Hello Coach, Foxie, Timing101, MAGA and others,
I appreciated your reply and the analogy of the "swim lanes" to audit materiality. I, too, was an SEC-grade accountant, CPA, and PCAOB auditor for many years. I specialized in audits of smallcap and medium-sized public companies in various industries. My practice was primarily an international client-based firm - Latin America, Asia, and Europe. Over the course of my years doing this, I audited "many" companies going public and conducted their "first-time" audits. I have 11 "no comment" letters from the SEC on S-1 filings to my credit, and believe that I understand very clearly the obligations of an auditor as they pertain to how to audit "beginning balances". Enough of the introduction stuff. You can draw your own conclusions about my creds.
The focus in my prior post, Coach, was specifically on the capital section of the balance sheet of ENZC - since inception. I am not going to second guess Malone Bailey CPA's on their audit of ENZC, but I have to believe that the scope of the audit on that section (swim lane), considering all of the issuances since 2008, the reverse and forward splits, the issuances for compensation, the exercise of options, etc., would approach 100% (very big swim lane!) - probably 98% of the balance sheet for a company that has really never had any revenues - just lots of promises and failed mergers (sound familiar?).
So, my assertion here is that 561,942,805 shares of common stock unaccounted for in ENZC's Supplemental Information Disclosure Document is very "material" and should have been addressed by management. It "does" have an impact on the 2020-2021 stock numbers outstanding, and serves as one of the pillars of how ENZC evolved to its current financial position.
So, no filings today. Not a surprise.
Best regards to you all.
