INEO Achieves Record Quarterly Revenue in Fiscal Third Quarter with 72% Growth
INEO Tech Corp. (TSXV: INEO; OTCQB: INEOF) reported impressive fiscal Q3 2022 results, achieving a 72% year-over-year revenue increase to $335,568 and a 202% gross profit growth to $203,550. This growth is attributed to successful direct sales efforts, including a Master Services Agreement with a large retailer and being named a preferred vendor for EAS products across 500 franchisee locations in Canada. Despite a net loss of $773,982, the company's outlook remains positive as it scales its operations and expands its media network.
- 72% year-over-year revenue increase to $335,568.
- 202% gross profit increase to $203,550.
- Gross margin percentage climbed to 60.7%.
- Signed a Master Services Agreement with a major retailer.
- Selected as a preferred vendor for EAS products by a retail dealer association with 500 locations.
- Net loss increased to $773,982 compared to $576,400 in Q3 2021.
- EBITDA loss widened to $726,099 from $540,266 in Q3 2021.
- Cash and cash equivalents decreased to $2,574,594 from $5,199,328 since the previous year.
- INEO achieved
72% increase in year-over-year revenue and202% increase in gross profit in third quarter 2022. - Despite the current challenging macroeconomic environment INEO is experiencing an increase in its sales activity.
- INEO's direct sales efforts have resulted in the Company signing a Master Services Agreement with a large retailer and being selected as a preferred vendor for EAS (Electronic Article Surveillance) products by a retail dealer association which has approximately 500 franchisee locations across Canada.
SURREY, BC, May 30, 2022 /PRNewswire/ - INEO Tech Corp. (TSXV: INEO) (OTCQB: INEOF) (the "Company" or "INEO"), the innovative developer and operator of the INEO Media Network, a digital advertising and analytics solution for retailers, today announced it has filed its Interim Consolidated Quarterly Financial Statements and Management's Discussion and Analysis on SEDAR.com for the Company's fiscal third quarter ended March 31, 2022.
"We are pleased with our fiscal third quarter results in which we reported a
- INEO generated
$335,568 of revenue for the three months ended March 31, 2022, representing an increase of72% as compared to revenue of$195,518 for the three months ended March 31, 2021. - INEO generated gross profit for the three months ended March 31, 2022 of
$203,550 , as compared to gross profit of$67,358 for the quarter ended March 31, 2021, representing an increase of202% , driven by an increase in higher margin INEO loss prevention products. - INEO achieved gross margin percentage of
60.7% for the three months ended March 31, 2022, compared to gross margin percentage of34.5% for the quarter ended March 31, 2021. The increase in gross margin percentage was attributed to the increase in INEO loss prevention products. - Net loss and comprehensive loss for the three months ended March 31, 2022 was
$773,982 or$0.01 per share compared to net loss of$576,400 or$0.01 per share for the three months ended March 31, 2021. - EBITDA loss for the three months ended March 31, 2022 was
$726,099 , compared to EBITDA loss of$540,266 for the three months ended March 31, 2021. - INEO had
$2,574,594 of cash and cash equivalents at March 31, 2022, compared to$5,199,328 of cash and cash equivalents at June 30, 2021. - As at March 31, 2022, the Company had 60,190,138 shares issued and outstanding.
- On January 20, 2022 INEO announced it had acquired the assets of E-Commerce company, Securitytags.com from Vitag PTY Ltd., a leading Australian-based provider of Electronic Article Surveillance (EAS) anti-theft products for retailers. Under the terms of the purchase agreement, INEO acquired the Securitytags.com domain name, website, inventory, customer list and social media accounts.
- On February 10, 2022 INEO announced a partnership with Vistar Media, the leading provider of programmatic technology for digital out-of-home (DOOH). With this agreement, all of the digital display screens in the INEO Media Network, including those in INEO's patented INEO Welcoming Systems, are accessible on Vistar's programmatic advertising platform. Brands and marketers who utilize the Vistar Media platform are able to purchase INEO's unique advertising inventory, located at the front entrance of retail stores.
- On March 15, 2022 INEO announced the appointment of Bernie Ryle as Chief Financial Officer. Bernie has responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions. She assumed the Chief Financial Officer role from Zara Kanji who stepped down to focus on her professional accounting practice, Kanji and Associates. INEO retains an upstanding relationship with Kanji and Associates.
- On March 30, 2022 INEO unveiled the INEO Media Player, the Company's next-generation Digital Out-Of-Home (DOOH) advertising system designed to be a companion product within the patented INEO Welcoming System. The INEO Media Player works in tandem with the INEO Welcoming Pedestal to provide another level of digital advertising within retail stores. INEO completed its trial run of the INEO Media Player within several retailers and is now deploying it in retail locations world-wide.
- On April 6, 2022, INEO announced the filing of a design patent for its revolutionary INEO Welcoming G.A.T.E. (Global Anti-Theft Environment). The INEO Welcoming G.A.T.E. is designed to be a companion product with the patented INEO Welcoming System. The INEO Welcoming G.A.T.E. patent filing protects the unique form factor, design and materials used in INEO's new product. The INEO Welcoming G.A.T.E. is currently installed at many retail locations across Canada and the US.
- On April 28, 2022, INEO announced INEO LIVE, a new initiative to support local live events. INEO LIVE provides live events free advertising space on the INEO Welcoming Network, targeted in the communities these live events are taking place. INEO LIVE is specifically focused on live music, sports events, and non-profits, however, the Company is looking at other live events and organizations to expand the initiative to in the future.
