Could be. I can think of numerous scenarios that would cause either party to walk away.
I've always felt that Sound Concepts was in a sleazy business - selling software to further pyramid schemes. Scaleworks may have decided that the VERB products aren't really a good fit with the rest of the Scaleworks portfolio: https://www.scaleworks.com/how-we-operate (Skip to the bottom of the page and you'll see who they own now and companies that they've exited from.)
I am beginning to think the deal has fallen apart…