$INND - I Like What I Hear
Disrupting the telehealth scene, InnerScope Hearing Technologies, Inc. (OTC: INND) offers a range of products, services, and programs for those suffering from hearing impairment and/or hearing-related issues. After announcing purchase orders from Walmart worth more than $11 million, INND stock climbed 108%. Meanwhile, long-term investors are holding out for a reversal once the Over-the-Counter Hearing Aid Act is finalized with FDA guidelines. With this in mind, activity on the INND stock message board shows that investors are bullish that these purchase orders could signify a reversal for the stock.
INND Stock News
While the initiative for OTC hearing devices was begun under the Trump administration with the FDA Reauthorization Act of 2017, it was given a second boost by President Biden’s Executive Order in 2021. Until now, the FDA has not followed through on its commitment to create the rules for OTC hearing devices however, the FDA did issue a landmark proposal to improve access to hearing aids by establishing the OTC category.
Clearly there is still more to be done before FDA-approved over the counter hearing aids can be freely accessed by Americans. However, INND stock has made headway by offering hearing devices as a direct to consumer option in the meantime.
iHear
In preparation for the expected FDA guidelines, INND acquired iHear Medical Inc which pioneered online direct-to-consumer hearing solutions This brought the only FDA-Cleared home hearing screener under INND’s umbrella as well as advanced FDA-Registered hearing aids and the TReO™ Personal Sound Amplification Product. As part of the acquisition, INND gained iHear’s customer base and established retail and contracted distribution channels.
The Acquisition also expanded InnerScope’s customer base and provided access to iHEAR’s established retail and contracted distribution channels. Recently, INND launched a new website for iHEAR offering the brand’s direct to consumer hearing products. Through this site, INND markets the same technology as hearing aids sold in clinics by professionals for a significantly lower price with the benefit of delivering the products directly to customers’ homes.
INND released this website update to offer a number of new features. The most significant feature is its new free online hearing screening service which provides users with a hearing wellness screening test using INND’s AI technology for pattern recognition and classification of hearing ability.
Hearing Assist
Following this, INND also acquired the direct to consumer hearing aid leader – Hearing Assist. Walmart’s largest hearing aid supplier, Hearing Assist has realized top-line revenues of more than $72 million since 2018 through the offering of its products in 757 Walmart stores across five states. Through its sales at these locations as well as online, the company has had more than 500 thousand sales.
In exchange, INND agreed to pay the equivalent of $10 million in restricted shares split into two different payments. In this way, the first $5 million shares are at a fixed price of $.0089 per share and the other $5 million in shares are valued at $.17 per share. In total, this valued the market cap of INND at more than $1 billion – a very bullish sign for the company.
To protect shareholder value, the company instituted a 24 month leak out agreement which dictates that these shareholders can convert and sell no more than 25% of their shares every 6 months. Similar to its acquisition of iHear, INND’s acquisition of Hearing Assist brings more assets under the company and attracts a wider audience to the brand.
Commenting on the transaction, the founder of Hearing Assist II LLC shared that, “The HearingAssist team is very excited about this opportunity to join forces with InnerScope to become the number one global leader in the direct-to-consumer hearing aid market”. He went on to say that, “Combining the talents and experience of HearingAssist, with our deep marketing and distribution experience and InnerScope, with its decades of proven track record of retail hearing aid sales and hearing aid R&D manufacturing, will create a powerful disruptive company in the global hearing device market.”
Seeking to improve upon HearingAssist’s existing image, INND launched a new website for the sale of Hearing Assist’s products. The website’s new design will help INND manage content, launch marketing campaigns, and add new features. One important new feature is its internal customer call center which is integrated with the website to aid the company in its growth plans.
Considering the nature of its business and its audience, it makes sense for INND to introduce a call center for users to contact INND’s hearing products specialists and receive free consultations with INND’s licensed hearing professionals. This personalized approach is just one part of INND’s overall mission to target a larger share of the direct to consumer hearing device market. As a result of these acquisitions, INND stock price could witness major growth as more assets and operations are integrated with the company.
