Datavault AI Reports Q1 2026 Results: Full Earnings Call Transcript

Datavault AI (NASDAQ:DVLT) held its first-quarter earnings conference call on Friday. Below is the complete transcript from the call. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. 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 Finax from fiserv. A system that allows us to handle banking and transaction settlements anywhere in the world. We've also acquired Nayax in the process of finalizing that acquisition now. And that allows us to utilize NASDAQ financial infrastructure and use a system that is riding on the most trusted rails of trading in the world. The nasdaq. We finally have partnered with Houlahan Loki. Houlihan Loki is auditing our smart contracts and industry first we have an audit, a self audit of all smart contracts that are minted that are tokenized and delivered on our exchange. This allows us to again build trust and utilize accounting and legal professionals that put the regulatory compliance above all else, put cybersecurity above all else and allow from a cyber secure and compliant environment for us to launch the world class exchanges. Data vault AI is positioned for success. What we do is solve for data monetization for our clients across the world. Whether it's real world assets or the use of rare earth or our need to monetize our own name, image and likeness, Data Vault delivers. We have a system that is patented and our strategic advantage is our people, our services, our technology and our leading position for our customers which enables their businesses to thrive. We are at the intersection of major trends. Artificial intelligence, data monetization, real world asset tokenization, digital asset infrastructure and cybersecurity. Underneath it all, this has the combination of events and circumstances that lead our company to the very forefront of Web3 technology. Our key milestones include our expansion of licensing and tokenization, revenue development of infrastructure and client base that is really impressive and well known names entire governments coming to us for solutions. This is a very exciting part of our business. The ability to replicate, replicate high quality customer relationships, to develop centers of excellence around that service and to develop people that are there to serve our clients and customers and our shareholders. In the development of value and valuable exchanges. We are launching our exchanges in July. We intend to bring forth industry leading exchanges that change the world for the better and bring our customers into rich systems that enhance their own revenues and enhance their own balance sheets while fortifying ours. Our conversion of our pipeline into realized revenue and transaction is a key focal point and we've got the partners, the platform and the system to deliver. We've continued to integrate our systems through acquisition and through our acquisition of Nayax in the NASDAQ financial infrastructure, our acquisition of Cyber Catch and more cybersecurity for our clients. These are all moves we've made to bring forth the world leading token exchanges. Data Vault AI, the leader in tokenomics. We thank you for your interest in our business and with that we'd like to turn it over for Q and A. OPERATOR Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question at this time, you may press Star one from your telephone keypad and a confirmation tone will indicate your lines in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for our first question. Once again, that is Star one to ask a question. Thank you. Thank you. Our first question today comes from the line of Jack Vanderhardt with Maxim Group. Please receive your questions. Jack Vanderhardt (Equity Analyst) Okay, thanks. Good morning, Nate and Brett. It's quite a loaded morning for earnings calls today. It's a popular day, so I did hop on a little bit late, but wow, you covered a lot of ground there. So thanks for taking my questions, Nate. I think I just want to start with. I'm not going to talk about the spin out or the planned spin out of the acoustics business. I think that's a deeper discussion. I think Brett did a good job of covering that. Maybe just in terms of the Nayax acquisition coming up in the recent positive news with the. It sounds like positive news with the Clarity Act kind of making headway yesterday. What. Just remind us, I guess, what, what is this going to do? Or how does this facilitate bringing Nayax in house? And how far along are you with your, I guess your operational and integration plans already? Because you've been doing quite a bit of work behind the scenes leading up to this. Nathaniel Bradley (Chief Executive Officer) Well, thank you for the question, Jack. It's good to hear your voice, you know. So look, Niacs has a historic standing in intellectual property. They worked hard and like us, they waited for the regulatory environment to catch up with us as opposed to, you know, FTX and others that OpenSea and others that kind of rush to the market. You can kind of make the corollary to Napster. Compared to iTunes, we would be more