Full-Year2022 Financial Highlights:
ConsolidatedNet Revenues: $15,284,327
GrossProfit: $9,079,335
NetProfit: $5,575,892
NetProfit from Operations: $909,135
PositiveEBITA of 36%
ROSEVILLE, CA -- April 3,2023 -- InvestorsHub NewsWire --InnerScopeHearing Technologies Inc. (OTC:INND) ("InnerScope"), an emerging and disruptive leader in theOver-the-Counter (OTC) hearing aid space, announced today itsunaudited financial results for the full year ended December 31,2022 ("2022 Full-Year"). InnerScope reported consolidated netrevenues of $15,284,327,with a net profitof $5,575,892 and apositive EBITA (Earnings Before Taxes) of 36% for the 2022Full-Year.
InnerScope'sannual financial report has been filed with the OTC Markets and isavailable to view at:
https://www.otcmarkets.com/otcapi/company/financial-report/363918/content
Full-Year 2022 Financial Result Highlights
- Consolidated Net Revenuesof $15,284,327 werelargely driven by wholesale distribution agreements fromInnerScope'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 onlineand in selected stores, and iHEAR has a team of electrical andbiomedical engineers, hearing aid-related patents, and wholesalepartners.
- Gross Profit of$9,079,335 is from anincrease in gross margin with suppliers from a substantiallyincreased number of hearing aids sold, which resulted in providingbetter technology at a lower price.
- Profit from Operationsof $909,135 is from asubstantial increase in the number of hearing aidssold.
- Net Profit of$5,575,892 isprimarily from the gain on debt extinguishment and derivativeliability.
- Positive EBITA of36%
"This profitable year-end2022 shows we are on the right path continuing to scale and supportour growth, especially now with our success with numerous majorretailers requesting to sell our products," said Matthew Moore, CEOof InnerScope Hearing Technologies." Our B2B strategy and theretailer relationships we built over the last year created strongmomentum that will continue through 2023 andbeyond. With only a hand full of competitorsin this new emerging OTC hearing aid market, we are confident thatwe can continue to deliver our high-quality affordable OTC hearingaids to the ever-growing demand from all the retailers."
2022 Business Highlights
- Developed and launchedfour new models of OTC Rechargeable Hearing Aids for both theHearingAssist and iHEAR brands.
- Expanded WholesaleDistribution of HearingAssist Brand of OTC Hearing Aids to:
- 1500+ Walmart VisionCenters, CVS.com, BestBuy.com, RiteAid.com
- Expanded WholesaleDistribution of iHEAR Brand ofOTC Hearing Aids to:
- CVS.com,AmerisourceBergen, Cardinal Health, Cardinal Health at Home, Topco& Associates, Carewell.com, Hy-Vee, Hartig Drug, Wakefern FoodCorp, Spartan Nash
- Created and deployedFree-Standing and Counter-Top Product Displays within 1500+ WalmartVision Centers.
- Deployed 118 moreInnerScope's first-generation automated point-of-saleself-administered Hearing Screening Kiosks in pharmacies nationwide. The HearingScreening Kiosks provide customers to take a free 3 to 5-minutehearing screening test and receive instant results on screen or canbe emailed plus information on iHEAR or HearingAssist OTC HearingAid products available to purchase at the store and/or through theretailer's online sales portal.
- Created and launchedan Online Hearing Screening Test version for the retailers' websites,the same Hearing Screening Test as in the automated point-of-saleself-administered Hearing Screening Kiosks.
- Created an InternalHearing Care Professional Customer Service Call Center staffed withDoctors of Audiology and Licensed Hearing Aid Dispensers to provideenhanced customer service.
- Deployed 500 PharmacyCounter Placards and Product Brochures toAmerisourceBergen
StrategicGrowth Update: Continue Progress in Growing WholesaleDistribution
2022 was the year of thelong-awaited historic FDA ruling enacted on October 17, 2022, enablingaccess to over-the-counter hearing aids for millions of Americansto be sold in retail stores and pharmacies without a prescriptionor seen by a hearing health professional. The FDA ruling created anew emerging OTC hearing aid market that was a game changer forInnerScope. As a result of the FDA ruling, InnerScope has pivotedfrom a direct-to-consumer hearing aid company with itsbusiness-to-consumer ("B2C") sales model to primarily abusiness-to-business ("B2B") sales model. InnerScope's pivot to theB2B model has resulted in major growth in developing a wholesaledistribution network of major retailers, pharmacy chains, andhealthcare service companies (i.e., Cardinal Health andAmerisourceBergen). Moreover, InnerScope's B2B salesmodel allows more focus and resources for retailer marketing andtraining retailers on delivering a positive buying experience forInnerScope's OTC Hearing Aids at the store level to theircustomers. In addition, InnerScope provides the retailer'scustomers with expert help from its internal Hearing CareProfessional Customer Service Call Center.
