- 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.
SURREY,
BC, Nov. 29, 2022 /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 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."
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 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 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.
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:
|
https://bit.ly/INEO-Investor-Webinar
|
|
|
Date:
|
Wednesday, December 7,
2022
|
Time:
|
10:00 am PT (1:00 pm
ET)
|
Dial-in:
|
778-907-2071 (Vancouver
local)
|
|
647-374-4685 (Toronto
local)
|
Confirmation #:
|
874 9960
5347
|
Select Financial Highlights:
OPERATIONAL
HIGHLIGHTS
|
|
For the three months ended
|
|
|
30-Sep-22
|
|
|
30-Sep-21
|
Sales
|
$
|
416,086
|
|
$
|
238,671
|
Cost of
Sales
|
|
(208,440)
|
|
|
(129,552)
|
Gross Profit
|
|
207,646
|
|
|
109,119
|
Profit
Margin
|
|
50.13 %
|
|
|
45.72 %
|
|
|
|
|
|
|
Total
Expenses
|
|
(804,824)
|
|
|
(844,675)
|
Other Income
(Expenses)
|
|
6,564
|
|
|
4,090
|
Loss and comprehensive
loss
|
|
(590,614)
|
|
|
(731,466)
|
Basic and diluted loss
per share
|
|
(0.01)
|
|
|
(0.01)
|
Weighted average number
of common shares outstanding (basic and diluted)
|
|
60,190,138
|
|
|
51,559,652
|
Adjusted EBITDA
(1)
|
$
|
(512,285)
|
|
$
|
(629,651)
|
1 See section below Reconciliation of
Net Loss to Adjusted EBITDA
|
|
Footnotes:
1.
|
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:
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.