GenAI Faces Audit Delays, Issues Management Cease Trade Order for Annual Filings

GenAI Audit Delay and Management Cease Trade

Generative AI Solutions Corp. (GenAI) has announced a significant delay in filing its annual financial statements, primarily due to complications in completing the audit process. The company, traded on the Canadian Securities Exchange as AICO and OTCQB as AICOF, was required to file its audited financial statements for the fiscal year ended January 31, 2025, by June 2, 2025, but has now missed this deadline.

The delay is attributed to external auditing challenges, notably the quality review processes that scrutinize the accounting treatment of various company acquisitions in their financial statements. In response to the audit delays, GenAI is actively cooperating with its external auditors by providing supplementary information and documentation necessary to complete the review process. The company anticipates that it will submit the required annual filings by June 30, 2025.

As a precautionary measure, GenAI has requested the issuance of a management cease trade order (MCTO) from the British Columbia Securities Commission (BCSC). This MCTO has since been granted, effectively prohibiting the company's CEO and CFO from trading the company's securities until the annual financial statements are filed. Importantly, this restriction does not extend to shareholders who are not insiders, as they will still have the ability to trade their shares on the Canadian Securities Exchange.

In an official communication, GenAI reassured the public and its stakeholders, emphasizing that there have been no other significant developments or material information concerning the company that has yet to be disclosed. They confirmed that the company is not involved in any insolvency proceedings, maintaining a stable operational outlook despite the temporary setback in auditor processes.

GenAI has committed to regular updates regarding its status with the MCTO, including bi-weekly default status reports outlining any material changes, efforts made to remediate the default, and any potential future defaults requiring disclosures. These reports will ensure transparency while the company remains in compliance with the National Policy 12-203 management cease trade orders.

Patrick Gray, the CEO and Chairman of the Board, has reassured investors and stakeholders of the company’s ongoing efforts, stating that the management team is diligently working to resolve the audit issues swiftly. The completion of the audit and subsequent filing of financial statements are critical for GenAI's full operational visibility in the market, and the company aims to fulfill its requirements without further delay.

In a broader context, GenAI is dedicated to developing a comprehensive suite of AI solutions through its proprietary MAI Cloud™ platform. The company focuses on leveraging artificial intelligence technology to enhance productivity, efficiency, and overall user experience across various sectors. Despite the recent audit challenges, GenAI remains committed to its mission of deploying AI innovations that benefit both businesses and consumers.

The company’s proactive approach in addressing the audit delays emphasizes its commitment to maintaining regulatory compliance and providing transparent communications to its stakeholders. As developments unfold regarding GenAI's annual financial filings, further announcements are expected to provide clarity on their operational status and future initiatives.

For those interested in following GenAI’s progress and any updates on the management cease trade order, further details will be provided on their official website: www.genai-solutions.com.