Mr. Kyle Hall reports

Ineo ANNOUNCES FISCAL SECOND QUARTER 2024 FINANCIAL RESULTS

Ineo Tech Corp. has filed its interim consolidated quarterly financial statements and management's discussion and analysis on SEDAR+ for the company's fiscal second quarter ended Dec. 31, 2023.

Greg Watkin, chairman and founder of Ineo Tech, commented: "We had the highest quarterly revenue in the company's history and are looking forward to a great year in 2024. We are continuing to deploy welcoming systems with our large retail partners, and our direct sales pipeline is growing with several promising new opportunities where we have already installed pilot locations. Furthermore, our recently launched Ineo retail media division is making waves in the media industry and has laid the groundwork for increased revenue generation opportunities in the coming months. We expect Ineo retail media to capitalize on the company's updated retailer agreements whereby we have exclusive media rights on digital screens within these retail stores."

Fiscal second quarter 2024 financial highlights:

• Ineo Tech generated $519,619 of revenue for the three months ended Dec. 31, 2023, as compared with revenue of $386,425 for the three months ended Dec. 31, 2022. The increase in revenue was mainly due to the sale of welcoming systems to partner Prosegur for installation at a retailer in Colombia.
• Ineo Tech generated gross profit for the three months ended Dec. 31, 2023, of $188,523, as compared with gross profit of $181,210 for the quarter ended Dec. 31, 2022.
• Ineo Tech achieved gross margin percentage of 36.3 per cent for the three months ended Dec. 31, 2023, compared with gross margin percentage of 46.9 per cent for the quarter ended Dec. 31, 2022.
• Net loss for the three months ended Dec. 31, 2023, improved to $643,335 or one cent per share compared with net loss of $981,707 or one cent per share for the three months ended Dec. 31, 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the three months ended Dec. 31, 2023, was $411,058, compared with adjusted EBITDA loss of $856,281 for the three months ended Dec. 31, 2022.
• As at Dec. 31, 2023, the company had 76,143,709 shares issued and outstanding.

Fiscal second quarter 2024 business highlights:

• On Dec. 13, 2023, the company introduced Ineo retail media. Ineo retail media is the exclusive provider of in-store media systems for Ineo Tech's customers. This new operating division will provide Ineo Tech with the vehicle and focus to drive revenues from advertising and analytics through its growing media network.

Events subsequent to Dec. 31, 2023:

• On Jan. 12, 2024, Ineo Tech announced it would be proceeding with a non-brokered private placement of unsecured convertible debentures of the company in the aggregate principal amount of up to $700,000. Each debenture would be convertible into common shares in the capital of the company at a conversion price of 8.5 cents per share for the first year from the date of issuance and thereafter at an adjusted conversion price of 10 cents per share until the date which is three years from the date of issuance and bear interest at the rate of 12.0 per cent per annum for a period expiring on the maturity date.
• On Jan. 31, 2024, the company announced that further to its news release dated Jan. 12, 2024, it had closed the first tranche of its non-brokered private placement of convertible debentures for gross proceeds of $510,000.
• On Feb. 16, 2024, the company announced that further to its news releases dated Jan. 12, 2024, and Jan. 31, 2024, it had closed a second tranche of its non-brokered private placement of convertible debentures for gross proceeds of $60,000. Ineo Tech also announced it is no longer accepting investment in this offering.

Kyle Hall, chief executive officer of Ineo Tech, commented on the company's progress: "Two thousand twenty-four has started off well for the company with the close of a successful financing to enable the continued expansion of the Ineo media network. Additionally, the launch of our Ineo retail media division is going well. Ineo retail media's mission is to focus on the selling of advertising on the systems and screens deployed in the stores of our retail partners. This is a vital strategic initiative to allow Ineo to increase the company's revenue from the sale of advertising. We expect advertising revenue to grow substantially this year."

Webinar details

The company will hold a webinar to discuss its results and provide an outlook on the business on Thursday, March 7, 2024, at 10 a.m. PT (1 p.m. ET).

Please register for the webinar.

Date:  March 7, 2024

Time:  10 a.m. PT (1 p.m. ET)

The attached table highlights operational information for the three months ended Dec. 31, 2023, and 2022. It has been derived from the unaudited interim condensed consolidated financial statements and should be read in conjunction with these statements and related notes.

About Ineo Tech Corp.

Ineo Tech, through its wholly owned subsidiary, Ineo Solutions Inc., operates the Ineo media network, a digital advertising and analytics solution for retailers. Ineo Tech'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 Internet of Things and artificial intelligence 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 software-as-a-service-based solution to larger retail chains. Ineo Tech 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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