INND INNERSCOPE HEARING TECHNOLOGIES, INC.

Overview and Growth

In fiscal 2020, INNERSCOPE HEARING TECHNOLOGIES, INC. recorded $166.11K of revenue, net loss of $4.95M, and an operating cash outflow of $523.53K. The $166.11K revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $847.11K in fiscal 2019, revenue decreased 80.4%, a top-line contraction that reduced operating scale. The company employed $1.68M of total assets, the balance-sheet base supporting its current operating and cash-flow results. Asset turnover was 0.1x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $97.34K, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 58.6% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was an operating loss of $1.23M, reflecting costs that exceeded gross profit. An operating margin of -740.0% reflected costs exceeding revenue-level gross profit by 740.0% of sales. The company ended the period with a net loss of $4.95M, extending the operating result through all remaining items. EBITDA was negative $1.11M, showing a deficit before interest, taxes, depreciation, and amortization. The net loss equaled 294.3% of period-end assets, showing the deficit relative to the asset base. Compared with a $7.92M net loss in fiscal 2019, the current loss improved to $4.95M.

Liquidity and Capital Structure

At period end, the $1.68M asset base was financed through $12.04M of liabilities and -$10.35M of equity. Equity was negative at -$10.35M, meaning liabilities exceeded the residual book value available to shareholders and weakening balance-sheet resilience. Current assets were $23.45K against $10.42M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 0.0x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Cash and equivalents totaled $3.35K, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 0.0% of current liabilities, showing how much near-term coverage came from cash alone. Equity equaled -615.0% of assets, showing the shareholder-capital layer within the company’s balance sheet. Liabilities represented 715.0% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 0.2%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $3.18M in fiscal 2019, the current asset base moved 47.0% and finished lower. Cash and equivalents were 24.9% lower than fiscal 2019 cash of $4.46K, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities used $523.53K of cash, resulting in an operating cash outflow for the year. The company spent $7.27K on capital expenditures while operations also absorbed cash, so both ongoing activity and investment drew on liquidity during the period. Negative free cash flow was $530.81K, leaving a cash deficit after capital spending and reducing financial flexibility. Free-cash-flow margin was -319.5%, reflecting a cash deficit equal to 319.5% of revenue after capital spending. Relative to total assets, the post-investment cash deficit measured 31.5%. The operating cash outflow narrowed to $523.53K from $2.93M in fiscal 2019.

Based on the annual report for the fiscal year ending Dec 31, 2020. Analysis generated Oct 21, 2026.