ALT5 Sigma Faces Nasdaq Delisting Risk Due to Audit and Governance Issues

The Essentials

• ALT5 Sigma’s auditing firm lacks an active license to legally perform audits, expiring in August
• The company reports critical delays in quarterly financial reports, risking regulatory non-compliance
• Resignation of a director and governance failures undermine the company’s position on the stock exchange

Audit Issues Jeopardize Listing Viability

ALT5 Sigma, listed on Nasdaq, faces regulatory hurdles after recently changing auditors. The new auditing firm, Victor Mokuolu CPA PLLC, based in Texas, is currently operating without a valid firm license, according to state records reviewed by financial analysts.

The firm’s license expired in August and remained inactive as of December 26, preventing the company from legally issuing audit opinions under Texas regulations. Although the founder of the current firm updated his personal CPA license on August 31, the corporate registration has not been reactivated.

ALT5 Sigma has explicitly confirmed that no audits or financial statement reviews will be issued until the license is restored. The company added that the auditing firm is currently undergoing a peer review process expected to conclude by the end of January.

History of Regulatory Non-Compliance Worsens the Crisis

Concerns are not limited to the expired license. Victor Mokuolu CPA PLLC has a problematic compliance record, including sanctions from multiple oversight agencies.

In 2023, the Public Company Accounting Oversight Board fined the firm for failing to properly communicate about six audits of listed companies within regulatory deadlines. Subsequently, in 2024, the Texas State Board of Accountancy imposed additional sanctions for similar reporting and procedural violations.

Delayed Financial Reports Risk Listing

ALT5 Sigma has not yet filed its quarterly results for the period ending in September, posing a direct risk of delisting from Nasdaq according to its regulations on timely financial reporting.

This delay is part of a broader pattern of transparency issues that emerged after announcing the addition of cryptocurrency assets to its balance sheet. The stock price has fallen more than 77% since the start of 2025, reflecting growing market distrust.

Corporate Governance Breakdowns Increase Vulnerability

The situation is worsened by the resignation of board member David Danziger, which puts ALT5 Sigma in violation of Nasdaq requirements that mandate a fully constituted audit committee with sufficient accounting expertise.

The combination of an auditor without an active license, delayed reports, and poor governance structure presents a high regulatory risk scenario that directly threatens the continued listing of sigma meme and related assets on Nasdaq.