LOS ANGELES, CA – May 16, 2017 – GTX Corp. (OTCQB: GTXO), an IoT platform and leading provider of personal location GPS wearable technology and wandering assistive technology, announced financial summary for the first quarter ended March 31, 2017.
First Quarter Highlights
- Revenue increased 65% over 2016 comparable period
- Subscriber revenue increased 162% over 2016 comparable period
- Net operating losses decreased 3% over comparable period
- Accounts payable decreased 34% over comparable period
During the quarter ended March 31, 2017 the Company continued exploring sales channel opportunities in Colombia, Japan, Hong Kong, Spain and the Middle East. Also attended numerous trade shows in the U.S. and Europe, introducing its technology, products and solutions to potential new strategic partners, distributors and customers. Domestically the Company added two States in the reimbursement program, attended several industry trade shows and began a Google ad word advertising campaign directed at driving online consumer sales. Outside of social media brand awareness, this was the first time the Company spent money on advertising directly to consumers. The additional expenses along with non-cash derivative liabilities and the amortization of debt discounts related to debt financings caused a net loss increase by 88%, however strictly on an operational basis, the loss from operations actually decreased by 3% once you factor out the non-cash derivative liabilities. Expenses increased by 6% due to advertising and various other investments related to R&D and patent filings.
On the R&D front, the Company began three new product development projects. First being for a CDMA SmartSole that will be operational on the Verizon network expected to be released by early Q3. The second for a SmartSole lite which will be a lower price, limited function and available in children sizes, created for lower disposable income markets and for individuals that are not “at risk” due to Alzheimer’s or autism, but rather for more of a general population use, expected out in early Q4 2017. Third the Company began developing a Sole Protector, specifically designed for the GPS SmartSole and made of anti-microbial / anti-fungal material that repels moisture and odor, providing an extra layer of hygiene, covertness, protection and comfort. The Sole Protector was commercially launched on May 1st in the U.S., U.K., Sweden and Denmark, with over 500 pairs sold in the first week. In addition the Company began working with Energy Harvester to collaborate on the development of delivering on demand power to charge wearable electronics by harnessing energy though human motion that is integrated within footwear products, giving consumers, commercial, and military users the ability to charge their mobile devices and other electronic devices and sensors, as they walk. There are several other projects in the works and new product announcements will be made over the course of the year.
On the IP front – the Company worked closely with Inventergy on the Communication protocol monetization campaign, finalizing pricing models and a list of potential licensee’s. Inventergy has announced and publicly disclosed that in early January they sent out over 100 letters and subsequently an additional 20 letters have gone out as new potential licensees were identified. The Company was also approached by a footwear company that is interested in licensing several of the GTX Corp Shoe Patents. In addition management worked with existing IP counsel to prepare filings for new patents as an ongoing effort to expand and broaden its IP portfolio.
Patrick Bertagna, GTX Corp CEO, stated, “We are mindful of the tumultuous market conditions we have experience in the past few weeks and realize that modest growth is not enough. Expectations are high and that’s why we remain focused on building our brand and product awareness on a global scale, while growing our channels of distribution and increasing product sales and subscribers from all our product categories along with exploring new IP licensing opportunities. But we are also focusing on our future and remain convinced that footwear will become a universal wearable tech platform and our patents will ensure long term growth, success and upside for GTX Corp and its stakeholders. This is why we stay committed to developing and introducing new products, like the SmartSoles that will operate on the Verizon network or home health solutions we are currently testing which will alert you if mom got out of bed or if her doors or windows are not closed. To the MoTo – Tracker which is a low cost GPS tracker designed to work with electric vehicles for seniors such as mobility chairs and scooters. We also continue to file more patents in order to increase the value of our IP portfolio and protect the business we are building. We stay committed to developing or partnering with other companies to introduce new technologies into the market place. We have already filed patents that allow the SmartSole to have GPS and cellular technology on one foot and other sensor technology on the other foot. We have started to work with Energy Harvester to help introduce self-generating power and last year George Mason University started a medical research trial using the GPS SmartSoles to collect data in order to predict wandering patterns. Their results which are expected out shortly will establish the SmartSoles not only as a solution to wandering, but as a tool that may help predict wandering habits. Once we can predict wandering patterns, we will look into putting other types of sensors in the SmartSoles that may in the future help predict if someone is prone to Alzheimer’s or a stroke. The SmartSole footwear platform protected by a growing IP portfolio is the real value of the Company.”
Bertagna continued, “Lack of sufficient capital for inventory, human resources, R&D and infrastructure remains a challenge, but Q4 of last year generated some extra cash and in Q1 we allocated some of that cash for advertising, personnel, patent filings and R&D. Having limited capital poses a challenge between investing in immediate growth or investing to ensure our future but we remain confident that we will navigate between the two and stay the course to continue to grow the business fundamentals along with positioning the Company for things to come in the future.”
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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 at http://www.sec.gov). 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.