this just a rising tideless all ships here? How do you see things playing out in terms of the tokenization verticals?

There is an ex caliber principle with Datavault AI. You simply cannot wield it. A single entity cannot. It must be licensed. It's licensed into verticals, Scilex wheels the weapon. They utilize our technology to create a biotech exchange. And to your point, it is enormous. But we license into it because we're not trying to boil the ocean. We make technology that uniformly makes data monetizable, data exists in silos that led to waste without our exchanges. Our exchanges are vertically centric. So we have the biotech exchange, that Scilex will brand, and they will move forward with their energy and their know-how and they will build a biotech exchange with our technology. We just took over the New York Interactive Advertising Exchange, NYIAX. We have the ability to use our exact same infrastructure, data scoring, data value and data monetization under the same umbrella. So it is marketing the Element Exchange is about real-world assets and the NIL exchange is about human-made assets and the asset of being yourself. And so these assets are all monetized over a uniform system. We are like sales forces to sales, Datavault AI is to data. Our platform hunts in all of these markets. and we've licensed it because we know that sports illustrated, for instance, with a better brand name than Datavault for sports and entertainment. And so we've built the Sports Illustrated Exchange to meet that need. So we've looked at the highest value markets in the world, human beings and real-world assets. And we have everything in between that's covered in our data information exchange which can allow emerging data sets to become known, to become scored, to become valued and to become traded. And we have a very compliant process to get everyone there on a system that we can trust. IBM in the middle, CLEAR on the front, Fiserv in the middle and you've got the NASDAQ at the back. The ability to use NASDAQ financial framework to close transactions in vertical markets that we've identified, but licensed those verticals so they can grow fast and move quicker towards the value that we're creating for our shareholders.

Well, excellent. I really appreciate the update. Maybe just one more, if you could just touch on the acquisitions that you have made, and then I'll hop back in the queue. But API and now NYIAX also and then that was after CSI as well. Is there anything else, I guess, part of the puzzle that you're looking to maybe acquire? Or are all the pieces kind of in place now from your acquisition strategy today. How do you see that playing out?

End-to-end, the stack is ready. We have regulatory compliance at the forefront. We won't launch these exchanges until we have green thumbs up from everyone regarding commodity, regarding every aspect of these assets that we are taking to marketplace. So that's #1. Number two, just in terms of these acquisitions, API Media is an American treasurer. It's run by incredibly talented, well-heeled technology professionals that have added culture to our company. They are ladies and gentlemen, that serve, ladies and gentlemen and we're trying to infuse that like Ritz-Carlton would into the fabric of our company. So #1, API Media is a cultural acquisition. They chose us because they saw scale, but we chose them because we saw quality. And we take over big events through that acquisition in terms of technological management of systems that are involved in some of the biggest events and biggest products of America meaning our golf game, our horse racing, all of the things that we do at a high pedigree sports level, API seems to have acute knowledge of which we find incredible. I would also say that the acquisition of CSI is an infusion into WiSA in ADIO. It gives us a forum of events to show off how we can control HD quality sound and how we can move sound around rooms and use data over sound as the voice of robots that greet you and have better service and better manners than any human being. And the idea that we could have a perfection of systems that use AI and events and people to maximize yield together so that we have ability to have a passive reoccurring revenue generation through events. And that's what CSI was about and the ability for us to take those 2, a cultural and event-based strategy to create more data and use our audio systems to prove how we do it better than anyone in the business.

Our next question comes from the line of Ed Woo with Ascendiant Capital Markets.

Yes. Congratulations on all the progress that you guys did last year. My question is how much of your business is focused on the U.S.? And how much of it do you think you can grow internationally and globally in the future?