like iTunes. We wait for the regulatory environment and for the world to provide us the Clarity and, you know, aptly named clarity act. 60 votes away from passage and you know, through into law. But this Clarity Act will represent, we believe, the final piece of the architecture that was first kind of turned on by the Genius Act. And you could see the passage of the Genius Act and the effect that had on our company, allowing us to do mean and other, you know, services for our clients that that law enabled. So we've been patient, we're working with our government and watching to see that that legal framework reveal itself. We're also, you know, heavily studying obviously every word of that so that we can bring compliant platform to the market. I would also point out, you know, I mentioned on the call, Houlihan Lokey, they're a partner of ours. But we're not naive or rushing out into these individual tokens. Every single token, every single customer deserves financial regulatory oversight and an approval on their, on their coins that they mint with us. And we're going to deliver that through partnerships with legal and accounting professionals every single time. So that's our disposition there. You know, the Nayax is really about intellectual property and technology. Nasdaq, Financial, Rails that power, that exchange are the same that manage the ETFs and stocks and bonds and the products of the NASDAQ. We're simply the new category. And in digital assets, you can see our work on the NASDAQ financial framework that we manifest in our exchange. We think it's a major, major advantage against all other exchanges. Jack Vanderhardt (Equity Analyst) Okay, great. No, I appreciate the rundown there. And then just because you signed so many tokenization contracts in the first quarter, trying to connect the dots to how Nayax maybe facilitates or is involved in unlocking that revenue. Let me follow up here with the first quarter revenue. Just it looks like CSI was a larger contributor here, but there was, you know, it was a fall off from the fourth quarter. Obviously you had some strong licensing revenues come in in the fourth quarter. What can we expect here with these tokenization contracts that you've signed? And also giving you that confidence to reiterate the 200 million full year revenue guidance, we see this kind of playing out throughout the year. Is it all these tokenization contracts in addition to APIs temporarily and then Sanctum cities, Will this provide any revenue or is this going to be a capex for the near term? Nathaniel Bradley (Chief Executive Officer) Okay, so in terms of sanctum and revenue generation, whole purpose is revenue generation, providing a cybersecurity base for the revenue generation both in quantum token creation. So as we make immutable tokens for our clients, if you're minting gold or silver or copper, you want that coin to last forever. And that includes the quantum leap. Whether you think that's 2029 or 2030 or 2031, whenever that hits the quantum or Q-Day will have a devastating effect on tokens that are not quantum key encrypted and have at least a fighting chance at the leap to survive. We are taking that to an nth degree with our sanctums. And so it is a revenue generation in the minting and the hosting of digital twins and other things where mayors and others that need to look at their digital twins simply do not want that to be penetrated by cyber threats. And those that would use digital twin of a city for nefarious use, it requires security. So there is a revenue generation and a revenue enablement from Sanctum that's really essential to our strategy in terms of NIAC and its effect on our ability to take tokens and convert them into cash. You'll see three components of our revenue. You mentioned the first, which is licensing. Licensing. You know, we could have replicated that licensing performance over and over again, but we're very selective about that process. We actually were selected by a biotech Company that wants to create their own biotech exchange. Now, by licensing our technology, we enabled that. But they're on the same cycle as the rest of our exchanges in terms of waiting for that regulatory Clarity act to pass and waiting for the exchange to be legal here in the United States. So that's number one. Nayax is an international technology, so we have international corollaries. You see our move with Biconomy in Asia, we're making moves in Europe. And we announced previously our work with the 6 exchange, which gives us a European exchange model. And so we're perfecting those relationships and going to launch simultaneously in all three locations because we feel that Philadelphia should be the lead in that. And our redundant systems with Sanctum that support our exchanges will be on superior infrastructure than that of the New York Stock Exchange or the NASDAQ itself. We have a Sanctum in New York and Philly that we think is second to none in terms of its cybersecurity and its incredible AI capability, which we believe will drive a huge opportunity in our exchanges. So Sanctum serves us, it serves our clients, it serves to