HearingAssist Secures $2.75 Million From Star Funding

Matthew Moore

HearingAssist, a Virginia Beach, Va.-based subsidiary of InnerScope Hearing Technologies Inc. (OTC: INND), has secured $2.75 million from Star Funding via a receivable factoring agreement.

The two-year deal will help the company meet funding requirements to market its affordable direct-to-consumer hearing aids and other hearing-related products, the Roseville, Calif.-based InnerScope said.

Launched in 2008, HearingAssist has sold over 500,000 hearing aids to nearly 400,000 customers via direct-to-consumer or through retail partners such as Walmart and Amazon.

Last year, InnerScope acquired HearingAssist and another hearing-aid maker, iHear. The company says the two acquisitions brought it access to over 40 patents, and an FDA-registered manufacturing and R&D facility.

InnerScope also expects a boost in its business prospects from the Over-the-Counter Hearing Aid Act, which allows some hearing aids for “perceived mild to moderate hearing impairment” to be sold without prescriptions.The act’s implementation will raise HearingAssist annual revenues to over $150 million by 2024, InnerScope said.

Even though the act was passed in 2017, authorities have yet to stipulate specifications for devices that can be sold over the counter. InnerScope said it expects the specifications to be released in the next 90 days.

“We have been executing our business plan…and building our distribution network over the last few years,knowing the Over-the-Counter Hearing Aid Act, once enacted, will propel and accelerate the demand for our affordable direct-to-consumer hearing aids,”CEO Matthew Moore said.

The partnership with Star Funding will provide “our fast-growing company with the ability to help meet the strong market demand now and in the post-OTC Hearing Aid Law for all of our hearing products without diluting our loyal stockholders,” he added.