OTCQB: GTMM
A
ny statements in this presentation that are not historical facts are
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. The words "estimate," "expect,"
"anticipate" and other expressions that indicate future events and trends
identify forward-looking statements. These forward-looking statements
are subject to risks and uncertainties and are subject to change based
upon a variety of factors that could cause actual results to differ
materially from those The Guitammer Company anticipates. Factors that
could have a material and adverse impact on actual results are not
disclosed in this presentation.
The Guitammer Company does not undertake any obligation to publicly
update or release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this presentation or to
reflect the occurrence of unanticipated events, except as required by law.
A New Dimension of Excitement
Guitammer’s ButtKicker "4D" experience
adds impact to movies, video games and
soon live broadcast sports!
Live Sports
Video Games
Movies
Home Theater
• Two growth platforms: established core business and emerging
ButtKicker Live!
• Long-term growth opportunities in home entertainment, movie
theater, gaming and musicians/pro audio markets
• ButtKicker Live! broadcast technology is positioned to be the next
TiVo or Slingbox and is analogous to Dolby’s audio patents
• ButtKicker Live! broadcast concept now
being tested in prominent sports arena
and other settings
• Recent private placement raised $2.34
million in growth capital and extinguished
nearly $1.5 million in debt
Core business continues to gain
global traction
• FY’12 revenues increased 64% to
$2.13mil over FY’ 11
• Above industry average 40% gross
margins
• Significantly strengthened balance
sheet positions company for
continued growth
ButtKicker Live! – new disruptive
technology for home broadcast
market
• Distinctive high-margin recurring
revenue opportunity across
multiple channels
• Patents and relationships
establishing attractive competitive
position
• Beginning testing phase with initial
revenues expected in FY’13
• Provides similar entertainment experience at
significantly lower cost than motion-based
competition
• Patented “floating magnetic suspension
system”
• Greater low frequency range than any
competitive device (5-200 Hz) and provides
powerful immersive bass experience for
consumers
• Smooth, accurate musical response without resonant
frequency peaks or hot spots
• Virtually indestructible and maintenance-free due to
superior design characteristics
• Only tactile products designed for mass market consumer
electronics distribution with the
pricing and “all-one-kit” ease of use
appropriate packaging,
HOME THEATERS
GAMING
MUSICIANS/ PRO AUDIO
Consumer
Online Gaming
• Many top drummers and bass
players for famous bands use
ButtKicker branded products
• All-in-one kits
• Add-on accessories and
components
• Point of purchase
packaging
Custom installation
PC Games
Console
• Strategic partnership with Pearl
Drum for "Throne Thumper by
ButtKicker“ – Pearl handling North
America and European
distribution
Source: CEA Market Research (*2012 data projected)
•
Consumer electronics sales exceeds $190
billion in annual wholesale revenues
•
Home theater sales, including home theater
in-a-box (HTIB) system sales, exceed 3 million
units per year
– “Sound bar” sound systems forecast to
top 3 million units per year and have
tripled in unit volume over last 3 years
•
HDTV purchases are averaging almost 32
million units per year in the U.S.
– 72% of households own at least one
HDTV
– 87% of households are projected to have
at least one HDTV by 2012 year-end
Digital Cinema
Screens
Digital 3D
Sites
Screens
3D as % of Total
Sites
Screens
Sites
UK
3,202
660
1,908
505
60%
77%
France
4,030
1,135
2,469
906
61%
80%
Italy
1,807
607
1,108
523
61%
86%
Germany
2,302
747
1,463
648
64%
87%
Spain
1,636
410
917
353
56%
86%
20,486
6,377
12,973
5,364
63%
84%
965
370
785
340
81%
92%
EMEA
21,451
6,747
13,758
5,704
64%
85%
US
27,023
3,132
12,838
2,886
48%
92%
Total Europe
Middle East & Africa
Canada
2,190
392
974
326
44%
83%
North America
29,213
3,524
13,812
3,212
47%
91%
Australia & NZ
1,390
357
870
297
63%
83%
China
9,081
2,297
3,337
1,456
37%
63%
Japan
2,226
388
1,155
362
52%
93%
South Korea
1,739
290
643
230
37%
79%
16,824
4,108
7,330
2,959
44%
72%
1,490
455
1,113
441
75%
97%
Brazil
562
302
467
281
83%
93%
Argentina
177
97
153
93
86%
96%
LAM
2,229
854
1,733
815
78%
95%
Total
69,717
15,233
36,633
12,690
53%
83%
APAC (Inc. India & ANZ)
Mexico
76% of respondents to Company ’s Facebook poll indicated they would pay
a higher ticket price to watch a movie in a ButtKicker equipped theater
“The overwhelming response we have seen
has encouraged us to further expand Lumière’s
‘4D’ ButtKicker footprint to help satisfy the
demands of our customers for unique and
immersive experiences when they visit one of
our luxurious cinemas.”
