WESTERVILLE, Ohio, Aug. 24, 2018 (GLOBE NEWSWIRE) -- The purpose of this letter is to provide an update regarding The Guitammer Company (OTC Pink: GTMM), its recent financial results, and our plans going forward, especially in terms of the reporting requirements for a publicly traded company.
For the year ended December 31, 2017, the Company had positive Adjusted EBITDA of $220,773 with sales of $2,422,873. These results were significantly better than 2016, due primarily to an increase in sales in the cinema and gaming/simulation market segments of our business, combined with a full year availability of product from our joint venture manufacturing partner, LFT Manufacturing. Please see our unaudited Statement of Operations (P & L) and Balance Sheet attached to this letter for further financial detail.
Company highlights for FY 2017 include:
- Cinemas sales increased 167% FY ’17 compared to FY ’16 and 412% compared to FY ’15.
- Worldwide cinema sales distribution agreements secured with Ferco Seating, Kotobuki Seating and Moving Image Technologies.
- ButtKicker Gaming product sales increased 246% over FY ’15 on a monthly run rate basis. (Gaming products came back in stock in May of ‘FY17 after being out of stock in early FY’16).
- The Society of Motion Picture and Television Engineers (SMPTE) Standard 2100, “Definition and Representation of Haptic-Tactile Essence” was published. The Standard’s Drafting Group was chaired by Guitammer and this Standard is a significant part of the Company’s efforts to commercialize its patented haptic-tactile broadcasting technology for live sports, eSports and other live events.
For 2018 Guitammer’s focus is to expand the Company’s cinema and gaming/simulation sales and bring to market new products to increase sales in the consumer home theater market. Additionally, we are beginning to realize product sales around the world for location-based Virtual Reality entertainment venues.
We continue to work on standardization efforts for our haptic-tactile broadcast technology and to engage with key strategic partners who will help us bring this game-changing technology to market. We hope and expect to see the fruit of those efforts in 2019 in terms of further deployments and revenue generation.
The Company’s management team, and its Board of Directors own the majority of the Company’s common stock and all of the preferred stock and are committed to growing the business to enhance its value for the sake of all our shareholders. Unfortunately, we have not been able to file the annual 10-K’s and quarterly 10-Qs since the third quarter of FY2016 due to the high cost of the annual audit and reviews as well as the legal and compliance fees. Our stock is thinly and sporadically traded on the Pink Sheets and we do not think it at all reflects the Company value, nor do we see how, at this time, being a SEC reporting company is adding any value to our shareholders. Therefore, after advice from our counsel, we have filed SEC Form 15, “Certification and Notice of Termination of Registration” so that we can invest our capital as well as our management time on business operation related activities. Please note that we expect “GTMM” will continue to be traded on the pink sheets as long as there continues to be willing buyers and sellers. If and when we are able to catch up with our missed Annual and Quarterly Reports those will be published on the SEC’s EDGAR system and we will publish a 2018 Shareholder Letter by March of 2019.
To stay up to date with ButtKicker products and Guitammer we invite you to join our Facebook page at: www.facebook.com/thebuttkicker and to connect with me, Mark Luden, on LinkedIn.
For more information regarding the Company’s “ButtKicker Cinema System” and to find the location nearest you, please visit: www.guitammer.com/theaters.
Further Company information, including video highlights of live haptic-enabled broadcasts for the NHRA on ESPN2 and the San Jose Sharks on Comcast SportsNet can be found at: http://guitammer.com/broadcast-technology
For information regarding ButtKicker brand products for gaming, home theater, simulation, VR, Pro Audio/MI and more, please visit: www.thebuttkicker.com
If you have any questions or concerns, please feel free to reach out to any of us.
