New Update: GTX Corp. (OTC: GTXO)

New Update: GTX Corp. (OTC: GTXO)

SeeThruEquity Issues Update on GTX Corp.
(OTC: GTXO) Highlighting Deal with Inventergy Global, Inc. (Nasdaq: INVT) and Increasing Price Target to $0.10 Per Share

July 20, 2016

"We note that GTX holds 16 US-issued patents, three US patent applications pending, and also has five combined issued and pending international patents and access to 62 domestic and international patents through a multi-patent licensing agreements.  Importantly the company's recent patently granted patents carry a 2008 priority date, which is significant given that it was early in the evolving landscape of location-based technologies.  The company has pending applications, which means that it can continue to file divisional and/or continuation patents claiming the communications protocol features disclosed in the original filing. GTXO management stated that it will continue to pursue further IP monetization strategies to realize the value of this important asset, which it believes has applicability beyond the core SmartSoles® market and could be applied personal location and communication protocol intellectual property, particularly in light of the rapid growth of wearable technology devices in the market today.   We look forward to following the company's progress in this area," stated Ajay Tandon, CEO of SeeThruEquity. "We are therefore increasing our 12-month price target to $0.10 per share."

Additional highlights from the report are as follows:

Inventergy deal first step towards patent monetization
We have highlighted GTXO's IP portfolio several times in our coverage of GTXO as a potential source of hidden value, and we were pleased to see the company close on a deal with technology patent specialist Inventergy Global, Inc. (Nasdaq: INVT) to monetize only three of their key patents in their portfolio. The deal with experienced IP specialist Inventergy both serves to validate GTX's claims about the strategic nature of its IP in the industry while advancing the path to monetizing these assets.   In the deal Inventergy will seek to license or GTX's "Comm. Protocol" or "286" patent Family, which apply to remotely configurable tracking and location devices including smartphones and other GPS based products, representing what Inventergy CEO Joe Beyers described as a "a very sizable addressable market."  As part of the agreement, GTXO will received cash and stock payments from Inventergy in addition to a 45 / 55 share in any licenses or sales of the IP.

Distribution continues to expand at home and abroad
We were pleased to see GTXO announce a new distribution deal with RACO Industries, a GPS application solutions integrator located in Cincinnati, OH.   In our view the most important business initiative for GTXO over the next twelve months should be to drive market penetration of its GPS SmartSoles® in order to begin scaling its subscriber base.  The RACO agreement promises to do just this, as RACO was granted the exclusive rights to distribute GTXO's GPS SmartSoles® to the location-based services industry in the US in exchange for committing to purchase 15,000 units over the next three years.   The 15,000 unit commitment is a substantial figure for GTXO, which had 2,000 subscribers across all of its platforms at the end of 2015.  In addition to monies received for unit sales, the most important component of GTXO revenues as the business scales is monthly / quarterly subscription fees, which can range from $5 to as much as $49, depending on the service package.  If RACO is able to convert the minimum unit purchase commitment of 15,000 units into new subscribers, this deal has the potential to accelerate recurring subscription revenues for the company.

GTXO also announced two new distribution partners in the UK, tellmenow.com, on-line healthcare technology specialist focused on helping the elderly live independently in their own homes, and Possum Ltd, a provider of Electronic Assistive Technology in the UK.  The UK is a strategic market for GTXO, as it is expected to have 1mn people living with dementia by 2020E.

Increasing price target to $0.10
We are increasing our price target to $0.10 for GTXO as the company appears to have made progress showing the potential value of its IP assets as well as making inroads with major institutions such as RACO Industries where GTXO has received minimum purchase commitments for 15,000 GPS SmartSole® unit sales, which increases our overall confidence in GTX. If achieved, the target represents a potential market capitalization of $38.9mn and potential upside of 900% from of $0.01.

Click here for the entire press release:  GTXO Press Release
Click here for the update note:     GTXO Update