GTX reports a profitable Third Quarter
LOS ANGELES CALIFORNIA, Nov. 17, 2020 (GLOBE NEWSWIRE) -- GTX Corp ( GTXO) (“the Company”), a pioneer in the fields of: health & safety, wearable GPS human and asset tracking systems and personal protective medical equipment and supplies, today announced financial results for the Third Quarter ended September 30, 2020 and provided the following corporate summary:
Third Quarter Financial Highlights
- Showed Net Profit.
- Overall Revenue increased 7% over 2019 comparable period.
- Product Sales increased 54% over 2019 comparable period.
- Cash on Hand increased 198% over 2019 comparable period.
- Net Loss decreased 101% from 2019 comparable period.
- Current Debt & Liabilities reduced by $595K over 2019 comparable period.
- Did not take on any new debt.
Nine Month Financial Highlights
- GTX showed a net profit for Q1, Q2 and Q3 of 2020.
- Product Sales increased 151% over 2019 comparable period.
- Total Operating Expenses decreased 24% from 2019:
- Wages & Benefits decreased 7% over 2019 comparable period.
- Professional Fees decreased 48% from 2019 comparable period.
- G&A decreased 30% from 2019 comparable period.
- Loss from Operations decreased 631% from 2019 comparable period.
- Other Income/(Expense) decreased 177% from 2019 comparable period
- Net Loss decreased 108% from 2019 comparable period.
Third Quarter 2020 Business Highlights and Developments
- Broadened product offerings in the medical health and safety sectors.
- Strong product sales, despite COVID-19.
- Development progress on 4G SmartSole modules.
- Issued a new patent.
- Started a new NFC contactless supply chain pilot.
- Expanded our “Made in America” product lines.
Management commentary: Patrick Bertagna, GTX Corp CEO.
In these unprecedented times we want to first and foremost extend our appreciation and gratitude to everyone that contributed to our third quarter of profitability in 2020. Your health, safety and prosperity are paramount to us, so please stay safe and positive, and together we will get through this pandemic stronger and better. We are GTX and we are With You!
For the third quarter 2020, we saw a 7% increase in revenues and showed a net profit of slightly over $33k. By expanding our Health & Safety business we maintained our cash flow, broadened the visibility of our brand in the market, garnered a lot of new customers, and supported the national effort to keep people safe by providing high quality, FDA approved and many “Made in the U.S.A.” medical protective supplies. This expanded visibility in the wearable technology GPS tracking space is paying off as we are starting to see cross selling across all our product lines. Additionally, we have seen a noticeable increase in inquiries from our distributors for wearable technology, monitoring, and tracking solutions, which is the cornerstone of our business.
Even though we are still being impacted by COVID-19 (“COVID”) and experiencing some temporary setbacks with product development, IP licensing and subscriptions, we expect these setbacks to subside as the economy and business operations start to return to normal.
We are seeing a lot of demand for our flagship GPS SmartSole product and began testing our new 4G prototypes during this quarter. We found some issues with our first design, which were quickly resolved and now we have a second version of prototypes in production, which we expect to start testing in the coming weeks. We are also seeing some increase in activity in our IP licensing as the economy reopens. Subscriptions are still not back to pre COVID, however we expect those to start ramping up quickly as soon as we launch our new 4G SmartSoles.
During the third quarter, we finalized hardware development of our next generation miniaturized GPS tracking device, which will utilize a host of new technologies, including CatM1, NB-IoT, Assisted GPS for better accuracy, faster location requests and less power consumption. This new hardware platform will be small enough to be embedded into our line of wearable technology and offered as a licensed hardware platform as well. The demand for our GPS SmartSoles is the highest it has been in over two years, so we are very focused and committed to getting our new product launched as quickly as possible.
During the third quarter of 2020, GTX was issued a new patent by the United States Patent and Trademark Office (USPTO), U.S Patent No. 10,743,615 entitled “System and Method for Embedding A Tracking Device in a Footwear Insole.” This is GTX’s third patent related to embedding Real-Time Location Systems (RTLS) GPS wearable tracking technology into footwear. This patent covers different aspects of the GPS SmartSole product and we expect to receive more patents covering other aspects on related applications in the future as we continue to expand our IP portfolio in the wearable technology space, especially as the global wearable medical device market continues to grow and expecting to reach $9.4 billion by 2022. This third patent helps solidify our portfolio with respect to wearable tracking and monitoring technologies embedded in footwear.
On the IP licensing front, during the third quarter 2020, we did not sign any new IP licensing agreements. We attribute this predominately to COVID-19, as many companies, legal teams, and court houses have not been operating at full capacity. We expect this to be a COVID related setback and for these revenues to slowly come back as the economy begins to fully reopen.
Even with overall COVID setbacks we still managed to show net profits for all three quarters of 2020, increase our product sales by 151% comparable to same period last year, maintain a close to 50% profit margin, reduce our expenses by 24% (due to COVID) and have over $100k in paid-for inventory at the end of the quarter. Except for a government assisted very low interest SBA loan, which we have 30 years to pay off, we did not take on any new debt and continued to reduce our current liabilities, payables, and debt by $595K, while increasing our cash on hand and inventory.
As we enter our 8th month of unprecedented times, we are cautiously optimistic, but the situation remains fluid as there is a growing concern for this second wave. One thing is for certain, there is a big desire for innovation and new solutions in the wearable technology healthcare industry post COVID-19 era, along with continued demand for PPE while the pandemic is still not fully under control. GTX has been at the forefront of many health and safety oriented innovative technologies, we pivoted early into the PPE business and built an entire new business unit under extremely challenging conditions.
GTX Corp’s updated, full-line of PPE can be found on its dedicated website www.gtxmask.com (use promocode ‘open4biz’ and get a discount on your first order) We also just received our first shipment of Antibody tests and plan to announce distribution details shortly.
For now, we hope all our stakeholders are safe and healthy and we will keep updating everyone as best we can through our weekly podcast, press releases and newsletters. Stay tuned we will be announcing shortly
Most widely known for its patented GPS SmartSole and Smartphone GPS Tracking App, GTX also owns and licenses a large portfolio of patents in the GPS and wearable technology space, is a U.S. military contractor, has several other consumer products available on its online store and Amazon and most recently soft launched its NFC Veritap solution. To find out more how you can buy or become an authorized reseller contact [email protected] business development.
About GTX Corp GTX Corp ( GTXO) is a pioneer in smart, mobile and wearable GPS tracking and recovery location-based solutions, supported through a proprietary IoT enterprise monitoring platform and intellectual property portfolio. GTX offers a global end-to-end solution of hardware, software and connectivity and develops two-way GPS tracking technologies, which seamlessly integrate with consumer products and enterprise applications. GTX utilizes the latest in miniaturized, low power consumption GPS, Cellular, RF, NFC and BLE technology, enabling subscribers to track in real time the whereabouts of people or high value assets. GTX is known for its game-changing and 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’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 authorities and municipalities, emergency and law enforcement, private schools, assisted living facilities, NGOs, small business enterprises, senior care homes, and consumers.
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Forward Looking Statements
This news release contains forward-looking statements. The terms and phrases “expects,” “would,” “will,” “believes,” and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by GTX considering its experience and its perception of current conditions and expected future developments, as well as other factors that GTX believes are appropriate in the circumstances. Many factors could cause GTX’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Certain risk factors that may cause actual results to differ are set forth in GTX’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (which may be obtained on the SEC Website). These factors should be considered carefully, and readers should not place undue reliance on GTX’s forward-looking statements. GTX has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required.
