Enzolytics Inc (ENZC)

[foxi]

Those numbers come from the analysis I linked. (this) That analysis is still pertinent, but I'll add the disclaimer here that in the weeks since, we've learned that all the source filings are still unaudited. (Even the ones that omitted the "unaudited" label on page 1.)

All outstanding debt of the Company flowed to its subsidiary, now known as Robustomed, Inc. This means there are no outstanding convertible debt pieces of ENZC common equity, and that has been the case since November 30, 2020. This has been disclosed in all filings made on OTC (both annual and quarterly) since that date.

"There are no outstanding convertible debt pieces of ENZC common equity" is a very specific statement that has certain implications. We shouldn't see any more Livingston-style dilution for the reason of "Debt Conversion" on ENZC's books. There are many other convertible instruments to which this statement does not apply.



Series B convertible preferred shares are not convertible debt pieces. If unrestricted, they can be converted into Common at any time without any cost to the Preferred shareholders. There are 445,180,000 Series B issued and outstanding as of December 31 2020 and these appear to have a conversion rate of 1:10 into common shares.

Series C Subscription Agreements and Series C convertible preferred shares are not "debt pieces". The Series C can be converted into Common shares directly, at the agreed exchange rate, "at the option of the investors." Information is limited but it appears the conversion rate is 1:100 into common shares. There are 941,078 Series C issued and outstanding as of December 31 2020.

Warrants exist that facilitate the exchange of 1,763,324 Series C stock and 188,215,600 shares of Common stock. These appear to expire in late 2023. Warrants do not automatically result in future dilution but the company may be forced to dilute to honor the holders exercising their warrants if shares are unavailable. Note that if Series C stock has a conversion rate of 1:100, warrants allowing someone to buy 1,763,324 Series C stock could result in a conversion pathway to as many as 176,332,400 common stock.

Four company insiders have 5,000,000 stock options each, which have a term of three years and become fully vested on October 20, 2022. There are no details about how these options can be exercised to obtain common or preferred shares, or at what rate.

There is an accumulated deficit of $29,533,234. This would include convertible and non convertible instruments accounted as debt, such as derivative liabilities, but "no outstanding convertible debt pieces of ENZC common equity".

Derivative liabilities are described as promissary notes and have been converted to both common stock and Series C Preferred. Recently, $8,795,075 in derivative liabilities appear to have been reaccounted in a way that clarifies they aren't considered "convertible debt pieces", hence they wouldn't be incorporated into an ENZC subsidiary as "old debt" and thus would still be convertible into ENZC common and Series C shares.

Crowdfunding convertible notes can be converted to Series D, which may or may not be convertible to Common or other Preferred Series in a pathway to Common.

If all conversions to common stock were enacted, existing common stock restrictions removed, and warrants exercised this very moment, I am totaling:

380,289,565 restricted common flipped to Unrestricted.
4,471,800,000 from Series B conversions.
94,107,800 from Series C conversions.
176,332,400 from warrants > Series C > Common.
188,215,600 from purchased warrants.
unknown amount from company insiders stock options.
unknown amount from Series E conversions if these have any conversion pathway to common.
unknown amount from derivative liability conversions.
unknown amount from crowdfunded notes > Series D > Common if such a pathway exists.

Which comes to 5,310,745,365 Common shares PLUS all of the unknowns.

Obviously, it is not realistic for this to happen all at once, but note that the potential for future dilution is there.

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