Disrupting the telehealth scene, InnerScope Hearing Technologies (OTC Pink: INND) offers a range of products, services, and programs for those suffering from hearing impairment and/or hearing-related issues. Marketing affordable and accessible direct-to-consumer hearing aids, INND stock caught the eyes of many investors after it was mentioned in a NASDAQ article in February. More recently, it has become a hot stock given President Biden’s Executive Order on July 14th calling on the U.S. Department of Health & Human Services (HHS) to issue its ruling within the next 120 days allowing hearing aids to be sold OTC.
INND Stock Catalysts
As is, INND is poised to take advantage of the Over-the-Counter Hearing Aid Act which is expected to become law in late 2021. This law will allow hearing aids to be sold in retail stores without requiring medical evaluation from a professional. Considering that the telehealth market is expected to reach $70.19 billion by 2026 and that INND has already begun preparing its “point-of-sale free self-check hearing screening kiosks”, the company appears to have a clear early mover advantage.
Through its multiple wholesale and retail partners as well as its online store, INND is “shifting hearing care out of the Clinics to online, in-store, and/or directly into peoples’ homes”. After securing a Co-op Marketing Partnership with Walmart back in 2018, INND has since capitalized on the franchise’s more than 5,000 stores and clubs nationwide. Interestingly, INND has also started offering subscription plans at affordable price points which will naturally draw in recurring customers and sales.
With plans to uplist to the OTCQB, INND is making notable efforts to improve its brand recognition and expand its operations. Announcing a comprehensive, six month hearing loss awareness campaign throughout lower Manhattan, INND has partnered with New to The Street TV to create 660 commercials and 156 digital billboards for the campaign. The company’s CEO, Matthew Morre, said it will “educate the public on the problem, and give direction on solutions for hearing impairments”. Similarly, INND has partnered with FSAstore.com, HSAstore.com, and WellDeservedHealth.com to market their products to consumers with pre-tax health spending accounts.
FinTwit royalty, @OnlyCrownKing, shared their confidence in INND stock saying that although it has diluted in the past it is a “force to be reckoned with” based on its partnerships and payment plans. This isn’t the only time @OnlyCrownKing has mentioned INND to their 50.9K followers who are well aware of @OnlyCrownKing’s great calls.
INND enjoyed a record high in April reaching $.0566 but sloped down until hitting a peak near $.0244 in June. Since then the stock has continued depreciating with a recognizable dip and recovery between August 9th and 18th during which it hit a low of $.0078. This continued through its earnings call on August 13th leaving the stock currently trading at $.0109.
INND’s support appears around .0085 and has a more immediate support at .0101. After appreciating the last few days, the stock has tested its resistance at .0128 but has a longer term resistance at .0141. The stock has seen relatively high levels of accumulation recently but the RSI is downtrending at 43.98. After spiking on Friday, the MACD has settled near equilibrium with very little space between the indicator and signal line.
Should you Buy?
INND’s latest quarterly report shows a revenue stream of $30,098 throughout the quarter, but the company is still operating at a net loss of $387,462. As a result, the company has taken loans from GS Capital which are repaid in convertible notes. In total, INND appears to have convertible notes worth $1,398,456 and has issued shares of common stock within the last quarter to redeem some of these notes.
Although INND stock has largely recovered from its most recent dip, the stock is at a low point offering a possible entry point for investors that believe this stock is undervalued. With the launch of its advertising campaign and one very important catalyst in the form of the OTC Hearing Aid Act coming up later this year, INND stock has the potential to return to June levels of $.0196 or higher.
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