For what it's worth it's better this "inquiry" came to light now as opposed to later. If the upcoming update is a blockbuster then the rest will take care of itself. It's definitely more advantageous to release an update sooner than later as unknown factors have presented themselves. The shorts are playing with fire in more ways than one. Nasdaq is certainly in the know and they sometimes act in conjunction with the SEC. They might unwittingly provoke a trade halt which is worse than an SEC halt as it could drag on for months. In the end no one really wins as Shorts pay exorbitant borrow fees and Long shares are frozen. Hopefully Zion's filings and paperwork are all in order and this shouldn't be a concern. A recent case study is LFIN which was halted almost 2 months for not filing a 10Q. The SEC announced they were also investigating for insider trading the same day. A heavily shorted stock with a very low float, almost %70 short interest. The halt and the SEC probe was definitely incited by Shorts tipping off both organizations because they lost big money shorting the stock. It was being squeezed before it got halted. To be honest, LFIN was a crypto company and may be shady but long story short (hehe), Shorts, and short puts, got it up the rear during the halt and after. 2 months of Short Puts expired and shorts paying up the nose borrow premiums. The stock reopened considerably lower but eventually squeezed up (again) as many longs refused to sell at such a low valuation.
