INEO Tech Corp. (TSXV: INEO) (OTCQB: INEOF) (the “Company” or “INEO“), the innovative developer 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 second quarter ended December 31, 2021.
“We are very pleased with our fiscal second quarter results in which we reported 37% increase in revenue,” said Greg Watkin, Chairman and Founder of INEO. “The past two years have been very challenging due to the pandemic, but we have come through stronger than ever with increasing revenue, products with deep technological advantages, a global partnership with Prosegur and a growing pipeline of opportunities including several large retailers. Over the next year we expect to continue to work closely with Prosegur to win retail chain customers and expand our footprint across North America, Europe and South America. In addition, we expect to increase our advertising fill rates through our two programmatic advertising partners, Hivestack and Vistar Media, as well as through our direct sales efforts. We look forward to the coming quarters as we believe 2022 will be a pivotal year for INEO.”
Fiscal Second Quarter 2022 Financial Highlights:
- INEO generated $256,987 of revenue for the three months ended December 31, 2021, representing an increase of 37% as compared to revenue of $187,239 for the three months ended December 31, 2020.
- INEO generated gross profit for the three months ended December 31, 2021 of $94,296, as compared to gross profit of $79,287 for the quarter ended December 31, 2020, representing an increase of 19%.
- Net loss and comprehensive loss for the three months ended December 31, 2021 was $767,772 or $0.01 per share compared to net loss of $525,252 or $0.01 per share for the three months ended December 31, 2020.
- EBITDA loss for the three months ended December 31, 2021 was $721,388, compared to EBITDA loss of $491,519 for the three months ended December 31, 2020.
- INEO had $3,653,331 of cash and cash equivalents at December 31, 2021, compared to $5,199,328 of cash and cash equivalents at June 30, 2021.
- As at December 31, 2021, the Company had 60,190,138 shares issued and outstanding.
Fiscal Second Quarter 2022 Business Highlights:
On October 4, 2021 INEO announced a contract expansion with FIELDS and McFrugal’s retail stores. FHC Enterprises (or “FHC”) is the owner-operator of both FIELDS and McFrugal’s Discount Stores, including over 60 FIELDS store locations and three McFrugal’s Discount Outlet locations across Western Canada.
On November 2, 2021 INEO announced a global agreement with Prosegur EAS, a wholly owned subsidiary of Prosegur, to manufacture, distribute and expand INEO’s Media Network. Under the terms of the Agreement, Prosegur is granted distribution rights to sell, secure, place and expand the patented INEO Welcoming System under their own brand, Prosegur EVO (“EVO”). Prosegur will be responsible for funding, manufacturing, distribution, in-store setup and in-store maintenance of the systems. INEO will be responsible for online provisioning, operating, and managing of the INEO Media Network which powers the screens inside of EVO. Under the terms of the agreement, Prosegur is also granted the right to fund and prosecute intellectual property rights and protection, on INEO’s behalf, for the Company’s proprietary patented technology.
On November 16, 2021 INEO announced that the company had applied for an additional patent related to its INEO Media Network technology. The patent increases the scope of the Company’s patent portfolio to protect the INEO Media Network.
On November 23, 2021 INEO unveiled the INEO Welcoming G.A.T.E. the company’s next generation Electronic Article Surveillance (EAS) pedestal designed to be a companion product within the patented INEO Welcoming System. The INEO Welcoming G.A.T.E. works in tandem with the INEO Welcoming Pedestal to provide loss prevention capabilities, video capture of loss prevention alarm events, and delivery of robust traffic analytics data. The INEO Welcoming G.A.T.E. is currently installed in several retail locations across Canada and the US, including two initial locations in Florida and Maine owned by a large North American retail chain.
Events Subsequent to December 31, 2022:
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 January 25, 2022 INEO announced the Canadian Out-of-Home Marketing and Measurement Bureau (COMMB), the trusted source of Canadian Out-Of-Home (OOH) market insights, accepted INEO as it newest member and has approved INEO’s viewer impressions as a verified metric.
