ALT5 Sigma Corporation appointed an auditor whose firm license expired in August and remains inactive.
According to the FT, the Nasdaq-listed company hired Victor Mokuolu CPA PLLC in early December after missing its third-quarter financial filing deadline.
Texas state records show the accounting firm's license lapsed in August and had not been renewed as of December 26.
What Happened
ALT5 Sigma switched auditors on December 8 after failing to file quarterly results for the period ending September.
The newly appointed firm cannot legally conduct audit work under Texas regulations until its license is reactivated.
While Victor Mokuolu renewed his personal certified public accountant license on August 31, the firm's license remained inactive at year-end.
The company told the Financial Times no audits will be issued until the firm completes a mandatory peer review expected by late January.
Regulatory records show the auditing firm previously faced enforcement actions.
The Public Company Accounting Oversight Board fined the firm $30,000 in 2023 for failing to report six public company audits.
The Texas State Board of Accountancy imposed an additional $15,000 penalty in 2024 for similar violations.
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Why It Matters
The auditor issue compounds mounting compliance problems at ALT5 Sigma, which is backed by World Liberty Financial, a Trump family cryptocurrency venture.
The company now faces potential Nasdaq delisting after missing required quarterly filings.
Shares have declined more than 77% since the start of 2025.
Board member David Danziger resigned last month, leaving the company in violation of audit committee requirements.
Eric Trump serves only as a board observer after Nasdaq discussions limited his role from full board membership.
The company has transformed from an appliance recycling business to biotech before pivoting to fintech and cryptocurrency operations.
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