After recording a new 52-week high of $0.2 on last Thursday, the stock price of Innovus Pharmaceuticals Inc (OTCMKTS:INNV) eroded a part of gains and closed the week at $0.156. The decline came at a share volume of 504,292 compared to average share volume of 299,248. For now, the stock has more than doubled its last week’s opening price of $0.06, but the decline in last session warns that such a sharp appreciation is unwarranted.

The performance

As per the annual report for Fy2015 that Innovus submitted at the end of March, as of December 2015, the company posted $56,000 in cash. The current assets came at $544,000 while total liabilities amounted to $2.73 million. Innovus reported annual revenues of $736,000 on net loss of $4.2 million. Looking at the yearly figures makes it difficult to get excited about company.

The cash reserves are not adequate as working capital deficit amounted to nearly $2.2 million. A year earlier, the revenues have dropped by nearly 29% and the loss from operations has jumped by almost $500,000, reaching $4.27 million. Additionally, the company’s outstanding shares have increased from 27 million at the close of 2014 to 47 million at the close of 2015. As per the yearly report, Innovus posted 67 million outstanding shares at the end of December 2015.

The takeaway

The annual figures simply don’t supports the recent performance on the charts. In fact, what boosted the confidence are the recent developments surrounding company. Last month, Innovus introduced its male fertility supplement named Androferti, in the U.S. market. Almost a week before this launch, the company’s partner, Orimed Pharma, submitted application with Health Canada for Andorferti commercialization. As of now, Innovus has 3 pipeline and 13 commercialized products. Additionally, at the start of March, the company closed the acquisition deal of Beyond Human, LLC. for $630,000.