GEX Consulting Inc (OTCMKTS: GXXM) Breaks North as Accumulation Rises, Dilution Slows and Equity Investments Soar
GEX Consulting Inc (OTCMKTS: GXXM) has moved steadily north over the past few weeks since reversing lows of $0.014. The stock has a runner in its blood that has soared from current levels at $0.18 per share this time last year. Currently in the process of accumulation, GXXM has made several timely investments that report to the company. They own 9 million GOATX tokens which are worth next to nothing. They own 1 million shares of DLYP (OTC: $0.97 per share) valued at $970,000 and 10 million shares of MMM currently valued at $2.4 million from $1 million two years ago. weeks.
GXXM is an SEC filer but has fallen behind in its late filings on its 10Q and 10K. The Company has also not updated their website and their security features are outdated. GXXM’s last quarterly report was filed on November 22, 2021. This resulted in a “limited pink” designation “Delinquent SEC Reporting” from OTCMarkets. While GXXM may be a little behind in their filings, we’ve seen 10 times worse, at least they’re an SEC filer and they filed an NT-10Q Late Filing Notice on May 16, 2022. According to their last deposit, GXXM currently receives a minimum of $100,000/month for technology support.
GEX Consulting Inc (OTCMKTS: GXXM) operating out of Dallas, Texas, is a licensed professional services, staffing, and Professional Employer Organization (PEO) firm that provides strategy consulting, staffing, and comprehensive back-office and from PEO to clients in various industries. GEX’s management services include staffing, HR, payroll, risk and compliance, and strategy consulting, and provide progressive, comprehensive solutions for employee management and operational needs.
GEX Management began operations as a professional services company providing back-office support to third-party clients. In 2016, GEX Management overhauled its business model to provide staffing and back-office services to a wide variety of industries to expand the company’s footprint, building on the previous 12 years of exceptional customer service. Over the following years, GEX Management experienced phenomenal growth in sales and client pipeline – recruitment activity increased by over 1600%+ from 2016 to 2017, with the company being named one of the “public companies at the fastest growing in the North Texas region” by the Dallas Morning News, while significantly expanding its client footprint through multiple recruiting, business consulting and PEO opportunities.
In 2019, the current management of GEX under the current CEO, Sri Vanamali, set strategic goals to revise the business model to expand into higher margin and growth areas, especially in the area of technology and strategy consulting services. As a result of management’s efforts, GEX Management was invited in February 2019 to be a preferred supplier to Insight Global, one of the world’s largest Managed Service Providers (MSPs) for Fortune 100 companies in the field of business technology consulting. The first consultant GEX hired under this Preferred Supplier initiative was successfully placed with a major PA-based financial services firm to provide professional business analysis and quality services to the client. Subsequently, GEX placed its second enterprise consultant with the world’s first Fortune 100 CRM company at its headquarters in San Francisco, and then several highly skilled enterprise technology consultants with major retail clients. , healthcare, manufacturing and technology Fortune 500 across the country. As a direct result of strong market demand for experienced technology consultants through its multiple vendor programs, the GEX team has interviewed and is in the process of recruiting 45 highly experienced enterprise technology consultants with expertise across a wide range of functions (enterprise architects, project managers, systems integration developers, quality assurance specialists and business systems analysts) which have been identified for various short and long term projects and which should be fully staffed in personnel by its corporate clients by Q4 2021. Additionally, GEX plans to hire and place over 100 corporate consultants over the next 18-24 months to satisfy its growing pipeline of future contracts. As a result of these market initiatives, GEX expects to potentially reach approximately $20-25 million in Gross Billings over the next 18-24 month period, assuming all anticipated contracts are fully awarded on projects. currently identified through the GEX Supplier Program pipeline. and businesses begin to reopen as pandemic restrictions are lifted.
