NEW YORK, NY / CRWEPRESSRELEASE / September 10, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage of SeeThruEquity Initiates Coverage on GTX Corp. (OTCMKTS:GTXO) with a Price Target of $0.09.
The report is available here: GTXO Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Headquartered in Los Angeles, CA GTXO is focused on providing innovative, wearable technology solutions in the personal location services marketplace using 2-way GPS tracking technology. Through two subsidiaries, GTX California and LOCiMOBILE, the company has developed an innovative line of products targeting the consumer, e-Health and enterprises market with wide-reaching potential applications in the fast-growing, multi-billion dollar wearable technology and personalized location markets. We see several potential growth drivers for GTXO over the next 12-18 months, as the company appears to be gaining traction with the commercial launch of its well-conceived GPS SmartSole(R) platform. The SmartSole(R) platform employs proprietary technology and a subtle design to empower people with cognitive memory disorders to remain active without the fear of endangering themselves or alarming their caregivers. SmartSole(R) is a best in class solution designed to assist caregivers of potential wanderers, including those suffering from Alzheimer’s, dementia, autism and special needs teens / adults. In just the first six months since its commercial launch, GTXO already has more than half a dozen regional sales reps, 150 online affiliates, and 17 international distributors selling the product in over 20 countries. The company also has a growing stable of athlete endorsements and brand ambassadors including several current and former NFL players concerned about cognitive health, such former NFL All-Pro running back Clinton Portis and Miami Dolphins offensive tackle Jason Fox, among others.
“The SmartSole(R) has several attractive features purpose built to assist in the caretaking of people at risk of wandering, including a rechargeable battery with battery life of up to five days as well as web-based tracking, real time GPS tracking, and email / SMS alerts. Additionally, the product offers several clear benefits to alternatives like bracelets, including a more subtle interface causing less anxiety for the wearer, decreasing the likelihood of it being left behind, lost, or intentionally taken off. We expect the company to introduce a second-generation product during 2015E with more features and longer battery life. GXTO is also following this product with a lower-cost Bluetooth Low Energy (BLE) version, which is intended for indoor use and syncs with WIFI and Bluetooth devices. With its low energy design the BLE embedded insoles do not require recharging and can last for 12 – 18 months. The BLE SmartSole(R) retails for $49 and requires users to sign up for a monthly service plan beginning at $2/month,” stated Ajay Tandon, CEO of SeeThruEquity. “We are initiating coverage with a 12-month price target of $0.09 per share.”
Additional highlights from the report are as follows:
Strong initial traction for GPS SmartSole(R)
We expect 2015 to be a year of building a platform for robust growth in 2016E, with top line expansion driven by its flagship GPS SmartSole(R) product line, which has an attractive subscription-based recurring revenue model after the initial sale. The product launched in January 2015, and experienced strong initial sales in the first half of 2015 (1H15). Initially retailing for $299 with an activation fee and required monthly recurring subscription plans that range from $25 – $50, the GPS SmartSole(R) is an award winning wearable technology product that features a miniaturized GPS tracking device embedded in shoe insoles. GTXO reported strong initial sales traction for GPS SmartSole(R), which was featured in the AARP Top Ten New Technology Review, and has participated in nearly 40 SmartSole(R) pilot programs with health, government, law enforcement and commercial organizations in more than a dozen countries in North America, Europe, Latin America and Asia Pacific. GTXO began commercial shipments in January 2015, selling out its initial inventory run during the quarter while generating 1H15 sales growth of 396% over 1H14. 2Q15 revenue was driven by product sales, and subscribers increased by 72% sequentially with subscriber revenue growing a remarkable 136% over 1Q15. We expect the company to generate recurring long-term value through a high margin subscription model.
Large market potential in caregiver and family market
According to research firm IDC, the worldwide wearable technology market is forecast to increase by 133% in 2015, expanding rapidly thereafter to reach 126.1mn annual units shipped by 2019, representing a compounded annual growth rate of 45.1%. While much of the attention given to wearable technology has been focused on consumer applications such as fitness fad FitBit and high profile consumer initiatives from Google and Apple, we see health and caregiving applications as being well positioned to benefit from growing adoption of wearable technology. Indeed, IMS Research projects that at least half of all wearable technology sales will be in the form of wearable medical devices. Further, according to the World Alzheimer’s Report, over 100mn people globally require oversight due to memory impairment – with 60% of this population already having been lost at least once. In our view this represents a large opportunity for location tracking / monitoring applications such as GTXO’s GPS SmartSole(R) platform.
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About GTX Corp
GTX Corp (GTXO) is a holding company that owns and operates two subsidiaries engaged in the IoT and wearable technology business. GTX was founded in 2002, became publicly traded in 2008, and is headquartered in Los Angeles, California, with a European distribution and fulfilment center in Ireland / U.K. and international reseller/distributors in Canada, Mexico, Australia, Nepal, Italy, Switzerland, Austria, Sweden, Norway, The Netherlands and Finland that service customers in over 20 countries. And a proud member of the United Nations Global Compact.
Known for its game-changing and award-winning patented GPS Smart Shoe, block buster Smartphone GPS Tracking App, and GPS SmartSole®, GTX provides a global monitoring platform and solutions that answer the “where is” question: where is my mother, child, employee, pet, vehicle and high value asset.
Through a robust enterprise licensing, subscription business model the Company offers a complete end to end solution of location based hardware, middleware, apps, connectivity and professional services. Letting you know where or how someone or something is at the touch of a button, delivering security and peace of mind in an instant. GTX Corp also owns and operates LOCiMOBILE, Inc., which develops applications for smartphones and tablets and Code Amber Alertag. The Company has a comprehensive intellectual property strategy and owns an extensive portfolio of patents, patents pending, registered trademarks, copyrights and URLs.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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