Enzolytics Inc (ENZC)

[foxi]

Yeah that part about needing an extension to write zeros for 'international business expansion' looks a bit shady!



I looked carefully through the numbers in the current quarterly and compared to the prior. Didn't see anything glaring, though the numbers don't seem to show international business expansion (or even any unusual activity) and there are a couple weird spots.

https://www.otcmarkets.com/otcapi/company/financial-report/297979/content
https://www.otcmarkets.com/otcapi/company/financial-report/312797/content



First a quick breakdown:
Comparing assets in the Balance Sheets on page 1, the numbers are exactly the same for "Other Assets". The numbers are also exactly the same for "Current Assets" except "Cash and cash equivalents" dropped about $395k, and "Property and equipment, net" increased about $13k. No money coming in.

Comparing Statements of Operations from the second page, the numbers for Q3 are similar to Q2 except for three notable differences in the Q3 financials:
- There were zero License Revenues
- There were zero Research and Development expenses
- General and administrative category increased about $43k



In the latest quarterly, in "(9) Subsequent Events" on the very last page:

ENZOLYTICS, INC. NOTES TO FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2021

Installation of Equipment at VetProm Facility

Enzolytics, Inc. purchased and installed equipment necessary for production of the ITV-1 immunotherapy for the clinical trials being design by Clinic Design. The original equipment had to be returned because of damage to the centrifuge which, along with other issues encountered by IMPL, delayed the scheduled production expected in October. The new expected production date has been rescheduled for January of 2022.

So ENZC bought and installed the equipment for ITV-1 clinical trials, and presumably the damage wasn't found until after the James Hicks interview on Sept 30 since Charles says at 7:30 in

that ENZC will be "completing the production of the [ITV-1 peptide] in October". I would guess this was the $13k of new property and equipment assets. Looking at the expenses breakdown then, if they expense the purchased equipment, "General and administrative" is the category and it's about $43k higher than Q2's number, so the math sorta adds up if the equipment is worth approx $13-43k. If that's all it costs and there's close to $1.6 mil cash sitting around, imo they need to rush-order another set or two to get the timeline back on track.



To have no profit in the latest quarterly implies no licensing revenue for IPF from EnzoImmune Active on sale in Bulgaria. (It's been on sale in at least Bulgaria since at least March 2021, afaik) https://enzoimmune.com/

Rosetta says:

Rosetta Lifecare signed with Enzolytics Inc. agreement on exclusive distribution rights for the distribution of their ITV1 product for the treatment of HIV / AIDS and Hepatitis C for the following countries: Pakistan, United Arab Emirates, Indonesia, Philippines, Nigeria, Benin and Togo, Kenya, Tanzania, Rwanda, Libya, Uganda Northern Sudan, Egypt, Morocco and Tunisia. https://rosettalifecarebg.org/

And ENZC says in page 13 of this filing: https://www.otcmarkets.com/otcapi/company/financial-report/300160/content

On May 12, 2021, the Company granted a distributorship license to a European pharma entity giving it the right to distribute the Company's anti-HIV-1 therapeutic ITV-1 in the countries of India, Pakistan, UAE, Indonesia, Philippines, Nigeria, Benin and Togo, Kenya, Tanzania, Rwanda, Libya, Uganda, North Sudan, Egypt, Morocco, and Tunisia. The Licensing Entity is the owner of a pharmaceutical plant in Eastern Europe. Pursuant to the Agreement, Enzolytics will receive $1 Million USD and 50% ownership in the Licensing Entity valued at $8 Million. The License is granted with a commitment by the Licensee to sale and distribute the ITV-1 therapeutic in the Licensed Territory. In addition, the Licensing Entity has invested $2 Million USD in the Company in exchange for Company Preferred Series E stock bringing to the Company $3 Million in cash plus a 50% ownership in the Licensing Entity. This agreement will result in establishing a committed partner for sale and distribution of the Company's ITV-1 therapeutic in the Licensed Territory as well as 50% ownership in Licensee and its profit derived from sales in the Licensed Territory.

So if Rosetta is doing any sales in these countries at all, we should expect to see ENZC reporting SOME revenue in this quarter. Weird.