make revenue, and it's a foundational piece of our revenue plan and strategy. Nayax is the NASDAQ Rails, and when it's blessed by the Clarity act, those become the digital asset trading mechanism for the world. And that will rival what Nasdaq does in ETFs and stocks and bonds. They're in fact using Nayax technology in the tokenomics and their partnerships with. With other platforms. But our platform is patented. It is targeted on specific assets. And when we tokenize those, we can charge for the token tokenization, which is the second form of revenue. So licensing is first, tokens is second, and third is monetization or exchange. It is those three mechanisms where we generate our revenue. Hopefully that answered your question. Google Compound. Jack Vanderhardt (Equity Analyst) Yeah, compound. But it's a compound story, so no, that's helpful. And I guess what I'm looking for here is there's going to be lumpiness, I guess, at this early stage, right as you're signing things and you're building out the pipes, you're bringing in Nayax. There's some legislative stuff that needs to happen as well. But how do we get to, you know, it was obviously a softer quarter compared to the fourth quarter. What do we do? We expect revenue to start picking up in the second quarter from any of these arrangements? Or is it going to be. Is it going to be lumpy? And it's a matter of timing. Just trying to understand so we can Set expectations correctly. Nathaniel Bradley (Chief Executive Officer) Sure. And Jack, in terms of, you know, your comment that the quarter is soft, you know, in terms of first quarter, you know, we, I don't control revenue rec, you know, but I do control the velocity of the company. So it is, you know, our most productive quarter to date and we will have productive quarters over and over. But the idea, you know, that really waiting for the Clarity act to clear some of our tokens in terms of trading them out, you know, all the way through that third category, revenue. Remember in tokenomics we're able to tokenize and recognize revenue. So we're already beginning to recognize that revenue in which we produce services where we created quantum coins for our clients that are representative of their rwa, their data and these other categories that we're attacking, including name, image, likeness with Sports Illustrated in development, those developments which we've announced a number of things are complemented by the Acoustic division that had record revenue that in WISA technology has incredible traction. And I've spent a lot of time in the Pacific Rim developing relationships with companies of the likes of LG and Samsung and others that are incredible, you know, opportunities for the WISA technology technology in particular in areas of robotics and other areas where you know, this technology that was a set top box technology and a smart TV technology is now applicable in drones and droids and this explosive high number marketplace. So I'm very bullish on the Acoustic division and what we've created there. So I think, you know, for the very near future, the coming, you know, quarters of this year, you have the calm, you know, the kind of left and right, the left and right punch from our two divisions until we spin out acoustics under David Reese, which as I said he is, he's an incredible person. He's, he sold a company in, you know, the multi billions to Liberty Media and you know, as his name on the wall at Penn State in building. So I would just say an incredible opportunity around acoustics should not be underestimated. And then with respect to, you know, tokenomics and recognizing revenue, really feel, you know, with the backlog that Brett put very well, you know, you've got almost, you know, approaching a billion dollars in the services side of the business where we're able to produce coin and create exchange. So you know, the 90 million that's associated to the fees related to that, you know, 800 million is an interesting, you know, phenomenon in terms of how that is recognized because when you look at, comes in the subsequent quarters. So in terms of the lumpiness, you know, I would see this Starting to level out in terms of the multi billions in revenues and cascading into the, you know, into the foreseeable, you know, five year period where we have a optics on taking over large tranches of tokenomic strategy for large entities that are doing this for the long run. And we have the services to kind of maintain a cybersecurity token and an exchange that is world class, second to none, best in class for all exchanges, taking on the ICE and NASDAQ itself. Jack Vanderhardt (Equity Analyst) Excellent. And maybe I could just ask one more question. Nate, this is very helpful. The 750 million plus tokenization contracts that you signed in the first quarter alone, those are, those are building up here. It sounds like we're going to expect revenue from those this year, almost 100 million from those alone. How is this Q2 and kind of the rest of the year look in terms on your expectations, I suppose. Is this, are you, are you one of the biggest fish in the tokenization