Nasdaq-listed company ALT5 Sigma faces audit crisis and delisting risk

Audit Qualification Defects Trigger Regulatory Alarm

Cryptocurrency company ALT5 Sigma recently faced a major trust crisis. The newly hired auditing firm Victor Mokuolu CPA PLLC has serious qualification issues—its business license expired in August and has not been renewed to date.

According to data from the Texas regulatory authorities, this accounting firm headquartered in Texas was still invalid as of December 26, meaning it is legally unauthorized to issue audit opinions. Although founder Victor Mokuolu personally renewed his CPA license on August 31, the company's qualification certification has not yet been restored.

Concerns Over Regulatory Compliance Record

The problems go beyond expired certificates. The performance of this auditing firm in the past is concerning:

2023 - The Public Company Accounting Oversight Board (PCAOB) fined the firm for failing to file six public company audit reports on time.

2024 - The Texas State Board of Public Accountancy penalized the firm again for similar violations.

It is noteworthy that this firm has never passed peer review, which is quite rare in the industry.

Financial Transparency Continues to Decline

ALT5 Sigma's predicament extends far beyond audit issues. Since announcing involvement in specific digital assets, the company has failed to submit quarterly financial reports on time. The latest quarterly report (as of September) has yet to be released, directly threatening its delisting from Nasdaq.

Market concerns about the company's prospects are growing—its stock price has fallen over 77% since early 2025. Management changes have further worsened the situation: Board member David Danziger has resigned, causing the company to fail to meet Nasdaq's requirements for audit committee personnel.

Risks Continue to Accumulate

According to Nasdaq rules, listed companies must have an audit committee with sufficient accounting expertise. ALT5 Sigma's current situation already violates these requirements.

The company stated that it will not initiate financial audits until the new auditing firm obtains a valid business license, with an expected license renewal by the end of January. However, the risk window for investors remains open—before normalization, regulatory penalties and further stock price declines are possible outcomes.

This series of issues reflects a serious underestimation of the importance of corporate governance and regulatory compliance at the intersection of cryptocurrency and traditional finance.