31 January 2020 – Perth, Australia

Nuheara Limited (ASX: NUH) (“Company” or “Nuheara“), is pleased to provide its Quarterly Report for the quarter ended 31 December 2019.

During the quarter, Nuheara continued to focus on the development of multiple sales channels, with significant progress achieved across Direct to Consumer (DTC) and third-party channels.

Cash receipts for the quarter (net of returns) were $910k, around 101% higher than the September 2019 quarter ($452k) and 180% higher than the June 2019 quarter ($325k). Contributing to this was a strong marketing effort by the company to monetise inventory of existing products ahead of the release in 2020 of Nuheara’s third generation product – IQbuds2 MAX. The return on marketing spend has been strong with the December Quarter also benefiting from successful seasonal sales events including Back Friday, Cyber Monday and Boxing day promotions.

The Company maintained a strong cash balance of $3.54M at 31 December 2019, which has since been supplemented by a $2.5M convertible note funding facility negotiated after the end of the quarter (refer announcement dated 24 January 2020). The additional funding will support the Company in funding the mass production of the recently launched IQbuds2 MAX – Nuheara’s third generation product.

Increasing market awareness has been critical in driving Nuheara’s sales success in all channels. Driving deeper Nuheara product awareness globally will be the key to continued sales success. With new products to be released in 2020, we believe we now have a solid platform for continued growth in both DTC and traditional retail.

Nuheara has moved beyond its start-up phase and created global inroads with significant retail partnerships and strong growth with its direct-to-consumer strategy.


It is pleasing that the Company has achieved this record quarterly growth with Nuheara’s second generation product, IQbuds BOOST, which is still proving to be a market superior technology platform. This provides validation of the Company’s leading-edge technology and products but more importantly, validates the Nuheara DTC sales model’s ability to reach and transact with global customers. Other significant DTC statistics for the quarter, over the same period last year include:

  • DTC transactions up 193%
  • New website visitors up 150%

Furthermore, these results support scalability in our DTC model and, in turn, confidence that further sales and marketing investment will drive the Company’s aspiration in achieving mass sales.

The majority of our new customers have never previously purchased a hearing assistance device. So, with every new Nuheara product sale made, we continue to shape the smart hearing category as an alternative to expensive legacy hearing solutions. Our products are proven to be world leading and clearly fulfilling an unmet need. We are showing we can sell our products effectively to our customers through online channels.


Following a significant uptake in DTC sales, Nuheara is delighted to bring a globally unique hearing retail experience to a pharmacy giant such as Walgreens – one of USA’s leading pharmacy chains. Nuheara’s smart hearing products, IQbuds BOOST  and IQstream TV  are  now available  online at www.walgreeens.com. Nuheara’s products are the only hearing related devices currently offered by Walgreens in the US – either online or in store.

In preparation for this launch, Nuheara and Walgreens have worked closely to integrate their respective online systems and provide a discrete and convenient method for customers to acquire affordable and accessible assistive hearing solutions. The result is a seamless Nuheara DTC sales experience directly from the Walgreens website.

Powered by Nuheara marketing assets and Nuheara’s logistical backend, Walgreens’ customers are now able to purchase Nuheara products directly from the Walgreens website with delivery to their own home, or for pick up at their nearest Walgreens store. Walgreens has 9,277 stores across all 50 US states.

Walgreens has more than 90 million active subscriber members, which provides significant opportunity for Nuheara to continue to broaden its US market penetration and brand awareness.

Launched the week commencing 16 December 2019, the first Walgreens email campaign featuring Nuheara products targeted more than 10 million of their members.

Walgreens interacts with approximately 8 million customers per day across its stores and online. With their front-end branding and customer reach, coupled with Nuheara’s innovative products and back-end DTC hearing retail experience, it offers significant retail sales potential for both companies.


Since the last quarter, Nuheara welcomed the following board appointments to build upon the Company’s strong foundations and drive the Company’s global strategy and capability:

David Buckingham

Effective from 1 November 2019, Mr David Buckingham was appointed as a Non-executive Director to the Nuheara board. Mr Buckingham’s career spans extensively across technology, growth, mergers and acquisitions and disrupting entrenched industries by focusing on service and the customer experience.

Most recently, Mr Buckingham held both CEO and CFO roles with ASX200 listed companies in Navitas and prior to that iiNet.

Mr Buckingham’s proven record in growing disruptive technological companies will add value to Nuheara going forward.

The Hon. Cheryl Edwardes AM

Effective from 1 January 2020, Nuheara welcomed The Hon. Cheryl Edwardes AM as a Non-executive Director and Chairperson to the Nuheara board. Her appointment compliments what is now a majority independent board.

Mrs Edwardes has a strong legal and governance background with an extensive career spanning across government and business. She is a former Attorney General for Western Australia, a Board member of the Foreign Investment Review Board (FIRB), on the Board of the West Australian Football Commission, and is a non-executive director on a number of ASX-listed boards, including some as Chairperson.

Mrs Edwardes’ established record in understanding and advising companies during seminal growth periods, are significant experiences that will be invaluable to Nuheara and we are looking forward to working together as a heavy-hitting team during the most critical stage our growth journey.

With Mrs Edwardes’ appointment as Non-Executive Chairperson, Nuheara CEO, Justin Miller, will remain on the board and revert from Executive Chairperson to Managing Director. Mr Miller’s remuneration remains unchanged.


In November, the Company announced the receipt of a Research and Development Tax Incentive cash rebate from the Australian Tax Office of $1.67M. The R&D Tax Incentive provides a tax cash rebate to support Australian companies undertaking research and development. The rebate is representative of the Company’s commitment to provide research leadership in the rapidly changing landscape of global hearing healthcare.


Nuheara’s portfolio of mining assets consists of net smelter royalties located in Northern Peru (El Molino Gold Project and part of the El Galeno Copper Gold Project, currently owned under joint venture by China Minmetals Corporation and Jiangxi Copper) and in Western Australia (Mt Ida South/Quinns gold projects, currently owned by Alt Resources Ltd). The Western Australian royalty is under contract for sale by way of a Binding Preliminary Sales and Purchase Agreement with SilverStream SEZC, as announced on 24 January 2020.

This announcement has been approved for release by Nuheara’s Managing Director Mr Justin Miller.

Click the icon below to download the full Quarterly Report:

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