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The Guitammer Company Announces Second Quarter 2014 Results

August 14, 2014

The Guitammer Company

WESTERVILLE, OH , United States, via ETELIGIS INC., 08/14/2014 - - 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 its results for the second quarter ended June 30, 2014.



2014Second QuarterFinancial Highlights and Selected Recent Developments



-Revenue was $494,902 for the six months ended June 30, 2014, compared to revenue of $953,610 for the six months ended June 30, 2013, a decrease of 48.1%.



-The Companys revenues decreased primarily due to its decision to allocate a relatively greater amount of its resources from working capital related to deliveries of its consumer product to the development of its patented broadcast technology. The Companys backorders at June 30, 2014 wereapproximately $350,000 compared to virtually no backorders at June 30, 2013 and December 31, 2013 respectively.



-Gross margin increasedto 46.3% for the six months ended June 30, 2014from 42.2% for the six months ended June 30, 2013. This represents an increase of almost 10% between these two 6 month time periods.



-The Company expects in the near future to finalize and announce a contract with a regional sports network and an NHL team for the deployment of its haptic-tactile broadcast for the 2014 / 2015 season.



-The Company is currently in the process of raising additional capital led by NobleFinancial Capital Markets.



Richard Conn, CFO of Guitammer, said, As we stated regarding last quarters results, because of our focus on our patented broadcast technology, the Company experienced a shortage of available working capital required to fund certain inventory requirements related to its existing consumer products business and this had a corresponding negative effect on revenues for the quarter. However, we continue to see strong interest in our core business products as evidenced by the size of our backorders and most importantly with the contract we are in the process of finalizing for our broadcast technology. We expect to be able to significantly reduce the sales backorder in the 3rd and 4th quarter of this year.



The Companys efforts to build out and standardize the haptic-tactile broadcast ecosystem continue to gain traction and a larger audience. On April 29thMark A. Luden, President of Guitammershowcased the Companys broadcast technology as part of National Cable and Telecommunications (NCTA) The Cables Show 2014 Imagine Park Beyond Better Television program.



And atthe Society of Motion Picture and Television Engineers (SMPTE) Technology Committees meeting held NHK in Tokyo, JapanJune 2 -6, 2014, Mr.Luden was interviewed regarding haptic-tactile broadcasting and his role as the Coding of Tactile Essence Committee Chair. The NCTA The Cable Show and the SMPTE videos are available at:



http://2014.thecableshow.com/videos/Play/VvNmlwbTosTg5n8q5yqwXQsuviJ4nnzS?i=so1#channel=*&i=so1, and



https://www.youtube.com/watch?v=o0sIAwgrAog&list=UUGWzDvT6KmdSMBRsbcdToSg respectively.



Commenting on the size and potential of the haptic-tactile market, Mr.Luden stated, We see the market for haptic, tactile and motion (immersive) broadcasting increasing greatly in the next two to five years. Literally everything and everyone from your family pet to now NFL players have some kind of sensor on them transmitting all types of information, including location, motion and force, for further use. According to recent studies, this over-the-top content on second screens is seen as an $18billion market. We believe being able to create and standardize the pipe the path from the live event to the end user without regard to what brand or type of end user hardware is used will help drive this multi-billion dollar market and allow Guitammer to reap the ensuing rewards.



Imagine experiencing the action from your favorite players point of view and feeling the intensity of their live game action. This ability to literally be the player is coming very soon.We believe the ability to monetize this valueadded content, by way of micro transactions that literally turn the data feed on or off from a live action sport, will be a tremendous revenue opportunity for all the stakeholders involved the sport, the athletes / teams, the broadcaster and the distribution (cable, FiOS, IPTV) partner.





- financial tables follow



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About The Guitammer Company

The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency sound products and broadcast technology. The Guitammer Companys patented broadcast technology ButtKicker Live! or 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 ButtKickertechnology 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 Companys 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, Pearls 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 www.guitammer.com and www.shakemycouch.com . To like our Facebook page or follow us on Twitter for company updates, visit www.facebook.com/Guitammer and www.twitter.com/Guitammer





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.





For More Information Contact:

Media

The Guitammer Company

(614) 898-9370

media@guitammer.com









SOURCE: The Guitammer Company




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