market now? Who are you competing against? Do you feel like there's blue sky for all competing parties or can we expect this kind of to ramp at Nathaniel Bradley (Chief Executive Officer) this, at this pace? Phenomenal. Well, the infringing alternatives, the alternatives that infringe our intellectual property rights are on notice. And you know, with respect to our platform, we've taken the time, we brought in IBM to develop it with us. We're developing technology on the NASDAQ Rails with our friends now at Nayax. And you know, the infusion of talent that comes with these acquisitions, cybercatch. As a CEO, Sai, he's a tremendous mind, a good, great person and someone that understands cybersecurity better than most executives in America. And so I think we've added that with David Reid's kind of preeminence in our executive team, we have people like Sonia Choi and others that have really put their back into this company and take it to the next level. So when you look at our talent, our team and technology, you know, you asked are we the big fish in tokenomics? You know, clout doesn't really exist in public companies. Business principles preside and therefore we are the biggest fish and we are the ones that are capturing the real enterprise clients because they realize they need a freedom to operate. They need compliance systems and regulatory oversight from Houlihan Lokey and the Know Your Customer (KYC) from Clear. And so we've brought in the necessary pieces to qualify for anybody's business, including our federal government, our state government, our beloved United States. We're able to serve these customers and elevate our country. We're able to do that internationally and for corporations all over the world. So we're well positioned. The real players are coming to us because of our patents, because of our preeminence in ip, and therefore, I believe we're not allowed to have competition in some of the areas we operate right now until our patents expire, which is long into the horizon. Jack Vanderhardt (Equity Analyst) Fantastic. Well, there's a lot of moving parts here that are all ramping. It sounds like a lot to be excited about. I'll hop back in the queue. I appreciate the time, Nate. Nathaniel Bradley (Chief Executive Officer) Thanks. Thank you, Jim. Thank you, Jim. OPERATOR The next questions are from the line of Barry Stein with Litchfield Health Research. Please just see with your question. Barry Stein Hey, good morning, gentlemen. Wanted to ask about the guidance number you gave out. I think you said about $200 million for the year. What does that include? I know you're spinning the Acoustic division out. You have a number of acquisitions that you're expecting to close this year. And then you gave us a bit of information on tokenization. I think you said about 90 million revenue. Could you kind of give us a basic tutorial on what to expect, you know, for revenue for the rest of this year? Thank you. Nathaniel Bradley (Chief Executive Officer) So in terms of the guidance, it's unchanged. It's, you know, I am quite comfortable with our guidance. You know, the, you know, the rub for me is that I don't want our team or our process to be comfortable. We're pushing on this. The number 90 is what we've achieved so far and not to take away from the month that remains, you know, the month plus that remains in this quarter, you know, Q2 is quite phenomenal and, you know, it sets us up to achieve our goal. You know, do I plan on, you know, not working in November and December? You know, of course not. We have our head down and we're going to work every day of this year in both divisions, one to set up the spin out for incredible success, hopefully right around the turn of the year, where we turn into two tickers. Addio being reserved and David Reese at the helm of that entity, now operating now, you know, that's really an incredible value, but also a big revenue generation when you consider he's at eironomic right now managing a world class event, managing all the technology, cybersecurity and video delivery on site for the pga. You know, a trusted and incredible client of ours, you know, so it comes with a lot of deference in, you know, our work with these clients that we have earned their trust in their business in acoustics. So I Think you see explosive revenue there. It could, it could rival the token side, you know, truly. But, but the token side, it right now is at the right place at the right time. And I'm focused, luckily because David is taking the reins on that entire side of the business. It's about 200 employees and, you know, a large focus of our business. Individuals have been around wiser event Citadel and you know, the work we're doing at API Media, when you really start to say the team in Philly and the international kind of team that we're building around the Philadelphia exchanges, this is going to focus on real world assets and RWA and Rare Earth and the Nil Exchange, along with the biotech and the others that we have licensed out around imagery and others where we're able to, you know, serve our licensees and serve ourselves in our