Enzolytics Inc (ENZC)

[foxi]

Thanks for your complement. I'm just a fox on the internet, but I do my best.

Personal story, I lost approximately half my investing money last year on a ticker that was stealthily diluting and habitually lying in fluffy PRs. Eventually they got caught in a lie and the SEC suspended them, and though they were unsuspended in a few weeks, the game was over. Leading up to the suspension, people (including myself) saw stuff that "looks bad", didn't discuss it, and just hoped it went away, as you put it. Never again, lol

ENZC is way more established and connected (Samsung, Intel, etc) and I see them taking a much more positive track. I try to be fair and leave no stone unturned, as much to stimulate responses on here as anything. We're all stronger by helping each other refine our DD.

Given this, can you imagine what their accounting looks like? Can you imagine auditing their books? Would then a 15 months long and counting audit surprise anyone then?

IMO there's no way should their audit should take 15 months, even with lazy bookkeeping. Zero revenue except for one quarter in 2021 I think. My guess is they hit some kind of a snag where they can't balance the books for something like the merger, and are working with the auditors to figure out what to do. But it's still anybody's guess what's really happening since the process and ENZC's related communications are opaque.



EDIT: My guess would be wrong, haha. Looks like the delay is spelled out clearly in the latest filing:

On January 11, 2021, the Company engaged Malone Bailey to perform the Audit for the years ended December 31, 2019 and 2020. The Company completed the client approval process in early February. The audit of both years is still in process. No unanswered issues have arisen. It was determined in June of 2021 that the Bioclonetics transaction, which closed in November of 2020, should be accounted for as a reverse merger rather than a business combination and will be reported as such in the audited financials for ENZC. The requested change in accounting method required the books and records of Bioclonetics to be audited for the years ended December 31, 2019 and 2020 in accordance with GAAP standards by a PCAOB auditor. After the hiring of independent Accounting Consultants, it was determined that the Companies did do a business combination not a reverse merger, and as of the time of this filing, the Company has provided all the records and agreements, accounting memos and backup documentation requested by the consultant and the auditor. The Changes in Accounting Method will result in amendments to the quarters ending March 31. 2021, June 30, 2021 and September 30, 2021 immediately upon completion of the audits. There are no disagreements with the auditing firm and the Company is working closely with all parties to finalize the audit.