- INEO is hosting an investor webinar to discuss its quarterly
results on November 30, 2023 at
9:00 am PT (12:00 pm ET)
SURREY,
BC, Nov. 29, 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 first quarter ended
September 30, 2023.
Greg Watkin, Chairman and Founder
of INEO, commented, "We are excited to end the calendar year on a
strong note heading into 2024, as we continue to make advancements
on multiple fronts. We are well into the planning for next year's
deployments and installations with our large retail partners and
our direct sales pipeline remains promising with several new
opportunities. In addition, our global distribution
partnership with Prosegur is moving forward as we completed our
first shipment of Welcoming Systems to Jumbo Cencosud. Cencosud
represents our first entry into the South American market, and we
look forward to continuing our work with Prosegur to expand
Cencosud's retail media network into more retail locations. We also
have multiple other pilot systems installed with Prosegurs' clients
and will look to convert those pilot trials into full scale
roll-outs heading into the new year. Finally, our recently updated
key contracts have positioned the Company for increased revenue
generation opportunities as well as reducing our cash needs. We
expect to capitalize on these updated agreements by working with
third-party media partners in 2024."
Fiscal First Quarter 2024 Financial Highlights:
- INEO generated $365,931 of
revenue for the three months ended September
30, 2023, as compared to revenue of $416,086 for the three months ended September 30, 2022. The change in revenue was
mainly due to the strategic focus of dedicating resources to expand
the INEO Media Network, sign media partners and de-emphasize the
sale of Loss Prevention Products.
- INEO generated gross profit for the three months ended
September 30, 2023, of $143,735, as compared to gross profit of
$207,646 for the quarter ended
September 30, 2022. The Company
attributes the decrease in gross profit to the declining margin of
INEO Loss Prevention Products and Fabrication Operation.
- INEO achieved gross margin percentage of 39.3% for the three
months ended September 30, 2023,
compared to gross margin percentage of 49.9% for the quarter ended
September 30, 2022.
- Net loss for the three months ended September 30, 2023 was $750,540 or $0.01
per share compared to net loss of $590,614 or $0.01
per share for the three months ended September 30, 2022.
- Adjusted EBITDA loss for the three months ended September 30, 2023 was $551,027, compared to Adjusted EBITDA loss of
$512,286 for the three months ended
September 30, 2022.
- INEO had $232,626 of cash and
cash equivalents at September 30,
2023, compared to $362,510 of
cash and cash equivalents at June 30,
2023.
- As at March 31, 2023, the Company
had 76,143,709 shares issued and outstanding.
Fiscal First Quarter 2024 Business Highlights:
- On September 19, 2023, the
Company signed an updated commercial agreement 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 and improved
margins.
- On September 27, 2023, the
Company introduced INEO ORCA. ORCA, which stands for Organized
Retail Crime Alerts, 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.
Events Subsequent to September
30, 2023:
- On October 24, 2023, the Company
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, the
Company 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, the Company will be managing an
immersive in-store retail media network. In addition, it 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
on the Company's progress, "We continue to have a positive outlook
as we head into the final months of the year. Our partners continue
to have trust in our capabilities and would like us to move even
quicker next year in installing the network across all their retail
locations. Furthermore, our focus on expanding the INEO Media
Network has led to de-emphasizing the sale of our legacy loss
prevention products and increasing our advertising sales. As a
result, we saw our advertising sales grow by over 50% year over
year in the quarter and we expect this revenue segment to continue
growing into a larger segment for us in the future."
Outlook:
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 AI driven 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.
Webinar Details:
The Company will hold a webinar to discuss its results and
provide an outlook on the business, on Thursday, November 30, 2023 at 9:00 am PT (12:00 pm
ET).
Webinar
Registration:
|
https://bit.ly/INEO-Q1-2024
|
Date:
|
November 30,
2023
|
Time:
|
9:00 am PT (12:00 pm
ET)
|
Dial-in:
|
778-907-2071 (Vancouver
local)
|
|
647-374-4685 (Toronto
local)
|
Confirmation #:
|
861 3022
6874
|
Select Financial Highlights:
The following table highlights operational information for the
three months ended September 30,
2023, and 2022. It has been derived from the unaudited
interim condensed consolidated financial statements and should be
read in conjunction with these statements and related notes.
1 See the
section 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:
|
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.