The Guitammer Company Announces Third Quarter 2015 Financial Results

WESTERVILLE, OH--(Marketwired - Nov 13, 2015) -  The Guitammer Company (OTCQB: GTMM), the leader in haptic-tactile 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 its results for the third quarter ended September 30, 2015.

2015 Third Quarter Financial Highlights and Selected Recent Developments

• For the 3 months ended September 30, 2015, revenue increase $267,741 or 193%, to $406,631, compared to revenue of $138,890 for the three months ended September 30, 2014. 
  
  
• For the 9 months ended September 30, 2015, revenue increased $654,436 or 103%, to $1,288,225, compared to revenue of $633,789 for the nine months ended September 30, 2014. 
  
  
• Gross margin percentage increased to 49% for the three months ended September 30, 2015; up from 45% for the three months ended September 30, 2014. 
  
  
• For the 9 months ended September 30, 2015, our gross margin percentage increased to 48%; up from 46% for the 9 months ended September 30, 2014. 
  
  
• Sales to cinemas significantly increase as Guitammer receives purchase orders and forecasts for a total of 27 new cinemas for delivery in Q4 2015 and FY 2016 from AMC Theatres, Regal Entertainment Group and Lumiere Pavilions' (China).
  
  
• These new cinemas represent approximately 5,400 new ButtKicker enabled seats and will more than double our US footprint of ButtKicker enabled cinemas.

Commenting regarding the Quarter's results, Richard Conn, CFO of Guitammer, said, "through nine months of 2015, we have seen a sharp rise in our revenue as a direct result of increased cinema installations and having adequate inventory levels to enable us to meet customer demand. Late in 2014, we entered into a joint venture agreement that created LFT Manufacturing. LFT Manufacturing's ability to provide us with key inventory items has proven critical in increasing revenue and meeting customer demand."

Mark A. Luden, President of Guitammer, said, "In addition to the overall sales increase we are very pleased with the accelerating pace of adoption of our products in the cinema market, esp. with the US largest and second largest exhibitors. When these new cinemas are active we anticipate more than 2mil movie goers per year in the US will experience a movie enhanced by our "4D Cinema powered by ButtKicker" technology. Additionally our efforts to further deploy and commercialize our broadcast technology are on-going and we expect to announce further deployments of our broadcast technology in late Q4 of this year or early Q1 of next year."

About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency audio products and broadcast technology. The Guitammer Company's patented and patent pending broadcast technologies, "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. The technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts. For more information see www.guitammer.com/4Dsports.

The Company's innovative and award-winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass) and are musically accurate, powerful and virtually indestructible. They 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 and are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker". For additional information on The Guitammer Company and detailed product information, visit www.guitammer.com and www.shakemycouch.com . To like our Facebook page or follow us on Twitter for company updates, visit www.facebook.com/TheButtKicker and www.twitter.com/TheButtKicker.

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 -

THE GUITAMMER COMPANY
CONSOLIDATED BALANCE SHEETS
				September 30,				December 31,
				2015				2014
ASSETS
Current assets
	Cash and cash equivalents			$	35,902			$	16,185
	Accounts receivable, net				63,641				25,139
	Inventory				185,789				361,223
	Prepaid expenses and other current assets				131				131
		Total current assets			285,463				402,678
Property and equipment, net					43,007				64,173
Deferred financing costs, net					4,562				25,066
Other assets, net					27,667				29,729
Investment in joint venture					128,336				-
		Total Assets		$	489,035			$	521,646
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
	Line of credit			$	39,523			$	39,523
	Accounts payable				793,703				853,933
	Accrued expenses				512,174				366,938
	Deferred revenue				27,681				36,899
	Current portion of long-term debt - related parties				952,034				604,529
	Current portion of long-term debt - non-related parties				725,074				795,630
		Total current liabilities			3,050,189				2,697,452
Longongoterm debt, net of current portion - related parties					-				340,229
Longongoterm debt, net of current portion - non-related parties					-				-
Total Liabilities					3,050,189				3,037,681
Commitments					-				-
Stockholders' deficit
	Common stock, par value of $.001, 200,000,000 shares authorized; 83,100,498 and 80,000,498 shares issued, and outstanding at September 30, 2015 and December 31, 2014, respectively				83,101				83,001
	Preferred stock, par value of $.001, 1,000,000 shares authorized; 50,000 and 0 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively				50				-
	Additional paid-in capital				8,745,131				7,985,860
	Accumulated deficit				(11,389,436	)			(10,584,896	)
Total Stockholders' deficit					(2,561,154	)			(2,516,035	)
Total Liabilities and Stockholders' deficit				$	489,035			$	521,646

THE GUITAMMER COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
				For the Nine Months Ended
				September 30,
				2015				2014
Total revenue				$	1,288,225			$	633,789
Cost of goods Sold					673,402				342,907
		Gross profit			614,823				290,882
Operating expenses
	General and Administrative				1,219,852				1,102,589
	Research and Development				2,863				10,782
					1,222,715				1,113,371
		Loss from Operations			(607,892	)			(822,489	)
Other Income
	Investment income from joint venture				34,836				-
	Net Interest expense				(215,155	)			(163,493	)
					(180,319	)			(163,493	)
Loss before provision for
		Income taxes			(788,211	)			(985,982	)
Provision for Income taxes					-				-
Loss before dividends on preferred stock					(788,211	)			(985,982	)
Dividends - preferred stock					(16,329	)			-
Net loss available to common stockholders				$	(804,540	)		$	(985,982	)
Basic and diluted loss per share				$	(0.010	)		$	(0.013	)
Basic and diluted weighted average common shares outstanding					83,073,392				78,520,523

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
			September 30,				September 30,
			2015				2014
Net Loss available to common stockholders			$	(804,540	)		$	(985,982	)
Adjustments
	Interest expense			215,173				163,503
	Depreciation and patent amortization			27,119				35,336
	Taxes			-				-
EBITDA				(562,248	)			(787,143	)
Less non-cash expenses from:
Stock warrant expense				(21,768	)			(44,726	)
Payment of stock and warrants to consultants				8,500				66,126
Employee stock options expense				157,421				107,604
Adjusted EBITDA			$	(418,095	)		$	(658,139	)