GTX Corp Reports Third Quarter 2021 Financial Results and Corporate Summary Update
LOS ANGELES CALIFORNIA, Nov. 19, 2021 (GLOBE NEWSWIRE) — GTX Corp (OTC: GTXO) (“the Company”), a pioneer in the fields; of health & safety, wearable GPS human and asset tracking systems and personal protective medical equipment and supplies, today announced financial results for the Third Quarter ended September 30, 2021 and provided the following corporate summary:
Nine Month Financial Highlights
- Overall Revenue decreased 42% over 2020 comparable period.
- Gross Margin increased 2% over 2020 comparable period.
- Wages and benefits decreased 19% or $92k over 2020 comparable period.
- R&D reduced by 89% as we shift to full production of 4G SmartSoles.
- Total Current Liabilities reduced 5% or $162k from 2020 comparable.
- Total debt, excluding PPP loans, reduced 11% or $198k over 2020 comparable period.
- Cash on hand increased 29% or $66K over 2020 comparable period.
- Stockholder’s deficit decreased 20% or $477k over 2020 comparable period.
- Did not take on any new debt.
Management commentary by Patrick Bertagna, GTX Corp CEO:
As indicated in the above bullets, we had lower than expected revenues, however all the other metrics were positive. During the quarter we focused on getting our 4G GPS SmartSole platform ready for launch and planning our roadmap for 2022. Even though we deployed every resource and every means available to get some product shipped before the end of September, we just faced supply chain and labor challenges that we had little or no control over, which ultimately affected our third quarter 2021 revenues. We have however now begun production and expect to start shipping before the end of the year. As of right now, we are still oversold for our first production run, and as we continue to receive additional pre-orders, we expect to maintain a backlog of orders until early 2022 or until supply chains come back to normal.
As we stated in previous filings, in anticipation of these shortages and delays, we began ordering raw materials as early as late 2020 and into early 2021, which allowed us to ensure that the majority of components are in house and ready to go. It is just taking a lot more time to get parts from point A to B and to get factories to produce, but we are in the final stretch and all components are now at the factories and we are pushing hard to get some product out the door before the holidays.
As part of our long-term growth strategy to launch new products and grow recurring revenues, we entered into several new collaboration agreements to potentially expand our product lines in wearable tracking tech, wearable biometrics, NFC and block chain supply chain management, and overall health, wellness, and longevity solutions.
During the third quarter 2021, we launched our Longevity Revolution marketing campaign and introduced a series of new videos highlighting some of the new wearable tech we plan to develop and introduce with some of our new partners. Even though we are still in the early stage with some these partnerships, we are making progress and expect to have a more detailed roadmap and announcements before the end of the year, or right after we launch our 4G SmartSoles.
Already having multiple UV products in our PPE product line and believing in the technology, we signed a distribution agreement with Synergistic Sanitizing Solutions for the UV Clean Air automated continuous UV-C air treatment system. This simple, seamless, and effective air purification technology uses patented UV-C light to reduce levels of virus, bacteria, and fungi by automatically and continuously treating the air to create healthier environments. The air purification system uses years of research and development in ultraviolet light and IoT enabled technologies to create a truly effective and modern air treatment system with laboratory results showing elimination rates up to 99.9%. With virus and pathogen awareness on high alert due to the Delta variant and inevitable new variants or a possible 4th waive which could arrive during the holidays, we immediately started introducing this highly needed product to our assisted living, health care, school, university, small business, and government customers. This product is not only highly effective in the fight against the spread of COVID, but also has 100% funding available for purchase and installation, through FEMA and the Coronavirus Aid Relief and Economic Security Act (CARES) for qualifying essential and critical community entities.
At the end of the first quarter 2021, we stated we could not accurately predict how long the Personal Protection Equipment (“PPE”) business would remain in strong demand and expected to be transitioning out of many PPE products over the coming months and only focus on strong sellers, while ramping up for the launch of the new SmartSoles, NFC Blockchain platform and other medical wearables. Our position at the end of the third quarter 2021 continues to be the same, however we did see some uptick in the third quarter for PPE demand due to the rising number of new COVID cases, the rapid spread of the Delta variant, new CDC mask guidelines and back to school mask mandates for k-12. As long as the demand remains, we will continue to service and support our customers for their PPE needs.
This quarter we also increased our marketing and outreach campaigns and because schools and assisted living facilities can potentially buy both PPE and tracking solutions from us, we ramped up our domestic B2B outreach programs and increased our marketing budget which we expect will generate more B2B U.S. sales in the future.
On the balance sheet front, we continued to reduce our debt and outstanding payables, while not taking on any new debt. We slightly increased our margins, we decreased our liabilities and debt, while increasing our cash on hand and pre-pay for a lot of our component inventory. All part of strengthening our position for 2022.
GTX Corp is a For-Profit with Purpose Company which has an extensive line of health & safety products, a broad patent portfolio, a proud U.S. military contractor and has multiple wearable tracking products sold through its online store, Amazon and authorized resellers and distributors servicing customers across the globe.
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 across the globe with subscribers in over 50 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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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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