InnerScope Hearing Technologies,
Becomes a Hearing Aid Manufacturer with
the Signing of a
10-Year Hearing Aid Manufacturing, Design and
Joint Marketing Agreement with Zounds
Hearing, Inc.
The
agreement allows
InnerScope to design and manufacture its
own high quality hearing aid
device brands along with
InnerScope being
recognized as one of only
13 FDA
registered manufacturer of
hearing aid devices
worldwide.
Roseville, CA
--
October
3,
2018 -- InvestorsHub
NewsWire -- InnerScope Hearing
Technologies Inc. (OTCQB:
INND) announced
today it has signed a
10-Year Manufacturing, Design and Marketing Agreement ("Agreement")
with Zounds
Hearing, Inc. ("Zounds").
Zounds is a FDA registered manufacturer of hearing
aids, related
components, and
accessories sold
under the
brand name "Zounds."
Zounds is
distributed through multiple marketing and
distribution channels including Zounds
branded retail locations. Under the
Agreement, Zounds will be
a
subcontractor for InnerScope,
providing all of InnerScope's
design,
technology,
manufacturing,
and
supply chain services. These services
and resources
will
be shared between Zounds
and InnerScope thereby
lowering
the cost for both companies.
The
agreement
allows InnerScope
to
leverage the tens of millions
of dollars Zounds
has
invested in engineering, manufacturing,
and
supply chain capabilities.
InnerScope also has the right
to
access
Zounds'
research
and development and technology
breakthroughs in
advanced audio technology contained within
its 52 exclusive
patents providing
unrivaled
hearing aid sound quality and
clarity. In addition,
InnerScope
and
Zounds will execute a joint
marketing
agreement
to assist
each other with marketing in other distribution channels
and
leverage each
company's relationships across
both companies' brands.
The
marketing
agreement will also
allow InnerScope to add and market Zounds current
extensive
product
portfolio through all of
InnerScope's
distribution
channels.
InnerScope,
known as
a distributor and marketer of affordable high quality hearing
aids through multiple
distribution channels, will now become
a
registered FDA hearing aid
manufacturer. The
FDA
registered medical device facility located in Chandler, Arizona,
will also
warehouse
its manufactured hearing aids and related
components and accessories. InnerScope
will
now
join
the
select
few worldwide traditional
manufacturers
of hearing aid devices (non-specialty
hearing products) that currently serve
this ever growing and emerging hearing impaired market.
These
13 hearing aid
manufactures
consists
of
7
smaller
or single
brand boutique
manufactures
including
Zounds,
and 6
major global manufactures referred to as (the
"Big Six"), together make
up approximately
47+
different
brands labels (see
2017
Hearing-healthcare-mind-map).
The Big
Six makes-up over 90% of the
hearing aid market share for all hearing aids sold
worldwide.
Unfortunately,
the
current hearing-impaired
market of 1.2+ billion
people globally that have
hearing
loss and
may
benefit from the use of
hearing aids is well underserved.
With the high cost of hearing aids and the lack of easy
accessibility, these 13 hearing aid
manufacturers are only serving
less than 4% or equivalent
to 7+ Billion USD
of
the
total global
hearing-impaired
market.
In the U.S. alone, its
estimated
only 8 million people
are
hearing
aid users out of
48
million people who are
hearing-impaired.
InnerScope's
strategic
plan as a
hearing aid manufacturer is to design and manufacture multiple
brand labels of high quality hearing aids at different
price points for its multiple
distribution channels. For example,
its
Direct-to-Consumer ("DTC")
division,
InnerScope will be developing a very
affordable line of "Self
Fitting" hearing aids, which allow the consumer to
simply
fit,
program and adjust the hearing aids, all through their
smart phone, in less than
three
minutes.
InnerScope's
hearing aids
designed
and
distributed
to
InnerScope's
corporate owned physical audiological hearing aid retail
stores and
to
its
Buying Group members, will have more
audiological features
and fine tuning
options
and adjustments
available
for a more precision fitting by hearing
healthcare professionals.
InnerScope,
now
as a
hearing aid manufacturer, will
dramatically increase
its gross margin up to 95%
on
corporate
owned physical retail stores and
up to
87% through its
DTC channels.
