GTX Corp Reports First Quarter 2020 Financial
Results
Company completes profitable first quarter in spite of
global pandemic
LOS
ANGELES, CA -- May 20,
2020 -- InvestorsHub NewsWire -- GTX Corp (GTXO),
a pioneer
in the field of health and safety wearable technology and an
Industry Wired top company to watch in 2020
today
summarized its
financial results for the
First
Quarter ended
March
31,
2020.
First Quarter Financial
Highlights:
- Product sales
increased
63% over
2019 comparable
period.
- Service income
increased
31% over
2019 comparable
period.
- Total
operating expenses decreased 41% from
2019.
- Loss
from Operations decreased
47% from
2019.
- Revenues decreased by
6% over 2019 comparable period, however, Company achieved
profitability.
Management
commentary: Patrick Bertagna, GTX
Corp, CEO.
Like most
companies the novel coronavirus disease of 2019 ("COVID-19") had an
impact on our first quarter of 2020. Our supply chains
were disrupted and many of the companies we work
with, including
suppliers, as well as
our
customers
experienced a slowdown in productivity.
However,
despite
COVID-19,
we still
managed to largely
maintain
our revenues and profit margins, reduce our
expenses, retire
debt,
and show
a modest profit for the quarter. We also
pivoted
early and responded
quickly
to the global protective equipment needs. With government
contracts and established manufacturing partners, GTX was able to
expand its sourcing and distribution base rapidly.
Along
with selling
Personal
Protective Equipment ("PPE"),
such as
face masks and hand sanitizer, the Company also introduced its own
line of high-quality, reusable
and
washable
masks and other PPE equipment, such as NFC enabled
smart face shields and contactless thermometers. GTX was also
appointed to chair the Southern California Biomedical Coronavirus
Countermeasure Task Force, which
is
comprised
of a
group of business leaders that help implement strategies and
technical solutions to address containment, monitoring and testing
of COVID-19.
Beginning in the first
quarter of 2020, we
launched
our
Health
and Safety business unit and introduced to the market place
a new
patented wearable technology noise reduction system
("NRBz")
designed
to protect the wearer from loud background noises, without
interfering or drowning out direct verbal communication. We believe
NRBz are perfect for military, law enforcement, first
responders, hunters, recreational firearms users, oil and gas
workers, race car drivers, motorcycle riders and
even
people
with autism. Nearly
30
million people are exposed to dangerous noise in the workplace,
costing billions in treatments and lost productivity, while the
Veterans Association spends close to $1 billion a year in hearing
loss disability payments. NRBz
are a
natural companion product to many of our safety and monitoring
solutions we currently sell through our existing channels
as
should
help open doors into new
market segments identified in our strategic
roadmap for 2020.
During
the first quarter of 2020, following the Sri
Lanka government approving their annual budget of $17.5 billion,
GTX received an Official Letter and Certificate (registration
number F191478) approving GTX as a registered supplier for the year
2019 and 2020 under the Ministry of Defense for categories J6, J28,
J29, J44, J57, J70, RS1 and RS2 along with a notice of an initial
test order. The order was
successfully shipped and processed through their government
systems; products are
undergoing testing and we expect to receive follow on
orders. Subsequently, the Sri
Lanka Ministry of Defense has put out a tender for
PPE in
large quantities, to which GTX is
responding.
During
the first
quarter of 2020,
revenues
were down by 6% predominately
because we did not sign any
new IP licensing agreements and did not recognize any revenues from
granting intellectual property licenses to companies that are using
or want to use our patented technology in the marketplace. We
attribute this as a temporary
setback due to COVID-19, as many
companies, legal teams, and court houses were all beginning to deal
with the pandemic and making plans to implement
shelter-in-place
policies. We expect
that
as the
economy reopens, this
segment
of our
business will
slowly
reopen as well.