— TickerTawk (@tickertawk) May 26, 2022
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In addition to these planned strategic growth initiatives which had begun to gain momentum in 2019 and are expected to gain momentum in 2021 and beyond, management has focused on significantly improving its balance sheet by significantly reducing or eliminating debt or debt-like instruments related to convertible notes and asset-based liens introduced in 2018 while simultaneously exploring opportunities to reduce or eliminate toxic high-interest MCA-related debt instruments which resulted in significant interest expense for the business and a burden on working capital. As part of this balance sheet “clean-up” initiative, on February 8, 2019, GEXM and the G&C LLC family signed a “deed in lieu of foreclosure” agreement, the terms of which would allow GEXM to release ownership of the building from Arkansas under AMAST LLC to the G&C Family Group, LLC in exchange for the cancellation of the $1,300,000 real estate lien note secured by the building together with all accrued interest payable on the note as of the date of the ‘OK. Additionally, on March 5, 2019, one of GEX’s promissory note holders proceeded to enforce his rights to assert liens on Setco’s property through a foreclosure process that led the note holder to take possession of the property from Setco, resulting in the elimination of a $500,000 lien note and any accrued interest on the principal amount and the elimination of the Setco real estate lien note of 1 $125,000 made to Setco plus all accrued interest from the company’s books.
Additionally, GEX was able to significantly reduce overall debt and debt-like instruments on the balance sheet through strategic conversions of convertible bonds into common stock initiated by convertible bond issuers throughout 2019 and 2020. and the settlement or elimination of certain MCAs and debt-like instruments. . This focus on cleaning up the balance sheet and remaining significantly asset-lite should deliver meaningful results by Q4 2021, when GEX would be primed for its next phase of strategic growth initiatives in deploying non-toxic equity and debt instruments towards organic and inorganic opportunities. Finally, management believes that the significant elimination of MCA and related debt instruments will be an essential first step before rebuilding a robust revenue pipeline, as this will require strong working capital and favorable leverage covenants to support operations. long-term as well as reduce the liabilities related to the attachment to future receivables. While management’s efforts to settle these instruments are aggressively underway, the company’s inability or failure to fully address any toxic debt instruments could cause management to pursue a restructuring program or similar initiatives to bring the balance sheet within reasonable commitment parameters to allow the business to continue to operate effectively in the years to come without exposing future clients to significant business risks associated with these toxic instruments. As part of this long-term strategy, management has already begun to put in place processes to protect the business through a robust internal restructuring program and will announce the outcome of these intra-company restructuring efforts that will protect the interests of investors and shareholders. term and streamline the corporate structure to be in synergy with management’s long-term vision for the business.
GXXM’s last press release dates back to January 12, 2022 when the company announced that it had signed a “white label” license with BCII Enterprises Inc. to allow that company to use GXXM’s DeFi Protocol technology. GXXM received 10 million common shares of BCII as compensation.
Mr. Joseph Frontiere (CEO of GXXM), said, “This is another example of how GXXM’s in-house technology and team can become revenue generators. Recently, the company received 10 million shares of Quad M Solutions Inc. (MMMM: OTCPK) and a minimum of $100,000/month for technology support. Earlier last year, GXXM also received 1 million common shares from Dais Corporation to provide funding and future technical assistance. We expect to conclude several other agreements in the near future. We expect these equity positions to continue to grow and add to our true underlying value. Currently, they represent more than 10 million dollars in value. The company will also benefit from the movement of almost 9 million GOATX tokens when this utility token starts trading in the short term.
Rose Above Upper Bollinger Band today: $GXXM … https://t.co/fm4i3ib54Q
—SwingTradeBot OTC (@SwingTradeOTC) May 25, 2022
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Currently trading at a market valuation of $5M GXXM has more than $4 million in liabilities, including some convertibles, which has resulted in dilution with the OS that has nearly doubled in the past few months – hence the stock price drop of 0, $18 to less than a penny. This dilution may have cleared up as the stock is finding more buyers than sellers at current levels and has risen steadily recently, topping a dime. According to their latest 10th quarter, the company had revenue of $970,000 for the 9 months ended September 30, 2021, surpassing $280,000 in sales in its latest reported quarter. Like their capital position in MMMM has swelled in recent weeks, penny stock speculators have taken over GXXM and are accumulate at current levels. We’ll update GXXM when more details emerge, so make sure you’re subscribed to Microcapdaily so you know what’s going on with GXXM.
Disclosure: We don’t hold any positions in GXXM, long or short, and we weren’t compensated for this article.