SOURCE: The Guitammer Company

March 14, 2014 11:25 ET

The Guitammer Company Announces 2013 Financial Results

Company Achieves Key Milestone of Initial "4D powered by ButtKicker" Broadcast With the NHRA on ESPN2; Significantly Increases Deployment of "4D powered by ButtKicker" Cinema Seats

WESTERVILLE, OH--(Marketwired - Mar 14, 2014) - The Guitammer Company (OTCQB: GTMM) (OTCBB: GTMM), a leader in tactile and haptic broadcast technology and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience for audiences announced today that its revenue increased in the 4th quarter ending December 31, 2013 by approximately $111,312 or 23% to $600,337 compared to revenue of $489,025 for the 4th quarter of 2012. Revenue for the entire year ending December 31, 2013 decreased $215,324 or 10.1% to $1,917,300 as compared to revenue of $2,132,624 for the year ended December 31, 2012.

2013 Full Year Financial Highlights and Recent Developments

  • National launch of the patented "4D Sports powered by ButtKicker" tactile enabled broadcast technology for the National Hot Rod Association (NHRA) on ESPN2 telecasts. Debuting with the September 14th, 2013 telecast and then for all subsequent 2013 telecasts.

  • Significant acceleration in worldwide cinema deployment with over 4,000 "4D Cinema powered by ButtKicker" seats added in 22 auditoriums in the US, China and Hong Kong which almost doubled the Company's US footprint and more than doubled the Company's footprint in China & Hong Kong.

  • Cinema deployment included outfitting every seat, totaling approximately 1,100, in all 5 locations of a new concept theater by a US top 4 theater operator.

  • Total revenues decreased 10 percent year-over-year to approximately $1.92 million, primarily due to a decrease in international sales, noted below.

  • US sales increased over 10% to approximately $1,060,000 in 2013 from approximately $960,000 in 2012.

  • International sales decreased to $860,000 in 2013 from approximately $1,170,000 in 2012, primarily due to weakness in sales to the European market and most notably France.

  • Gross margins increased to 42 percent for all of 2013 as compared to 40 percent for all of 2012.

  • Approximately $1.25 million of new equity was raised from private placements in FY2013.

  • Continued trend from 2012 of improving working capital deficit with an improvement of (i.e. a decrease of) $70,000 or 4.4 percent in 2013 as compared to 2012. 

Rich Conn, Guitammer's CFO, stated, "We are pleased with our Q4 2013 results, last year's gross margin, and the fact that we were able to continue to invest in and begin to commercialize our broadcast technology."

Additional Full Year 2013 Recent Developments

"2013 was a pivotal year for Guitammer as we delivered on our promise of broadcasting sports in "4D" on a national basis and significantly increased our "4D" cinema presence, especially in the US market. In 2013 our strategy of building awareness of our scalable and disruptive broadcast technology supported by cinema sales took several important steps forward and we look for that trend to continue in 2014," said Mark A. Luden, Guitammer's President / CEO.

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 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 AMC Theatres, 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. 

For additional information on The Guitammer Company and detailed product information, visit and To like our Facebook page or follow us on Twitter for company updates, visit and

Safe Harbor:
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.

- Financial tables follow -

    December 31,     December 31,  
    2013     2012  
Current assets                
  Cash and cash equivalents   $ 140,231     $ 79,136  
  Accounts receivable, net     62,505       21,011  
  Inventory     443,761       629,251  
  Prepaid expenses and other current assets     6,141       131,639  
    Total current assets     652,638       861,037  
  Property and equipment, net     127,186       12,208  
  Deferred financing costs, net     38,335       58,336  
  Other assets, net     21,472       28,780  
    Total Assets   $ 839,631     $ 960,361  
Current liabilities                
  Line of credit   $ 39,523     $ 39,523  
  Accounts payable     533,438       742,451  
  Accrued expenses     376,188       459,168  
  Deferred revenue     68,823       129,385  
  Current portion of long-term debt - related parties     584,352       517,004  
  Current portion of long-term debt - non-related parties     559,987       554,124  
    Total current liabilities     2,162,311       2,441,655  
Long-term debt, net of current portion - related parties     250,000       317,348  
Long-term debt, net of current portion - non-related parties     302,479       391,018  
Total Liabilities     2,714,790       3,150,021  
Commitments     -       -  
Stockholders' deficit                
  Common stock, par value of $.001, 150,000,000 shares authorized; 77,905,248 and 68,779,482 shares issued, and outstanding at December 31, 2013 and December 31, 2012, respectively     77,906       68,780  
  Additional paidddin capital     7,253,730       5,641,492  
  Accumulated deficit     (9,206,795 )     (7,899,932 )
Total Stockholders' deficit     (1,875,159 )     (2,189,660 )
Total Liabilities and Stockholders' deficit   $ 839,631     $ 960,361  
    Year Ended December 31,  
    2013     2012  
Total revenue   $ 1,917,300     $ 2,132,624  
Cost of Goods Sold     1,106,269       1,282,168  
    Gross profit     811,031       850,456  
Operating expenses                
  General and administrative     1,727,180       1,568,067  
  Research and development     197,006       75,474  
      1,924,186       1,643,541  
    Loss from operations     (1,113,155 )     (793,085 )
Other income (expense)                
  Interest expense     (193,776 )     (278,928 )
  Interest income     68       45  
      (193,708 )     (278,883 )
Loss before provision of income taxes     (1,306,863 )     (1,071,968 )
Provision for income taxes             -  
  Net loss attributable to common stockholders   $ (1,306,863 )   $ (1,071,968 )
Basic and diluted loss per share   $ (0.02 )   $ (0.02 )
Basic and diluted weighted average common shares outstanding     73,712,472       64,861,800  

Reconciliation of U.S. GAAP Net loss to EBITDA and Adjusted EBITDA:

EBITDA is defined as earnings (loss) before net interest expense, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization, stock warrant expense, payment of stock and warrants to consultants and employee stock-based compensation. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with generally accepted accounting principles ("GAAP"), Guitammer believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate meaningful comparison of the results in the current period to those in prior periods and future periods. However, investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining Guitammer's operating performance that is calculated in accordance with GAAP. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure, net loss, follows:

Reconciliation of U.S. GAAP net loss  
To EBITDA and Adjusted EBITDA  
    Year ended December 31,  
    2013     2012  
Net Loss   $ (1,306,863 )   $ (1,071,968 )
  Interest expense     193,776       278,928  
  Depreciation and patent amortization     31,623       12,965  
  Taxes     -       -  
EBITDA     (1,081,464 )     (780,075 )
Less non-cash expenses from:                
Stock warrant expense     (20,441 )     80,141  
Payment of stock and warrants to consultants     184,771       183,239  
Employee stock options expense     153,455       41,002  
Adjusted EBITDA   $ (763,679 )   $ (475,693 )

Contact Information