WESTERVILLE, OH--(Marketwired - Nov 14, 2013) - The Guitammer Company (
2013 Third Quarter Financial Highlights and Selected Recent Developments
- Successful testing and launch of the first ever tactile enhanced broadcast. The National Hot Rod Association's (NHRA) broadcasts have been aired in"4D" nationally on ESPN2 since September 14, 2013.
- Cinema installations and footprint significantly accelerated with the addition of 3,100 new ButtKicker enabled "4D" movie theater seats in 18 auditoriums in the US, Hong Kong and Mainland China, representing a 73% US increase and a 58% China increase and the first ever Hong Kong installation.
- Private placement equity investment totals of $325,000 since the second quarter and $1,100,000 year-to-date.
- Decreased interest expense of approximately $28,000 (more than 37%) for the three months ending 9/30/2013 compared to the three months ending 9/30/2012 and approximately $63,400 (30%) for the first nine months of 2013 compared to the first nine months of 2012.
- Secured purchase orders for ButtKicker brand hardware in excess of $260,000 during the third quarter; product began shipping in the fourth quarter due to cinema owners' installation schedules.
- Revenue decreased $208,053 or 37.5%, to $347,062 for the three months ended September 30, 2013, compared to revenue of $555,115 for the three months ended September 30, 2012.
- Through the nine months ending September 30, 2013, revenue decreased 20% in comparison to the nine months ending September 30, 2012, to $1,300,671
Recent Developments for Guitammer's Patented "4D Sports powered by ButtKicker" Broadcast Technology
During the third quarter the Company entered into the "Broadcast Technology and Promotional Rights Agreement" with the National Hot Rod Association (NHRA) to tactilely enhance their ESPN2 broadcasts. After successfully testing the technology, the NHRA's September 14th, 2013 Sunday Final show was the first ever to be broadcast using Guitammer's tactile broadcast technology. Since the September launch, all of the NHRA telecasts have been "4D Sports powered by ButtKicker" broadcasts.
As stated in the October 2, 2013 press release announcement, Mark A. Luden, President of Guitammer stated, "We believe this is a significant milestone in our efforts to commercialize our broadcast technology. The NHRA is an ideal starting point for us and we are very committed to giving them new ways to bring the thrill of live racing right to the fans' homes. What we are doing is analogous to the in-car cameras that are now used to allow fans to see the drivers as they race, and to let fans see what the drivers see. We are putting sensors on the cars; sensors that capture the actual vibration the driver and fans feels and that feeling -- the tactile enhancement -- live and in real time -- is added by ESPN to their broadcast. It's pretty amazing when you think about it, we have our "4D Sports" truck in the TV compound that receives the tactile signal from the race cars almost one half a mile away while they traveling at upwards of 300+ mph with 10,000 horsepower and then we 'hand' that tactile signal to the ESPN production team to be incorporated as they see fit into their broadcast." To learn more about the Company's broadcast technology including a "Making of Tactile Broadcasting" video and the Company's ESPN TV commercials, visit www.guitammer.com/4Dsports.
Recent Developments for Worldwide Cinema Sales
During the quarter the Company secured purchase orders for its ButtKicker brand low frequency transducers for 18 movie theater auditoriums totaling approximately 3,100 "4D powered ButtKicker" seats. The orders are from a major U.S. movie theater chain; for a large theater complex in Hong Kong and for six more auditoriums in five cities in mainland China with Sichuan Lumière Cinema Co. Ltd. (Lumière Pavilions) of Beijing, China.
These installations represent a substantial increase of the Company's "4D" deployment in cinema complexes, especially in the U.S. With approximately 1,500 seats already installed domestically, the new orders for 1,100 seats represent more than a 73% increase. In mainland China, the new orders will increase its Lumiere deployment to 16 auditoriums and over 3,000 seats, which equates to nearly a 58% increase over the existing base of 1,900 seats. The Hong Kong theater complex will feature seven of its auditoriums that will have 850 "4D" ButtKicker enabled seats and it is the Company's first Hong Kong cinema installation. Worldwide, these new orders will bring the total number of installations cinema and entertainment venue installations of Guitammer's technology to over 13,000 seats in more than 100 venues in 12 countries.
