INEO achieved 67% increase in year-over-year revenue and 74% increase in gross profit for fiscal 2022 ended June 30, 2022.
· INEO achieved 93% revenue growth in Q4, 2022 compared to Q4, 2021.
· INEO has expanded its sales pipeline to over 1,500 store locations through its direct sales efforts and over 8,000 store locations through its partnership with Prosegur. Combined, these store locations represent a sales pipeline of over $40M in annual recurring revenue to the Company.
· INEO expects to achieve record revenue in fiscal 2023 with substantial year-over-year growth driven by the expansion of its INEO Media Network.
Surrey, BC – October 25, 2022 – INEO Tech Corp. (TSX-V: 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 Annual Audited Consolidated Financial Statements and Management’s Discussion and Analysis on SEDAR.com for the Company’s fiscal year and fourth quarter ended June 30, 2022.
“We are very pleased with our fiscal 2022 annual results in which we reported a 67% increase in revenue and a 74% increase in gross profit,” said Greg Watkin, Chairman and Founder of INEO. “The past year has been transformational for INEO as we signed a global distribution partnership with Prosegur, added several media advertising partners, broadened our product portfolio with the GATE pedestal, Media Player and DUO products, and most importantly, we solidified relationships with several large retail chains representing over 1,500 combined sites across North America. Furthermore, we continue to be very satisfied with our partnership with Prosegur, which has resulted in deployments and commitments for pilot store installations with several retailers who combined represent an opportunity of over 8,000 store locations across multiple industries. Hence, INEO’s total sales pipeline now exceeds $40 million in annual recurring revenue, providing the Company with significant growth potential in the coming quarters and years.”
Fiscal 2022 Financial Highlights:
· INEO generated $1,245,095 of revenue for the year ended June 30, 2022, representing an increase of 67% as compared to revenue of $745,160 for the year ended June 30, 2021. The increase in revenue is primarily attributable to greater online sales of loss prevention products.
· Revenue for Q4-2022 for the three months ending June 30, 2022 was $413,869 an increase of 93% compared to revenue of $214,253 Q4-2021.
· INEO generated gross profit for the year ended June 30, 2022 of $503,932, as compared to gross profit of $290,196 for the year ended June 30, 2021, representing an increase of 74%, driven by an increase in overall revenue and sales of higher margin INEO loss prevention products.
· INEO achieved gross margin percentage of 40.5% for the year ended June 30, 2022, compared to gross margin percentage of 38.9% for the year ended June 30, 2021. The increase in gross margin percentage was attributed to the increase in higher margin loss prevention products.
· Loss and comprehensive loss for the year ended June 30, 2022 was $3,292,699 or $0.05 per share compared to net loss of $2,237,888 or $0.05 per share for the year ended June 30, 2021.
· EBITDA loss for the year ended June 30, 2022 was $3,105,322, compared to EBITDA loss of $2,118,256 for the year ended June 30, 2021.
· INEO had $1,706,048 of cash and cash equivalents at June 30, 2022, compared to $5,199,328 of cash and cash equivalents at June 30, 2021.
· As at June 30, 2022, the Company had 60,190,138 shares issued and outstanding.
Fiscal 2022 Business Highlights:
· Landed large retail chain customers. INEO signed agreements with several large retailers who have over 1,500 retail locations across the United States and Canada. INEO continues to install systems within these retail chains.
· Signed global distribution partnership. On November 2, 2021, INEO announced a global agreement with Prosegur, a multi-national security solutions company based in Spain. Under the terms of the Agreement, Prosegur was granted distribution rights to manufacture, sell, secure, place and expand the patented INEO Media Network under their own brand, Prosegur EVO (“EVO”). This partnership has already resulted in pilot installation in several large retail chains.
· Acquisition of Securitytags.com. On January 20, 2022 INEO announced it had acquired the assets of E-Commerce company, Securitytags.com from Vitag PVT 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.