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 now accessible on Vistar’s programmatic advertising platform. Brands and marketers who utilize the Vistar Media platform will now be able to purchase INEO’s unique advertising inventory, located at the front entrance of retail stores.
Outlook:
Kyle Hall, CEO of INEO stated, “Finalizing the definitive agreement with Prosegur has accelerated our sales and marketing efforts, which we believe will increase the pace of deployments and sets the Company up for rapid expansion in the coming year. Prosegur is creating a groundswell of interest and is introducing INEO’s products to the retail market faster and in more places than INEO could have achieved on its own. Meanwhile, retailers emerging from the trough of the pandemic are coming back with a strong commitment to invest in technology and improving the customer experience. Data and analytics are becoming increasingly more important to be successful in business, while Digital Out-of-Home advertising is surging. INEO is well positioned to take advantage of these industry trends, with market leading technology and products which will enhance the Company’s future growth.”
INEO’s short to medium term strategy is to continue to invest in R&D and customer deployments to create critical mass of systems on the INEO Media Network. INEO has now entered into the next phase of its development with commercialization of its technology, landing wins with larger retailers and scaling up of its business. INEO’s key objectives over the next year are as follows:
- Invest in the growth of INEO as a premier media network for retail, analytics and advertising.
- Increase revenues through the sale of data analytics and advertising on the INEO Media Network.
- Expand the INEO Media Network in key geographical markets across Canada, the United States, South America and Europe.
- Support Prosegur with its growth and initiatives with key retailers across the globe.
INEO’s partnership with Prosegur is a significant validation of the Company’s technology and business model, positioning INEO for substantial future growth. Prosegur has launched its own website and marketing campaigns to promote INEO’s Welcoming Systems under the EVO brand name. Prosegur’s EAS sales team is actively working to secure customer trials with a several large retailers around the globe. INEO has already shipped numerous Welcoming Systems which are destined for customer trials with Prosegur’s retail clients including grocery, home hardware, apparel and wholesale hub retail chains. INEO expects to convert these trials to customer wins in the coming quarters leading to substantial expansion of INEO’s Media Network.
Prosegur is now ready to assume production of EVO units at its 35,000 square foot manufacturing facility in the Czech Republic. INEO successfully setup Prosegur with its supply chain, sourcing of components, adjusting assembly line processes, re-tooling machinery, training, documentation and transfer of knowledge to the Czech team. Manufacturing of initial trial systems for Prosegur’s North and Central America based customers is being fulfilled from INEO’s Surrey, BC facility while Prosegur’s manufacturing facility in the Czech Republic will be used to fulfil orders for all of their European based customers and future large scale roll-outs.
In addition to Prosegur’s growing pipeline of potential retail chain customers, INEO continues to build its own pipeline of opportunities through its direct sales efforts including several small to mid-size Canadian retail chains and one large North American retail chain. INEO expects to continue to increase the size of its independent liquor store network at a slower pace than previously as the Company has shifted its resources to supporting the Prosegur partnership and driving direct sales opportunities with larger retailers. The Company expects advertising fill rates to improve on the INEO Media Network, as the Company achieves critical mass of implementations with retailers. INEO continues to receive advertising through its programmatic advertising partnership with Hivestack and expects its recently announced partnership with Vistar Media will imminently begin to generate advertising revenue in the coming weeks.
Key industry and market trends are progressing in INEO’s favour. These include: (i) growth in the overall Digital Out-of-Home (DOOH) advertising market; (ii) a resurgence in the retail sector; (iii) the use of data and analytics to drive business; and (iv) our global partner, Prosegur, becoming a dominant player in the retail loss prevention sector. To this end, INEO will continue to devote resources to R&D and deployment to expand its INEO Media Network. INEO plans on continuing to innovate in the areas of integrated digital screen and loss prevention technology, improving data analytics with machine learning algorithms, adding retailer self-serve capabilities, incorporating retail cash register data into its systems and optimizing its cloud based digital advertising network.
Check Out the New Martech Cube Podcast. For more such updates, follow us on Google News Martech News