GTX Corp Reports Third Quarter 2019 Financial Results and Corporate Summary Update
LOS ANGELES, CALIFORNIA, Nov. 18, 2019 (GLOBE NEWSWIRE) — GTX Corp (OTCQB: GTXO) (“the Company”), a pioneer in the field of wearable GPS, people and asset tracking Location-Based Services (LBS) and Real-Time Location Systems (RTLS), today announced a summary for the Third Quarter ended September 30, 2019.
Third Quarter 2019 Financial Highlights:Revenues for the three months ended September 30, 2019 were approximately $340,000 compared to approximately $195,000 for the comparable period in the prior year for an increase of approximately $145,000, or 74%.Gross Profit Margin for the three months ended September 30, 2019 was 89% compared to 77% for the three months ended September 30, 2018. This increase in margin is primarily due to the increase in higher margin IP licensing, Professional Services and subscription revenue during these periods.Income from Operations for the three months ended September 30, 2019 was $73k as compared to ($227k) for the comparable period in the prior year.Total Revenue increased 74% over comparable 2018 periodIP Revenue increased 215% over comparable 2018 periodG&A decreased 33% over comparable 2018 periodDerivative and Amortization Expenses decreased 100% over comparable 2018 periodNo Dilutive FinancingNine Month Financial HighlightsOverall Revenue increased 116% over 2018 comparable periodIP Licensing revenue increased 1,852% from 2018G&A decreased 21% from 2018Gross Margin, increased from 73% to 89%Amortization Expenses decreased 95%Income from operations was $67,000 as compared to ($628,000) for the comparable previous period for a 111% decrease in lossesNo Dilutive FinancingThird Quarter 2019 Business Highlights and DevelopmentsOngoing execution of the sale and licensing of GPS assets and Intellectual Property to Inpixon ( NASDAQ: INPX)Expanded GPS SmartSole distribution across EuropeOverall Subscribers increased 11% over 2018 comparable periodInternational Subscribers increased 37% over 2018 comparable periodIncreased IP revenues by 215% – Signed 6 patent license agreements in Q3NFC pilot programsStarted development on next generation CAT M1Management commentary: Patrick Bertagna, GTX Corp CEO.Revenues as a whole in Q3 2019 increased by 74% in comparison to Q3 2018. In all the metrics we measure – revenues, profit margins and subscribers we saw increases, while our SG&A and net losses decreased. Increasing revenues and profit margins while lowering expenses and driving towards profitability has been our goal all year as we saw revenues approach $1.3 million in the first 9 months of 2019.The IP licensing part of our business gained momentum in the third quarter and were up 215% from the same period in 2018. During the first three quarters ending September 30, 2019 the Company and the Inventergy, LLC signed twelve license agreements, starting with four during the first quarter of 2019, two during the second quarter and six in the third quarter, these twelve non-exclusive license agreements have generated approximately $732,000 in top line, high margin income, a 1,852% increase over the comparable period in 2018. As we continue negotiations with other companies, we remain confident that we will sign more agreements this year.In addition to an increase in IP licensing, our B2B business, which represented approximately 33% of our total third quarter revenues had an 50% increase over the comparable period in 2018, our military business also had a slight increase over the same period in 2018, we saw an overall 11% increase in total subscribers with a 37% increase in international subscribers compared to the same period in 2018, however our B2C SmartSole product sales saw a slight decline of 8% over the same period in 2018. We did not allocate a lot of resources in B2C advertising or social media promotion this quarter which may have been a contributing factor.Coming off a strong second quarter, we took the opportunity to invest in our future, by ramping up our NFC development projects, whereby we are integrating our NFC tags with Blockchain technology and started developing a secured, scalable middleware layer that sits in-between our NFC hardware devices and third-party backend platforms. We are now working with several partners that provide various vertical specific Blockchain, IoT and AI backend platforms and need a secure and seamless flow of data from hardware to the cloud. With our partners we expect to begin pilots of our VeriTap middleware layer in the coming weeks and launch in early 2020. This middleware is industry agnostic and is designed to help drive NFC hardware business and other IoT device sales across numerous vertical and geographical markets.We also continued testing our Near Field Communication (NFC) Temperature Trackers, which provide real-time temperature sensing and data logging across the supply chain necessary for transportation compliance of perishables; food, drinks, pharmaceuticals and other temperature sensitive products