LOS ANGELES CALIFORNIA, August 18, 2020 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 financial results for the Second Quarter ended June 30, 2020 and provided the following corporate summary.

Second Quarter Financial Highlights (3 months):

Management commentary: Patrick Bertagna, GTX Corp CEO.

COVID-19 had a mixed impact on our second quarter of 2020. Like many companies, we experienced supply chain interruptions, many of our customers and suppliers experienced a slowdown in productivity, and inbound and outbound shipments were delayed. We had our share of local disruptions from lockdowns and new social distancing workplace policies. Our building was closed periodically due to State and City mandated shelter-in-place orders and again during the protests, however despite all of that, we managed to earn a profit for the second quarter in a row in 2020.

Due to our pivot in early March to expand our health and safety product line into the Personal Protective Equipment (“PPE”) business, during the second quarter of 2020, we saw a 399% increase in product sales, added hundreds of new customers, from which we are now seeing close to 40% of them placing reorders and looking into some of the other products and services we offer and we elevated our product and brand awareness in the U.S. across multiple channels. However, our total revenues were lower, a large part of the reduction on a year-over-year basis was attributable to the one-time IP transaction that we closed in the second quarter of 2019, and the fact that IP licensing revenues were down because businesses, law firms and courts were not operating at full capacity during the entire second quarter of 2020. We also had approximately 10% fewer subscriptions due to customers asking for some temporary financial relief. We believe the subscription setbacks and IP campaign will gradually revert to normal as the global economy regains momentum.

Even with all the uncertainty, chaos and panic that ensued in March, we still managed to build out our health and safety business, whereby we sold and donated hundreds of thousands of PPE items to a wide range of entities such as essential businesses, assisted living facilities, pharmacies, Fortune 1,000 companies, hospitals, police departments, nonprofits, and local, state and federal government agencies in every State across the U.S. We launched a PPE specific website www.gtxmask.com, and within weeks, we recognized a greater than 500% increase in website traffic, a 300% increase in consumer orders, a 67% increase in the average size per order and over a 50% increase in the number of items purchased per order. GTX is now well positioned as a trusted health and safety supplier by providing a wide variety of high-quality products, excellent customer service and reliable same or next day shipping, all of which is contributing to an increase in our brand awareness and favorable customer testimonials and reviews. Since we are now addressing a much broader potential customer audience, we started a nationwide advertising campaign, and based on the results so far, we expect to maintain focus on the campaign during the 3rd quarter. We were able to pay for the services with our common stock to preserve our cash for funding our operations and inventory requirements. While we did have some dilution this quarter, we have already paid for our advertising campaign until the end of the year.

We cannot accurately predict how long the PPE business will remain robust, however, based on the current events, we believe it is unlikely to decline this year. The entry into this business has also enabled us to broaden our product line, garner many new customers, all of which we believe has expanded our visibility in the wearable technology GPS tracking space. We are starting to experience cross selling among our product lines and we are seeing a noticeable increase in inquiries from our distributors for wearable tracking and monitoring solutions, which is the cornerstone of our business. We intend to leverage the increase in our brand awareness and expanded product line along with our increased customer base to introduce several new tracking solutions both for people and assets in the coming months.

Overall, during the second quarter of 2020, we had a large increase in product sales, maintained close to 50% profit margin, reduced our expenses by 19%, had over $220k in fully paid inventory at the end of the quarter, while we continued to reduce our debt and clean up our balance sheet.

As we enter our sixth month of unprecedented times, we are cautiously optimistic, seeing encouraging signs, hearing from our European customers that they are almost fully operational and at the same time, many parts of the U.S. and other countries are opening back up for business. But one thing is for certain; there is an exciting demand in the marketplace for innovation and new solutions for tracking and tracing GPS wearable technology, given COVID-19. GTX has been at the forefront of many these innovative technologies, we pivoted early into the PPE business and built an entire new business unit under extremely challenging conditions. We are confident this will strengthen our foundation and continue to push us forward.

For now, we hope all our stakeholders are safe and healthy and we will continue to provide updates through our weekly podcast, press releases and newsletters.

Most widely known for its patented GPS SmartSole and Smartphone GPS Tracking App, GTX also owns and licenses a large portfolio of patents in the GPS and wearable technology space, is a U.S. military contractor, has several other consumer products available on its online store and Amazon and most recently soft launched its new NRBz and NFC Veritap solution. To find out more how you can buy or become an authorized reseller contact info@gtxcorp.com business development.