Revenues increased 76%, Subscribers increased 79%, G&A decreased 17%
LOS ANGELES, May 16, 2018 (GLOBE NEWSWIRE) -- GTX Corp. (OTCQB:GTXO), an IoT platform and leading provider of personal location GPS wearable technology and wandering assistive technology, announced a summary for the first quarter ended March 31, 2018.
First Quarter Financial Highlights
- Overall revenue increase 76% over 2017 comparable period.
- Product revenue increase 181% over 2017 comparable period.
- Deferred revenue increase 130% over 2017 comparable period
- Total Subscribers increase 79% over 2017 comparable period.
- Domestic Subscribers increase 41% over 2017 comparable period
- Net Profit increase 143% over 2017 comparable period.
- Gross margins increase 30% over 2017 comparable period.
- Net loss decrease 44% over 2017 comparable period
- Loss from Operations decrease 46% over 2017 comparable period
- Professional services decrease 27%
- G&A decrease 17%
- Total operating expenses decrease 7%
First Quarter Highlights
- Completed shipment to Edwards Air Force Base
- Expanded collaboration agreement with Veristride
- Showcased new Bio metric insoles at CES and SB52
- Successfully tested new kids SmartSoles
- Placed first production order of new kids SmartSoles (expected delivery Q2)
- Issued patent (9,910,862)
- GPS SmartSoles featured on the Kardashians
- GPS SmartSoles became available for sale on Amazon
- GPS SmartSoles won another award in the UK
Management commentary: Patrick Bertagna, GTX Corp CEO.
As highlighted above, we had an overall good quarter, with double digit increases or decreases in all the major metrics - revenues were up, subscribers were up, margins and profits were up, while decreasing our cost of operations, professional services, G&A and net losses. We successfully completed the delivery of our first large scale military contract and have subsequently submitted another proposal to Edwards which we are waiting for budget confirmation on a second contract. We have also begun conversations and submitted proposals to other military bases both in the U.S. and internationally. It takes time to develop military channels but we have put a lot of work into this business unit and will continue to pursue and expand these opportunities.
As stated in our recent 10K filing, we received final preproduction samples of The SmartSole lite, which are being developed for kids, lower disposable income markets and more of general population use. In February we placed our first production order and expect delivery in Q2 2018. We have already received several preorders and expect to receive more orders over the following weeks and will begin shipping end of Q2 early Q3.
The Company also expanded its collaboration agreement with Veristride, Inc., a company that specializes in technology to analyze gait movement using custom sensors at the foot and biomechanical analytics to provide feedback on how people walk, run and move. Under phase 2 of the agreement GTX has completed the R&D and will begin piloting the new biometric insoles, named BioStride this quarter. The business value of analyzing gait is significant in fall risk detection and prevention. Despite extensive preventive efforts, falling continues to be a major problem for seniors both at home and in community living facilities. Being able to accurately predict falls, strokes or early onset of dementia by wearing a smart non-intrusive footwear device can offer significant advancements in senior care and wellness. We expect to begin pilot programs in Q2 and go into production by Q3.
- 2.8 million Seniors are treated in emergency rooms for fall injuries every year in the U.S.
- Over 800,000 patients a year are hospitalized because of a fall injury
- Adjusted for inflation, the annual medical costs for fall injuries are $31 billion.
Management believes fall prevention is a big opportunity based on the stats above which are not limited to the U.S., seniors across the globe face the possibility of a life altering fall, and the patented BioStride is the first wearable fall prediction solution designed for affordability, accuracy, ease of use, and is non disruptive to life style. BioStride eliminates the need to go to a doctor’s office or physical therapist in order to monitor ones walking patterns.
On the IP front, the Company was issued another patent (9,910,862) which is internally called ‘the middle box’. This additional patent is a strong addition to the existing GTX IP portfolio because it applies to server side processes, connecting all 3 aspects of the Company’s business – device, communication and backend server. This new server side patent has 68 claims, adding to our portfolio’s existing 1,000 plus patent claims and open continuation which broadens the influence of the existing GTX IP portfolio. As a pioneer in the wearable tech industry and watching many of the tech giants such as Apple, Samsung, Google and Microsoft strategically navigate their IP, GTX believes in its continued IP investment. Additionally, we continue to solicit licensing agreements in the GPS industry. This is a slow and methodical process, however the GTX patent portfolio keeps on getting larger and stronger through its ongoing continuation filings and we expect to start seeing some monetization results in 2018.
During Q1 2018, the company also received a significant amount of publicity as its flagship GPS SmartSole was featured on the Kardashians, won another award in the UK and became available for sale on Amazon. The Company also attended CES and was a Silver Sponsor of SB52 (Super Bowl LII) All of this has created an increase in consumer sales and product awareness.
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 spread out beyond the SmartSoles and its subscribers. We now derive revenues from the military, IP licensing, our track my work force app, and soon from our BioStride line and other products we have in development, including Invisabelt and our weapons tracker. As always we want to thank all our stakeholders which continue to support us on our journey.
GTX Corp is a For-Profit with Purpose Company which 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 market place, all available on its online store, Amazon and authorized resellers and distributors across the globe.
Consumer Purchase of GPS SmartSoles
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
Email: nsriddle@gtxcorp.com
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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 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.