Los Angeles, Calif. – April 10, 2018 GTX Corp (OTCBB: GTXO), an Internet of Things (IoT) solutions provider in the personal location, wearable and wandering assistive technology business, announced today the completion of its initial military order and commentary on the Company’s 2017 summary highlights for year-end December 31, 2017.
2017 was a successful year in terms of achievements and positioning for 2018, but not in terms of numbers, there were no significant increases or decreases compared to the previous year in any of the major matrix numbers – revenues, expenses, losses or profit margins. There were three dominant factors that contributed to our results, first being our IP monetization campaign is taking much more time and resources than we had expected. Licensing revenues are typically high margin so this had a direct affected both our top and bottom line, however we have taken several steps to remedy this going forward by hiring additional lawyers and changing our legal strategy. The second is the development and launch of our new GPS SmartSoles, which had some minor delays, however more significantly we are having to transition all of our distributors to sell through their existing inventories in order to bring in new inventory. This is being worked through and we expect to resolve across all of our channels this quarter. Third was our limited capital, which forced us to make a decision, either use capital on hand for more SmartSole inventory or delay making SmartSoles and allocate towards procuring materials, equipment and hiring additional personnel in order to fulfill all of our requirements for the military. This was a calculated decision made by management based on our cost and access to capital. It was decided that it would better serve the Company and its stakeholders to self-fund our initial military order at the expense of not having enough SmartSole inventory to ship in Q4, which also allowed our distributors to move older inventory. We are very pleased to report the entire initial military contract was completed and delivered with 100% satisfaction. We have already submitted new proposals for additional contracts, have presented to other U.S. bases and we have begun discussions with several foreign military agencies.
We made some tough decisions, had some disappointing setbacks on the IP front but overall 2017 was a good year in terms of positioning GTX Corp for the future.
- We successfully developed a new business unit and product line for the military.
- We developed a new generation of SmartSoles which are lower in cost and available in kid’s sizes- we have already begun taking preorders reflected in the 10K under deferred revenues.
- We formed a partnership with Veristride and developed a new biometric fall risk insole.
- We collaborated with George Mason University using machine learning and the GPS SmartSole data to predict wandering.
- We developed weapons tracking prototypes.
- We expanded our IP portfolio.
- We expanded our Medicaid, government and insurance reimbursement programs and are now approved in over 10 States and 3 countries.
These initiatives are transformative for GTX Corp. Last year at this time, we mainly sold GPS SmartSoles and were exploring the military, kid’s products and biometrics, this year we have these products and we have begun to make and sell these new products into new markets.
We are a much more diverse company today than last year, we have a much broader target audience and we are much better positioned for long term growth. Our sales did not increase in 2017, however we have deferred revenues for future orders which validates our new products. And with limited working capital we still accomplish everything we set out to do and said we would do last year in terms of new product development and market expansion.
As a for-profit with Purpose Company, all our relationships are important and integral to our growth so we want to thank our customers, vendors, partners, shareholders and all the stakeholders that continue to support us on our journey.
GTX owns and licenses more than 85 patents, is a U.S. military contractor and has multiple consumer products in the market place, all available on its online store, Amazon and authorized resellers and distributors across the globe.