INEO Tech (INEO) investor relations material

Business model and technology

• Integrates electronic article surveillance with digital displays, enabling both loss prevention and in-store advertising revenue.

• Patented technology allows digital screens within security pedestals without interference, protected in the US, Canada, and Europe.

• Provides analytics on loss events, foot traffic, and advertising metrics, with remote management and maintenance capabilities.

• Offers APIs for integration with retailer systems and content management for advertising.

• Revenue streams include hardware sales and recurring subscription fees for connectivity, analytics, and media services.

Market opportunity and growth

• Retailers are increasingly monetizing in-store media and seeking advanced loss prevention solutions.

• Large addressable market with hundreds of thousands of legacy systems; recurring revenue potential is significant.

• Current deployments include a major US office supply chain and a UK pharmacy chain, with a growing backlog and ramping installations.

• Targeting shipment of at least 2,000 additional systems by June 2027, with production capacity scaling to 500+ units per month.

• Sensormatic, a major industry player, has licensed the technology, validating its value and expanding potential reach.

Financial performance and outlook

• Achieved CAD 1 million in Q4 revenue, with substantial growth over recent quarters and a strong backlog entering fiscal 2027.

• Recurring revenue per system is approximately CAD 1,200 annually, with average installations of two to three systems per location.

• Gross margins are expected to improve as subscription revenue becomes a larger share of total revenue.

• No customer churn to date, with long-term contracts in place; recurring revenue is expected to surpass hardware sales in value.

• Operating cash flow breakeven is anticipated within the next year as order volume and recurring revenue grow.