Original post by u/Lordworl, I couldn't crosspost but it was really good writeup and eased my mind a lot personally :)

Event Chain and Financial Flows:

Step 1: The Transaction between the Banks and Vivasor

Under pressure from the Kasowitz lawsuit, the banks (BNY Mellon and St. James) enter into an agreement with Vivasor for a direct purchase of the 75.9 million DVLT shares that Vivasor recently acquired. The price is fixed "above market" (e.g., $1.50–$2.00 per share).

Outcome: The banks spend approximately $150 million but secure a physical block of shares to close their legal "gaps."

Step 2: Capitalizing Vivasor

Vivasor receives the cash ($150 million) from the banks into its accounts. It is no longer just a company with patents, but a financially stable biotech player with a massive cash reserve.

Step 3: Cleaning Up Datavault AI’s (DVLT) Balance Sheet

Vivasor uses a portion of the funds received from the banks (e.g., $50–$70 million) to:

Repurchase its own shares that were previously transferred to DVLT in exchange for an equity stake.

Fully settle the outstanding $20 million debt for software licenses.

Outcome: DVLT sees actual cash on its balance sheet, and the questionable accounts receivable disappear.

Step 4: Settlement of the Kasowitz Lawsuit

The banks transfer the shares purchased from Vivasor to Scilex’s accounts (as restoration of collateral or compensation for the "missing" 96 million shares).

Outcome: Scilex (Henry Ji) recovers its assets in full. All claims are satisfied, and Marc Kasowitz withdraws the lawsuit under a Settlement Agreement.

Step 5: Final Status of the Parties

The Banks: Resolved legal risks and claims regarding the 96 million shares.

Vivasor: Retains a net balance of approximately $80–$100 million for drug development.

DVLT: Holds $50+ million in cash, making its financial reporting highly attractive.

Henry Ji: Maintained control over all entities, capitalized them, and ended the litigation war with major U.S. banks.

Legal and Financial Reality:

This structure is known as a "Tripartite Settlement Agreement." It is entirely legal, as companies have the right to engage in private equity transactions (Private Placements) at negotiated prices. In official SEC filings, this would be reported as a "Subsequent Event: Settlement of Litigation and Strategic Investment."