Genufood Energy Enzymes Corp (OTCMKTS:GFOO) Making Strategic Moves

The latest penny stock to capture the attention of the micro-cap market is Genufood Energy Enzymes Corp. (OTCMKTS:GFOO), which distributes enzyme dietary supplements for human and animal consumption.The share price jumped last week from $0.0001 on September 18, to $0.0007 as of September 25. But, that's not all. The volume increased astonishingly as well. Almost more than 400 million shares changed hands on some day.Have a look at the recent share price action: 1 month chart for GFOO 10 days chart for GFOOWhat happened?That is the interesting thing. The company did not release any press releases in September. We need to go to August to check the news that may explain the upward share price trend. The company elected a new President, Chief Executive Officer, and Chief Financial Officer. Thus, it seems that the market is betting on assumption that the company will develop its business. We will provide more details in this article.BusinessAccording to the last annual report released to the market, GFOO is "a marketing, distribution and export company specialized in enzyme products for human and animal consumption." What's a Enzyme?This is again information from the last 10-k:

"Enzyme is a catalyst responsible for biochemical reactions in living things (including animals, plants, and microorganisms), synthesis, decomposition, oxidation, transfer and isomerization. Isomerization is the chemical process by which one molecule is transferred into another molecule which has exactly the same atoms, but the atoms are rearranged. The biotic phenomena would stop without enzymes, or the lack of it, or with its destruction." Source

ProCellax Range of Enzyme Products for Human Body Cells ChartFurthermore, we could read from the company materials that consumption of enzymes is good for our well-being and has been "Generally Regarded as Safe" by the FDA.Following are some of the products distributed (read the full information on the company's website):

• ProCellax: it is for human consumption, suitable for vegetarians and vegans, since enzymes are extracted from fruits and vegetables, free of pesticides, chemicals, preservatives, animal derivatives, dairy among other artificial substances.
• ProAnilax: it is intended for animal consumption, specially for the digestive system of cats and dogs. Additionally, we could read that it consists of a blend of enzymes developed especially for poultry feed supplementation and swine feed supplementation.
• TaniNZ Premium: it is a pure artesian water obtained from a large bio-secured aquifer from New Zealand, which seems to have been chosen because it is a nuclear-free country.

Recent DevelopmentsOn April 18, 2017, the company opted to change some of its executives:

• Yi Lung Lin, who was President, CFO, Principal Accounting Officer, Secretary, and Treasurer, resigned noting that there was no "disagreement with the Company on any matter relating to its operations, policies or practices." This last part is what the market focused on. Some executives leave claiming that there is an issue and the market reacts badly to such news. In this case, no reaction could be seen.
• Beckenburg Boon Kee Lim, who was the CEO, decided to leave the company and also noted that no disagreements existed with GFOO. We obviously appreciate this fact.

Furthermore, on August 4, 2017, the company celebrated that the shareholders have approved, in a special meeting, to remove Jui Pin Lin as a director. Additionally, Ching Ming Hsu, a current director of the company, was elected as its new President, Chief Executive Officer, and Chief Financial Officer. Furthermore, Yi Ling Chen, a current director, was also elected to be the new Treasurer, Principal Accounting Officer, and Secretary. We need to note, as the company did, that there are no family relationships between Mr. Hsu, Ms. Chen, and any of our officers or directors.FinancialsWe believe that it will help understand the company if we note the last balance sheet reported. The last report is for the quarter ended on June 30, 2014, but we can get an idea about the financial position. The following are the assets of the company. Please note the amount of cash and inventory.Period Ending6/30/20143/31/201412/31/20139/30/2013Current Assets (All numbers in thousands)Cash And Cash Equivalents366.082666.191795.033870.646Short Term Investments----Net Receivables35.95630.95629.6545.569Inventory260.556267.212322.373110.894Other Current Assets-3.767-40.39Total Current Assets662.594968.1261,147.061,027.499Long Term Investments----Property Plant and Equipment62.43971.88481.2290.165Goodwill----Intangible Assets31.03330.98629.92230.486Accumulated Amortization----Other Assets50.61947.89249.13347.578Deferred Long Term Asset Charges----Total Assets806.6851,118.8881,307.3351,195.728Source: Yahoo FinanceThe following are the liabilities, from which we need to remark that the total amount of liabilities does not exceed the total amount of assets and that the financial debt is equal to zero:Accounts Payable356.562480.443798.717252.028Short/Current Long Term Debt147.85---Other Current Liabilities----Total Current Liabilities504.412480.443798.717252.028Long Term Debt----Other Liabilities----Deferred Long Term Liability Charges----Minority Interest----Negative Goodwill----Total Liabilities504.412480.443798.717252.028Source: Yahoo FinanceConclusionCurrently trading with a market cap of $1 million, GFOO is an interesting story among small caps. The company seems to be seducing the market with innovative products. Additionally, we believe that the recent changes in management were the major cause of the upward trend in the share price.Furthermore, we believe that the old financial statements should be appreciated . We believe that if the company is able to release new financials and more information is provided about the day-to-day operations, the share price could continue increasing. To sum up, follow this name and assess closely the new announcements.We will be updating our subscribers as soon as we know more. For the latest updates on GFOO, sign up below!Image courtesy of Fitness Go via FlickrDisclosure: We have no position in GFOO and have not been compensated for this article.