InnerScope Hearing Technologies (OTC: INND) Announces Profitable Year-End 2022 Financial Results

 

Full-Year 2022 Financial Highlights:

  • Consolidated Net Revenues: $15,284,327

  • Gross Profit: $9,079,335

  • Net Profit: $5,575,892

  • Net Profit from Operations: $909,135

  • Positive EBITA of 36%

 

ROSEVILLE, CA -- April 3, 2023 -- InvestorsHub NewsWire -- InnerScope Hearing Technologies Inc. (OTC: INND) ("InnerScope"), an emerging and disruptive leader in the Over-the-Counter (OTC) hearing aid space, announced today its unaudited financial results for the full year ended December 31, 2022 ("2022 Full-Year"). InnerScope reported consolidated net revenues of $15,284,327, with a net profit of $5,575,892 and a positive EBITA (Earnings Before Taxes) of 36% for the 2022 Full-Year.

 

InnerScope's annual financial report has been filed with the OTC Markets and is available to view at:
https://www.otcmarkets.com/otcapi/company/financial-report/363918/content

 

Full-Year 2022 Financial Result Highlights

  • Consolidated Net Revenues of $15,284,327 were largely driven by wholesale distribution agreements from InnerScope's acquisitions of Hearing Assist II Inc. ("HearingAssist") and iHear Medical Inc. ("iHEAR") in late 2021. HearingAssist was Walmart's largest supplier of hearing aids online and in selected stores, and iHEAR has a team of electrical and biomedical engineers, hearing aid-related patents, and wholesale partners.
  • Gross Profit of $9,079,335 is from an increase in gross margin with suppliers from a substantially increased number of hearing aids sold, which resulted in providing better technology at a lower price.

 

  • Profit from Operations of $909,135 is from a substantial increase in the number of hearing aids sold.
  • Net Profit of $5,575,892 is primarily from the gain on debt extinguishment and derivative liability.
  • Positive EBITA of 36%

 

"This profitable year-end 2022 shows we are on the right path continuing to scale and support our growth, especially now with our success with numerous major retailers requesting to sell our products," said Matthew Moore, CEO of InnerScope Hearing Technologies." Our B2B strategy and the retailer relationships we built over the last year created strong momentum that will continue through 2023 and beyond.  With only a hand full of competitors in this new emerging OTC hearing aid market, we are confident that we can continue to deliver our high-quality affordable OTC hearing aids to the ever-growing demand from all the retailers."

 

2022 Business Highlights

  • Developed and launched four new models of OTC Rechargeable Hearing Aids for both the HearingAssist and iHEAR brands.
  • Expanded Wholesale Distribution of HearingAssist Brand of OTC Hearing Aids to:
    • 1500+ Walmart Vision Centers, CVS.com, BestBuy.com, RiteAid.com
  • Expanded Wholesale Distribution of iHEAR Brand of OTC Hearing Aids to:
    • CVS.com, AmerisourceBergen, Cardinal Health, Cardinal Health at Home, Topco & Associates, Carewell.com, Hy-Vee, Hartig Drug, Wakefern Food Corp, Spartan Nash
  • Created and deployed Free-Standing and Counter-Top Product Displays within 1500+ Walmart Vision Centers.
  • Deployed 118 more InnerScope's first-generation automated point-of-sale self-administered Hearing Screening Kiosks in pharmacies nationwide. The Hearing Screening Kiosks provide customers to take a free 3 to 5-minute hearing screening test and receive instant results on screen or can be emailed plus information on iHEAR or HearingAssist OTC Hearing Aid products available to purchase at the store and/or through the retailer's online sales portal.
  • Created and launched an Online Hearing Screening Test version for the retailers' websites, the same Hearing Screening Test as in the automated point-of-sale self-administered Hearing Screening Kiosks.
  • Created an Internal Hearing Care Professional Customer Service Call Center staffed with Doctors of Audiology and Licensed Hearing Aid Dispensers to provide enhanced customer service.
  • Deployed 500 Pharmacy Counter Placards and Product Brochures to AmerisourceBergen

 

Strategic Growth Update: Continue Progress in Growing Wholesale Distribution

2022 was the year of the long-awaited historic FDA ruling enacted on October 17, 2022, enabling access to over-the-counter hearing aids for millions of Americans to be sold in retail stores and pharmacies without a prescription or seen by a hearing health professional. The FDA ruling created a new emerging OTC hearing aid market that was a game changer for InnerScope. As a result of the FDA ruling, InnerScope has pivoted from a direct-to-consumer hearing aid company with its business-to-consumer ("B2C") sales model to primarily a business-to-business ("B2B") sales model. InnerScope's pivot to the B2B model has resulted in major growth in developing a wholesale distribution network of major retailers, pharmacy chains, and healthcare service companies (i.e., Cardinal Health and AmerisourceBergen).  Moreover, InnerScope's B2B sales model allows more focus and resources for retailer marketing and training retailers on delivering a positive buying experience for InnerScope's OTC Hearing Aids at the store level to their customers. In addition, InnerScope provides the retailer's customers with expert help from its internal Hearing Care Professional Customer Service Call Center.

