Enzolytics Inc (ENZC)

[foxi]

Hmmm...

from Supplemental Information - SHARE ISSUANCE HISTORY AND DILUTION published 3/16/22
https://www.otcmarkets.com/otcapi/company/financial-report/323613/content

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.

from Annual Report - Corrected Footnotes and Financials 12.31.2021 published 6/15/23
https://www.otcmarkets.com/otcapi/company/financial-report/374719/content

Under the ASC 470-20, an entity must separately account for the liability and equity components of the convertible debt instruments that may be settled entirely or partially in cash upon conversion in a manner that reflects the issuer's economic interest cost. The effect of ASC 470-20 on the accounting for convertible debt instruments is that the equity component is required to be included in the additional paid-in capital in the consolidated balance sheets

Additional paid-in capital

As of December 31, 2021

$26,425,962

Somewhat related, the hierarchy of liability in bankruptcy is something like this:

Secured creditors
Unsecured creditors
Preferred shareholders
Common shareholders

These parties would all have claim on a company's assets if the company was to declare bankruptcy. However, what happens if the company has zero assets?