Global AI Inc. (GLAI), a maker of artificial intelligence (AI)-based solutions for institutional investors, announced it will not file its annual report on time after its auditor quit abruptly.

The disclosure provided investors little detail.

Neither do previous filings.

Five days earlier, Global AI said its auditor, Chaikin, Cohen, Rubin & Co., notified the company on March 24th that it had quit two weeks earlier.

Notably, a search of the Public Company Accounting Oversight Board’s (PCAOB) auditor database does not list Chaikin, Cohen, Rubin & Co. as having ever been Global AI’s auditor.

In fact, PCAOB records indicate Chaikin, Cohen, Rubin & Co. has just two publicly traded clients; Enlight Renewable Energy and ICL Group.

Just one day after learning its auditor had quit, Global AI says it hired Barzily & Co. as its new auditor.

Notably, PCAOB records do not show Barzily & Co. as being Global AI’s auditor.

With an Enterprise Value (EV) of approximately $186 million, Global AI is priced as if it will grow annual sales to more than $341.9 million, up from $24.8 million in 2024. To justify its current share price of $1.20 our Reverse DCF— which quantifies investor expectations embedded in the current share price— indicates Global AI must:

—Grow sales 30% annually for the next decade, versus (27.1%) in 2024, and three-year average of (29.2%)
—Increase NOPAT margin to 11%, versus our 2024 estimate of (3,016%) and three-year average estimate of (1,306%)
—Increase Invested Capital (IC) Turns to 1.1, up from our 2024 estimate of 0.1

Notably, the current share price also implies Global AI increases Return on Invested Capital (ROIC) to 12.1% from our 2024 estimate of (310.9%):