Generative AI Solutions Corp. (CSE: AICO, OTCQB: AICOF) is in the middle of a high-stakes accounting shuffle. The company announced that its former auditor, Manning Elliott LLP, resigned effective September 29, 2025, and withdrew its May 2024 audit report on GenAI’s 2024 financial statements. The withdrawal effectively nullifies the previously issued audit, leaving investors without a vetted picture of the company’s finances.
The resignation comes amid unresolved disagreements over the valuation and accounting treatment of certain transactions in the 2024 statements. According to the former auditor, there was insufficient evidence to substantiate the economic rationale behind these items. Despite discussions between GenAI’s board and the audit committee, the issues remain unsettled.
GenAI is actively searching for a replacement auditor and expects to fill the role shortly. The company is following Canada’s National Instrument 51-102 disclosure rules, which govern continuous reporting for publicly traded firms, and has confirmed that notices and related documents will appear on SEDAR+.
The timing couldn’t be worse for GenAI. The company remains under a failure-to-file cease trade order (FFCTO) issued by the British Columbia Securities Commission in August 2025. The FFCTO was triggered when GenAI missed its May 31, 2025 deadline for annual filings for fiscal 2025. Trading in the company’s shares is currently suspended on the Canadian Securities Exchange until a successor auditor completes the overdue filings, including the newly required audit of the 2024 statements.
This shake-up highlights the growing scrutiny on tech and AI companies that expand aggressively without solid accounting foundations. Investors and analysts often view delayed filings and auditor disputes as red flags, making GenAI’s next steps critical. Appointing a reputable auditor could stabilize confidence, while delays risk extending the trading freeze and shaking market trust.
The GenAI situation mirrors challenges seen across the AI sector, where startups racing to commercialize advanced models sometimes encounter friction between rapid innovation and regulatory compliance. For B2B tech investors, the key takeaway is clear: robust internal controls and transparent financial reporting are just as vital as product breakthroughs.
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