InnerScope Hearing Technologies, Inc. (OTCQB: INND) is engaged in the hearing aid industry with a series of B2B and B2C operations. Shares surged 57.07% on Tuesday, January 15, 2019. Over the past month, InnerScope has seen an average daily volume of 541,889 shares. However, on Tuesday, 4,210,462 shares traded hands, equating to $126,300 in dollar volume.
Shares surged on Tuesday after InnerScope announced the grand opening of its newest audiological hearing aid retail clinic in Sacramento, California. InnerScope also announced it has signed two letters of intent for long-term leases in two more locations: Elk Grove and Fremont, California. These openings are part of the “previously announced expansion rollout plan by opening at least 22 new audiological hearing aid retail clinics throughout Northern California in 2019.” A critical part of InnerScope’s rollout plan is choosing areas “based on key location demographic revenue drivers, such as age, income, and high-density populated areas.” According to InnerScope’s report, “$623,895,300 is the total market yield in potential hearing aid revenue from just these three locations.” Matthew Moore, CEO of InnerScope, commented, “Once we complete our Northern California expansion the potential market yield will be in the billions of dollars in hearing aid revenue.” Here is the full press release detailing InnerScope’s Northern California expansion plan:
InnerScope Hearing Technologies, Inc. Press Release:
ROSEVILLE, Calif., Jan. 15, 2019 (GLOBE NEWSWIRE) — via OTC PR WIRE — InnerScope Hearing Technologies Inc. (OTCQB: INND) announced the latest “Grand Opening” of its newest audiological hearing aid retail clinic under its dba brand “Value Audiology & Hearing Aid Center” (“Retail Clinic”) located in Sacramento, California. In addition, InnerScope has signed Letters of Intent (“LOIs”) for long-term leases on two more Retail Clinics located in Elk Grove and Fremont California to be slated to open in early February 2019. InnerScope is continuing to deliver and execute on its previously announced expansion rollout plan by opening at least 22 new audiological hearing aid retail clinics throughout Northern California in 2019 (“Rollout Plan”).
InnerScope’s Rollout Plan of locating each Retail Clinic is based on key location demographic revenue drivers, such as, age, income, and high density populated areas. According to surveys conducted by www.hearingtracker.com, approximately 35% of the U.S. population age 65 or older has hearing loss that may benefit wearing hearing aids but only 15% of those people currently wear hearing aids (“Conversion Rate”). Also, according to www.hearingtracker.com the industry average price sold is $2,372 (“Average Price”) per unit (a unit equals one hearing aid) and equal to 1.84 number of units purchased per person (“Binaural Rate”) meaning, 84% of the time a person purchases two hearing aids (units).
InnerScope’s Key Retail Clinic Location & Demographic Revenue Drivers
(*Per U.S. Census Data: average of 2.58 people per household)
InnerScope’s Sacramento Retail Clinic, located in the Country Club/Arden-Arcade Area:
(One of the highest concentration of people over the age of 65 in Northern California)
89,425 age 65+ households
230,716* people over the age 65
80,750 people with hearing loss (35% of the U.S population)
148,580 total potential units sold Binaural Rate
$352,431,760 total potential revenue based on Average Price
InnerScope’s upcoming Elk Grove Retail Clinic located South of Sacramento:
32,554 age 65+ households
83,989* people over the age 65
29,396 people with hearing loss (35% of the U.S population)
54,070 total potential units sold Binaural Rate
$128,254,040 total potential revenue based on Average Price
InnerScope’s upcoming Fremont Retail Clinic located Southeast of San Francisco Bay Area, fourth most populated city in the San Francisco Bay Area:
36,338 age 65+ households
93,752* people over the age 65
32,813 people with hearing loss (35% of the U.S population)
60,375 total potential units sold Binaural Rate
$143,209,500 total potential revenue based on Average Price
$623,895,300 is the total market yield in potential hearing aid revenue from just these three locations. InnerScope has the ability to not only penetrate the current market share in these markets but will also continue to grow the market by increasing the current Conversation Rate using its Manufacturers Direct Pricing Model as its Unique Selling Proposition (“USP”).
“We believe with our High-Quality Patented Hearing Aid Technology combined with our USP and delivery model, InnerScope can take a commanding lead in market share of this 5+ billion-dollar industry,” said Matthew Moore, CEO of InnerScope Hearing Technologies.
“Once we complete our Northern California expansion the potential market yield will be in the billions of dollars in hearing aid revenue. This is not even including the repurchasing cycle for new hearing aids every three to five years on the average and coupled with over 10,000 people everyday in the U.S. turning 65 years old, the potential market yield is really almost unlimited. InnerScope’s business plan and expansion Retail Clinic model is very scalable, there is nothing holding InnerScope back to continue to expand in all major markets across the United States,” Mr. Moore concluded.
About InnerScope Hearing Technologies (“INND”)
InnerScope Hearing Technologies (INND) is a rapidly expanding consolidator of the hearing aid industry. Management is applying decades of profitable industry experience and technology to an antiquated and disjointed industry, unlocking scale and efficiency, which will serve all of InnerScope’s stakeholders. Its direct-to-consumer model is revolutionizing the industry with its Walmart.com relationship representing a paramount shift in the consumption of hearing aids by the hearing impaired.
In addition, InnerScope plans to continue to open, acquire, and operate a physical chain of audiological and retail hearing device clinics. InnerScope’s mission is to serve approximately 1.2 billion people around the globe that are suffering with 25 db or greater hearing loss across the entire hearing impaired vertical from R&D and manufacturing through direct consumer sales and services. For more information, please visit: www.innd.com
This presentation contains forward-looking statements, which relate to future events or InnerScope Hearing Technologies future performance or financial condition. Any statements that are not statements of historical fact (including statements containing the words “believes,” “should,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as result of a number of factors, including those described from time to time in InnerScope Hearing Technologies filings with the Securities and Exchange Commission. InnerScope Hearing Technologies undertakes no duty to update any forward-looking statements made herein.
Article By: Andrew Rego