Revenue increased 12%, Product Sales increased 43%, Subscribers increased 62%
LOS ANGELES CALIFORNIA, Nov. 27, 2018 (GLOBE NEWSWIRE) -- GTX Corp (GTXO) (“the Company”), an Internet of Things (IoT) solutions provider in the GPS wearable location and wandering assistive technology business announced today a summary for the third quarter ended September 30, 2018.
Third Quarter Financial Highlights
- Overall Revenue increased 12% over 2017 comparable period.
- Product Sales increased 43% over 2017 comparable period.
- International Subscribers increased 120% over 2017 comparable period.
- Domestic Subscribers increased 33% over 2017 comparable period.
- COGS decreased 31% from 2017.
- Gross Margin, excluding IP, increased 34% from 2017.
- Wages & Benefits decreased 3% from 2017.
- Other expenses decreased 87% from 2017.
Nine Month Financial Highlights
- Overall Revenue increased 31% over 2017 comparable period.
- Product Sales increased 73% over 2017 comparable period.
- Subscriber Revenue increased 20% over 2017 comparable period.
- Total Subscribers increased 73% over 2017 comparable period.
- COGS decreased 17% from 2017.
- Gross Margin, excluding IP, increased from 57% to 73% from 2017.
- Professional Fees decreased 6% from 2017.
- Loss from Operations decreased 15% from 2017.
Management commentary: Patrick Bertagna, GTX Corp CEO.
As highlighted above, we had incremental improvements with single or double-digit increases or decreases in the major metrics we measure – revenues were up, subscribers were up, margins were up, while our cost of operations, cash used in operations, professional services, G&A and net losses decreased.
On the operations side we were awarded a new military contract and successfully completed and delivered 100% of the order three weeks ahead of schedule. In addition to supporting our existing military contracts, we are also in discussion with other military installations both in the U.S. and overseas, and based on our ongoing efforts to further penetrate into military and law enforcement channels we added Kathleen Kiernan, a 29-year federal law enforcement veteran, to our advisory board and in order to garner more business in these verticals we signed a collaboration agreement with KGH, which manages partnerships with organizations in law enforcement, military, intelligence, academic and the private sector both domestically and internationally. We are seeing more opportunities which require certain skill sets, resources and knowledge to successfully bring to fruition and bringing on Kathleen and KGH is an effective way for us to enhance our position with these highly complex government sector opportunities.
The Company also went through a due diligence process to up list to the OTCQB and effected a 1-for-75 reverse stock split as part of a comprehensive long term plan to make the public facing side of the business more reflective of the Company’s true value.
On the commercial front, the country of Norway awarded our distributor a 2-year contract to supply GPS devices to people at risk of wandering. The Norwegian Government identified two target groups, elderly people with dementia and cognitive impairment who still live independently, and children or adolescents with disabilities, both of which will receive the fully subsidized GPS solution. The GPS SmartSoles were one of three devices ultimately approved after having been thoroughly tested in Norway over the past 2 years in cooperation with SINTEF, which conducts contract research and development projects. Headquartered in Trondheim, Norway, SINTEF is an independent research organization founded in 1950, which operates in 75 countries, has over 2,000 employees with annual revenues of three billion Norwegian kroner. We expect this thorough testing process will facilitate future contracts in other countries which are evaluating the long term benefits and cost savings of implementing tracking and monitoring solutions.
In the U.K. the National Health Services (NHS) expanded their regional pilots for our wander assistive GPS SmartSoles, in urban centers with high populations of seniors afflicted with dementia. And George Mason University’s College of Health and Human Services received a grant from the Alzheimer’s & Related Diseases Research Award Fund to continue its machine learning wandering prediction research. Mason selected the GTX Corp flagship GPS SmartSole and tracking technology platform to conduct the study and continued research which has the potential to quickly detect and stop episodes of wandering before they can result in a tragedy. This is the first study to link movement patterns to the progression of Alzheimer’s disease “AD” and being selected for this study is another strong product validation for the Company. According to the World Health Organization (WHO) the number of people affected with AD will triple from 50 million to 152 million, with an estimated annual cost of $818 billion. This pilot could produce the groundbreaking data that may have the potential to save lives and dramatically reduce the rising costs of this disease. We have delivered the initial shipment of SmartSoles and the study is underway.
Continuing to open new markets we signed a collaboration agreement with the Autism Society of America and have begun joint marketing into their 650,000 plus community. Additionally, we launched our new GPS Tracker and Near Field Communication (“NFC”) digital ID system Rover Tracker for pets. In addition to providing on demand GPS location information, Rover Tracker will also include NFC technology, creating a secure link connecting your real time profile and contact information to the person who finds your pet. The GPS Rover Tracker will be the first GTX product to include NFC technology which will enable the Company to demonstrate the value of providing a unique single physical and digital ID with real time location and information delivery. The pairing of GPS and NFC supports GTX Corp’s expansion into blockchain security and asset management across multiple distribution and supply chains.
On the IP front, the Company filed a provisional patent for its new GPS rifle tracker, the RT15, and an ongoing continuation on the middle box patent. Our legal team continues to enforce our patents and pursue our IP monetization campaign at a steady pace. As a pioneer in the GPS wearable tech industry we continue to watch the tech giants such as Apple, Samsung, Google and Microsoft strategically navigate their IP portfolios, GTX still believes in its continued IP strategy and is committed to the long game.
Lastly, worth noting, is the expansion of our product line and revenue streams. Even though we are very much known for our flagship GPS SmartSoles, this past quarter highlighted how our revenues are expanding beyond the SmartSoles. We saw an increase in subscriber revenues from our other GPS devices, increased revenues from the military and our track my workforce app, and we expect to see growth in the future from other products, including our RT15 weapons tracker, Rover Tracker for pets and our line of supply chain management NFC products.
As always, we want to thank all our stakeholders, who continue to support us.
GTX Corp is a For-Profit with Purpose Company that owns and licenses more than 85 patents, is a U.S. military contractor, manufactures many of its products in the USA, and has multiple consumer products in the marketplace that are all available on the Company’s online store, on Amazon, and through authorized resellers and distributors across the globe.
About GTX Corp
GTX 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 and BLE 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 US Military Government contractor. Other customers include public health authorities 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 US 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.
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GTX Corp United Kingdom
In the UK, GTX Corp operates from its London office. For more information, please contact:
Nelson Skip Riddle
Tel: +44 7785 364100
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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 in light of 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 by law.