 

In the first quarter of 2023, InnerScope continues its B2B growth trajectory by adding another major retailer with the announcement of its HearingAssist Brand on Target.com.  InnerScope has also delivered 2000+ Pharmacy Counter Placards with Product Brochures to Cardinal Health to be distributed to its pharmacy network. Additionally, InnerScope has deployed 17 of its newly designed second-generation automated point-of-sale self-administrated Hearing Screening Kiosks to pharmacies, and 98 more are scheduled to be delivered in the next two weeks. Currently, InnerScope is shipping products and free-standing product displays to 1700+ locations for one of its major retailers.

 

SEC Audit Update

InnerScope, as previously announced, retained the audit services of CPA firm Kreit & Chiu CPA LLP ("KC Auditors") to perform independent audits of the financials. The KC Auditors are expected to finish the 2021 and 2022 annual financials in Q2 2023. Once the audits 2021 and 2022 annual financial audits are completed, InnerScope intends to file a Form-10 to be upgraded from OTC Alternative Reporting to SEC Reporting status after 60 days from the date of filing.

As a result of the 2021 annual financial audit, adjustments to the revenue recognition, derivative income, and derivative liability were made, which resulted in a change in net income for 2021 from a Net Loss of $55,213,992 that was previously reported to a Net Income of $3,366. This positive change totaled $55,217,358, partly due to InnerScope's acquisition of HearingAssist and iHEAR that same year.

 

About InnerScope Hearing Technologies, Inc. (OTC PINK: INND):

InnerScope Hearing Technologies Inc. is a manufacturer and distributor of OTC Hearing Aids, Hearing Aid Accessories & Hearing Health-Related Products ("Hearing Products") dedicated to addressing the global demand for affordable hearing solutions. InnerScope's, with its B2B business distribution model offering affordable OTC Hearing Products through major retailers, pharmacy chains, and healthcare service companies, breaks through the barriers that prevent access to effective and affordable hearing solutions.

In September 2021, InnerScope acquired iHear Medical Inc., a Direct-to-Consumer ("DTC") cloud-based hearing solution provider, which provided access to over 40 patents and an R&D facility, and a team of engineers. In addition, InnerScope, in November 2021, also acquired HearingAssist, an established leader since 2008 in the DTC hearing aid market with a customer base of over 400,000. These acquisitions, combined with a partnership with Atlazo Inc., a semiconductor innovator for next-generation AI smart devices, will allow InnerScope to better position itself in the OTC hearing aid market by selling advanced and affordable Hearing Products through Walmart and many other major retailers and pharmacy chains.

InnerScope's full line of its HearingAssist and iHEAR branded Hearing Products is currently available through these multiple retail/wholesale distribution channels: Walmart Vision Centers, Walmart.com, Walmart Canada, CVS.com, RiteAid.com, Target.com, BestBuy.com, Amazon.com, AmerisourceBergen, Cardinal Health, Cardinal Health™ at-Home, Carewell.com FSAStore.com, HSAStore.com, WellDeservedHealth.com, Fingerhut.com, Giant Eagle / Hy-Vee / Hartig Drug / Food City / Wakefern Food Corp. / ShopRite / SpartanNash / VG's Grocery /  Family Fare / Martin's Super Markets  / Kholl's Pharmacy & Homecare and Topco Associates representing 15,000+ store locations.

 

Coming Soon: More major retailers and pharmacy chains for in-store and online HearingAssist and iHEAR branded Hearing Products.

 

For information related to InnerScope Hearing Technologies' latest hearing aids and related hearing products, please visit:

http://iheardirect.com

http://hearingassist.com

 

For the most up-to-date information about InnerScope Hearing Technologies OTC: $INND, please visit and follow our official Twitter account @inndstock page:

https://twitter.com/inndstock

InnerScope Hyperlinks:

HearingAssist

HearingAssist - Walmart.com

HearingAssist – Target.com

HearingAssist - CVS.com

HearingAssist - RiteAid.com

HearingAssist - BestBuy.com

 

iHEAR

iHEAR - CVS.com

AmerisourceBergen, Cardinal Health, Cardinal Health™ at-Home, Carewell.com FSAStore.com, HSAStore.com, WellDeservedHealth.com, Fingerhut.com, Giant Eagle / Hy-Vee / Hartig Drug / Food City / Wakefern Food Corp. / ShopRite / SpartanNash / VG's Grocery /  Family Fare / Martin's Super Markets  / Kholl's Pharmacy & Homecare, Topco Associates

 

Acquisition of iHear Medical Inc.

Acquisition of HearingAssist

 

Safe Harbor

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended intended to be covered by the "safe harbor" created by those sections. Any statements that are not historical facts contained in this press release are also "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA). Such statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing or maintain contractual relationships with vendors and customers, competition, general economic conditions and other factors that are detailed in our periodic reports filed with the Securities and Exchange Commission ("SEC"). We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA, Securities Act and Securities Exchange Act.

 

Contact:

InnerScope Hearing Technologies, Inc.

Investor Relations 

ir@innd.com

833-788-0506

www.innd.com

Investor Relations Agency Contact:

Skyline Corporate Communications Group, LLC 
Lisa Gray, Senior Account Manager

One Rockefeller Plaza, 11th Floor 
New York, NY 10020 
Office: (646) 893-5835 
Email: lisa@skylineccg.com

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