Yesterday the share price of Infrared Systems International (OTC:IFRS) jumped above all resistances for the past six months and the stock saw unseen trading activity. It looks like the reason was the latest press release of the company and the action might continue today as well as trading alerts have already spread the rather questionable news further. 
As soon as IFRS announced yesterday that its subsidiary has concluded a pilot study of its NatuRxTM HIV/AIDS treatment and intends to move forward with the clinical trials later this year, the share price of the stock was pushed up to $0.0173, the highest level for almost eight months now. IFRS closed then the session at $0.0094 with a 38.24% jump in the value and the highest trading volume ever of over 66 million shares.
Some promoters must have noticed the action and have already alerted traders about the huge volume from yesterday. That could add more buyers today, but it does not guarantee that IFRS will start rapid and stable appreciation.
According to the company’s latest 10-Q, it has as of end-March 2011 rather weak cash and assets position, too much of expenses and a working capital deficit. Infrared Systems International acquired acquired 50% of the outstanding stock of AquaLiv for $400,000 in the December last year and paid that price with 400,000 shares of Series A Preferred stock valued at $1.00 per share.
Unfortunately the report does not mention that this subsidiary is working on products for HIV/AIDS treatment as stated in the PR, which is not exactly a minor issue that could be easily left behind. Instead, AquaLiv is described as “a life sciences research and development company best known for its health-enhancing water purification system”. Yet, maybe there is hope for the substantial increase in the revenues that IFRS urgently needs in order to survive. Due to the acquisition of AquaLiv the total revenue of the company for the first three months of this year exceeded $159,000, compared to only $14,400 in the same period last year.
Also, IFRS has currently more than one options to choose from. The company has an infrared systems division and derives royalties for its Enhanced Vision System units used by the Federal Aviation Administration and by other regulatory agencies. Last year, the company also acquired another subsidiary engaged in cloud computing and VoIP services.