Coming
off a strong 2019, 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 devices and third-party backend platforms. We
are now working with several partners that provide various vertical
specific Blockchain, Internet of Things
("IoT")
and
artificial intelligence ("AI")
backend
platforms but needed a secure and seamless flow of data from
hardware to backend. We expected to begin pilots of our middleware
layer in the first quarter of 2020; however, due to COVID-19 many
of these pilots were put on hold. As with our IP, we expect this
part of our business to resume as the world comes back online. We
believe moving forward
there
will be a greater demand for this technology as the world supply
chains recognize the importance of knowing exactly where all
products are in real time. We have been in
discussions with many of our
customers that have shown interest in piloting our track and trace
NFC solution - Veritap.
During
the first
quarter of 2020, we continued
development of our next generation miniaturized GPS tracking
device, which will utilize a host of new technologies, including
CatM1, NB-IoT, enhanced Wi-Fi, and Bluetooth, for
better connectivity,
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. We had expected to
have prototypes and go into certification and production this
quarter, however again due to CODVID-19, we experienced some
delays. Many of our suppliers and contractors are slowly
coming
back online and we are starting to resume development efforts and
expect to have prototypes and
go into certification in the coming months.
As part
of our ongoing effort to reduce our debt and clean up our balance
sheet, we sold some of our holdings in
Inpixon
(NASDAQ:
INPX). We
utilized
a portion of the realized capital to pay down
some of our long-term debt.
As we
continue to navigate in these unprecedented
times,
ensuring
the safety of all of our employees, establishing new social
distancing guidelines and policies and working
with our
partners across the globe to reopen for business, productivity is
starting to slowly resume, under a new normal, meaning things are
moving but moving slowly. Once we
have a
better understanding of how our customers and
suppliers weathered the pandemic, we will be better equipped to
assess the long-term impact, if any. For
many, it will be a defining
moment in history. For all of
us
at
GTX, amid this worldwide
crisis, now more than
ever we
are
embracing
our
purpose, which is clear and
unwavering - we will continue to provide technology to enhance the
lives of people in need and solutions for the challenges we
face.
For more
than a decade, GTX has been at the
forefront of GPS people and asset
tracking, geofencing and
monitoring seniors that are in a vulnerable risk
group. We have a core
understanding of technologies that
provide health and safety
and
we, the GTX
family, are fully
committed to
do our
part to push ahead and deliver
innovative
technologies, products and
services that produce a
positive impact on society. To all our
stakeholders, thank you for your
support, stay safe, healthy
and practice social distancing.
GTX
Corp's updated, full-line of PPE can be found on GTX
Corp's dedicated website www.gtxmask.com (use
promocode 'open4biz' and get a discount
on your first order).
About GTX Corp
GTX Corp
(GTXO)
is a pioneer in smart, mobile, and wearable GPS tracking and
recovery location-based solutions designed around health and
safety. 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 tracking technologies, which seamlessly integrate with
consumer products and enterprise applications.
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 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 also in the protective medical
supply business and has developed innovative technology driven
solutions. The company has customers in all 50 States and
international distributors servicing customers in over 35
countries. The Company's customers range from the U.S. Military,
Foreign Military, public health authorities and municipalities,
emergency, and law enforcement, first responders, private schools,
assisted living facilities, NGOs, small business enterprises,
senior care homes, and direct to consumer.
GTXCorp.com Track My
Workforce GPS
SmartSole.com
Social Media Hashtags
#withyou
#smartsole
#connectedandprotected
#trackwhatyoulove
#iot
#smartproducts
#nfc
#ble
#safety
#healthcare
#veritap
#exceptionmonitoring
#assettracking
#coronavirus
#facemask
#covid19
GTX Blog
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General information, investor relations, wholesale
licensing, consumer purchase:
213.489.3019
Info@GTXCorp.com
IR@GTXCorp.com
Contact Us
GTX Corp United Kingdom
In the
UK, GTX Corp operates from its London office. Please contact:
Nelson Skip Riddle
Email:
NSRiddle@GTXCorp.comTel: +44 7785
364100
Disclaimer: GTX Corp
does not warrant or represent that the unauthorized use of
materials drawn from the content of this document will not infringe
rights of third parties who are not owned or affiliated by GTX
Corp. Further GTX Corp cannot be held responsible or liable for the
unauthorized use of this document's content by third parties
unknown to the company.
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.