Revenue increased 7%, Subscriber Revenue increased 108%, G&A decreased 19%
LOS ANGELES, Aug. 21, 2018 (GLOBE NEWSWIRE) — GTX Corp (OTCBB: GTXO) (“the Company”), a pioneer in the field of wearable GPS human and asset tracking systems and wandering assistive technology, today announced a summary for the second quarter ended June 30, 2018.
Second Quarter Financial Highlights
- Overall Revenue increased 7% over 2017 comparable period.
- Subscriber Revenue increased 108% over 2017 comparable period.
- Total Subscribers increased 52% over 2017 comparable period.
- COGS decreased 29% from 2017.
- Net Profit increased 33.6% from 2017.
- Gross Margin, excluding IP, increased 66% from 2017.
- Professional Fees decreased 30% from 2017.
- G&A decreased 19% from 2017.
Six Month Financial Highlights
- Overall Revenue increased 25% over 2017 comparable period.
- Subscriber Revenue increased 52% over 2017 comparable period.
- Total Subscribers increased 26% over 2017 comparable period.
- COGS decreased 10% from 2017.
- Net Profit increased 55% from 2017.
- Gross Margin, excluding IP, increased from 38% to 65% from 2017.
- Professional Fees decreased 28% from 2017.
- G&A decreased 18% from 2017.
First Quarter Highlights
- Launched new Kids SmartSole and toddler Invisabelt.
- GPS SmartSoles used in Mason University Wandering Study.
- Launched GPS World Take-Along Tracker.
- Announced strategic plan to up-list to the OTCQB Venture Exchange.
- Successfully completed a reverse split.
- Went to Capitol Hill to advocate Avonte’s Law.
- Engaged NetworkNewsWire (“NNW”) for corporate communication.
- Engaged Weinberg & Company, a leading, international, full-service, multi-office CPA firm.
Management commentary: Patrick Bertagna, GTX Corp CEO.
As highlighted above, we had an overall good quarter, with single- or double-digit increases or decreases in all the major metrics – revenues were up, subscribers were up, margins and profits were up, while our cost of operations, professional services, G&A and net losses decreased. Overall product revenues were slightly impacted due the launch of new products and not having enough inventory on hand before the end of the quarter, however a key metric worth noting is number of subscribers and subscriber revenue, both of which are fundamental to our overall success and have been increasing steadily over the past year. This quarter, our subscribers not only increased by 52% but the subscriber revenue increased by 108%; this is a very good indicator that we are adding higher-paying subscribers, which directly correlates to higher margins, higher profits and getting closer to cash flow positive.
Overall it was a busy quarter, between launching two new kids’ products, the long-awaited SmartSoles for kids and the Invisabelt for toddlers, as well as the World Tracker for a variety of other audiences. In preparation for the future, we engaged a new communication team and international auditing firm, and successfully completed a reverse split and filed for an up-list to the OTCQB.
Validating our patented technology, George Mason University’s College of Health and Human Services successfully completed its Phase II machine learning wandering prediction research, using the GTX tracking and wander-assistive GPS wearable technology and platform. As part of a the GTX collaboration agreement with Mason, which began in fall of 2016, the university utilized the patented GPS SmartSole, GTX’s location-based technology and data, in order to study wandering habits in elderly people with Alzheimer’s and dementia. In all, sample data from 338 GPS trackers were used during the trial. Continuing on the success of this study, Mason was just awarded a grant from the Alzheimer’s & Related Diseases Research Award Fund to continue its machine learning wandering prediction research.
The grant was approved in July, and the new study, which began immediately, will focus on collecting initial tracking data for people with AD using GPS trackers as well as collecting their medical histories and sociodemographic data. The data will then be used to test the feasibility of finding patterns of movement and patterns related to getting lost. The participants will be located throughout Virginia, and, as part of the study, a social worker will visit participants to show them how to use the GPS devices, do an initial survey, help them register online, etc. As part of the grant, Mason will purchase the GPS SmartSoles from GTX and GTX will provide the monitoring services. In addition to the research conducted by GMU, the NHS in the United Kingdom is conducting a trial of the GPS SmartSoles, which led to quite a lot of press and activity across the U.K.
We also went to Capitol Hill to meet with Congress to discuss Kevin and Avonte’s law, Law – S. 2070, which will authorize the appropriation of $2 million annually over the 2018–2022 period. This will enable the Department of Justice to make grants to state and local governments and nonprofit organizations to fund programs to locate missing persons with dementia or developmental disabilities. This speaks to the core of what GTX Corp does and falls in line with the Company’s recent entrées into the children’s autistic market.
We also attended the Doing Business with the United Nations Conference, several trade shows in Europe including CEBIT, and spoke at the National Police Athletic League annual conference – all designed to further our reach and penetration for large-scale government contracts.
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 send out letters in order to enforce our patents and approximately 11 new letters were sent out as the IP monetization campaign continues at a slow but steady pace. As a pioneer in the GPS wearable tech industry, and watching many of 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.
During Q2 2018, the Company also received a modest amount of free publicity. The June issue of AARP Bulletin featured a cover story on “What’s Next” in technologies for seniors and included interviews/opinions from a number of CEOs, professors and other field experts, such as Steve Wozniak, Sanjay Gupta, Dr. Oz, Bill de Blasio and GTX Corp’s longtime advisor Professor Andrew Carle.
Due to the GPS SmartSole trial conducted in the UK by the NHS, the BBC ran an extensive story on health care for seniors, both online and on the radio, with a potential audience reach of 11.5 million people. The headline and sub-headline read:
An insole with GPS tracking for dementia patients
The NHS in Dorset is trialing a tracking device to keep dementia patients safe. It is an insole that a patient places in his or her shoe. It helps to keep tabs on the wearer so that relatives and carers will always know their location.
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 for seniors as we entered the kids market. We saw an increase in subscriber revenues and have begun to derive revenues from the military, our track my workforce app, and soon from other products we have in development, including monitoring biometrics with BioStride, a GPS pet tracker and digital ID, and our RT15 weapons tracker.
As always, we want to thank all our stakeholders, who continue to support us on our journey.
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.
Social media – #withyou #smartsole #connectedandprotected #trackwhatyoulove
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
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.
CONTACT: Corporate Communications Contact: NetworkNewsWire (NNW) New York, New York www.NetworkNewsWire.com 212.418.1217 Office Editor@NetworkNewsWire.com