execution of that plan and the licensing. The token and the exchange revenue is expected to really unleash with the activation of the Clarity act and our ability to start to trade. And we're timing our effort with IBM developers and our development team in Atlanta to hit the mark. You know, obviously we'd love to do it July 4th if it's possible, but it's going to be in July and it has a lot to do with our government getting that June clarity vote across. And, you know, we're keenly focused on that. Redundancy is obviously international exchange and we'll be prepared to launch internationally as well, so we'll let some steam off either way. But we expect the Clarity act to pass and we expect July to be the biggest month in our company's history because of that. Barry Stein Okay, that's very comprehensive. Thank you very much. Thank you. OPERATOR The next question is in the line of Jonathan Davis, a private investor. Please receive their question. Jonathan Davis (Private Investor) Good morning, lords and ladies of the vault. I have a few questions for Mr. Bradley. First, congratulations on the recent strides made towards the expansion of the company. Given that Cyber Catch is currently converting into Mars Map technology to attain the quantum resistance you were talking about. Is this conversion and subsequent integration of the Agentic AI penetration testing at each of your nodes going to cause any recalibration of the 100 city rollout schedule Nathaniel Bradley (Chief Executive Officer) does not but integrated in stride. You know, the beauty of bringing on that cyber cash resource is precisely as you've described. Now there is existing infrastructure in the Sanctum platform around available networks and IBM. We were just out in Houston with a group there describing their kind of master plan and we're really blessed to be part of that. Daniel Gregory The CEO of Available Networks, he's responsible for hardening our electric grid here in the United States. He helped Japan when they had a nuclear reactor leak. You know, he's had, he's had cyber security and high end energy, you know, services that he's personally performed. So the CEO of Available Networks, our partner along with the CEO of Cyber Catch, sigh. Great guy. And so we've been working together to really put our heads together to say how do we solve for, for Q for Quantum. And we have a quantum processing unit and other aspects of our build out that will make these centers not only quantum hardened but quantum ready. And when you flip the switch on Q day, these will be equivalent to what Verizon has built, has built for 5G. Were Quantum, you know, we're Quantum VPN. We're going to monetize that together. And the Cyber Catch, you know, they have a large government pipeline of business that they developed on their own. We really like their government contracting shops and their relationships. Mr. Tom Ridge, a former, you know, Secretary of our Homeland Security, I believe the first one, you know, designated by George W. Bush, you know, this is a great man, you know, with a great Rolodex and huge throughputs of size, you know, on that. And when you look at, you know, their pipeline, I think it's that quantum hardening and that conversion that they've done that we're so interested in. And it's part of our architecture. The beauty of us just hitting the ground right now is we've got Cyber Catch in the briefcase so that that's coming to every site and it's part of our plan and doesn't slow us down, it actually speeds us up to contract with our customers, you know, through some of the existing work that Cybercatch already did to season the pipeline and perform the educational process and some of the longer tail processes around sales. Now we're just ready to book and cook. Jonathan Davis (Private Investor) All right, that's very informative. You have stated previously that New York and Philadelphia sites are already both active. So will we be expecting to see revenue income from those sites on second quarter results and are there additional sites that are going to come online before the end of second quarter? Nathaniel Bradley (Chief Executive Officer) So both sites have had a bench test out in Arizona. Sonia Choi and a couple key people on my side have, including Daniel Gregory from Available Networks were present in Arizona where we turned up the first sanctum and to see that happen was a tremendous shot in the arm for our sales team. We're working with the big four, you know, companies that Serve other companies, essentially consulting companies like that, the likes of PricewaterhouseCoopers (PwC), Deloitte and Touche, others that make up the large majority of cybersecurity consulting in our country. We're also looking at cybersecurity insurance companies such as Chubb Brown and Brown Lloyd's of London. These are, this is our strategy to sell cybersecurity insurance that includes our hardware and software and that insurance where we have a very strong throughput for sales there. So that's generally the strategy. Jonathan Davis (Private Investor) Thank you for your answer. There's one more thing I would like