Good morning, everyone. I'd like to introduce our next presenter of the day, Brett Moyer, CFO of Datavault AI. Welcome.
All right. Thank you. Good morning. All right. This morning, who's familiar with Datavault AI? We pay you to be familiar, Robert. You don't count. Okay, so if you've been tracking Datavault AI, we've had a very, very busy year in terms of building out the plan and the platform. We're going to focus actually on just a few select slides around that, your good old Safe Harbor Act. Datavault AI is all focused around monetizing digital assets, data, real world assets, coins. When you think about how to do that and where you want to be in that system, what we've done over the last 18 months is put together a series of acquisitions that creates an AI platform for trading digital assets from beginning to end. Right?
We're going to go through that, and we've done enough transactions that we've kind of lost the mission or understanding of where we're at. When we go through it, this is the process. What is the platform? If you have an asset, you got to value it. If you have an ounce of gold, you know how to value that. Everybody does it all day long. But if you got 50 acres of gold as a potential mine, how do you value that, right? If you're a hospital and you have a lot of medical data from all your patients that comes in 24/7 all year long, if you take the name off of it, how much value is in there? First step is to value it. To do that, we integrated our AI agents with IBM's watsonx. Right?
Watsonx is extremely strong in compliance. If you're doing HIPAA data, you know how to make sure you stay compliant with HIPAA data. Our agents will value it and score whatever data you have, right? They'll give you that. Next thing is, how do you make sure it's legit to attest for it? The acquisition there is CyberCatch. We announced that back in May. Then tokenization, right? When Datavault AI merged with the prior company, that was the key technology that came in. One was the value agents, two was a tokenization for real world assets, right? There's a lot of tokenization right now around stocks and bonds, and the big boys are doing that. Our patent and our niche, all right, it's not a niche, but our space is around assets, real world assets, data assets, NIL, name, image, likeness, right?
Then you have to have an exchange. There are two parts in how we built this out. One was an acquisition called NYIAX. That team jointly developed, years back, the patents for the Nasdaq trading platform. We do not have rights to use it on stocks and bonds, but we do have rights to use those patents for matching and exchanging in the U.S. for all other assets. NYIAX had an exchange up for matching capacity on advertising unused slots with buyers, but we can use that same platform, and we have integrated into our indexes, so it has strengthened our ability to create exchanges. When you look at what is available now, we have gone live on four exchanges. There is another one that will come shortly. When we say live, they are up, they are running. You can see it. There is some trading.
We have one step left to finalize with Fiserv of the integration with the bank so that we can give you fiat if you have a digital asset and you want to move it into cash. Those exchanges that are live out there, you will have one for NYIAX, which is advertising, which we talked about. You will have an Information Data Exchange. That one is what we talked just a little earlier. You have all this data as a company, as a group of insurance agents, as anything that handles a lot of people or a lot of transactions. The value of that data is not on your balance sheet anyway. How do you handle, how do you monetize that?
What we do in the IDE is take that data, list it, use our AI agents that try to value it, score it for integrity, and then that is available to sell in a smart contract as a token. Depending what you want to do, you can sell that as a one-time use. You get to control it as the owner of the data. We do not own it. If you think about eBay does not own a single thing on that exchange. They take their cut when you transact on them. They do not own it, and that is the same case. We do not ever own your data. We will process it, we will catalog it, we will market it, we will trade it. But you own the data, you set the terms on how that data is going to be sold. Next is custody.
In that case, we have a pending acquisition that is under definitive agreement. We are waiting for final regulatory approval by the Wyoming Bank Commissioner. I think we have everything in, so we are just going through the bureaucracy. That is a bank that has been chartered to hold and move digital assets. Let us say as our exchange volume builds up, you now have a place to put your assets. If you want to turn it into cash, then we are going to run it through Fiserv. But if you want to hang on to that digital asset, let us say it is a token around launching a gold mine, and you like the terms of it and you want to hang on to it, okay. You could store it in that bank.
