GenAI Announces Resignation of Former Auditor and Consequences for Financial Statements

Generative AI Solutions Corp. Faces Audit Challenges

Generative AI Solutions Corp. (commonly known as GenAI) has recently made headlines following the resignation of its former auditor, Manning Elliott LLP. This development, effective September 29, 2025, raises several concerns regarding the company's financial statements for the fiscal year that ended on January 31, 2024. The audit report dated May 30, 2024, which provided an overview of the company's financial standing, has now been retracted, leaving stakeholders in uncertainty about the reliability of the financial metrics previously reported.

The board of directors and the audit committee of GenAI have acknowledged this resignation and are currently searching for a new auditor in accordance with National Instrument 51-102, which outlines continuous disclosure obligations for public companies. This proactive step aims to mitigate the potential repercussions on the company's reputation and investor confidence.

However, it’s important to note that the company and Manning Elliott had undisputed disagreements over various aspects of the financial statements. The former auditor cited inadequate evidence supporting the valuation and accounting treatment of specific transactions included in the 2024 Financial Statements. Despite discussions held between the board and the former auditor, these concerns were left unresolved, ultimately prompting the resignation.

In light of recent developments, the company must comply with the requirements set forth under NI 51-102 regarding the former auditor's resignation and the subsequent Notice of Change of Auditor. This notice will be accessible on GenAI's profile on SEDAR+ (www.sedarplus.ca), detailing the circumstances surrounding the auditor’s resignation and outlining the next steps that GenAI will take.

Regrettably, this situation has further complicated GenAI's standing in financial markets, as the company is currently under a failure-to-file cease trade order (FFCTO), which has been issued by the British Columbia Securities Commission (BCSC) since August 6, 2025. This order prohibits trading of GenAI's securities within Canada and arises from the company's failure to submit its annual financial statements and management discussion for the fiscal year ending January 31, 2025, by the established deadline of May 31, 2025.

As it stands, the FFCTO will likely remain effective until GenAI appoints a new auditor and files the overdue financial statements, along with the new auditor’s report for the fiscal year that ended on January 31, 2024. The suspension of trading shares on the Canadian Securities Exchange only adds more pressure on the company, as it seeks to regain the trust of investors and stakeholders.

GenAI, an innovative player in the artificial intelligence field, is known for its MAI Cloud™ platform, which emphasizes delivering integrated AI solutions to various industries. Despite the current setbacks, the company remains focused on developing revenue-generating applications and aims to overcome these challenges with a renewed strategy once the audit situation is rectified.

Moreover, GenAI’s future hinges on its ability to adhere to regulatory requirements and restore investor confidence. This scenario underscores the importance of transparent financial practices and diligent auditing processes in maintaining corporate credibility. With a new audit team expected to be in place shortly, many are hopeful for a swift resolution that will allow GenAI to emerge from this troubled period stronger and more transparent than before.

In conclusion, while the resignation of Manning Elliott LLP may present a major hurdle for GenAI, how the company handles the situation could significantly impact its trajectory moving forward. The appointment of a successor auditor and compliance with the necessary regulations will be crucial in navigating through this tumultuous phase. Stakeholders will be closely monitoring these developments, as GenAI strives to affirm its standing in a competitive marketplace.