to ask very quickly. The retail community has a lot of concerns over whether we are going to be converting. We have a sizable amount of revenue in accounts receivable currently with Triton and Vivasor. And when can we expect these to be converted into actual money on the books? Nathaniel Bradley (Chief Executive Officer) Those are. Go ahead, Brett. Brett Moyer (Chief Financial Officer) Sorry. Yeah, they are. They've been converting all quarter long so far and some. Jonathan Davis (Private Investor) Yeah, just, you know, with respect to the sales process, going live in Philly and New York, you know, for our kind of presale of, you know, the kind of scheduled July launch of the entire Sanctum strategy, you know, that ties into, you know, these investments that we've made. You're going to see our ability to leverage in medical. Just take medical imagery and medical imaging, the process of tokenizing, really refining, tokenizing and monetizing data from these sources. In some cases it's advantageous for data vault AI to own the underlying technologies that are generating human radiation. So we use AI and use our systems and our strategy to look at who and what are the greatest valued data in the world and how is it being produced and who's producing it and where do we see investment opportunities for data vault AI? Where we take whole hog ownership or strategic stake in the corporations that are generating the real deal data assets, the data that we saw in our valuation and our scoring system to score through the roof, to score at the highest level, to value at the highest levels. And we've invested there so that we own the. We own more of the process. Not just our piece that indexes, tokenizes and monetizes. We're also looking in some cases to own the, the generator of the data itself. So that's the strategy. Thank you for your time and your answers. Your Grace, the community is awaiting the future to see some of this growth that you have been advertising. We're looking forward to seeing the fruits of your labor. Before I close, I would like to say that the Night Watch stands forever. OPERATOR Thank you. The next question is from the line of Gerald Hannis with Philly Inc. Please receive your questions. Gerald Hannis Yeah, should investors expect additional acquisitions or is the focus right now on integration and execution? Nathaniel Bradley (Chief Executive Officer) We've announced Nayax and Cyber Catch. Those need to occur, but our head is down with respect to our execution. Now, I displayed that technology stack that we presented, you know, today and completing that really with, you know, Fiserv and Clear and IBM and Houlihan, those technical pieces that we've acquired and made, you know, ready through our work with available networks and sanctum, you know, we're well positioned to simply put our head down now and operate, you know, in terms of acquisitions, we've announced Cyber Catch and that, that one is important to me just in terms of having the ability to use software advantage for our clients to solve for the quantum leap. So we do have that on the horizon. And of course the Nayax finish, I believe there's a little piece to do there still. Gerald Hannis Should we think that there could be any more future dilution risk right now as well as the company's doing, you think? Nathaniel Bradley (Chief Executive Officer) No. So in terms of risk related to dilution, there was risk for us in not taking action, and we've taken action to make strategic investments where we needed to make them. I would argue that every move we made is accretive to our valuation and to our shareholders ability to kind of hang their hat on this technology stack, you know, with respect to future dilution or our move to make any shares available. It's really something that's sacred to me. It's something that I care a lot about. It's something that I know Brett cares a lot about, is the value of our shares. The value that we bring through their scarcity and through their growth in value from our effort. Both the bottom line of our company, but also the strategy and approach where we built a Runway and a throughput and a very, I would call it, elitist view of technology. We had to put the necessary pieces in cybersecurity, fintech and finance Exchange. These are all big investments. So we did issue shares to do that, but it enriched every single share by doing the deals we did and we stand by them. But also would point to the fact that the scarcity and the specialness of every single share is something that's on our minds and something we care deeply about. Gerald Hannis Excellent answer. Thank you so much. Nathaniel Bradley (Chief Executive Officer) Thank you. Thank you. OPERATOR At this time, I'll turn the floor back to Mattra for any concluding remarks. Mattra Well, thank you everyone for joining us today. We really appreciate it and certainly working hard to close our second quarter now, and we're going to make you proud. OPERATOR Thank you. This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation and have a wonderful day. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.