In the first quarter of2023, InnerScope continues its B2B growth trajectory by addinganother major retailer with the announcementof its HearingAssist Brand on Target.com.InnerScope has also delivered 2000+Pharmacy Counter Placards with Product Brochures to Cardinal Healthto be distributed to its pharmacy network. Additionally, InnerScopehas deployed 17 of its newly designed second-generation automatedpoint-of-sale self-administrated Hearing Screening Kiosks topharmacies, and 98 more are scheduled to be delivered in the nexttwo weeks. Currently, InnerScope is shipping products andfree-standing product displays to 1700+ locations for one of itsmajor retailers.
SEC Audit Update
InnerScope, as previouslyannounced, retained the audit services of CPA firm Kreit & ChiuCPA LLP ("KC Auditors") to perform independent audits of thefinancials. The KC Auditors are expected to finish the 2021 and2022 annual financials in Q2 2023. Once the audits 2021 and 2022annual financial audits are completed, InnerScope intends to file aForm-10 to be upgraded from OTC Alternative Reporting to SECReporting status after 60 days from the date of filing.
As a result of the 2021annual financial audit, adjustments to the revenue recognition,derivative income, and derivative liability were made, whichresulted in a change in net income for 2021 from a Net Lossof $55,213,992 thatwas previously reported to a Net Incomeof $3,366. Thispositive change totaled $55,217,358, partly due to InnerScope'sacquisition of HearingAssist and iHEAR that same year.
About InnerScope Hearing Technologies, Inc. (OTC PINK: INND):
InnerScope Hearing Technologies Inc. is a manufacturer and distributor ofOTC Hearing Aids, Hearing Aid Accessories & HearingHealth-Related Products ("Hearing Products") dedicated toaddressing the global demand for affordable hearing solutions.InnerScope's, with its B2B business distribution model offeringaffordable OTC Hearing Products through major retailers, pharmacychains, and healthcare service companies, breaks through thebarriers that prevent access to effective and affordable hearingsolutions.
In September 2021, InnerScopeacquired iHear Medical Inc., a Direct-to-Consumer ("DTC")cloud-based hearing solution provider, which provided access toover 40 patents and an R&D facility, and a team of engineers.In addition, InnerScope, in November 2021, also acquired HearingAssist,an established leadersince 2008 in the DTC hearing aid market with a customer base ofover 400,000. These acquisitions, combined with a partnershipwith Atlazo Inc.,a semiconductor innovatorfor next-generation AI smart devices, will allow InnerScope tobetter position itself in the OTC hearing aid market by sellingadvanced and affordable Hearing Products through Walmart and manyother major retailers and pharmacy chains.
InnerScope's full line ofits HearingAssist and iHEAR branded Hearing Products is currentlyavailable through these multiple retail/wholesale distributionchannels: 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+ storelocations.
ComingSoon: More majorretailers and pharmacy chains for in-store and online HearingAssistand iHEAR branded Hearing Products.
For information relatedto InnerScope Hearing Technologies' latest hearing aids and relatedhearing products, please visit:
For the most up-to-dateinformation about InnerScope Hearing Technologies OTC: $INND,please visit and follow our official Twitter account @inndstockpage:
InnerScopeHyperlinks:
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.
SafeHarbor
This news releasecontains "forward-looking statements" within the meaning of Section27A of the Securities Act of 1933, as amended, and Section 21E ofthe Securities Exchange Act of 1934, as amended intended to becovered by the "safe harbor" created by those sections. Anystatements that are not historical facts contained in this pressrelease are also "forward-looking statements" as that term isdefined 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 ofsimilar meaning. Such forward-looking statements are based oncurrent expectations, involve known and unknown risks, a relianceon third parties for information, transactions or orders that maybe cancelled, and other factors that may cause our actual results,performance or achievements, or developments in our industry, todiffer materially from the anticipated results, performance orachievements expressed or implied by such forward-lookingstatements. Factors that could cause actual results to differmaterially from anticipated results include risks and uncertaintiesrelated to the fluctuation of global economic conditions, theperformance of management and our employees, our ability to obtainfinancing or maintain contractual relationships with vendors andcustomers, competition, general economic conditions and otherfactors that are detailed in our periodic reports filed with theSecurities and Exchange Commission ("SEC"). We intend that allforward-looking statements be subject to the safe-harbor provisionsof the PSLRA, Securities Act and Securities ExchangeAct.
Contact:
InnerScope HearingTechnologies, Inc.
InvestorRelations
ir@innd.com
833-788-0506
InvestorRelations Agency Contact:
Skyline Corporate CommunicationsGroup, LLC
Lisa Gray, Senior AccountManager
One Rockefeller Plaza, 11thFloor
New York, NY10020
Office: (646)893-5835
Email:lisa@skylineccg.com