Given INND’s current strategy of innovation and acquisition its no surprise to hear the company’s CEO – Matthew Moore – saying that after securing partnerships with semiconductor developers, manufacturing solutions, and multiple major retail and pharmacy chains, he believes that “we are building a hearing aid company that can go head-to-head against the “Big Five” global hearing aid manufacturers to be the disruptor leader in the emerging multibillion-dollar direct-to-consumer hearing aid market.”
Atlazo
In-line with this mission, INND has partnered with Atlazo to develop next-generation hearing aids and products, utilizing Atlazo’s patented AI hardware to create features like voice commands, continuous health monitoring, and seamless connectivity with other smart devices. As is, this will reduce cost and time-to-market for manufacturers of wearable devices. The collaboration itself is protected by over 12 issued and pending patents.
Hearing Screening Kiosks
While INND has made progress on all these fronts, it has not neglected an important part of the challenges of DTC hearing products – hearing tests themselves. For this, INND has partnered with Hartig Drug Company to offer free hearing screenings using INND’s automated self-check hearing screening kiosk. In addition, Hartig plans to launch INND’s direct to consumer products both online and in-stores in the near future which will help supplement the hearing tests.
The company’s hearing kiosks are also being implemented in the pharmacy section of K-VA-T Food Stores, Inc. Food City Pharmacy and the neighborhood grocery and pharmacy chain – Giant Eagle, Inc. In this way, INND is expanding its reach to make hearing testing affordable and accessible for the 48 million Americans suffering from hearing loss.
INND already has a strong relationship with the retail giant Walmart thanks to its acquisition of Hearing Assist. As a result, it received purchase orders from Walmart totaling over $277,000 for an in-store display to be located in 757 Walmart stores. Looking beyond the US, INND has also entered the Canadian market through Walmart’s Canada’s flagship online store.
In light of this expansion across numerous avenues, INND is positioning itself to be a major name in direct to consumer hearing solutions before capitalizing on the passage of the Over-the-Counter Hearing Aid Act. While the FDA has not published its new regulations yet, it is expected that sales could begin by the end of 2022 once these regulations are finalized. Given that INND’s products are sold through several large retailers like Walmart, Amazon, and Best Buy, INND stock could see significant growth as the public becomes more accustomed to direct to consumer and over the counter hearing aids.
If it is able to sell FDA approved hearing solutions after the act’s passage, then INND stock price could be comparable to competitors like Eargo Inc. (NSADAQ: EAR). Recently EAR has taken a significant tumble following investigations by the DOJ regarding insurance reimbursement claims submitted to various federal employee health plans under the Federal Employee Health Benefits program. While the company admitted no fault in the final civil settlement agreement, it will be forced to pay approximately $34.4 million to the government to resolve allegations that it submitted or caused the submission of claims for payment to the FEHB program using unsupported hearing loss-related diagnosis codes. As a result, EAR stock has tumbled from its IPO price of around $40 to $1.17 due to the allegedly false and misleading representations it made regarding the available insurance coverage for its products.
Purchase Order
In late May, INND stock saw a resurgence after the company announced a $1.5 million purchase order from Walmart for HearingAssist’s products and related supplies. This order covers four new HearingAssist models, branded ear care, and related cleaning accessories to showcase in 299 Walmart Vision Centers. Following this, INND received a second purchase order from Walmart worth $9.4 million. Now in the final phases of production, INND expects these products to be deployed across 1499 Walmart Vision Centers by late June or July.
Given the scale of these deals, INND is well-positioned to bolster its revenues this year. It is also a sign that Walmart sees increasing demand for INND’s products in the future as inflation and a possible recession drive more consumers to look for cost-effective hearing solutions. This is a very promising sign for the company as its various products could seeing rising demand and recognition thanks to their placement in Walmart locations across the US.
INND Stock Financials
In terms of its financials, INND has shown considerable growth in Q1 mainly due to its acquisitions in 2021. With this in mind, INND increased its assets from $4 million in the same year-ago-period to $21.8 million. This increase is largely the result of $17.2 million in intangible assets from the company’s IP and patents.
Despite this, INND reported $23.3 million in liabilities compared to $10.1 million in Q1 2021. Moreover, INND realized $404.6 thousand in revenues but has $1.1 million in total operating costs. As a result, INND reported a total net loss of $2.9 million – a substantial increase from $184 thousand in Q1 2021. While the company is not generating enough revenue to offset the costs of its operations, with time and passage of the OTC act INND could strengthen its financial position.
