- INEO remains on track with Welcoming System deployments and has expanded reach to 23 states across the Unites States with major retail partners.
- INEO’s renewed customer contracts featuring 5-year and 6-year contract lengths are expected to accelerate the Company’s growth and reduce its cash needs and expenditures.
Surrey, BC – October 26, 2023 – INEO Tech Corp. (TSX-V: INEO; OTCQB: INEOF) (the “Company” or “INEO”), the 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, 2023.
“We are satisfied with our fiscal 2023 annual results in which we reported a 21% increase in revenue,” said Greg Watkin, Chairman and Founder of INEO. “2023 has been a monumental year for the Company as we saw the most deployments and installations of the INEO Welcoming System in the Company’s history. Working alongside our major retail partners, I can proudly announce that INEO has now successfully expanded its Welcoming System network to 23 states across the United States, with plans for additional roll-out deployments in 2024 and 2025 already in progress. We are in the planning process with our retail partners for rapid expansion of the INEO Media Network across all their retail locations in the U.S.”
Greg Watkin adds, “Furthermore, we worked extremely hard this year to extend our commercial agreements with our large national retail and regional liquor-store network locations. In addition to increasing our contract lengths to 5-years and 6-years, we successfully gained exclusive in-store advertising rights as well as the right to assign ownership of our deployed hardware to a third-party media partner. We expect these agreements will reduce our cash needs and expenditures and positions the company for a transformational year in 2024 as we begin to realize increased revenue generation and improved margins from the monetization of our network.”
Fiscal 2023 Financial Highlights:
- INEO generated $1,509,008 of revenue for the year ended June 30, 2023, representing an increase of 21% as compared to revenue of $1,245,095 for the year ended June 30, 2022. The increase in revenue is primarily attributable to greater online sales of loss prevention products.
- Revenue for Q4-2023 for the three months ending June 30, 2023 was $307,767 a decrease of 26% compared to revenue of $413,869 in Q4-2022.
- INEO generated gross profit for the year ended June 30, 2023 of $373,306, as compared to gross profit of $503,932 for the year ended June 30, 2022.
- INEO achieved gross margin percentage of 24.7% for the year ended June 30, 2023, compared to gross margin percentage of 40.5% for the year ended June 30, 2022. The decrease in gross margin percentage was attributed to the increased sales of one-time Welcoming System hardware manufacturing and deployment.
- Loss and comprehensive loss for the year ended June 30, 2023 was $3,331,491 or $0.05 per share compared to net loss of $3,292,699 or $0.05 per share for the year ended June 30, 2022.
- EBITDA loss for the year ended June 30, 2023 was $2,830,169, compared to EBITDA loss of $2,883,399 for the year ended June 30, 2022.
- As at June 30, 2023, the Company had 76,143,709 shares issued and outstanding.
Events Subsequent to June 30, 2023:
- On September 19, 2023, INEO signed updated commercial agreements with its large national retail and regional liquor store network locations. The updated contracts feature 5-year and 6-year contract lengths, exclusive in-store advertising rights, deployment of additional in-store media screens, the right to assign the ownership of the INEO Welcoming System hardware deployed in the retail stores and the right to assign ownership of INEO’s exclusive advertising contracts to a third-party media partner. The updated agreements are expected to position the Company for rapid growth, improved margins and lower cash requirements.
- On September 27, 2023, INEO introduced INEO ORCA. ORCA stands for Organized Retail Crime Alerts. ORCA is INEO’s latest AI-driven solution and it represents a monumental leap forward in security and crime prevention. By leveraging advanced computer vision and machine learning algorithms, the latest feature of the patented INEO Welcoming System can meticulously analyze stored CCTV footage, captured during loss prevention events, enabling it to detect and recognize patterns associated with organized retail criminal activities.