Sincerely,
| Mark A. Luden | Lawrence L. Lemoine | Walter Doyle | Ken J. McCaw |
| President/CEO | CFO | Member of Board | Member of Board |
| Member of Board | |||
| THE GUITAMMER COMPANY | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| Unaudited | |||||||
| Year Ended December 31, | |||||||
| 2017 | 2016 | ||||||
| Total revenue | $ | 2,422,874 | $ | 1,211,452 | |||
| Cost of goods sold | 1,355,198 | 698,560 | |||||
| Gross profit | $ | 1,067,676 | $ | 512,892 | |||
| Operating expenses | |||||||
| General and administrative | 1,091,618 | 1,023,982 | |||||
| Research and development | 26,204 | 94,405 | |||||
| $ | 1,117,822 | $ | 1,118,387 | ||||
| Loss from operations | $ | (50,147 | ) | $ | (605,495 | ) | |
| Other income (expense) | |||||||
| Investment income from joint venture | 115,749 | 41,240 | |||||
| Other | 128,919 | - | |||||
| Net Interest expense | (216,281 | ) | (202,853 | ) | |||
| $ | 28,387 | $ | (161,613 | ) | |||
| Loss before provision for income taxes | (21,760 | ) | $ | (767,108 | ) | ||
| Provision for income taxes | - | - | |||||
| Loss before dividends on preferred stock | $ | (21,760 | ) | $ | (767,108 | ) | |
| Dividends - preferred stock | - | - | |||||
| Net loss available to common stockholders | $ | (21,760 | ) | $ | (767,108 | ) | |
| Basic and diluted loss per common share | (0.00 | ) | (0.01 | ) | |||
| Basic and diluted weighted average common shares outstanding | 96,656,230 | 95,109,323 | |||||
| Adjustments: | |||||||
| Interest Expense | 216,281 | 202,853 | |||||
| Depreciation and patent amortization | - | 12,328 | |||||
| Taxes | - | - | |||||
| EBITDA | $ | 194,521 | $ | (551,927 | ) | ||
| Less non cash expenses from: | |||||||
| Stock warrant expense | - | - | |||||
| Payment of stock and warrants to consultants | - | - | |||||
| Employee stock options expense | 26,252 | 13,126 | |||||
| Other income | - | - | |||||
| Adjusted EBITDA | $ | 220,773 | $ | (538,801 | ) | ||
| THE GUITAMMER COMPANY | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (unaudited) | |||||||
| December 31, | December 31, | ||||||
| 2017 | 2016 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | (94,548 | ) | $ | 25,667 | ||
| Accounts receivable, net | 33,161 | 147,812 | |||||
| Inventory | 79,203 | 90,783 | |||||
| Prepaid expenses and other current assets | 131 | 131 | |||||
| Total current assets | $ | 17,947 | $ | 264,393 | |||
| Property and equipment, net | 50,254 | 30,802 | |||||
| Deferred financing costs, net | - | - | |||||
| Other assets | - | - | |||||
| Investment in joint venture | 175,443 | 60,575 | |||||
| Total Assets | $ | 243,644 | $ | 355,770 | |||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||||
| Current liabilities | |||||||
| Line of credit | $ | 39,523 | $ | 39,523 | |||
| Accounts payable | 712,260 | 934,993 | |||||
| Accrued expenses | 845,113 | 674,364 | |||||
| Deferred revenue | 854 | 27,258 | |||||
| Current portion of long-term debt - related parties | 954,529 | 954,529 | |||||
| Current portion of long-term debt - non-related parties | 693,468 | 707,158 | |||||
| Total current liabilities | $ | 3,245,747 | $ | 3,337,825 | |||
| Long-term debt, net of current portion - related parties | - | - | |||||
| Long-term debt, net of current portion - non related parties | - | - | |||||
| Total Liabilities | $ | 3,245,747 | $ | 3,337,825 | |||
| Commitments | - | - | |||||
| Stockholders' deficit | |||||||
| Common stock, par value of $.001, 200,000,000 shares authorized; | |||||||
| 83,343,057 and 83,343,057 shares issued and outstanding at | |||||||
| December 31, 2016 and December 2015, respectively | 96,656 | 95,110 | |||||
| Preferred stock, par value of $.001, 1,000,000 shares authorized; | - | ||||||
| 50,000 and 50,000 shares issued and outstanding at | - | ||||||
| December 31, 2016 and December 31, 2015, respectively | 60 | 50 | |||||
| Additional paid-in capital | 9,468,949 | 9,417,525 | |||||
| Accumulated deficit | (12,567,768 | ) | (12,494,740 | ) | |||
| Total Stockholders' deficit | $ | (3,002,103 | ) | $ | (2,982,055 | ) | |
| Total Liabilities and Stockholders' deficit | $ | 243,644 | $ | 355,770 | |||
| Stockholders' deficit | |||||||
| Common stock, par value of $.001, 200,000,000 shares authorized; | |||||||
| 83,343,057 and 83,343,057 shares issued and outstanding at | |||||||
| December 31, 2016 and December 2015, respectively | 96,656 | 95,110 | |||||
| Preferred stock, par value of $.001, 1,000,000 shares authorized; | |||||||
| 50,000 and 0 shares issued and outstanding at | |||||||
| December 31, 2015 and December 31, 2014, respectively | 60 | 50 | |||||
| Additional paid-in capital | 9,468,949 | 9,417,525 | |||||
| Accumulated deficit | (12,567,768 | ) | (12,494,740 | ) | |||
| Total Stockholders' deficit | $ | (3,002,103 | ) | $ | (2,982,055 | ) | |
| Total Liabilities and Stockholders' deficit | $ | (6,004,206 | ) | $ | (5,964,110 | ) | |
Media
1-614-898-9370
media@guitammer.com