This is an important week for ENZC and its shareholders. I have been doing some research and discovered that since ENZC can't file for an up-list until the audit is complete means ENZC continues to be subject to the OTC rules for financial filings. This requirement is for the reports to be filed using Alternative Reporting Standards which does not require the financial statement to be audited. An SEC attorney's opinion letter is required.
Since ENZC brought the filings current (Early 2021) right after the transaction with Bioclonetics (November of 2020) they have not experienced a yield sign other than the one period where the OTC website or ENZC posted a financial report as a analysis report (numbers were filed just in the wrong place). I would believe ENZC preventing a yield sign by filing the OTC report (as they have been doing since 2017) would take precedence over an audit that has no deadline. Once the up-list is complete and accepted on whichever market ENZC up-list to, ( which cant be filed until the audit is done) then the future reports will have to be audited and reviewed by the PCAOB auditor.
ENZC never set a date for completion of the audit, only stated they were working on, making progress or answering all question by the PCAOB auditors with no conflicts developing. They even hired another PCAOB firm to assist with the audit ENZC requested this audit and it was not something required by a governing or regulatory body. ENZC is providing value added by the up-list to shareholders voluntarily. It isn't somehow "derelict" if it isn't done on a quick turnaround. The naysayers like to try to focus members of the board on that supposed dereliction, rather than all the progress being made.
The two companies have never been audited and voluntarily subjected both companies to three years worth of audits for the benefit of all shareholders . The creation of the combined entity was the result of several technically complicated transaction such as a combination, merger, reverse merger acquisition, a 251(g) merger, debt exchange and a complex business combination of two biotech companies. Their products are on the cutting edge of the medical field technology and have been recognized by technology leaders Intel and Samsung.
Because of various possible interpretations of GAAP guidelines, the auditors and company changed accounting methods for the transaction in mid stream, which had to cause a great deal of work changing from one method to another. Everyone is apparently on the same page now and seem to be satisfied with the way it is going. Proof? No conflict with the auditor has been reported by either ENZC or the auditor which would be required by the AICPA and OTC.
When I think about all the time and effort that has been expended discussing an audit that is not required for anything but an up-list (which is important for ENZC and Shareholders) it reminds me of the kids stories: Chicken Little or the Emperors New Clothes. We all seem to want to believe the fiction over the facts.
