Enovational Corp., a D.C. technology firm that counts the state of Maryland as a major client, filed for chapter 11 protection March 26 in the U.S. Bankruptcy Court for the District of Columbia, the Washington Business Journal reported. This week saw the company lay off dozens and earn court approval to erase a major downtown D.C. office lease it had signed just last year. Founded in 2011, Enovational builds web portals and mobile apps for Apple and Android phones, among other services, and lists the Maryland Department of Transportation and the Maryland Department of Information Technology as clients, according to the company's website. The company has several ongoing contracts with Maryland's IT department, health department and cannabis commission, according to court filings. The company states in court filings that it believes it "may be able to continue in its business if relieved of certain contractual obligations and permitted to devote resources to collecting upon certain debts owed by its customers." The company reported in court filings $11.8 million in 2020 gross revenue, $22.3 million in 2021 and $2.8 million in 2022 from Jan. 1 through the date of the bankruptcy filing. In a hearing Tuesday before Judge Elizabeth Gunn, VerStandig and Enache said the company's financial problems "escalated quickly" and are tied to work orders with Maryland for which it has yet to be paid. The company is in the process of appealing with the state but in the meantime has a "very delicate" cash situation, VerStandig said.
