Today we are talking about a popular penny stock, listed for 1 cent, InnerScope Hearing Technologies, OTC ticker symbol INND Yes, InnerScope’s stock is up 12,100% from a price of 0.0001 on August 10th, 2020 to the 0.0128 price on August 6th. I’ll share the details today, whether INND has likely odds of being a big winner over the long-term.
OTC stocks are highly volatile and risky, and you could potentially lose your money. So today we’re going to dive into the details of INND.
I did spend hours poring through articles and InnerScope’s financials, to aid in a decision whether it made sense to buy shares of this stock. Especially, to hold for the long-term, and that potential big run-up in price.
In the past I worked for years with Fortune 500 CFOs and financial consulting teams, to help companies determine where they were making money. Now I use this expertise to dig into HCMC’s details.
But this is not financial advice, and for entertainment only.
Hi investing friends, this is Lynn, and welcome back!
So Let’s go and review INND!
InnerScope Hearing Technologies is headquartered in Roseville, California. They develop and market direct-to-consumer innovative hearing solutions and related hearing healthcare products, including hearing aid & ear care products, and hearing treatment therapies. Innerscope’s marketing approach, includes a distribution network of wholesale and retail partners, giving them the ability to reach the estimated 70 million people in North America that currently need hearing help.
InnerScope has developed a proprietary line of doctor-designed Hearing & Tinnitus Dietary Supplements to help people with hearing problems and protect their hearing from future hearing issues. There are currently three types of formulas to choose from, including Ear-Ring Relief for the 60 million Americans who suffer from Tinnitus, HearingVite + Memory Boost, for people with hearing loss and cognitive issues, and HearingVite + Multivitamin, for maintaining proper hearing health and levels of nutrients.
Innerscope services include offering in-store hearing kiosks, and hearing care professional services. They even offer their own app.
InnerScope is the creator of the HearIQ app, which offers free self-check hearing tests and provides a user control function for InnerScope’s line of Bluetooth app-controlled self-adjusting rechargeable hearing devices. InnerScope developed the Free Hearing Test part of the HearIQ App to help with the early detection of hearing loss for the 1.5 billion people worldwide who have untreated hearing loss or have some form of hearing issues that may be unknown or undetected and do not have access to a computer for InnerScope’s online hearing screening test.
The company also offers the HearIQ app which is available through the Apple App Store, or the Google Play Store.
Yahoo Finance describes InnerScope as also providing a proprietary CDB oil for treating tinnitus. InnerScope owns and operates 11 audiological and retail hearing device clinics; and offers business to business SaaS based patient management system software program.
Obviously, InnerScope has a business focus that we admire!
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In looking at InnerScope’s management, this is a family run business! From Mathew Moore: President and CEO, Kim Moore: the CFO, and Mark Moore who is the Chairman and co-founder. They are assisted by InnerScope’s Medical Director, BENJAMIN F. ERNHARDT, MD, an EnT currently practicing in Saint Joseph, Michigan.
Now let’s talk about InnerScope’s all-important financials. One of the biggest risks of many OTC stocks, is their lack of financial stability. So, I took a look at InnerScope’s annual financial statements. If you are invested in INND or considering an investment, you’ll find these details to be very valuable.
This Yahoo Finance profile shows that INND has a market cap of 44 Million – which is extremely small even for an OTC stock. Their Beta is 39 which means that over a 5-month average they have moved 39 times more than the average stock market. The trading volume for this stock is huge with an average volume of 56 million shares per day. There earnings per share or EPS is a negative .0480 which means that the company is losing money!
Let’s look at some history, to see when this negative EPS trend started. You see here a portion of InnerScope’s income statement for 2015 to 2018. They did have revenues and gross profits for these years, but their gross profit was sliding downward from a high of $1.1 Million in 2016 to a low of $324 thousand in 2018.
Here you can see InnerScope’s Cash flow statement for 2015 through 2018. As I’ve mentioned before, the most important are the Free Cash flow numbers for determining the health of a company. Or its capacity to raise cash from its own operations. You can see here a negative $592 thousand in 2017 to an even lower negative $1.3 Million in 2018. Obviously, this is a major concern as to the company’s viability.
On July 29th 2021 an article was released stating that InnerScope had released updated financial statements, and that they were now pink current.
Here you can see the 2019- and 2020-income statements for InnerScope Their revenues were further reduced to $132,431, and their Gross profit to $113,371 in 2020. They had an overall Net Income Loss of $1.17 Million in 2020.
InnerScope’s cash flows from their operating activities for 2019 were negative and a negative $1.17 Million for 2020.
You can see here that InnerScope has been fairly regular at releasing updated articles and gaining news coverage, which can often provide short period positive bumps in a stock price.
In looking at InnerScope’s stock chart. INND’s stock has been around since mid-2017, when it had a high in the $1.50 range and since then has been sliding down.
Currently per this Etrade one month, 60-minute chart, the stock has been consolidating between the .012 and .015 cents range.
This OTC short report shows that InnerScope is on average, heavily shorted. On August 6th their short percentage was 66%, with a short percent of 34% on August 6th. Clearly some short sellers must be making money from this stock slide!
My take on InnerScope although I greatly admire their product and services, that I would be very cautious regarding investing in this stock for the long-term, until they can release financials demonstrating the company’s stability and turn-around to profitability. At least a positive progress in their Revenues, gross profit and cash raised from operations. In the meantime, this stock continues to be a great potential for shorter term day or swing trades.
I always love hearing from you, so please let me know in the comments below, what your thoughts are about InnerScope, or if there is anything I missed. I’d also love to hear about any other stocks that you are excited about right now. Go here to discover more hidden gems in our Penny Stock Video playlist.