Ultimately, it will take us from, we will clear regulatory approval sometime this quarter, and then they will have 12 months to stand up the bank and open their doors. As this comes through, you can see that BankWise is critical. Now, the final piece, and this is not an acquisition, but it certainly is a strategic partnership, is the SanQtum network. Again, that goes back to our relationship with IBM, with available infrastructure, and our technology for valuing and scoring data. That network is being set up as a Quantum Ready, secured VPN network across the country. Some version of this where you are having note-takers is available out there. It does not have my charming voice, I get it. But if you miss it, you can always call us, okay? That is why it says we have a big market.
We kind of went through this, but just so everybody is lined up on CyberCatch. They just won Best New Innovation award at one of their industry shows. But CyberCatch plays the role of making sure that if you have a violation, somebody came into your system, it does not just notify you. It also tells you how to fix it. Now, this is pretty much above my pay grade, but this is a hot space, security, and making sure you are protected in the quantum world. That CEO has had several other successful exits in the space. We see this as a large revenue opportunity, both not only in securing our independent exchanges and our trading and our platform, but also have the ability to take this technology out to other banks, other institutions that are worried about cybersecurity. BankWise, we have covered that one, right?
We should have that closed this quarter. It is relatively inexpensive, some cash, some stock, and we should be able to have it up and running within 15 months, 14 months, 12 months. Okay? Wait a minute. All right. On the independent data exchanges, maybe we just go through a couple of examples on that for people that are not familiar. You can go out and trade gold or bonds or stock as a finished product pretty easily. But let us just say you have 25 acres in Nevada, and you got the geological reports that says you got, I do not know, 10,000 oz of gold just under the surface. But you need to dig it up. You need capital to do it, right? For us, as the potential miner, you have a choice.
You can dilute your equity base at the point of zero revenue, or you could issue a token, raise that money, and dilute your future revenue. But presumably, when you peel off 5% or 10% of your revenue or whatever the token requires, you get the ability to then increase your equity value. The token holder as the investor, well, they get to set the terms, right? There is going to be the same traditional negotiation between, there is X risk and I want X reward.
But as the investor, let us just say it is a two-year project. You could in one year decide, "Jesus, I really need that money." Well, if it is a private facility, you got good luck getting that money out, right? If you have tokens and it is tradable on our exchanges, then you have an option whether you are up or down, who knows?
You have the option for liquidity before that mine starts producing refined gold. There's a lot of examples. We have about 14 contracts on this for RWA. We have announced a Tort Token. There's a lot of financing of lawsuits. When you do that, you can either go out and write it as a contract, or you can issue a token around a set of lawsuits that pays a certain amount out. It's the same thing, but it's on a digital contract that gets traded as a token. Your NIL exchange. NIL gets a lot of attention, partly because big salaries for a teeny handful of players gets press. In the case of setting up an exchange, what happens is, because it's a digital contract on that token, an athlete can come in and say, "All right.
I'm willing to let somebody use my face or my logos for X amount for a month, a week, a year." Part of the problem with that is if you're under 21 or 18 is how do you take care of, make sure they're protected in terms of distribution of cash. If you're over 18, same problem, but they own it. Parents don't have to worry about it. When you're using a smart contract at exchange, and that contract's executed, all right, so then that contract says X amount goes to the feds or state for taxes, X amount can go to the school. If there's a school uniform in there, school colors, conference codes, the conference images, they can get their slice. We get our slice, and then the rest goes to the NIL sports athlete. That's how that one's going to work.
American Political Exchange, that'll be a sleeper this year, but as we go into the next presidential election, this is a huge lever, I think, for us. We're the only ones that have FEC approval to take donations outside of WinRed and ActBlue. Those organizations take, I think, Alfred, you may know this, but I think they take a 30% cut between collecting the cash and turning it over to the politician. We can take that dividend and make it more of a straight financial transaction. We could do it for 3 points or 4 points. If they're taking 30%, I don't know why we'd go up for at least 10%. But the advantage to the politician is it lets you keep more of the money that you're raising.
