InnerScope Hearing
Technologies Inc. Announces LOI to Acquire Retail Hearing Aid
Company &
Large Cash Value
Settlement
The Company
continues its'
strategy to disrupt the
5-billion-dollar brick and mortar hearing
aid and delivery sales model in the United States through
acquisition and/or building new
hearing aid retail
locations
Roseville, CA., August 23, 2018 -- InvestorsHub NewsWire
-- InnerScope Hearing
Technologies Inc. (OTCQB:
INND) announced today that it has resolved its lawsuit with Helix Hearing Care
(California) Inc. ("Helix") by both parties dismissing all claims
against the other
party with
prejudice. Pursuant to the Settlement
Agreement, InnerScope will receive cash and other undisclosed
benefits.
The settlement will
allow the Company to
recapture
the deferred revenue that was reported on its balance
sheet
which
will be reflected
in its
3rd quarter financials.
Additionally, the
settlement terminates the Non-Compete covenant provisions for the Company and its Founder, CEO
and CFO individually.
InnerScope's CEO, Matthew Moore
states, "We are
pleased that we have reached this Settlement with
Helix.
The
Settlement
allows advancement of our strategy for substantial
growth to accelerate immediately to deliver our high-quality affordable hearing aid devices to
the hearing impaired through multiple
sales channels
without
any contractual
limitations."
Acquisition of Retail
Hearing Aid Centers and Expansion
Plans
With no contractual
restrictions, InnerScope Hearing Technologies
(the
"Company")
has entered into a Letter of Intent to acquire
100% of
LLC Value Hearing dba Value Hearing Aid
Centers ("CAHV"). VHACs is a related party to the
Company and currently operates
2 Northern California
hearing aid
retail
locations. Once completed, the
acquisition
allows the Company to
execute its plans to disrupt the current
5-billion-dollar
in the
U.S.,modelbrick and mortar hearing aid
sales by
offering factory direct pricing to consumers of its FDA-Registered hearing aid
devices.
In addition to acquiring VHAC's two locations, InnerScope
has begun to initiate its expansion plan for 4th quarter 2018. The build out plan
consists of 3 new VHAC hearing aid retail
locations in the
greater
Sacramento, California
area,
and will be staffed full-time with hearing healthcare professionals
("HCPs"). These 5 total stores with a combined
marketing strategy could yield annual
revenues
of over
$3,000,000 per year.
Currently, the 5-billion-dollar
retail hearing aid
industry have an estimated 17,000+ HCPs and 15,000 brick and mortar
audiological clinics and retail hearing aid locations
across the U.S.
Which nearly most of these
locations operate as a traditional professional brick and mortar
hearing aid
sales
model.
Under
the traditional brick
and mortar hearing aid sales model, the HCPs conducts hearing
tests
to assess each person's hearing deficiencies,
selects appropriate
hearing aids based on hearing and lifestyle
needs,
provides counsel and realistic expectations, programs
and adjusts hearing aids
based on hearing and
lifestyle needs, provides warranty service and
regular maintenance service of hearing aids ("Bundle
Services"). The services that the HCPs provide are typically
bundled
within the price of the
hearing aids. The traditional bundling of
services drives
the cost of a pair of hearing aids for the consumer to an
average
of over $4,600 according to the 2015
President's Council of Advisors on Science and
Technology
(PCAST)
This current brick and mortar hearing aid and
delivery sales model is ultimately controlled by six
major hearing aid manufactures in the world (soon to be
five). This small number of hearing aid manufactures
with virtually no
competition or competitive market pressure for
reducing their margins
and especially, since over 95% of all the hearing aid
devices sold by
the HCPs are one
these six global hearing aid manufactures, the consumer has no choice but to
pay the high cost under this current traditional sales and delivery
model.
InnerScope has developed an
alternative to the brick and mortar delivery model for consumers.
By incorporating its Direct-To-Consumer hearing aid sales model
into the HCPs traditional brick and mortar sales model, creating a
new hybrid model. This new hybrid hearing aid retail sales model
will be VHAC's Unique Selling Proposition ("USP"), while not
sacrificing HCP's Bundled Services for the consumer. Consumers will
have the ability to either choose from InnerScope's FDA-Registered
hearing aids at more affordable factory direct pricing for the same
technology and features compared to current hearing aids
from the six global manufactures, or the consumer could
purchase hearing
aids from one of
the six global hearing aid manufactures at everyday value prices
from Value Hearing Aid Center.
"We are excited to start our brick
and mortar expansion growth plan with the acquisition and 3 new
locations," said Matthew Moore, CEO of InnerScope. "This is
notheing new for InnerScope management. For over 30 years in
Northern California, management, has built, acquired, operated and
sold a successful retail hearing aid chain of 40 locations.
Therefore, it only made sense to start InnerScope brick and mortar
expansion growth plan within the market in which we have proven
success, generating revenues of competive advantage by capturing
quick market share, but also by delivering on the USP of VHAC's
will create a competive edge against all other competitors in the
retail hearing aid space. Additionally, its branding for the
InnerScope brand aids." Mr. Moore concluded.
"Branding for the InnerScope brand of
hearing aids." Mr. Moore concluded. increase its retail hearing aid locations will
also brick and
mortar chain
of VHACs, will
create a competitive edge against all other competitors in the
retail hearing aid space. Additionally, InnerScope's strategy of
having a This
deployment will not only give InnerScope a competitive advantage by
capturing quick market share, but also by delivering on the USP
of new
locations," said Matthew Moore, CEO of InnerScope. "This is nothing
new for InnerScope management. For over 30 years in Northern
California, management, has built, acquired, operated and sold a
successful retail hearing aid chain of 40 locations. Therefore, it
only made sense to start InnerScope's brick and mortar expansion
growth plan within the market in which we have proven success,
generating revenues of eight figures annually before selling in
2016. We are
excited to start our brick and mortar expansion growth plan with
this acquisition and 3.
About InnerScope Hearing
Technologies (INND):
InnerScope Hearing Technologies
(INND) is a technology driven company with highly scalable B2B and
B2C solutions. The Company plans on offering a B2B SaaS based
Patient Management System (PMS) software program, designed to improve operations
and communication with patients. INND also offers a Buying Group
experience for audiology practice, enabling owners to lower product
costs and increase their margins. INND will also compete in the DTC
(Direct-to-Consumer) markets with its own line of "Hearable", and
"Wearable" Direct-to-Consumer Hearing Aids
and Personal
Sound Amplifier Products (PSAPs) and revolutionary APPs on the iOS
and Android markets.
INND has plans on opening,
operating and expanding a chain of audiological and retail hearing
device clinics.
INND's seasoned team of professionals, with collectively over 200+
years of experience in the hearing aid industry, including
successful operations in hearing aid manufacturing and retail store
management. Our team has the knowledge, relationships, and the
experience to quickly deploy new products and software to serve
approximately 1.2 billion people around the globe that are
suffering with 25 db or greater hearing loss.
For more information,
please visit: www.innd.com
About Value
Hearing LLC.
The Value Hearing LLC dba Value
Hearing Aid Centers are located off the highway 80 freeway
corridor, between San Francisco and Sacramento in Fairfield and
Vacaville California. The Fairfield location has been operating as
retail hearing aid center for 5 years and the Vacaville for 3
years. For more
information, please visit: www.valuehearingaid.com
Safe
Harbor
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.
Contact:
InnerScope Hearing
Technologies,
Inc.
Matthew
Moore
Matthew@innd.com
916-218-4100
www.innd.com
www.valuehearingaid.com
www.innd.com
President's Council of Advisors on
Science and Technology (PCAST)