News Item

GTX Corp Reports Third Quarter 2019 Financial Results and Corporate Summary Update

LOS ANGELES, CALIFORNIA, November 18, 2019 GTX Corp (OTCQB: GTXO) (“the Company”), a pioneer in the field of wearable GPS, people and asset tracking Location-Based Services (LBS) and Real-Time Location Systems (RTLS), today announced a summary for the Third Quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights:

Revenues for the
three months ended September 30, 2019 were approximately $340,000 compared to
approximately $195,000 for the comparable period in the prior year for an
increase of approximately $145,000, or 74%.

Gross Profit Margin for
the three months ended September 30, 2019 was 89% compared to 77% for the three
months ended September 30, 2018. This increase in margin is primarily due to the
increase in higher margin IP licensing, Professional Services and subscription
revenue during these periods.

Income from Operations for the three months ended September 30, 2019 was $73k
as compared to ($227k) for the comparable period in the prior year.

  • Total Revenue increased 74% over comparable 2018 period
  • IP Revenue increased 215% over comparable 2018 period
  • G&A decreased 33% over comparable 2018 period
  • Derivative and Amortization Expenses decreased 100% over comparable 2018 period
  • No Dilutive Financing

Nine
Month Financial Highlights

  • Overall Revenue
    increased 116% over 2018 comparable period
  • IP Licensing revenue increased 1,852%
    from 2018
  • G&A decreased 21% from 2018
  • Gross Margin, increased from 73% to 89%
  • Amortization Expenses decreased 95%
  • Income from operations was $67,000 as
    compared to ($628,000) for the comparable previous period for a 111% decrease
    in losses
  • No Dilutive Financing

Third Quarter 2019 Business Highlights and Developments

  • Ongoing execution of the sale and licensing of GPS assets and Intellectual Property to Inpixon ( NASDAQ: INPX)
  • Expanded GPS SmartSole distribution across Europe
  • Overall Subscribers increased 11% over 2018 comparable period
  • International Subscribers increased 37% over 2018 comparable period
  • Increased IP revenues by 215% – Signed 6 patent license agreements in Q3
  • NFC pilot programs
  • Started development on next generation CAT M1

Management commentary: Patrick
Bertagna, GTX Corp CEO.

Revenues as a whole in Q3 2019 increased by 74% in comparison to
Q3 2018. In all the metrics we measure – revenues, profit margins and
subscribers we saw increases, while our SG&A and net losses decreased. Increasing revenues
and profit margins while lowering expenses and driving towards profitability
has been our goal all year as we saw revenues approach $1.3 million in the
first 9 months of 2019.

The IP licensing
part of our business gained momentum in the third quarter and were up 215% from
the same period in 2018. During the first three quarters ending September 30,
2019 the Company and the Inventergy, LLC signed twelve license agreements,
starting with four during the first quarter of 2019, two during the second
quarter and six in the third quarter, these twelve non-exclusive license
agreements have generated approximately $732,000 in top line, high margin income,
a 1,852% increase over the comparable period in 2018. As we continue
negotiations with other companies, we remain confident that we will sign more
agreements this year.

In addition to an
increase in IP licensing, our B2B business, which represented approximately 33%
of our total third quarter revenues had an 50% increase over the comparable
period in 2018, our military business also had a slight increase over the same
period in 2018, we saw an overall 11% increase in total subscribers with a 37%
increase in international subscribers compared to the same period in 2018,
however our B2C SmartSole product sales saw a slight decline of 8% over the
same period in 2018. We did not allocate a lot of resources in B2C advertising
or social media promotion this quarter which may have been a contributing
factor.

Coming off a
strong second quarter, we took the opportunity to invest in our future, by
ramping up our NFC development projects, whereby we are integrating our NFC
tags with Blockchain technology and started developing a secured, scalable
middleware layer that sits in-between our NFC hardware devices and third-party
backend platforms. We are now working with several partners that provide various
vertical specific Blockchain, IoT and AI backend platforms and need a secure
and seamless flow of data from hardware to the cloud. With our partners we
expect to begin pilots of our VeriTap middleware layer in the coming weeks and
launch in early 2020. This middleware is industry agnostic and is designed to
help drive NFC hardware business and other IoT device sales across numerous
vertical and geographical markets.

We also
continued testing our Near Field Communication (NFC) Temperature Trackers,
which provide real-time temperature sensing and
data logging across the supply chain necessary for transportation compliance of
perishables; food, drinks, pharmaceuticals and other temperature sensitive
products that can be negatively affected by conditions in transit. In
addition to temperature sensing we are looking into NFC tags that can
authenticate products, addressing the multibillion dollar worldwide counterfeit
market.

We also started
working on a next generation miniaturized GPS tracking device, utilizing a host
of new technologies, including, CatM1, NB-IoT, and enhanced Wifi, and
Bluetooth, for better accuracy, faster location requests and less power
consumption. We are encouraged by early tests which indicate we may achieve
over 1 week battery life in-between charges. This new hardware platform will be
small enough to be embedded into our line of wearable technology and also offered
as a licensed OEM hardware platform in order to increase non SmartSole hardware
sales. We expect to have prototypes by end of year and go into certification
and production in early 2020.

During the
quarter ending September 30, 2019 we also took the opportunity to work on our
balance sheet, by paying down some long term debt and accounts payable. In
addition, as part of an overall plan to lower expenses and driving
profitability, we repatriated 36 million shares of management stock which was
part of a three-year employee retention plan. All non-vested shares were
returned to treasury and thereby reducing our outstanding share count and
non-cash expenses by approximately $90,000 per quarter over the next eight
quarters. The board is evaluating new less costly employee stock option plans
(ESOP) and intends to select a new plan by the end of the year. Adding to our
ongoing effort to enhance our balance sheet, the Company did not take on any
new convertible debt making this the 4th quarter in a row of no new
convertible debt.

On June 27th
2019, the Company closed an IP licensing and asset sale transaction with
Inpixon (NASDAQ: INPX). As part of the transaction we were paid in cash and
stock, however the Inpixon stock has decreased in value since the close of the
transaction, which contributed to a $518k non-cash adjustment this quarter
which resulted in the Company not being able to recognize its second quarterly
profit in a row. For further information please refer to our 10Q filings
available online.

In summary we expect these fundamental
building blocks to position the Company for growth in 2020. As we have pointed out in previous summaries, management is
focused on building high-margin, recurring revenues
from service subscriptions, IP licensing, professional services and introducing
to the market place new innovative products and solutions that produce a
positive impact on society.

GTX Corp is a For-Profit with Purpose Company which
has an extensive patent portfolio, is 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 (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, BLE and NFC 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 U.S. Military Government contractor. Other customers include public health agencies 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 U.S. 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.

Online: www.gtxcorp.com             Track My Workforce | GTX Corp                        www.gpssmartsole.com

Social media – #withyou #smartsole #connectedandprotected #trackwhatyoulove facebook.com/gtxcorpcom

GTX Blog http://gtxcorp.com/press/

www.linkedin.com/in/gtxcorp

http://www.pinterest.com/GTXCorp/

http://instagram.com/gtxcorp

General information, investor relations, wholesale
licensing, consumer purchase:

213.489.3019

info@gtxcorp.com

ir@gtxcorp.com

Contact Us

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

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.