Also communicate back and forth with the constituent that's investing in you, so to speak. That's up and running. It's up too late for this year. We need to finish the integration with Fiserv for the fiat, but as soon as that's done, I think that's a powerful lever when you start looking at next year and the year after, going into presidential election and all that money raised. That's the purpose. Any questions? All right. We touched a little bit on what we're doing with Available Infrastructure. Available Infrastructure, we have a contract with them to set up 100 cities for edge computing, and each city will have a primary computer and three locations around that city. They have to be within, I think it's 25 mi or something. Not far. Far enough to cover a whole metropolitan area.
Now, that will give us the ability to offer two clients several things. A secured VPN that is backed by IBM's Quantum Ready software. It will give them the ability, and us the ability, to read the data going through that system and go back to that company or institution and say, "Our AI agent thinks your value is X of this data per week, per month, per year." I would guess as we bring those up later this year, beginning of next year, those AI data estimates might be a little rough, but you're building an architecture and a system that lets us then automatically go back to an existing customer and say, "We can start generating $100,000 a week or a month or a year off of the data we do see." You keep the data.
We're just reading it, valuing it, scoring it for legitimacy, and then advising you what it's worth. It's an expensive platform to get started, but we signed that back in January when GPUs were substantially cheaper than what they are today. If we had to go back and sign that, we'd be paying more than 100% than what we contracted for. That's part of when we go out, we've made the first large payment on that. We'll finish paying that up over the next three or four months and build that out. Just to wrap it all up, we didn't buy everybody. We didn't have to. We got CLEAR and Trulioo as your KYC partners, identifying who's coming on, legitimizing you. Yes, you can have an index. We've got Fiserv for going to fiat.
We got IBM's watsonx for adding integrity to our agents and making sure it's valid data and we don't break rules. Then we have Available's Network. We got NYIAX, and finally, the one we haven't talked about is we do have a partnership that we use Houlihan Lokey to make sure when we have to audit or if we have to validate a business structure, we go through with them and make sure it's all covered. We have roughly 14 contracts for either RWA or data under contract right now. When we look at that, there's two components of it. One is what's our technology fee. That will be all of ours. The other is setting up the fundraising. You'd expect a lot of that to go to a bank. There's a few of them running around here, mostly up there, not in the meetings. But that's what that's for.
When we look at how to go to the market, we're now in the thick of taking contracts or potential contracts to investment banks, talking to them about going out to their investor base, and we're talking to market makers so that there's a secondary market after we launch those tokens. On the secondary market, we get a cut of every trade since we're running it on our index, and that's important to us. It's important to investors like you guys, because if you have a token, you want to be able to know there's liquidity coming, if not already there. All right.
All that rolls up into what Nate had envisioned and what we put all the pieces together is have a platform to take you from raw data, say, whether it is geological business data, whatever it is, all the way through turning it into a token, monetizing it, and moving that asset into cash. With that, we got six minutes for questions. Barry.
Let's talk about the CLARITY Act.
Obviously, that didn't pass, and you've talked about Perpetuals, who's here at the conference.
As a backup. Could you talk? That's for real-world assets.
Yes.
You used in your example. Could you educate us a bit more on what's going on there?
Yeah. What happens when you look at these tokens, there's the Howey Test. The Howey Test determines are you a stock or a bond or a commodity or you're not. If you look at the IDE where you're trading data, that's just a contract that's the same as if you wrote a contract on paper that says, "I'll sell you my data." But when you get into tokens based around real-world assets, gold or any commodity, now you got to figure out, is it a commodity, and then you come under the SEC regulations. There's two things. The CLARITY Act was going to be passed in May, then June, then July, then September. It's going to pass at some point.
But the two plans we have to circumvent that is, one, Perpetuals is an exchange that runs in London, and there's nothing stopping us from trading these and setting up these real-world asset tokens on their exchange. The second is, if you're paying attention to this space, the SEC has lost patience with Congress, and they're starting to issue their own rules. To us, that's kind of a race between do their rules get reasonable enough, and do we have enough confidence in those rules we're not going to create some illegal transaction, or do we go to Perpetuals and start those conversations? We have looked at, and I think listed one or two tokens on Perpetuals, but if it's a backup plan to the U.S. and the CLARITY Act being done, it'll be a corporate partnership that we'll have to set up. Any more questions?
I'd say happy hour, but it's too early in the day. All right. Well, thank you very much for taking the time to hear our story.