· Additional Media Advertising Partners. During the past year INEO announced partnerships with Vistar Media on February 10, 2022, and Western Media Group on June 7, 2022. Brands and marketers who utilize the Vistar Media platform are now able to purchase INEO’s unique advertising inventory, located at the front entrance of retail stores. Meanwhile, the partnership with Western Media has provided the Company with a boost in its ad sales efforts with placements on the INEO Media Network with well-respected national and regional brands.
· Introduction of New Products. Over the past year INEO has expanded its product offering so the Company can offer an entire ecosystem of products to retailers, including the INEO G.A.T.E Pedestal launched November 23, 2021, the INEO Media Player unveiled on March 30, 2022, and the INEO Welcoming System DUO product announced on June 22, 2022.
· Strengthened Intellectual Property. The Company continues to strengthen its competitive position by broadening its patent portfolio. On April 6, 2022, INEO announced that the company had applied for an additional patent related to its INEO Welcoming Gate. On June 28, 2022, INEO announced the filing for a design patent for dual screen INEO Welcoming System DUO product.
Events Subsequent to June 30, 2022:
· On July 26, 2022, INEO announced a new programmatic advertising partnership with Broadsign. This partnership solidifies INEO’s position as a solutions provider in the DOOH advertising market focused on the retail segment.
· One August 3, 2022, INEO was granted its patent protecting the INEO Welcoming System’s Technology in Europe. With large industry players interested in our technology, this patent gives significant protection against any competitors coming out with similar technology in the European market.
· On August 18, 2022, INEO announced a strategic partnership with Adapt Media. This partnership is a major advancement for INEO’s advertising pipeline across Canada due to Adapt’s strong presence in the Toronto area.
· On October 19, 2022 INEO announced it had made Patent Cooperation Treaty filings for its previously announced design patent for the INEO Welcoming G.A.T.E. This filing gives INEO priority treatment in jurisdictions around the world including the United States and Europe.
The overall outlook for INEO remains positive. Despite the current challenging macroeconomic environment INEO is experiencing an unprecedented increase in sales activity. The Company’s sales pipeline has increased to over $40 million in annual recurring revenue through its direct sales efforts and with increasing traction through its global distribution partner, Prosegur. The Company’s key objectives for the next year are as follows:
· Continue to expand and roll-out the INEO Media Network to its large retail chain customers.
· Convert its current pilot installations with large retailers to signed customer roll-outs.
· Support Prosegur with its growth and initiatives with key retailers across the globe.
· Achieve record revenue in fiscal 2023 with substantial year-over-year growth driven by the expansion of its INEO Media Network.
INEO’s direct sales efforts have resulted in landing several large retail chains, while the Prosegur partnership has resulted in pilot installations or commitments with many more large retail chains in the United States and South America across various industries including pharmacy, agriculture supplies, department store, clothing retailer, global sports franchise, supermarket and luxury department store chain.
INEO is in an enviable financial position with a clean balance sheet and revenues beginning to ramp up. The Company has seeded the market with pilot systems in a number of retailers which it expects to convert into full scale roll-outs in the coming quarters. As retailers continue to invest in retail tech and retail media networks, advertising and analytics are becoming increasingly important in the modern retail environment. INEO is well positioned to take advantage of these trends with strong initial customer traction, market leading technology and programmatic advertising partners.
Kyle Hall, CEO of INEO stated, “The Company is at a growth inflection point as we are actively deploying systems with our large retail chain customers and also adding more retail chain pilots through the partnership with Prosegur. INEO expects the increase in its sales activity will lead to record revenue in fiscal 2023. We look forward to announcing customer wins in the coming quarters leading to a substantial expansion of INEO’s Media Network.”
INEO Tech Corp.
Per: “Kyle Hall”
Kyle Hall, Chief Executive Officer and Director
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“.
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Future-Oriented Financial Information
To the extent any forward-looking statements in this press release may constitute future-oriented financial information or financial outlooks within the meaning of securities laws, such information is being provided to demonstrate the potential financial performance of INEO and readers are cautioned that this information may not be appropriate for and should not be used for any other purpose and that they should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out below under “Forward-Looking Statements”.
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