After a couple of sessions with relatively low activity, Aura Systems Inc. (OTC:AUSI) somehow managed to attract investors’ attention last Friday.
Without issuing any recent corporate updates, AUSI stock closed the final session of the week on a positive note. Going up 3%, AUSI clocked in at its mid-November level of $0.70 per share. What is more, the surge happened on a volume of approx. 114 thousand, which is not only considerably higher than the aggregate volume of the last three sessions, but also a two-week high and 58% bigger than the average daily trading volume.
AUSI’s latest official press release dates from Nov. 21 when it announced the inclusion of two industry experts in the company’s Board of Directors. The news itself, however, did not push AUSI stock up. Rather, AUSI lost 6% in value, hinting that it will take a while before the company’s new BoD members contribute to the positive development of AUSI.
Three days earlier, i.e on Nov. 18, AUSI disclosed that it had signed a ‘binding’ MOU with a company which specializes in armored vehicle design and manufacturing. As set out in the MOU, the latter was now granted permission to use VIPER – AUSI’s mobile power generator and power management system.
Earlier this month, AUSI filed its latest 10-Q report for the quarterly period ended Aug. 3, 2011. In a nutshell, the document disclosed:
- $53K in cash;
- working capital deficit in excess of $12 million;
- net revenues of $615K and a quarterly net loss of $5.8 million.
At present, AUSI’s financial state is as fragile as it gets. Unless managers adopt a different approach, the company’s future as a going concern will look shady and uncertain.
