Enzolytics Inc (ENZC)

[foxi]

You raise some good questions, thanks for taking the time!

The recent supplemental filing breaking down the last few years of share issuances, conversions, and major stakeholders seems like a PR move to try and quiet the internet rumors of the company stealthily diluting since the last run up to nearly $1. The supplemental filing is not required and there's no requirement how far back it must go.

It does seem kinda weird that they don't account for a great many older shares, or the 50,000 for 1 dilution of the founding shareholders in two earlier reverse splits that you've mentioned, but that was also a long time ago -- and all they're trying to address in the supplemental filing is activity surrounding the last run up to $1 (especially any claims of dilution in 2021 and the growth in float; see pugsieboy's notes)

The audit on the other hand, absolutely needs traceability for all shares to close those swim lanes.

I've wondered before if the audit firms were having trouble signing off on the audit since millions of shares are still in legal dispute (Savov case), but I wonder if those shares could simply be disclaimered to allow the audit results to be delivered anyway since lawsuits often take years.

If ENZC's legacy bookkeeping is actually missing key information, it seems that could derail any successful audit attempt for the forseeable future. But I don't know how we could know that vs just speculating on it, and that would directly contradict the company's repeated claims that the audit is proceeding "without any issues".



As much as people rightfully point out that ENZC is under new leadership, at least in name, the Bulgaria ties and Harry's continuing influence as CFO and CSO do merit some scrutiny.

We have Harry's track record with IMMB to consider, including:

- An SEC suspension for unsupportable claims that IPF-based compounds could be used as an Ebola treatment, at a time when IMMB was unlicensed for using IPF on Ebola and unable to fund the development of IPF for Ebola.

- The Viral Genetics lawsuit from 2008 claiming Harry tried to divert intellectual property to another company, and per the linked article, "had been involved in an effort to bankrupt Viral Genetics" by approving a convertible debenture that increased the company's debt and devalued its stock through dilution.

- The Viral Genetics lawsuit strangely parallels the more recent Savov/Immunotech claims last year that Harry, bookkeeping for IMMB, engaged in fraud and tried to improperly divert ITV-1 IP from IMMB to ENZC. Important to note that Savov's claims are hearsay so far, since they haven't been addressed through proper legal channels, and that ENZC is actively suing him for making these claims.

- That Livingston Asset Management engaged in toxic lending to ENZC, with dilution and conversions which had ENZC in the low trips leading up to the big run that started late 2020.


These bullet points are all their own cans of worms, with a lot of important context I didn't include here, but it's important to observe that Harry is a common factor. As CSO he currently has influence in how ENZC structures its shares. I find the claim from the supplemental filing "No Dilution has occurred since October 15, 2020, when the total issued reached 2,797,935,953" disingenious because we can clearly see new convertable Series B issued well after that date. In this filing for ECPO on page 5, it's suggested that an old Series B converts 2:1 to Common shares, but a Series B conversion for ENZC documented here suggests the Series B issued to current ENZC insiders (including Harry) in December 2020 convert 10:1 to Common shares. Whatever the rate, it's opaque -- and it IS dilution because new shares were created out of thin air to the detriment of current shareholders. The complexity of these structures and the fact that they have occurred before while Harry was in charge of issuing shares, along with the supplemental filing that appears to be deliberately skirting the facts of new issuances, bring to mind this quote that "beyond a certain point, complexity is fraud."





For my own investment strategy, the delivered audit is a must before I'll put more significant money behind this company for anything other than swings, despite all their exciting promises. I've been burned in the pinks too many times to take a company solely at its word.

And quite frankly, my trust has been shaken in the past few months with the empty promises, overdue deliverables, unexpected silence, and aversion to engaging with those who ask legitimate questions. (Lots of people on here are blocked by the company on Twitter for daring to ask real questions. It's a chronic pattern.)

I'm still long with a small core, and still hoping to see this company take a better track!