On that note, INND has restructured its convertible debt through an agreement with GS Capital. In this way, INND was able to reduce its convertible debt by $1.1 million. Now that the company has eliminated half of its convertible debt, INND intends to work towards eliminating the remainder of its convertible debt. This is an important move for the company considering its substantial share issuances since 2020 which have led to a steady increase in its outstanding shares from 3.6 billion shares in 2020 to 7.1 billion in 2022.
The company has also retained a PCAOB auditor to review its 2019, 2020, and Q1-Q3 2021 financial statements. After the audit is complete, INND intends to file a Form-10 or S-1 to become an SEC Fully Reporting company.
Technical Analysis
INND is trading at $.0052 and has supports at .0036 and .0028. The stock has been retesting its resistance near .0053 and has a second resistance at its recent high of .0077. After securing two major purchase orders with Walmart, INND climbed 103% on the news. It is worth noting that the 50 MA is acting as a strong support. It would be a bullish sign if INND continues to trade above both MAs following the golden cross on the 6th of June.
Accumulation is continuing to increase which is a bullish sign since investors appear to be reenergized by the recent purchase orders. Meanwhile, the MACD is bearish and the RSI cooled off from 84 to 48. As for its share structure, INND has seen a steady increase in its OS due to dilution, and currently has an AS of 14.9 billion with an OS of 7.2 billion.
INND Stock Forecast
Through its acquisitions in 2021, INND is in a prime position to emerge as a leader in the direct to consumer hearing aid industry. It’s surprising that INND has failed to generate higher revenues considering that its acquisition – Hearing Assist – generated more than $72 million in top-line revenue from April 2018 through July 2021.
However, now that the company has secured $11 million in purchase orders from Walmart, INND is on the right track for financial growth this year. Offering HearingAssist’s products in 1,499 Walmart Vision Centers will definitely increase awareness of the brand which could help popularize INND’s products leading up to the finalization of the OTC Hearing Aid Act.
With a number of hearing aid brands under its umbrella, INND has added products to its brand which may prove worthwhile in the long-term. While the stock has fallen to a multiyear low, INND stock could rebound on a strong catalyst. The stock has already shown that after increasing 100% with announcement of these purchase orders. Since many experts expect the OTC Hearing Aid Act to be finalized later this year, the INND stock forecast for 2022 appears to be brighter than before.
INND Stock News
While the initiative for OTC hearing devices was begun under the Trump administration with the FDA Reauthorization Act of 2017, it was given a second boost by President Biden’s Executive Order in 2021. Until now, the FDA has not followed through on its commitment to create the rules for OTC hearing devices however, the FDA did issue a landmark proposal to improve access to hearing aids by establishing the OTC category.
Clearly there is still more to be done before FDA-approved over the counter hearing aids can be freely accessed by Americans. However, INND stock has made headway by offering hearing devices as a direct to consumer option in the meantime.
iHear
In preparation for the expected FDA guidelines, INND acquired iHear Medical Inc which pioneered online direct-to-consumer hearing solutions This brought the only FDA-Cleared home hearing screener under INND’s umbrella as well as advanced FDA-Registered hearing aids and the TReO™ Personal Sound Amplification Product. As part of the acquisition, INND gained iHear’s customer base and established retail and contracted distribution channels.
The Acquisition also expanded InnerScope’s customer base and provided access to iHEAR’s established retail and contracted distribution channels. Recently, INND launched a new website for iHEAR offering the brand’s direct to consumer hearing products. Through this site, INND markets the same technology as hearing aids sold in clinics by professionals for a significantly lower price with the benefit of delivering the products directly to customers’ homes.
INND released this website update to offer a number of new features. The most significant feature is its new free online hearing screening service which provides users with a hearing wellness screening test using INND’s AI technology for pattern recognition and classification of hearing ability.
Hearing Assist
Following this, INND also acquired the direct to consumer hearing aid leader – Hearing Assist. Walmart’s largest hearing aid supplier, Hearing Assist has realized top-line revenues of more than $72 million since 2018 through the offering of its products in 757 Walmart stores across five states. Through its sales at these locations as well as online, the company has had more than 500 thousand sales.