- On October 24, 2023, INEO announced the first shipment of INEO Welcoming Systems, as per the Company’s distribution agreement with partner Prosegur Security, for installation at various locations of Jumbo Cencosud in Columbia. As per the agreement, before the end of October, INEO will be selling and shipping a total of 59 systems, comprised of both Welcoming Systems and Welcoming GATEs, which will be installed in four Jumbo retail locations. With approximately 15 systems installed per store, INEO will be managing an immersive in-store retail media network. INEO will receive revenue from the sale of the systems as well as ongoing SaaS based revenues from the deployment of the installed INEO Welcoming Systems.
Kyle Hall, CEO of INEO commented, “We are excited with the significant progress INEO has made with its roll-out strategy in 2023. We were extremely aggressive in the expansion of our network this past year with our major retail partners in the United States, and we are now also seeing successful results from our distribution partnership with Prosegur Security. We had been operating multiple pilot systems with Prosegur since last year and are beginning to see the results of those pilot installations come to fruition. Jumbo Cencosud is a key entry point into the South American market as Cencosud operates over 1,000 stores under various brand names. We recognize the outstanding growth potential of this partnership and look forward to working with Jumbo and Prosegur.”
INEO is now actively deploying systems and ramping up its installation locations with contracted customers across North and South America. INEO is landing pilot wins and receiving orders with large retailers, expanding its location footprint, and ramping up its revenues. In particular, the Company is making significant progress with a major retail partner who has over 1,000 store locations across the United States.
INEO’s key objectives for fiscal 2024 are as follows:
- Increase revenues through the deployment and expansion of the INEO Media Network to INEO’s leading retail customers.
- 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.
- Leverage INEO’s updated contract agreements to expand the business faster while optimizing capital allocation, to significantly reduce cash needs and expenditures while generating increased revenues and cash flows through the monetization of customer contracts.
INEO’s technology has been proven out and has been validated by large retailers and 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 is converting these trials into full scale roll-outs with the goal of creating a critical mass of systems.
Advertising and analytics are becoming increasingly important in the modern retail environment as retailers continue to invest in retail technology to improve the customer experience. INEO is well positioned to take advantage of these trends with its restructured key contract agreements. INEO expects its new customer agreements to fuel the monetization of its customer contracts as well as provide the framework for significantly reducing the Company’s cash needs and expenditures.
The Company will hold a webinar to discuss its results and provide an outlook on the business, on Thursday, November 2, 2023 at 9:00 am PT (12:00 pm ET).
Webinar Registration: https://bit.ly/INEO-Q4-2023
Date: Thursday, November 2, 2023
Time: 9:00 am PT (12:00 pm ET)
Dial-in: 778-907-2071 (Vancouver local)
647-374-4685 (Toronto local)
Confirmation #: 899 3526 7592
INEO Tech Corp. would also like to announce the appointment of Helen Andaya as Chief Financial Officer (CFO), effective immediately. Reporting directly to Kyle Hall, CEO of INEO, Ms. Andaya will have responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions. She will assume the Chief Financial Officer role from Bernadette Ryle who is stepping down to pursue other opportunities. Helen is a Certified Public Accountant (CPA) in the Philippines and also holds an MBA degree. Helen has been with INEO since January 2023. Prior to INEO, Helen worked for PwC Philippines and also held various senior accounting positions within private sector businesses.
Select Financial Highlights:
|For the years ended June 30|
|Sales||$ 1,509,008||$ 1,245,095|
|Cost of Sales||(1,135,702)||(741,163)|
|Other Income (Expenses)||(114,019)||(7,197)|
|Net loss and comprehensive loss||(3,331,491)||(3,292,699)|
|Basic and diluted loss per share||(0.05)||(0.05)|
|Weighted average number of common shares outstanding (basic and diluted)||70,024,531||60,190,138|
 See section below Reconciliation of Net Loss to Adjusted EBITDA
|For the years ended June 30|
|Net loss for the period||$ (3,331,491)||$ (3,292,699)|
|Adjusted EBITDA||$ (2,830,169)||$ (2,883,399)|
- 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:
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”.
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.
For further information:
Investor Relations, INEO Tech Corp.