Retail, Proximity & IoT Marketing

INEO Achieves 74% Growth with Record Quarterly Revenue in Fiscal Q1

INEO Tech Corp
  • INEO achieved 74% increase in year-over-year revenue and 90% increase in gross profit in first quarter 2023.
  • Despite the current challenging macroeconomic environment INEO is experiencing an increase in its sales activity, The Company’s total sales pipeline now represents over $40 million in annual recurring revenue.
  • INEO recently completed its Public Offering of units and Private Placement of units, notes for total proceeds of C$2.74 million. The Company intends to use the net proceeds from the Offering for the manufacturing and deployment of the INEO Welcoming System to existing and future customers.

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 for the Company’s fiscal first quarter ended September 30, 2022.

“We are thrilled with our record fiscal first quarter results in which we reported a 74% increase in revenue and a 90% increase in gross profit,” said Greg Watkin, Chairman and Founder of INEO. “We are extremely excited for fiscal 2023 as we continue to diligently roll-out additional systems to our large retail customers. The Company recently completed full-scale rollouts in select geographic areas within the United States and we are continuing to remain active in installing more systems in new regions. INEO is also progressing with its strategic partnership with Prosegur and is currently involved in assisting Prosegur to convert individual pilot stores into full-scale roll outs with new retailers. We remain extremely confident in Prosegur’s ability to land these large international retailers and look forward to sharing those customer wins in the future.”

Greg Watkin added, “Furthermore, we are also pleased to see our revenues continuing to ramp up, despite the current challenging macroeconomic environment. INEO has not experienced any recessionary impacts and I am pleased to report that the Company is growing faster than ever as we begin to see new retail customers join the INEO Media Network. INEO is experiencing an increase in its sales activity with our sales pipeline increasing to over 1,500 store locations through our direct sales efforts and over 8,000 store locations through our partner Prosegur. Combined, the Company’s total sales pipeline from direct sales and Prosegur partnership now represents over $40 million in annual recurring revenue, once fully deployed.”

Fiscal First Quarter 2023 Financial Highlights:

  • INEO generated $416,086 of revenue for the three months ended September 30, 2022, representing an increase of 74% as compared to revenue of $238,671 for the three months ended September 30, 2021.
  • INEO generated gross profit for the three months ended September 30, 2022, of $207,646, as compared to gross profit of $109,119 for the quarter ended September 30, 2021, representing an increase of 90%, driven by an increase in higher margin INEO loss prevention products.
  • INEO achieved gross margin percentage of 50.1% for the three months ended September 30, 2022, compared to gross margin percentage of 45.7% for the quarter ended September 30, 2021.
  • Net loss for the three months ended September 30, 2022 was $590,614 or $0.01 per share compared to net loss of $731,466 or $0.01 per share for the three months ended September 30, 2021.
  • Adjusted EBITDA loss for the three months ended September 30, 2022 was $512,285, compared to Adjusted EBITDA loss of $629,651 for the three months ended September 30, 2021.
  • INEO had $938,740 of cash and cash equivalents at September 30, 2022, compared to $1,706,048 of cash and cash equivalents at June 30, 2022.
  • As at September 30, 2022, the Company had 60,190,138 shares issued and outstanding.

Fiscal First Quarter 2023 Business Highlights:

  • On July 26, 2022, the Company signed a Programmatic Partnership with Broadsign. This new programmatic advertising partnership with Broadsign solidifies INEO’s position as a solutions provider in the DOOH advertising market focused on the retail segment.
  • On August 18, 2022, the Company signed a Strategic Partnership with Adapt Media. Partnering with Adapt Media is a major advancement for INEO’s advertising pipeline due to Adapt’s presence in the Toronto area and their strong national footprint. With Adapt Media’s assistance, INEO will gain access to increased national advertising campaigns and a broader range of potential customers.
  • On September 15, 2022, the Company provided an update on the significant progress it made on its direct sales pipeline. The Company expanded its footprint with major retail clients and has begun starting the next phase of its roll-out by deploying the INEO Welcoming System into large groups of stores in concentrated geographic regions.

Events Subsequent to September 30, 2022:

  • On October 19, 2022 INEO filed for a design patent in Canada for its INEO Welcoming GATE system, a companion system to the INEO Welcoming Pedestal. This patent has now been extended with a global priority filing to include the United States and Europe.
  • On November 17, 2022 INEO completed its Public Offering of units and Private Placement of units and notes for total proceeds of C$2.74 million. The Company intends to use the net proceeds from the Offering for the manufacturing and deployment of the INEO Welcoming System to existing and future customers, as well as for working capital and general corporate purposes.

Kyle Hall, CEO of INEO commented on this financing, “We are very appreciative of our shareholders who supported us in our recent financing, and we welcome new investors to the INEO family. This funding will strengthen our balance sheet, thereby allowing us to continue to execute on our existing commitments with our large retail chain customers and accomplish our growth plans for 2023. This financing represents a key component of INEO’s roll-out and expansion plans across the globe.”


The overall outlook for INEO remains positive. The Company is now actively deploying systems and ramping up its installation locations with contracted customers across North and South America. INEO has entered into the next phase of the Company’s development with commercialization of its technology, landing wins with large retailers, expanding its location footprint and ramping up revenues. INEO’s current focus is to accelerate its customer deployments to create a critical mass of systems on the INEO Media Network.

INEO’s key objectives for fiscal 2023 are as follows:

  • Increase revenues through the deployment of systems to INEO’s leading retail customers.
  • Expand the INEO Media Network in key geographical markets across North America and South America.
  • Support Prosegur with its growth plans and initiatives with key retailers across the globe, including converting large retail customers from pilot stores or trials to fully contracted customer roll-outs.

INEO’s technology has been proven out 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 improvement, apparel and wholesale club retail chains from North AmericaSouth 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 for improving the customer experience, 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 which will enhance the Company’s future growth.

Webinar Details:

The Company will hold a webinar to discuss its results and provide an outlook on the business, on Wednesday December 7, 2022 at 10:00 am PT (1:00 pm ET).

Webinar Details:

Webinar Registration:     


Wednesday, December 7, 2022


10:00 am PT (1:00 pm ET)


778-907-2071 (Vancouver local)

647-374-4685 (Toronto local)

Confirmation #:                         

874 9960 5347

Select Financial Highlights:


             For the three months ended








Cost of Sales



Gross Profit



Profit Margin

50.13 %

45.72 %

Total Expenses



Other Income (Expenses)



Loss and comprehensive loss



Basic and diluted loss per share



Weighted average number of common shares outstanding (basic and diluted)



Adjusted EBITDA (1)





1 See section below Reconciliation of Net Loss to Adjusted EBITDA



Readers are cautioned that Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and Stock Compensation), does not have standardized meanings prescribed by IFRS and is considered a non-IFRS measure. Adjusted EBITDA is a useful supplemental measure of the Company’s performance prior to consideration of how operations are financed or how results are taxed or how depreciation and amortization affects results. Adjusted EBITDA is not intended to represent net earnings calculated in accordance with IFRS.

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