• Product sales increased 63% over 2019 comparable period.
• Service income increased 31% over 2019 comparable period.
• Total operating expenses decreased 41% from 2019.
• Loss from Operations decreased 47% from 2019.
• Revenues decreased by 6% over 2019 comparable period, however, Company achieved profitability.

Beginning in the first quarter of 2020, we launched our Health and Safety business unit and introduced to the market place a new patented wearable technology noise reduction system (“NRBz”) designed to protect the wearer from loud background noises, without interfering or drowning out direct verbal communication. We believe NRBz are perfect for military, law enforcement, first responders, hunters, recreational firearms users, oil and gas workers, race car drivers, motorcycle riders and even people with autism. Nearly 30 million people are exposed to dangerous noise in the workplace, costing billions in treatments and lost productivity, while the Veterans Association spends close to $1 billion a year in hearing loss disability payments. NRBz are a natural companion product to many of our safety and monitoring solutions we currently sell through our existing channels as should help open doors into new market segments identified in our strategic roadmap for 2020.

During the first quarter of 2020, following the Sri Lanka government approving their annual budget of $17.5 billion, GTX received an Official Letter and Certificate (registration number F191478) approving GTX as a registered supplier for the year 2019 and 2020 under the Ministry of Defense for categories J6, J28, J29, J44, J57, J70, RS1 and RS2 along with a notice of an initial test order. The order was successfully shipped and processed through their government systems; products are undergoing testing and we expect to receive follow on orders. Subsequently, the Sri Lanka Ministry of Defense has put out a tender for PPE in large quantities, to which GTX is responding.

During the first quarter of 2020, revenues were down by 6% predominately because we did not sign any new IP licensing agreements and did not recognize any revenues from granting intellectual property licenses to companies that are using or want to use our patented technology in the marketplace. We attribute this as a temporary setback due to COVID-19, as many companies, legal teams, and court houses were all beginning to deal with the pandemic and making plans to implement shelter-in-place policies. We expect that as the economy reopens, this segment of our business will slowly reopen as well.

Coming off a strong 2019, 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 devices and third-party backend platforms. We are now working with several partners that provide various vertical specific Blockchain, Internet of Things (“IoT”) and artificial intelligence (“AI”) backend platforms but needed a secure and seamless flow of data from hardware to backend. We expected to begin pilots of our middleware layer in the first quarter of 2020; however, due to COVID-19 many of these pilots were put on hold. As with our IP, we expect this part of our business to resume as the world comes back online. We believe moving forward there will be a greater demand for this technology as the world supply chains recognize the importance of knowing exactly where all products are in real time. We have been in discussions with many of our customers that have shown interest in piloting our track and trace NFC solution - Veritap.

During the first quarter of 2020, we continued development of our next generation miniaturized GPS tracking device, which will utilize a host of new technologies, including CatM1, NB-IoT, enhanced Wi-Fi, and Bluetooth, for better connectivity, accuracy, faster location requests and less power consumption. This new hardware platform will be small enough to be embedded into our line of wearable technology and offered as a licensed hardware platform as well. We had expected to have prototypes and go into certification and production this quarter, however again due to CODVID-19, we experienced some delays. Many of our suppliers and contractors are slowly coming back online and we are starting to resume development efforts and expect to have prototypes and go into certification in the coming months.

As part of our ongoing effort to reduce our debt and clean up our balance sheet, we sold some of our holdings in Inpixon (NASDAQ: INPX). We utilized a portion of the realized capital to pay down some of our long-term debt.

As we continue to navigate in these unprecedented times, ensuring the safety of all of our employees, establishing new social distancing guidelines and policies and working with our partners across the globe to reopen for business, productivity is starting to slowly resume, under a new normal, meaning things are moving but moving slowly. Once we have a better understanding of how our customers and suppliers weathered the pandemic, we will be better equipped to assess the long-term impact, if any. For many, it will be a defining moment in history. For all of us at GTX, amid this worldwide crisis, now more than ever we are embracing our purpose, which is clear and unwavering - we will continue to provide technology to enhance the lives of people in need and solutions for the challenges we face. For more than a decade, GTX has been at the forefront of GPS people and asset tracking, geofencing and monitoring seniors that are in a vulnerable risk group. We have a core understanding of technologies that provide health and safety and we, the GTX family, are fully committed to do our part to push ahead and deliver innovative technologies, products and services that produce a positive impact on society. To all our stakeholders, thank you for your support, stay safe, healthy and practice social distancing.

GTX Corp’s updated, full-line of PPE can be found on GTX Corp’s dedicated website www.gtxmask.com (use promocode ‘open4biz’ and get a discount on your first order).