- INEO achieved 72% increase in year-over-year revenue and 202% 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.
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 72% increase in revenue and a 202% increase in gross profit,” said Greg Watkin, Chairman and Founder of INEO. “The third quarter was quite eventful for INEO as we completed our acquisition of Securitytags.com, partnered with another programmatic advertising platform in Vistar Media, and released a new product in the INEO Media Player. Furthermore, I am pleased to announce we’ve made significant progress on both our direct sales channel and through our partnership with Prosegur. More importantly, we are excited that our direct sales efforts have resulted in the signing of a Master Services Agreement with a large retailer which has over 1,000 retail locations across the United States, and we were also recently selected as a preferred vendor for EAS (Electronic Article Surveillance) products by a retail dealer association which has approximately 500 franchisee locations across Canada. Meanwhile, our partnership with Prosegur has expanded INEO’s sale activities to numerous retail chains across the globe. We look forward to reporting on these opportunities in the coming quarters as we expand our Media Network worldwide.”
- INEO generated $335,568 of revenue for the three months ended March 31, 2022, representing an increase of 72% 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 of 202%, 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 of 34.5% 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 $100,000USD from working capital. Life Water will not receive any securities of the Company pursuant to the agreement. Life Water does not currently own shares of the Company.
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: https://bit.ly/INEO-Q3-2022
Date: Monday, May 30, 2022
Time: 10:00 am PT (1:00 pm ET)
Dial-in: 778-907-2071 (Vancouver local)
647-374-4685 (Toronto local)
Confirmation #: 854 3970 7912