Enzolytics Inc (ENZC)

[foxi]

Huh! Good question. :)

Consolidating it somewhere might somehow make it easier to pay off. Also maybe they could treat it as debt of a subsidiary as a clever structure that limits would-be conversions to help escape toxic debt, if it can legally be re-accounted that way.

If they could discharge old liabilities by any means, I feel like they'd broadcast that with a pretty significant PR. That's another reason I think the debt reported as derivative liabilities thru Q3 2021 is still present in some form. I'm hoping it didn't just get reclassified in an accounting bucket that makes it harder for retail to see conversions coming ahead of time.

I've been digging to try and learn what kinds of convertible instruments might wait in the wings because I think it makes good business sense for ENZC do a reverse split in some scenarios, for example to help increase share price to uplist. After a reverse split there'd be room to increase A/S again without making it as ludicrously high as 3 billion. Having convertible debt that can't currently be converted due to lack of O/S headroom isn't a big deal before then -- but I don't want to end up in a situation where a R/S happens and a bunch of parties find a path to convert.


This stuff is such a tangle. I don't envy the auditors, haha. XD