The overall outlook for INEO remains positive. The Company has now entered into the next phase of its development with commercialization of its technology, landing wins with large retailers and ramping up its revenues. INEO's short to medium term strategy is to continue to invest in R&D, customer deployments and strategic marketing partnerships to create critical mass of systems on the INEO Media Network. INEO's key objectives are as follows:
- Invest in the growth of INEO as a premier media network for retail stores
- Increase revenues through the sale of data analytics and advertising on the INEO Media Network through a combination of direct sales and strategic marketing partnerships.
- Expand the INEO Media Network, in key geographical markets across Canada and the United States.
- Support Prosegur with its growth and initiatives with key retailers across the globe.
INEO's technology has been proven out through the independent liquor store network and has been validated by a global partnership with Prosegur. INEO has created a healthy sales pipeline consisting of both direct sales customers and Prosegur's customers, including grocery, home hardware, apparel and wholesale club retail chains from North America, Central and South America and Europe. INEO has seeded the market with trial systems and expects to convert these trials into full scale roll-outs in the coming quarters.
As retailers continue to invest in retail tech and retail media networks, advertising and analytics are becoming increasingly important in the modern retail environment. INEO is well positioned to take advantage of these trends with market leading technology and programmatic advertising partners. To capitalize on the momentum INEO is achieving, and enhance the Company's future growth, the Company has entered into a marketing and consulting agreement with Houston-based marketing firm, TD Media LLC dba Life Water Media ("Life Water") with an initial term of June 6, 2022 to October 6, 2022, unless otherwise terminated in accordance with the terms of the agreement. Life Water specializes in digital media marketing and will seek to facilitate greater awareness of, and widespread dissemination of, news relating to INEO. Pursuant to the terms and conditions of the agreement, the Company will pay Life Water
Kyle Hall, CEO of INEO stated, "Despite the current challenging macroeconomic environment INEO is seeing an increase in its sales activity leading to record quarterly revenue in fiscal Q3. INEO is in an enviable financial position with a clean balance sheet and revenues beginning to ramp up. We look forward to announcing customer wins in the coming quarters leading to a substantial expansion of INEO's Media Network."
The Company will hold a webinar to discuss its results and provide an outlook on the business, on Monday May 30, 2022 at 10:00 am PT (1:00 pm ET).
Webinar Registration: | |
Date: | Monday, May 30, 2022 |
Time: | 10:00 am PT (1:00 pm ET) |
Dial-in: | 778-907-2071 (Vancouver local) |
Confirmation #: | 854 3970 7912 |
OPERATIONAL HIGHLIGHTS | For the three months ended | For the nine months ended | ||
31-Mar-22 | 31-Mar-21 | 31-Mar-22 | 31-Mar-21 | |
Sales | $ | $ | $ | $ |
335,568 | 195,518 | 831,226 | 530,907 | |
Cost of Sales | (132,018) | (128,160) | (438,988) | (327,621) |
Gross Profit | 203,550 | 67,358 | ||
Profit Margin | ||||
Total Expenses | (973,097) | (642,394) | (2,662,995) | (1,749,994) |
Other Income (Expenses) | (4,435) | (1,364) | 3,533 | 90,935 |
Net loss and comprehensive loss | (773,982) | (576,400) | (2,267,224) | (1,455,773) |
Basic and diluted loss per share | (0.01) | (0.01) | (0.04) | (0.03) |
Weighted average number of common | 60,190,138 | 45,221,881 | 60,168,634 | 42,172,356 |
EBITDA(1): | ||||
Net loss for the period | (773,982) | (576,400) | (2,267,224) | (1,455,773) |
Amortization | 40,834 | 27,151 | 117,161 | 76,812 |
Interest expense | 7,049 | 8,984 | 20,725 | 27,438 |
EBITDA | $ | $ | $ | $ |
(726,099) | (540,266) | (2,129,338) | (1,351,524) | |
Footnotes: |
|
On behalf of the Board of Directors
Kyle Hall, CEO,
INEO Tech Corp.
INEO Tech Corp., through its wholly owned subsidiary, INEO Solutions Inc., operates the INEO Media Network, a digital advertising and analytics solution for retailers. INEO's patented technology integrates and monetizes digital screens with theft detection sensor gates at the entrance of retail stores. The Company's cloud-based platform uses IoT (Internet of Things) and AI (Artificial Intelligence) technology to deliver customized digital advertising to each retail location based on the demographic mix, such as age and gender, of customer traffic at each location. The Company also deploys the INEO Welcoming Network technology through a SaaS-based solution to larger retail chains. INEO is headquartered in Surrey, Canada and publicly traded on the TSX-Venture Exchange under the symbol "INEO" and on the OTCQB-Venture Market under the symbol "INEOF".
For more information please visit:
Website: www.ineosolutionsinc.com
LinkedIn: www.linkedin.com/company/ineosolutions
Facebook: www.facebook.com/ineosolutionsinc
Instagram: www.instagram.com/ineosolutionsinc
Twitter: www.twitter.com/INEOsolutions
This news release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumption underlying any of the foregoing. This news release uses words such as "may", "would", "could", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate", "outlook", and other similar expressions to identify forward-looking information. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements and accordingly, should not be read as guarantees of future performance or results. There are a number of important factors that could cause the Company's actual results to differ materially from those indicated or implied by forward-looking statements and information. Other factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed on SEDAR, including the Company's most recent annual and interim Management Discussion and Analysis and Financial Statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except to the extent required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE INEO Tech Corp.
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