Mr. Kyle Hall reports

INEO ANNOUNCES FISCAL FOURTH QUARTER AND ANNUAL 2023 FINANCIAL RESULTS

Ineo Tech Corp. has filed its annual audited consolidated financial statements and management's discussion and analysis on SEDAR+ for the company's fiscal year and fourth quarter ended June 30, 2023.

"We are satisfied with our fiscal 2023 annual results in which we reported a 21-per-cent increase in revenue," said Greg Watkin, chairman and founder of Ineo. "Two thousand twenty-three has been a monumental year for the company as we saw the most deployments and installations of the Ineo welcoming system in the company's history. Working alongside our major retail partners, I can proudly announce that Ineo has now successfully expanded its welcoming system network to 23 states across the United States, with plans for additional rollout deployments in 2024 and 2025 already in progress. We are in the planning process with our retail partners for rapid expansion of the Ineo media network across all their retail locations in the U.S."

Greg Watkin adds: "Furthermore, we worked extremely hard this year to extend our commercial agreements with our large national retail and regional liquor store network locations. In addition to increasing our contract lengths to five years and six years, we successfully gained exclusive in-store advertising rights as well as the right to assign ownership of our deployed hardware to a third party media partner. We expect these agreements will reduce our cash needs and expenditures and positions the company for a transformational year in 2024 as we begin to realize increased revenue generation and improved margins from the monetization of our network."

Fiscal 2023 financial highlights:

• Ineo generated $1,509,008 of revenue for the year ended June 30, 2023, representing an increase of 21 per cent, as compared with revenue of $1,245,095 for the year ended June 30, 2022. The increase in revenue is primarily attributable to greater on-line sales of loss prevention products.
• Revenue for Q4 2023 for the three months ending June 30, 2023, was $307,767, a decrease of 26 per cent compared with revenue of $413,869 in Q4 2022.
• Ineo generated gross profit for the year ended June 30, 2023, of $373,306, as compared with gross profit of $503,932 for the year ended June 30, 2022.
• Ineo achieved gross margin percentage of 24.7 per cent for the year ended June 30, 2023, compared with gross margin percentage of 40.5 per cent for the year ended June 30, 2022. The decrease in gross margin percentage was attributed to the increased sales of one-time welcoming system hardware manufacturing and deployment.
• Loss and comprehensive loss for the year ended June 30, 2023, totalled $3,331,491 or five cents per share, compared with a net loss of $3,292,699 or five cents per share for the year ended June 30, 2022.
• EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the year ended June 30, 2023, was $2,830,169, compared with EBITDA loss of $2,883,399 for the year ended June 30, 2022.
• As at June 30, 2023, the company had 76,143,709 shares issued and outstanding.

Events subsequent to June 30, 2023:

• On Sept. 19, 2023, Ineo signed updated commercial agreements with its large national retail and regional liquor store network locations. The updated contracts feature five-year and six-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, improved margins and lower cash requirements.
• On Sept. 27, 2023, Ineo introduced Ineo ORCA. ORCA stands for organized retail crime alerts. ORCA is Ineo's latest AI-driven (artificial intelligence) 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 (closed-circuit television) footage, captured during loss prevention events, enabling it to detect and recognize patterns associated with organized retail criminal activities.
• On Oct. 24, 2023, Ineo 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, Ineo will be selling and shipping a total of 59 systems, comprising both welcoming systems and welcoming GATEs, which will be installed in four jumbo retail locations. With approximately 15 systems installed per store, Ineo will be managing an immersive in-store retail media network. Ineo will receive revenue from the sale of the systems as well as continuing SaaS-based (software-as-a-service) revenues from the deployment of the installed Ineo welcoming systems.

Kyle Hall, chief executive officer of Ineo, commented: "We are excited with the significant progress Ineo has made with its rollout strategy in 2023. We were extremely aggressive in the expansion of our network this past year with our major retail partners in the United States and we are now also seeing successful results from our distribution partnership with Prosegur Security. We had been operating multiple pilot systems with Prosegur since last year and are beginning to see the results of those pilot installations come to fruition. Jumbo Cencosud is a key entry point into the South American market as Cencosud operates over 1,000 stores under various brand names. We recognize the outstanding growth potential of this partnership and look forward to working with Jumbo and Prosegur."

Outlook

Ineo is now actively deploying systems and ramping up its installation locations with contracted customers across North America 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 that 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 trialling the welcoming system to fully contracted customer rollouts;
• 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 rollouts with the goal of creating a critical mass of systems.

Advertising and 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, Nov. 2, 2023, at 9 a.m. PT (12 p.m. ET).

Webinar registration is available on-line.

Date:  Thursday, Nov. 2, 2023

Time:  9 a.m. PT (12 p.m. ET)

Dial-in:  778-907-2071 (Vancouver local) or 647-374-4685 (Toronto local)

Confirmation No.:  89935267592

Ineo would also like to announce the appointment of Helen Andaya as chief financial officer, effective immediately. Reporting directly to Mr. Hall, Ms. Andaya will have responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions. She will assume the CFO role from Bernadette Ryle, who is stepping down to pursue other opportunities. Ms. Andaya is a certified public accountant (CPA) in the Philippines and also holds an MBA degree. She has been with Ineo since January, 2023. Prior to Ineo, Ms. Andaya worked for PwC Philippines and also held various senior accounting positions within private sector businesses.

About Ineo Tech Corp.

Ineo, 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 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.

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