- INEO achieved 50% increase in year-over-year revenue and 92%
increase in gross profit in fiscal second quarter 2023.
- INEO is progressing quickly with its 2023 roll-out schedule
having installed INEO Welcoming Systems across eleven states in the
US.
SURREY,
BC, Feb. 28, 2023 /CNW/ - 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 second quarter ended December 31,
2022.
"We are very pleased with our fiscal second quarter results in
which INEO reported a 50% increase in revenue and a 92% increase in
gross profit," said Greg Watkin,
Chairman and Founder of INEO. "This calendar year has started off
well for the Company as we are in the midst of the largest customer
rollout in the Company's history. We shipped more units in the
month of February than we did in the entire past year. Furthermore,
the Company has large scale installations already booked in
additional geographic areas within the
United States. We continue to be active in installing more
systems with our major retail partners, while also installing trial
systems with potential new retail partners. We are very excited
with the growth opportunities in our sales pipeline."
Fiscal Second Quarter 2023 Financial Highlights:
- INEO generated $386,425 of
revenue for the three months ended December
31, 2022, representing an increase of 50% as compared to
revenue of $256,987 for the three
months ended December 31, 2021.
- INEO generated gross profit for the three months ended
December 31, 2022, of $181,210, as compared to gross profit of
$94,296 for the quarter ended
December 31, 2021, representing an
increase of 92%, driven by an increase in higher margin INEO loss
prevention products.
- INEO achieved gross margin percentage of 46.89% for the three
months ended December 31, 2022,
compared to gross margin percentage of 36.69% for the quarter ended
December 31, 2021.
- Net loss for the three months ended December 31, 2022 was $981,707 or $0.01
per share compared to net loss of $761,776 or $0.01
per share for the three months ended December 31, 2021.
- Adjusted EBITDA loss for the three months ended December 31, 2022 was $856,281, compared to Adjusted EBITDA loss of
$669,711 for the three months ended
December 31, 2021.
- INEO had $2,346,017 of cash and
cash equivalents at December 31,
2022, compared to $1,706,048
of cash and cash equivalents at June
30, 2022.
- As at December 31, 2022, the
Company had 76,143,709 shares issued and outstanding.
Fiscal Second Quarter 2023 Business Highlights:
- 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, completed
its Public Offering of units, Private Placement of units and notes
for total proceeds of C$2.74 million.
The Offering was completed by way of a short-form prospectus. 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.
- On December 30, 2022, INEO
announced the addition of Eugene
Syho to its Board of Directors and Audit Committee. Mr. Syho
brings a wealth of finance, technology and public company
experience to the Board of INEO as a seasoned finance executive
with over 25 years of proven financial management experience across
many diverse industries.
Events Subsequent to December 31,
2022:
- On January 11, 2023, INEO
announced it would be debuting the first RFID (Radio Frequency
Identification) enabled version of the INEO Welcoming System inside
the Prosegur Security tradeshow booth at National Retail
Federation's "NRF 2023 – Retail's Big Show" retail industry expo
and conference in New York
City.
- On February 8, 2023, INEO
announced the Company's latest product innovation, the INEO
Welcoming Greeter. The Welcoming Greeter is a stand-alone
pedestal-based advertising display which delivers expanded
messaging and increased advertising capabilities for retailers.
With the debut of the INEO Welcoming Greeter, INEO has one of the
most comprehensive and complete suites of Retail Media Network
products on the market.
- On February 22, 2023, the Company
announced it has successfully completed installations in over 50
retail stores located in New York
City, San Francisco,
Los Angeles and cities in nine
additional states including Tennessee, New
Jersey, Pennsylvania,
New Hampshire, Massachusetts, North
Carolina, Virginia,
Washington and Florida.
Kyle Hall, CEO of INEO commented
on the Company's progress, "We have been making great strides in
pushing forward the key INEO business initiatives. In the next
quarter we expect to be installing a record number of systems into
retail stores in the United
States. Our technology has been accepted as unparalleled in
the retail industry and we are building solid long-term
relationship with our customers."
Outlook:
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 America. INEO is landing wins with large
retailers, expanding its location footprint and ramping up its
revenues.
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 and initiatives with key
retailers across the globe, including converting large retail
customers from trialing the Welcoming System 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 hardware, apparel and
wholesale club retail chains from North
America, 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 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. INEO's current focus is to
continue to accelerate its customer deployments to a create
critical mass of systems on the INEO Media Network.
Despite the current challenging macroeconomic environment INEO
is experiencing an increase in its sales activity leading to
increased quarterly revenue over the past year. We look forward to
announcing new customer wins in the coming quarters leading to
substantial expansion of INEO's Media Network.
The Company also announces it has granted incentive stock
options to certain directors, officers and employees of the Company
to acquire an aggregate of 2,855,000 common shares in the
capital of the Company at an exercise price of $0.12 in accordance with the Company's 10%
rolling incentive stock option plan. The stock options vest 25%
annually starting on February 28,
2024, the one-year anniversary of the grant date, and expire
according to the terms of the Company stock option plan.
Webinar Details:
The Company will hold a webinar to discuss its results and
provide an outlook on the business, on Tuesday, February 28, 2023 at 10:00 am PT (1:00 pm
ET).
Webinar
Registration:
|
https://bit.ly/INEO-Q2-2023
|
Date:
|
Tuesday, February 28,
2023
|
Time:
|
10:00 am PT (1:00 pm
ET)
|
Dial-in:
|
778-907-2071 (Vancouver
local)
647-374-4685 (Toronto local)
|
Confirmation
#:
|
835 1626
0163
|
Select Financial Highlights:
OPERATIONAL
HIGHLIGHTS
|
For the three months
ended
|
|
31-Dec-22
|
31-Dec-21
|
Sales
|
$
386,425
|
$
256,987
|
Cost of
Sales
|
(205,215)
|
(162,691)
|
Gross Profit
|
181,210
|
94,296
|
Profit
Margin
|
46.89 %
|
36.69 %
|
|
|
|
Total
Expenses
|
(1,129,765)
|
(859,950)
|
Other Income
(Expenses)
|
(33,152)
|
3,878
|
Net loss and
comprehensive loss
|
(981,707)
|
(761,776)
|
Basic and diluted loss
per share
|
(0.01)
|
(0.01)
|
Weighted average number
of common shares
outstanding (basic and diluted)
|
67,820,107
|
60,170,462
|
EBITDA
(1):
|
$
(856,281)
|
$
(669,711)
|
1 See section below
Reconciliation of Net Loss to Adjusted EBITDA
|
Footnotes:
- 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.
On behalf of the Board of Directors
Kyle Hall,
CEO,
INEO Tech Corp.
About INEO Tech Corp. (TSXV: INEO; OTCQB: INEOF)
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:
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
Forward-Looking Statements
Investors are cautioned that, except as disclosed in the
disclosure document, any information released or received with
respect to the Company may not be accurate or complete and should
not be relied upon. Trading in securities of the Company should be
considered highly speculative.
This news release contains forward-looking
information, which involves known and unknown risks, uncertainties
and other factors that may cause actual events to differ materially
from current expectations. Important factors – including the
availability of funds, acceptance of the Company's products,
competition, and general market conditions – 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 Annual Information Form for the year ended
June 30, 2022 filed on SEDAR on
November 4, 2022. 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,
except to the extent required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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.