Thank you for the question. I have literally spent my first night at home last night after being on road for around 62 days. I have traveled the world. And I would tell you the opportunity internationally is rivaled by that here domestically, but it has a lot of incredible potential. You'll see from announcements that PacRim in Asia is an extremely strong growth market for us, and we have adoption coming at us like a fire hose. We've opened offices. We have office in Seoul, Korea. We have operation in Tokyo, Japan. We have a large operation in Taiwan through our partners and semiconductor patents around WiSA. We have an office in Beaverton that is meant to service that Asian market. And from Philadelphia, of course, our eyes are on the U.K. I just got back from London. We have now office in Mayfair. We have an ability to capture business from London all throughout the U.K. We spent some time there and realized that there's massive cybersecurity and data operations there that feed our exchanges and international scope of our relationship with NYIAX will extend into the NASDAQ, Stockholm, Sweden and obviously, the Swiss Exchange, where we have the ability on [ SIX ] to expand our European trading platform shops around these exchanges. So simultaneous with the turnup of our exchange in America, which will be the guiding light because of the regulatory kind of excellence and trust that American markets garner when you affiliate with the NASDAQ and IBM and Fiserv. This is a regulatory requirement that we're meeting and that, combined with this international strategy where we can take that kind of excellence and spread it into the international markets with a great deal of security and a great deal of discipline towards the quality of the assets that are listed on our exchanges. And so we're focused on international, and that puts our focus on international quality, digital assets. And we've had the pleasure of working with companies in the Asian and PacRim regions as well as the European regions, and it's certainly scalable to Australia and other international spots that we started to look at very heavily. So thanks for the question. And international is a huge part of our play, it could rival or trump our revenue from the United States.

A lot of opportunities. And then other part of that question is, do you believe you have to make an acquisition internationally to help you expand? Or would you be able to grow it organically with the acquisitions that you have made over the past year?

I think the acquisitions that we made over the past year, give us American-made technology base and a base of customers that have international reach and influence that draws us overseas. I'd also state that from an acquisition standpoint, you're only acquiring business entities for the purpose of booking business in geo regions, Abu Dhabi and United Arab Emirates and other places required in domicile an LLC there or have a shingle up in those facilities to start to do business there, in particular, when you're working with their governments. So those are the types of acquisitions I'm looking to make, which are largely financial in nature, but small, almost inconsequential in their cost given the revenue that they unlock. So I'm looking for cash accretive acquisitions that allow us to turn on revenue streams from international sources. Some of that's qualitative like you need to qualify to do businesses in particular regions, and we're meeting those qualifications carefully and with, again, a focus on our regulatory partnerships, to really drive excellence around best practices. And as we expand, we do so carefully with technology that's incredibly well healed and patented in all these regions.

Our next question comes from the line of Alfred Blake, a private investor.

Congratulations on a great quarter. I wanted to ask you a question about the NYIAX. What was the financial framework on that merger or takeover so to speak, if you're allowed to announce that?

So I would point you to the press release issued this morning in terms of the financials related to the transaction. The deal is quite fresh. We finished it right here at the last moment before this call. So just getting into the detail of that, it's best to refer to the documents that's been published. But I would tell you that the NASDAQ Financial Framework, brief life into an international strategy of launching exchanges, we intend from Philadelphia to build the rival to Wall Street at One Commerce Center, we're building something very, very special in Philadelphia, and this will be the token exchanges. These token exchanges will take on the NASDAQ Financial Framework, we will run the NYIAX which is the New York Interactive Advertising Exchange, and that exchange through this transaction gives us control over our marketing interface and a marketing platform that's really the future of how advertising will be bought and sold. So we're going to prove out the NYIAX model. We're adding the NYIAX NASDAQ infrastructure to our exchanges. So that's the kind of forward look of what we're going to do with that transaction. I would state though that the NYIAX transaction is highly accretive to our ability to own the token Exchange technology here in the United States, in particular.

Okay. I was just seeing if it was like a stock transaction or anything such as that was my question.

So again, the numbers will speak for themselves. It's pretty hard negotiated. I would tell you that the dollar amount that we traded per share in that transaction was $1.90 was the recognized stock price in that transaction, I believe. So the overall approach was to recognize more value in our equity that was present in this market that we believe has been not reflective of the value of our company.

There are no further questions at this time. I'd like to pass back to management for any closing remarks.

Thank you, everyone. It's a very exciting time for the company. I appreciate you joining us and the interest in our company. We are grateful and looking forward to the next steps together. Thank you very much.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Goodbye.