In exchange, INND agreed to pay the equivalent of $10 million in restricted shares split into two different payments. In this way, the first $5 million shares are at a fixed price of $.0089 per share and the other $5 million in shares are valued at $.17 per share. In total, this valued the market cap of INND at more than $1 billion – a very bullish sign for the company.
To protect shareholder value, the company instituted a 24 month leak out agreement which dictates that these shareholders can convert and sell no more than 25% of their shares every 6 months. Similar to its acquisition of iHear, INND’s acquisition of Hearing Assist brings more assets under the company and attracts a wider audience to the brand.
Commenting on the transaction, the founder of Hearing Assist II LLC shared that, “The HearingAssist team is very excited about this opportunity to join forces with InnerScope to become the number one global leader in the direct-to-consumer hearing aid market”. He went on to say that, “Combining the talents and experience of HearingAssist, with our deep marketing and distribution experience and InnerScope, with its decades of proven track record of retail hearing aid sales and hearing aid R&D manufacturing, will create a powerful disruptive company in the global hearing device market.”
Seeking to improve upon HearingAssist’s existing image, INND launched a new website for the sale of Hearing Assist’s products. The website’s new design will help INND manage content, launch marketing campaigns, and add new features. One important new feature is its internal customer call center which is integrated with the website to aid the company in its growth plans.
Considering the nature of its business and its audience, it makes sense for INND to introduce a call center for users to contact INND’s hearing products specialists and receive free consultations with INND’s licensed hearing professionals. This personalized approach is just one part of INND’s overall mission to target a larger share of the direct to consumer hearing device market. As a result of these acquisitions, INND stock price could witness major growth as more assets and operations are integrated with the company.
Given INND’s current strategy of innovation and acquisition its no surprise to hear the company’s CEO – Matthew Moore – saying that after securing partnerships with semiconductor developers, manufacturing solutions, and multiple major retail and pharmacy chains, he believes that “we are building a hearing aid company that can go head-to-head against the “Big Five” global hearing aid manufacturers to be the disruptor leader in the emerging multibillion-dollar direct-to-consumer hearing aid market.”
Atlazo
In-line with this mission, INND has partnered with Atlazo to develop next-generation hearing aids and products, utilizing Atlazo’s patented AI hardware to create features like voice commands, continuous health monitoring, and seamless connectivity with other smart devices. As is, this will reduce cost and time-to-market for manufacturers of wearable devices. The collaboration itself is protected by over 12 issued and pending patents.
Hearing Screening Kiosks
While INND has made progress on all these fronts, it has not neglected an important part of the challenges of DTC hearing products – hearing tests themselves. For this, INND has partnered with Hartig Drug Company to offer free hearing screenings using INND’s automated self-check hearing screening kiosk. In addition, Hartig plans to launch INND’s direct to consumer products both online and in-stores in the near future which will help supplement the hearing tests.
The company’s hearing kiosks are also being implemented in the pharmacy section of K-VA-T Food Stores, Inc. Food City Pharmacy and the neighborhood grocery and pharmacy chain – Giant Eagle, Inc. In this way, INND is expanding its reach to make hearing testing affordable and accessible for the 48 million Americans suffering from hearing loss.
INND already has a strong relationship with the retail giant Walmart thanks to its acquisition of Hearing Assist. As a result, it received purchase orders from Walmart totaling over $277,000 for an in-store display to be located in 757 Walmart stores. Looking beyond the US, INND has also entered the Canadian market through Walmart’s Canada’s flagship online store.
In light of this expansion across numerous avenues, INND is positioning itself to be a major name in direct to consumer hearing solutions before capitalizing on the passage of the Over-the-Counter Hearing Aid Act. While the FDA has not published its new regulations yet, it is expected that sales could begin by the end of 2022 once these regulations are finalized. Given that INND’s products are sold through several large retailers like Walmart, Amazon, and Best Buy, INND stock could see significant growth as the public becomes more accustomed to direct to consumer and over the counter hearing aids.
