GTX Reports 2019 Financial Summary
In these unprecedented times we want to first and foremost extend our appreciation and gratitude to everyone that helped GTX have a very strong 2019.
Revenue increased 118%, IP Licensing increased 1,426%, Subscribers increased 36%
LOS ANGELES CALIFORNIA, April 01, 2020 (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 year ended December 31, 2019.
2019 Financial Highlights:
- Overall Revenue increased 118% over 2018 comparable period.
- IP Licensing increased 1,426% over 2018 comparable period.
- International Subscribers increased 44% over 2018 comparable period.
- Overall Subscribers increased 36% over 2018 comparable period.
- Professional Services increased 75% over 2018 comparable period.
- Gross Margin increased from 69% to 87% from 2018.
- Total operating expenses decreased 25% from 2018.
- Loss from Operations decreased 118% from 2018, turning operations profitable.
- Net Loss reduced 67% from 2018.
- Net Cash used in operations decreased 66% from 2018.
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 helped GTX have a very strong 2019. We are a small company but a BIG family, so now more than ever, your health, safety and prosperity is paramount to us, so please stay safe and positive, and together we will land on the flip side of this pandemic stronger and better. We are GTX and we are With You!
2019 was a turning point year for several reasons. In addition to most of our numbers having double, triple or even quadruple digit increases, we also think it’s worth highlighting we didn’t take on any new convertible debt, we paid down some existing debt and old accounts payables, making our balance sheet a little lighter, dilution was kept to a minimum, and we had a 176% increase in net profits. We turned from losing money in 2018 to making money in our operations in 2019. We accomplished this by keeping our overhead low with a 25% decrease in operating expenses and diversifying our revenue streams between B2B, B2C, IP licensing, military and professional services, with an overall revenue increase of 118%. Looking back three years ago we had very little IP licensing business, military business or professional services business and by 2019 those silos grew and represented a significant part of our business. This demonstrates GTX’s ability to identify a market, enter it, grow it and with the proper financial support we can then scale it.
During 2019, the Company grew its core product and subscription business and military business by expanding its B2B sales channels both internationally and domestically. We signed up new distributors, became an authorized supplier for the Sri Lanka Government, began new pilot programs, launched new GPS products, further advanced our work with George Mason University (under their grant program) and identified over 100 companies that fall under our IP licensing initiative. Of those 100 plus companies, we signed 14 licensing agreements throughout 2019 representing a 1,426% IP revenue increase over 2018. The big IP catalyst this year was the Inpixon (NASDAQ: INPX) transaction we closed in the second quarter of 2019 along with 13 other deals we closed throughout the year and even though the timing and number of deals is unpredictable, our IP licensing business is gaining momentum and we do expect to see continued growth in the future.
The high margin IP revenue gave us the opportunity to invest in our future and allowed the continuing development of new projects. We started developing a new 4G LTE module for our line of wearable tracking and monitoring GPS technology and we began developing a secured, scalable, middleware layer that sits in-between Near Field Communication (“NFC”) hardware devices and third-party technology platforms. We are now working with several partners that provide various vertical specific Blockchain, IoT and AI backend platforms that need a secure and seamless flow of data from hardware to the cloud. Our 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 are also continuing to test our NFC Temperature Trackers, which provide real-time temperature sensing and data logging across the supply chain necessary for transportation compliance of perishables such as food, drinks, pharmaceuticals and other temperature sensitive products that can be negatively affected by conditions in transit. In addition to temperature sensing we are developing NFC tags that can authenticate products, addressing the multibillion dollar worldwide counterfeit market. With the current coronavirus events unfolding on a global scale, keeping track of the supply chain, having greater visibility on products being shipped, making sure that products are legitimate and not counterfeits, is now front and center in the market place, even utilizing NFC for contactless exchange, basically transferring data from phone to phone so no human exchange, is all being revisited from the supplier to the consumer. These new paradigms will work to our advantage going forward; however, we had expected to commercially launch our Veritap solution in the first quarter of 2020, but due to certain delays related to COVID-19, our commercial launch date has been postponed to Q2 2020.
In summary, 2019 was a transformative year for GTX Corp and we expect the fundamental building blocks we put in place over the past few years should position the Company for growth. The future right now is uncertain for many people and businesses and we are not exempted from this uncertainty, especially from things we have very little control over. For many it will be a defining moment in history, for us amid this worldwide crisis it is the time we embrace 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. 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 that is why you have our commitment, we the GTX family will 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.
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 new NRBz and 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 (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 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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In the UK, GTX Corp operates from its London office. Please contact: Nelson Skip Riddle
Email: [email protected] Tel: +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.
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