Coupled
with
the low retail price
points, InnerScope will
clearly
be
positioned
to
disrupt
the current hearing aid
market
by
offering its own
manufactured high quality hearing
aids with the latest in Bluetooth and patented
technology
that will
rival all of the other
manufacturers, even the
Big
Six. But, more
importantly, with
InnerScope's
branding
and marketing through
multiple large DTC
distribution channels
and the building
of physical audiological
retail hearing aid
stores,
InnerScope
will
ultimately
grow the current
adaption
and market penetration
rate of 4%,
which up to now, all
the other hearing aid manufacturers
have failed to accomplish due to the current distribution
model.
"Zounds is well
positioned to support InnerScope's vision and business
plan" said Sam
Thomasson, President
and CEO of Zounds
Hearing, Inc.
"We are very excited
to be part of InnerScope's long-term
success.
It was an easy decision
given the passion of InnerScope's
management and
the
years of experience and
expertise marketing and selling
hearing aids. Zounds expertise in
hearing aid design,
intellectual property, manufacturing,
and supply chain management, will
enable
InnerScope to
rapidly
scale."
"Becoming
a hearing
aid manufacturer, is truly a "Game
Changer" for
InnerScope", said Matthew Moore,
CEO of InnerScope Hearing
Technologies. "This Agreement with
Zounds has elevated InnerScope from not only
a hearing
aid distribution and marketing
company, but to
a
global
hearing aid manufacturer
as well. Zounds'
amazing
patented hearing aid technology with over
80,000 customers in
the United States
and
their
expertise in manufacturing and design was a perfect fit for
what InnerScope needed to disrupt the current hearing aid
market place. Additionally, as a manufacturer InnerScope
will
increase
its margin by 28% to
75%, depending on the
product line. Plus, we
will be
able to meet all of the
demands
now and in the future on all hearing aid product orders from all
of our large retail
distributors," continued Mr. Moore.
"This distinction as a
global hearing aid manufacturer gives InnerScope, as a public company,
the ability to be compared
to other public hearing
aid companies. For example, Sonova, Sivantos,
GN ReSound and William Demant
Holding
A/S are all publicly
traded (not traded on
U.S.
stock exchange) hearing aid manufacturers (part of the Big Six)
companies. However, IntriCon
(listed on
NASDAQ stock
symbol: IIN) is the only
U.S. publicly traded
company that is a hearing aid
manufacturer", Mr. Moore
concluded.
About InnerScope Hearing Technologies
("INND")
InnerScope Hearing
Technologies (INND) is a rapidly expanding
consolidator of the hearing aid industry in the United
States. Management is
applying decades of profitable
industry experience and
technology to an antiquated and disjointed industry, unlocking
scale and efficiency,
which will serve all of
the InnerScope's
stakeholders. Its
direct-to-consumer
model is revolutionizing the industry with its Walmart.com
relationship representing a paramount shift in the consumption of
hearing aids to the hearing impaired.
In
addition InnerScope
plans
to continue
to
open,
acquire,
and operate
a
physical
chain
of audiological and
retail hearing device clinics. InnerScope's
mission
is to serve approximately
1.2 billion people around the globe that are suffering with 25 db
or greater hearing loss across the entire
hearing impaired vertical from R&D and manufacturing through
direct consumer sales and services. For more information,
please visit: www.innd.com
About Zounds Hearing Inc.
Zounds
Hearing, Inc., was founded in
2009, designs, manufactures
and retails high-performance hearing aids for use with mild,
moderate, severe, and profound hearing impairments. Headquartered
in Chandler, Arizona, Zounds'
technology enables
breakthroughs in product, performance, selection and value. Zounds
utilizes internally developed research and 52 exclusive patents.
For more information, please visit ZoundsHearing.com
Safe Harbor
This
presentation contains forward-looking statements,
which relate to future
events or InnerScope Hearing Technologies future performance or
financial condition. Any statements that are not statements of
historical fact (including statements containing the words
"believes," "should," "plans," "anticipates," "expects,"
"estimates" and similar expressions) should also be considered to
be forward-looking statements. These forward-looking statements are
not guarantees of future performance, condition or results and
involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as
result of a number of factors, including those described from time
to time in InnerScope Hearing Technologies filings with the
Securities and Exchange Commission. InnerScope Hearing Technologies
undertakes no duty to update any forward-looking statements made
herein.
Contact
InnerScope Hearing
Technologies,
Inc.
Investor
Relations
Info@innd.com
916-218-4100
www.innd.com
www.ZoundsHearing.com
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