Intelligent Highway Solutions Inc (OTCMKTS:IHSI) Takes A Step Back

The latest 10-Q of Intelligent Highway Solutions Inc (OTCMKTS:IHSI) reveals that the company is trying to make progress with advanced technology that enable traffic lights, road signs, and vehicles to communicate wirelessly. It is seen as one of the finest ways to make the traveling experience safer and enjoyable. The company even intends to help the customers cultivate healthy yields of cannabis with its advanced lighting solutions.

The highlights

Intelligent Highway has been making revenues from setting temperature control sensors in an office structure in Alameda. By the looks of things, it appears that the business is advancing well. After registering a strong session on Thursday, the stock price of Intelligent Highway declined more than 36% to close the trading session at $0.00310. The reason behind the volatility in the stock is a press release which discloses about a purchase order worth $1 million from Honeywell International Inc. (NYSE:HON).

The performance

Following the new purchase order, the revenues in the next financial report is expected to be strong. Also, the new order will help the company to improve the balance sheet. At the end of the first quarter, Intelligent Highway reported cash of $37,832. The current assets came at $303,340 while the current liabilities were $2.22 million. The revenue in quarter was $183,274 against net loss of $438,598.

The quarterly report for the second quarter is expected to be released in a coming weeks and investors’ are expecting numbers to be strong. However, it should be noted that the company didn’t inform when the new purchase order will be put in place. The total revenue comes from Honeywell contracts and if there are no new orders, the company may fall in deep trouble.

IHSI

Intelligent Highway Solutions Inc (OTCMKTS:IHSI) had spiked very sharply last week as it had rallied from $0.002 levels to very close to the heights of $0.008 but at the end of the week found itself back to $0.0031. The stock ended the last trading session with a huge loss of 36.73% with the volume surging to 38 million against the daily average of 8 million only, pointing to the heavy selling pressure. The chart attached clearly shows the medium term log channel encapsulating the last phase of the decline and unless the upper boundary is broken above, no real upside can be expected.

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