What factors caused Datavault AI's total liabilities to surge from $14.9M to $39.2M by September 30, 2025?

Datavault AI Inc.'s total liabilities surged from $14.9 million at December 31, 2024, to $39.2 million by September 30, 2025, primarily due to significant increases in various debt instruments and accrued liabilities. This represents an increase of approximately $24.3 million over the nine-month period.1

Key factors contributing to this increase include:

• Convertible Notes: The most substantial driver was the introduction of new convertible notes. Short-term convertible notes increased by $12.17 million, from $0 at December 31, 2024, to $12.17 million by September 30, 2025. Additionally, long-term convertible notes, which were not present at the end of 2024, amounted to $10.45 million by September 30, 2025.1 These notes are a primary source of financing for the company.
• Accrued Liabilities: Accrued liabilities saw a considerable rise of $3.85 million, growing from $1.33 million to $5.18 million. A significant component of this increase was contract liabilities, which surged from $174,000 to $2.16 million during the same period.1
• Accounts Payable: Accounts payable also contributed to the increase, rising by $2.41 million from $2.78 million to $5.19 million.1
• Other Notes Payable: The company also reported new short-term convertible notes payable to a related party ($747,000) and short-term promissory notes ($873,000) by September 30, 2025.1

The issuance of various forms of convertible debt appears to be the predominant factor in the overall increase in Datavault AI's liabilities during this period.