Intelligent Highway Solutions Inc (OTCMKTS:IHSI) Is Today's Focus Stock

The sudden increase in trading volume of Intelligent Highway Solutions Inc (OTCMKTS:IHSI), which handles electrical installations among other solutions, drew our attention this week. The market is currently reacting to the acquisition of Cresent Construction Company from North Carolina. Additionally, IHSI has promised to bring the company up-to-date with the SEC. In this piece, we will provide detailed information and assessment of this news and explain what may happen in the near future with the company.Have a look at the recent share price action. Remember to note the volume; for some days, 1.0 billion shares changed hands. This amount of volume is unprecedented. It shows the rising interest in the firm. If the demand for the stock continues to increase, the share price may increase soon as well. It is basic microeconomics theory.SourceBusiness HistorySourceIHSI was created around 2011. It is a California based electrical solutions firm that develops high voltage and low voltage electricity solutions. After a successful stint in the business for over five years, in order to promote diversification and in the act of increasing its number of subsidiaries, the firm acquired Cresent Construction Company from North Carolina. The management of the firm expects that this acquisition will take their firm to the next level.Recent DevelopmentsOn July 18, 2016, Intelligent Highway Solutions, Inc. announced that it has filed the quarterly report with the SEC for the period ended March 2017. The filing was considered to be a stepping stone in its progress to acquire the firm Cresent Construction Company from North Carolina.

"The filing fulfills our promise to investors to bring the Company up-to-date with the SEC. It also details our acquisition of the Cresent Construction Company in North Carolina. Cresent Construction is a full service general contracting firm with an excellent reputation of over 32 years of construction. It recorded $7.2 million in revenues for its Fiscal Year ended October 31, 2016" Source

Cresent Construction is one of the oldest firms in the North Carolina, with 30+ years of history. The management of Intelligent Highway Solutions Inc. believes that the acquisition of Cresent Construction will pave the way to new markets and government agencies. Devon Jones, the CEO of Intelligent Highway Solutions, quoted the following:

“This acquisition will allow us to work on projects with government agencies and service some of the international companies in North Carolina that we have relationships with in California. The acquisition of Cresent Construction will also help us with expansion of our energy efficient technologies as we expand into the Southeastern U.S.” Source

The act of filing with the SEC to provide quarterly and annual reports on a recurring basis will certainly increase the trust about the firm among its shareholders. The following action will also boost its share price. As a follow-up, on June 29, 2017, Intelligent Highway Solutions, Inc. issued a press release that mentioned the significance of filing its 2016 reports with the SEC. The CEO of the firm, Devon Jones, said,

“IHSI appreciates the patience of its shareholders and announces that it has taken a key step to be current with its financial filing requirements. We are pleased to announce that with the filings we are one step closer to ensuring that our financial obligations are current and compliant.” Source

Interesting quarterly reportOn July 17, 2017, we could have a look at the most recent quarterly report. Readers should have a look at it. The most interesting item found by the team was that the company is finally generating revenues and reported a net income of $9,442,483. This is an astonishing figure, which was explained by a "Gain on derivative fair value adjustment". Have a look at it:Three Months Ended March 31,20172016Revenue$633,468$-Cost of sales559,291-Gross profit74,177-Operating expensesSalaries and wages41,44338,179General and administrative320,929103,463Total operating expenses362,372141,642Loss from operations(288,195)(141,642)Other income (expense)Gain on extinguishment of debt-40Gain on derivative fair value adjustment9,487,661 270,252Interest expense(45,178)(199,701)Total other income (expense)9,442,48370,591Income (loss) before income taxes9,154,288(71,051)Income tax expense--Net income (loss) before non-controlling interest9,154,288(71,051)Net loss attributable to noncontrolling interest(16,896)-Net income (loss) attributable to Intelligent Highway Solutions$9,171,184$(71,051)SourceConclusionIHSI shows a very significant catalyst; the acquisition of Cresent Construction Company. The transaction shows that the company is growing with the assets and know-how accumulated by IHSI increasing. The market may push up the share price when it is finally closed. Hence, we need to be alert on this name. Additionally, the fact that the company is getting current with the SEC is very positive. More market participants will check the company's financial situation. On top of it, the company reported an incredible net income recently, which we believe that not many people have seen, as the share price did not react to it. To sum up, this is a company to follow.We will be updating our subscribers as soon as we know more. For the latest updates on IHSI, sign up below!Image courtesy of Christer Dahl via FlickrDisclosure: We have no position in IHSI and have not been compensated for this article.