that can be negatively affected by conditions in transit. In addition to temperature sensing we are looking into NFC tags that can authenticate products, addressing the multibillion dollar worldwide counterfeit market.We also started working on a next generation miniaturized GPS tracking device, utilizing a host of new technologies, including, CatM1, NB-IoT, and enhanced Wifi, and Bluetooth, for better accuracy, faster location requests and less power consumption. We are encouraged by early tests which indicate we may achieve over 1 week battery life in-between charges. This new hardware platform will be small enough to be embedded into our line of wearable technology and also offered as a licensed OEM hardware platform in order to increase non SmartSole hardware sales. We expect to have prototypes by end of year and go into certification and production in early 2020.During the quarter ending September 30, 2019 we also took the opportunity to work on our balance sheet, by paying down some long term debt and accounts payable. In addition, as part of an overall plan to lower expenses and driving profitability, we repatriated 36 million shares of management stock which was part of a three-year employee retention plan. All non-vested shares were returned to treasury and thereby reducing our outstanding share count and non-cash expenses by approximately $90,000 per quarter over the next eight quarters. The board is evaluating new less costly employee stock option plans (ESOP) and intends to select a new plan by the end of the year. Adding to our ongoing effort to enhance our balance sheet, the Company did not take on any new convertible debt making this the 4th quarter in a row of no new convertible debt.On June 27th 2019, the Company closed an IP licensing and asset sale transaction with Inpixon (NASDAQ: INPX). As part of the transaction we were paid in cash and stock, however the Inpixon stock has decreased in value since the close of the transaction, which contributed to a $518k non-cash adjustment this quarter which resulted in the Company not being able to recognize its second quarterly profit in a row. For further information please refer to our 10Q filings available online.In summary we expect these fundamental building blocks to position the Company for growth in 2020. As we have pointed out in previous summaries, management is focused on building high-margin, recurring revenues from service subscriptions, IP licensing, professional services and introducing to the market place new innovative products and solutions that produce a positive impact on society.GTX Corp is a For-Profit with Purpose Company which has an extensive patent portfolio, is a proud U.S. military contractor and has multiple wearable tracking products sold through its online store, Amazon and authorized resellers and distributors servicing customers across the globe.About GTX CorpGTX Corp (GTXO) is a pioneer in smart, mobile and wearable GPS tracking and recovery location based products, supported through a proprietary IoT enterprise monitoring platform. GTX offers a global end-to-end solution of hardware, software and connectivity. GTX Corp develops 2 way GPS tracking technologies which seamlessly integrate with consumer products and enterprise applications. GTX Corp utilizes the latest in miniaturized, low power consumption GPS, Cellular, RF, BLE and NFC technology enabling subscribers to track in real time the whereabouts of people or high value assets through a complete end to end – customizable transceiver module, wireless connectivity gateway, smart phone Apps, middleware, and IoT portal. Headquartered in Los Angeles, California, GTX is known for its award-winning patented GPS SmartSole® – Think Dr. Scholl’s meets LoJack, the world’s first invisible wearable technology tracking device created for those at risk of wandering due to Alzheimer’s, dementia, autism and traumatic brain injury. GTX Corp’s business model is built around technology innovation and holds over 85 patents with many issued patents in the area of GPS tracking. The company has international distributors servicing customers in over 35 countries and is a U.S. Military Government contractor. Other customers include public health agencies and municipalities, emergency and police authorities, private companies, public and private senior care homes, and consumers.GTX Corp is an equal opportunity employer with a history of employing a diverse workforce and U.S. veterans; makes many of its products in the USA, is a member of the United Nations Global Compact and Trust 2 Protect partnership. The Company doesn’t just make and sell the best GPS tracking products, they deliver innovative, miniaturized, low power consumption wearable tech that provides safety, security and peace of mind at the touch of a button. GTX puts the “Where” in Wearable Tech.Online: www.gtxcorp.com Track My Workforce | GTX Corp www.gpssmartsole.comSocial media – #withyou #smartsole #connectedandprotected #trackwhatyouloveGTX Blog http://gtxcorp.com/press/