![](\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/90\/90969\/ihsi_6m_450x350.png\")
<\/p>\n<\/p>\n
Yesterday Intelligent Highway Solutions Inc (OTCMKTS:IHSI<\/a>) published a new PR announcing a a Private Equity Line Financing for up to $5 million. Such a tremendous boost to the company’s balance sheet was bound to capture the attention of the market and, indeed, investors began rushing towards the stock. In a state of real buying frenzy IHSI<\/a> <\/strong>registered a never-before-seen daily volume of over 126 million shares. The buying pressure was so strong that it pushed the stock to a close nearly 31% in the green at $0.0017.<\/p>\n Yesterday’s trading may have been extremely positive but unfortunately IHSI<\/a> <\/strong>still has a long way to go – their stock has been crashing down the chart for more than a year and a half. And the multitude of red flags around the company could continue to influence the chart performance negatively.<\/p>\n Let’s start with the latest financial report. According to it at the end of March IHSI<\/a> <\/strong>had:<\/p>\n • $37,832 cash Although the company is generating revenues the balance sheet as a whole fails to inspire much confidence. Not to mention that the entire generated amount came through a purchase order from Honeywell International Inc. (NYSE:HON), that, as the July 23 PR tells us, has now been completed leaving the company in search for new clients.<\/p>\n The $5 million financing is more than likely going to be enough to keep IHSI<\/a> <\/strong>going for quite a while but so far the details of the deal have not been disclosed. At least we know that the financing has no downward convertible mechanism. That, however, doesn’t mean IHSI<\/a>‘s <\/strong>stock is safe from dilution. On the contrary – as of March 31 there were around $289 thousand worth of principal and interest on some notes that could be converted into common shares at discounts ranging from 35% to 52%.<\/p>\n The potential dilution should not be underestimated in the slightest. As of May 20 IHSI<\/a> <\/strong>had approximately 51.5 million outstanding shares while, as we said earlier, yesterday’s volume surpassed 126 million. This could mean that in less than 3 months the O\/S count of the company more than doubled.<\/p>\n
• $303,340 current assets
• $2,228,602 current liabilities
• $183,274 revenues
• $438,598 net loss<\/p>\n