LOS ANGELES CALIFORNIA, May 19, 2022 (GLOBE NEWSWIRE) — GTX Corp (OTC: 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 First Quarter ended March 31, 2022 and provided the following corporate summary:
Three Month Financial Highlights
- Overall Revenue decreased 27% over 2021 comparable period.
- Gross Margin increased from 36% to 42% over 2021 comparable period.
- Wages and benefits and professional fees both decreased by 2% over 2021 comparable period.
- Reduced government loans by 31%.
- Other expense decreased by 129% as we lowered accrued interest, reduced our government debt by $68,000 and eliminated losses from the extinguishment of debt.
Management commentary by Patrick Bertagna, GTX Corp CEO:
As we started seeing an end to COVID on a grand scale and a return to normal operations and staffing, the Company began mapping out its 2022 post pandemic course. Early in the quarter we sold most of our remaining PPE inventory, completed our international 4G testing and prepared for our Cat M1 LTE SmartSole launch. With businesses opening back up and overall general travel picking back up we saw a 132% increase in B2B sales and a 34% decrease in net loss. Overall revenues were down by 27% compared to the previous comparable period because we started to transition out of PPE, and we were not able to ship SmartSole preorders until the end of March and into early April. To that end we do expect our subscription revenue to start ramping back up in the second quarter as we continue to backfill orders and activate users, along with seeing continued demand for the new 4G SmartSoles with several thousand units of forecasted sales over the coming months just from our international distributors.
In early January we had a surge in orders for medical supplies which enabled us to convert paid for inventory into cash while reducing our overall protective medical supply inventory levels. We also produced and committed production for close to 500 pairs of SmartSoles, which also enabled us to convert paid for component inventory into finished product and start back filling pre-orders. We started working on a new version of our tracking app and a new ecommerce store on the Shopify platform, which will enable us to have more capabilities to sell through social media platforms such as Facebook and Instagram, process B2B orders online, along with better accounting and inventory management reporting as we start ramping up sales.
During the first quarter of 2022, we expanded our intellectual property portfolio by being issued two new patents by the United States Patent and Trademark Office (USPTO). U.S. patent number 11,272,761 which is now the 4th patent issued in the GPS SmartSole family (the “SmartSole Patent”) and U.S. patent 11,272,313 which is now the 6th patent issued in the Comm Protocol family (the “Comm Protocol Patent”).
The SmartSole Patent covers proprietary ways to protect and manufacture a GPS electronic module. It has twenty claims, two of which are independent and an open continuation for further expansion, which has already been submitted to the USPTO.
The Comm Protocol Patent also has twenty claims and is significant for several reasons; first by adding another layer to GTX’s competitive protections on device to backend server communications, which is important now and could add even more value in the future as the Company adds more biometric devices to its platform and unveils the Longevity Revolution product roadmap. Second, the Comm Protocol family has been the crown jewel of GTX’s IP licensing campaign. By adding this new patent with an open ongoing continuation (also recently filed with the USPTO), it should enhance the strength and value of the portfolio for future licensing agreements, especially as the Company expands its platform from location monitoring to location and remote patient monitoring (RPM) preventive care.
During the first quarter we began the development of a new wearable NFC product, designed to provide remote monitoring to cognitively and speech impaired individuals. We have begun testing prototypes and placed our first production run with our factory. If all goes well with the testing and the production, we expect to launch this product both B2C and B2B, sometime before the third quarter 2022. Until recently, our NFC product sales have been limited and only sold direct to consumer. However, during the first quarter of 2022 we expanded our NFC sales into B2B channels and started providing NFC chips along with onboarding professional services to a startup company called Endstate. This company designs and manufactures high-end sneakers embedded with NFT and NFC technology that unites the experience from digital art to physical products and provides the ability to wear the sneakers in the metaverse. We have been providing Endstate with NFC chips, technology and professional services since December of 2021 leading up to their commercial rollout in Q1 2022. So far Endstate has ordered close to 700 chips from us, with delivery commencing at the end of the first quarter.
As part of our ongoing efforts to enhance our balance sheet, we reduced our short-term government loans by $68k, and eliminated all of our variable priced convertible debt, leaving only fixed price convertible debt priced above market or long term, low interest rate non-convertible debt on the balance sheet.
We remain optimistic that COVID-19 pandemic is behind us. However, we still have some inventory on hand and solid relationships with our vendors so in case there is another surge in demand we will be ready to serve our customers. But based on the current events and sales trends, our focus now is on ramping up sales of the new SmartSoles, NFC products, other medical wearable devices, A.I. and IP licensing. Health & Safety, Track & Trace were the big buzz words that came out of 2021. The population at large is placing a higher value of importance on being healthy, living better and longer. We believe we are in a good position to monetize these trends, as we keep hearing from many of our B2B customers and international distributors that they want more wearable solutions and technology. Hence, why a big part of Q1 was focused on new product development and making sure that we will have inventory on hand and in the pipeline to meet the global demand throughout 2022 and beyond.
GTX Corp is a For-Profit with Purpose Company which has an extensive line of health & safety products, a broad patent portfolio, 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 Corp GTX Corp (OTC: 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 across the globe with subscribers in over 50 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.
Social Media Hashtags – #withyou #smartsole #connectedandprotected #trackwhatyoulove #iot #smartproducts #nfc #ble #safety #healthcare #veritap #exceptionmonitoring #assettracking #coronavirus #face mask #covid19
GTX Blog https://gtxcorp.com/press/
https://www.facebook.com/gtxcorpcom
https://www.twitter.com/gtxco
https://www.linkedin.com/in/gtxcorp
https://www.pinterest.com/GTXCorp/
https://instagram.com/gtxcorp
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.
Disclaimer:
Spotlight Growth is compensated, either directly or via a third party, to provide investor relations services for its clients. Spotlight Growth creates exposure for companies through a customized marketing strategy, including design of promotional material, the drafting and editing of press releases and media placement.
All information on featured companies is provided by the companies profiled, or is available from public sources. Spotlight Growth and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on external sources that Spotlight Growth believes to be reliable, but its accuracy is not guaranteed. Spotlight Growth may create reports and content that has been compensated by a company or third-parties, or for purposes of self-marketing. Spotlight Growth was compensated seven hundred fifty dollars cash for the creation and dissemination of this content by the company.
This material does not represent a solicitation to buy or sell any securities. Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management.
The above communication, the attachments and external Internet links provided are intended for informational purposes only and are not to be interpreted by the recipient as a solicitation to participate in securities offerings. Investments referenced may not be suitable for all investors and may not be permissible in certain jurisdictions.
Spotlight Growth and its affiliates, officers, directors, and employees may have bought or sold or may buy or sell shares in the companies discussed herein, which may be acquired prior, during or after the publication of these marketing materials. Spotlight Growth, its affiliates, officers, directors, and employees may sell the stock of said companies at any time and may profit in the event those shares rise in value. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/
The post GTX Corp (OTC Pink: GTXO) Reports First Quarter 2022 Financial Results and Corporate Summary Update appeared first on Spotlight Growth.