If it is able to sell FDA approved hearing solutions after the act’s passage, then INND stock price could be comparable to competitors like Eargo Inc. (NSADAQ: EAR). Recently EAR has taken a significant tumble following investigations by the DOJ regarding insurance reimbursement claims submitted to various federal employee health plans under the Federal Employee Health Benefits program. While the company admitted no fault in the final civil settlement agreement, it will be forced to pay approximately $34.4 million to the government to resolve allegations that it submitted or caused the submission of claims for payment to the FEHB program using unsupported hearing loss-related diagnosis codes. As a result, EAR stock has tumbled from its IPO price of around $40 to $1.17 due to the allegedly false and misleading representations it made regarding the available insurance coverage for its products.
Purchase Order
In late May, INND stock saw a resurgence after the company announced a $1.5 million purchase order from Walmart for HearingAssist’s products and related supplies. This order covers four new HearingAssist models, branded ear care, and related cleaning accessories to showcase in 299 Walmart Vision Centers. Following this, INND received a second purchase order from Walmart worth $9.4 million. Now in the final phases of production, INND expects these products to be deployed across 1499 Walmart Vision Centers by late June or July.
Given the scale of these deals, INND is well-positioned to bolster its revenues this year. It is also a sign that Walmart sees increasing demand for INND’s products in the future as inflation and a possible recession drive more consumers to look for cost-effective hearing solutions. This is a very promising sign for the company as its various products could seeing rising demand and recognition thanks to their placement in Walmart locations across the US.
INND Stock Financials
In terms of its financials, INND has shown considerable growth in Q1 mainly due to its acquisitions in 2021. With this in mind, INND increased its assets from $4 million in the same year-ago-period to $21.8 million. This increase is largely the result of $17.2 million in intangible assets from the company’s IP and patents.
Despite this, INND reported $23.3 million in liabilities compared to $10.1 million in Q1 2021. Moreover, INND realized $404.6 thousand in revenues but has $1.1 million in total operating costs. As a result, INND reported a total net loss of $2.9 million – a substantial increase from $184 thousand in Q1 2021. While the company is not generating enough revenue to offset the costs of its operations, with time and passage of the OTC act INND could strengthen its financial position.
On that note, INND has restructured its convertible debt through an agreement with GS Capital. In this way, INND was able to reduce its convertible debt by $1.1 million. Now that the company has eliminated half of its convertible debt, INND intends to work towards eliminating the remainder of its convertible debt. This is an important move for the company considering its substantial share issuances since 2020 which have led to a steady increase in its outstanding shares from 3.6 billion shares in 2020 to 7.1 billion in 2022.
The company has also retained a PCAOB auditor to review its 2019, 2020, and Q1-Q3 2021 financial statements. After the audit is complete, INND intends to file a Form-10 or S-1 to become an SEC Fully Reporting company.
Technical Analysis
INND is trading at $.0052 and has supports at .0036 and .0028. The stock has been retesting its resistance near .0053 and has a second resistance at its recent high of .0077. After securing two major purchase orders with Walmart, INND climbed 103% on the news. It is worth noting that the 50 MA is acting as a strong support. It would be a bullish sign if INND continues to trade above both MAs following the golden cross on the 6th of June.
Accumulation is continuing to increase which is a bullish sign since investors appear to be reenergized by the recent purchase orders. Meanwhile, the MACD is bearish and the RSI cooled off from 84 to 48. As for its share structure, INND has seen a steady increase in its OS due to dilution, and currently has an AS of 14.9 billion with an OS of 7.2 billion.
INND Stock Forecast
Through its acquisitions in 2021, INND is in a prime position to emerge as a leader in the direct to consumer hearing aid industry. It’s surprising that INND has failed to generate higher revenues considering that its acquisition – Hearing Assist – generated more than $72 million in top-line revenue from April 2018 through July 2021.
However, now that the company has secured $11 million in purchase orders from Walmart, INND is on the right track for financial growth this year. Offering HearingAssist’s products in 1,499 Walmart Vision Centers will definitely increase awareness of the brand which could help popularize INND’s products leading up to the finalization of the OTC Hearing Aid Act.
With a number of hearing aid brands under its umbrella, INND has added products to its brand which may prove worthwhile in the long-term. While the stock has fallen to a multiyear low, INND stock could rebound on a strong catalyst. The stock has already shown that after increasing 100% with announcement of these purchase orders. Since many experts expect the OTC Hearing Aid Act to be finalized later this year, the INND stock forecast for 2022 appears to be brighter than before.