INEO Tech (INEO) investor relations material

Operating momentum

• Latest quarter revenue rose 350% YoY; preliminary Q1 revenue was CAD 1.3 million for the quarter ended September 30, at roughly break-even, with final results expected near the end of November.

• Management said the business had executed on contracts discussed the prior year and described the last four quarters as showing significant growth.

• Subscription recurring revenue was projected at CAD 1.5 million for the next year; management said installed systems are building this recurring base.

Technology and business model

• Patented connected loss-prevention systems combine alarm-event video, remote servicing, store traffic and density data, cloud AI analytics, and a digital advertising display.

• The patented in-device screen enables retailers to change or run video ads in real time; traffic tracking supports ad impression counts and vendor monetization.

• Hardware sells at prices broadly comparable to incumbent systems, with a monthly subscription for analytics, video, traffic data, and retail-media connectivity.

• Retail ad revenue can cover system costs in months, according to management; subscriptions are intended to add recurring revenue alongside hardware sales.

Customer deployments and market opportunity

• Staples had 200 U.S. locations rolled out; at Boots Pharmacy, more than 600 systems had replaced Sensormatic units since January, with another couple thousand planned for the next year.

• Boots has 1,500 stores and 10,000 loss-prevention pedestals; management said its target of about 2,000 systems this year could be met by Boots alone.

• At CAD 2,500 per system and CAD 100 per system per month, 2,000 systems would represent CAD 2.4 million in annual recurring revenue, per management's illustration.

• Retailers moving forward with deployments represented about 12,000 systems; the broader top-tier U.S. and European market was estimated at 700,000 systems.

• Pilots, contract discussions, and expected retailer orders were described as additional routes to growth beyond current deployments.