Addressing the decrease in Q3 revenues, Luden stated, "Even though we spent considerable time and effort implementing and beginning to commercialize our patented tactile broadcast technology for the ESPN2 broadcasts of the NHRA, had we been able to ship the more than $260,000 of movie theater orders we received in the quarter, our net revenue would have shown a more than 10% increase compared to the third quarter of 2012 and year-to-date our sales would have been almost the same as 2012.
The Company's recently successful tactile enhancement of the NHRA on ESPN2 is leading to growing awareness of our technology. Taken with the significantly increased number of ButtKicker enabled movie theater seats, we believe these developments bode well for increased demand of our core ButtKicker®-brand hardware business and pave the way for near- to mid-term further adoption and implementation of our tactile broadcast technology."
About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency sound products and broadcast technology. The Guitammer Company's patented broadcast technology "ButtKicker Live!® or "4D Sports powered by ButtKicker" is now live on ESPN2 for the National Hot Rod Association (NHRA) broadcasts. "4D Sports powered by ButtKicker" enables the excitement, impact and feeling of live sporting events to be broadcast along with the sound and video, and puts the viewer into the action, whether at home or at the event. "4D Sports powered by ButtKicker" technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts. For more information see www.guitammer.com/4Dsports. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company.
The Company's innovative and award-winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass). ButtKicker brand products are used around the world by leading entertainment and theater companies such as Alamo Drafthouse, IMAX, Disney and Lumiere Pavilions in movie theaters and attractions; by world-famous musicians; and in home theaters, by consumers for video games, simulators and car audio. ButtKicker brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker." ButtKicker brand products' patented design makes them musically accurate, powerful and virtually indestructible.
This letter contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.
|THE GUITAMMER COMPANY |
CONSOLIDATED BALANCE SHEETS
|September 30,||December 31,|
|Cash and cash equivalents||$||146,469||$||79,136|
|Accounts receivable, net||58,039||21,011|
|Prepaid expenses and other current assets||28,277||131,639|
|Total current assets||708,665||861,037|
|Property and equipment, net||128,452||12,208|
|Deferred financing costs, net||43,336||58,336|
|Other assets, net||23,299||28,780|
|LIABILITIES AND STOCKHOLDERS' DEFICIT|
|Line of credit||$||39,523||$||39,523|
|Current portion of long-term debt - related parties||834,352||517,124|
|Current portion of long-term debt - non-related parties||558,499||554,124|
|Total current liabilities||2,479,244||2,441,655|
|Long-term debt, net of current portion - related parties||-||317,348|
|Long-term debt, net of current portion - non-related parties||325,280||391,018|
|Common stock, par value of $.001, 150,000,000 shares authorized; 75,248,998 and 68,779,482 shares issued, and outstanding at June 30, 2013 and December 31, 2012, respectively||76,780||68,780|
|Additional paid-in capital||7,032,768||5,641,492|
|Total Stockholders' deficit||(1,900,772||)||(2,189,660||)|
|Total Liabilities and Stockholders' deficit||$||903,752||$||960,361|
|THE GUITAMMER COMPANY|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|For the Three Months Ended||For the Nine Months Ended|
|September 30,||September 30,|
|Cost of goods Sold||229,751||329,965||780,706||951,453|
|General and Administrative||419,107||409,024||1,287,742||1,231,665|
|Research and Development||171,939||2,850||195,556||75,191|
|Loss from Operations||(473,735||)||(186,724||)||(963,333||)||(630,223||)|
|Loss before provision for|
|Provision for Income taxes||-||-||-||-|
|Basic and diluted loss per share||$||(0.007||)||$||(0.004||)||$||(0.015||)||$||(0.013||)|
|Basic and diluted weighted average common shares outstanding||75,732,015||66,626,004||72,432,878||63,659,512|