- Jimmy Wu, Founder & CEO
IMAX
U.S. Theaters
International Theaters
Amusement & Attractions
“Seeing an IMAX film at Jordan’s is the only
way to see a movie! you don’t just see a
movie… you feel a movie! Once a customer
experiences a movie with us, they don’t go
back to traditional movie houses. It’s the only
way to go!”
- Eliot Tatelman, Pres. & CEO
Guitammer
vs.
D-BOX
85
Screens
153
10,000+
Seats
3,927
11
Countries
2
The Guitammer Company
D-BOX Technologies, Inc.
$129-$379
Consumer
Product Cost
$5,000-$16,000
Low Frequency Vibrator (US
5,973,422)
Patented
Technology
D-BOX Motion Code™
Capture and Remote
Reproduction of Haptic Events in
Synchronous Association with the
Video and Audio Capture and
Reproduction of Those Events (US
7,911,328 B2)
Patented
Broadcast
Technology
N/A
*as of 8/12
• Patented technology that enables the excitement,
impact and feeling of sporting events to broadcast in
synch with sound and video
• Successful stage one, “Proof of concept” in-arena
testing of the patented ButtKicker Live! broadcast
technology with a major sports league during both
the regular season and playoffs
• Successful in-suite testing of ButtKicker Live! for
patrons inside a glass-enclosed luxury box during a
live major motorsports race
•
All digital television transmission, over-the-air, cable,
satellite or IPTV, is broadcast in 5.1 surround sound
which is an ideal format for ButtKicker Live!
•
Consumer electronics industry exceeds $190 billion in
annual wholesale revenues in USA
•
Home theater sales, especially home theater in-a-box
system sales (HTIB) sell over 3 million units per year.
•
Audience includes over 65 million cable TV
subscribers and approximately 30 million satellite TV
subscribers.
•
ESPN is available in nearly 100 million households,
NBC Sports Network in over 75 million households
and the NFL Network in almost 57 million households.
Source: The Consumer Electronics Association
• “Blocking”
patent for the
broadcast
space
• More “fence” IP
being
developed
around key
system
components
• Formation of Technology Advisory Group provides access to key industry experts and
partners
• First mover advantage in high-margin, recurring revenue, immersive entertainment
broadcast market
• ButtKicker Live!® delivers economic benefits across the
sports broadcast ecosystem:
• Content providers (sports leagues and programmers)
• Networks and broadcasters
• Distributors and operators (capital CATV, DBS, FiOS,
IPTV or OTA)
• ButtKicker Live!® drives viewership, fan loyalty and
revenue by offering:
• Enabled content with recurring revenue
models
• End-user hardware sales (similar to TiVo® and
Slingbox®)
• Advertisers increase viewer engagement and
broadcasters grow ad revenue with premium ButtKicker
Live!®-enabled spots
• Fans enjoy an unprecedented connection with their
favorite players, drivers and teams
• Engaged Global Inventures to create framework for
Technology Advisory Group of multiple industry experts
to advance development & commercialization
• ButtKicker Live! offers a recurring revenue model that benefits the entire
sports ecosystem.
• Large scale consumer adoption rollout modeled after successful TiVo and
Slingbox rollouts with distribution (DBS) partners.
• Broadcast patent is “device independent” which paves the way for a pure
play broadcast royalty only opportunity as well as possible joint venture
licensing with major CE products companies for the in-home hardware.
• Additional in-arena or live event revenue and brand awareness
opportunities with special ButtKicker Live! enabled seating areas and
sections.
Lumiére Pavilions Jump Starts Chinese New Year with Eight Theater Installation Of
Guitammer's Patented “4D” Technology
Leading Chinese Luxury Cinema Operator Increases Availability of Guitammer’s Immersive
Entertainment Experience to Nearly 1,400 Seats
The Guitammer Company Announces Strong 2012 Financial Results
Broad Progress Made on Core Business, Revenue Growth, Balance Sheet Enhancement
and ButtKicker Live! Broadcast Technology
Guitammer and State of Ohio Modify Terms of “Innovation Loan”
Guitammer’s Cash Flow Enhanced by Over $375k for FY13 and FY14
Guitammer Names National Sales Manager – Home Theater
Industry Veteran to Lead Company’s Home Theater Sales Efforts
Guitammer Joins North America’s Largest Buying and Marketing Organization
ButtKicker Products will be a “Featured SOLUTION” in Nationwide’s SOLUTION CENTRAL at
the PrimeTime! Buying Show & Member Conference in Las Vegas
Market Statistics
Stock Price (3/14/13)
$0.15
Market Capitalization (millions)
$10.3
52-Week High
$0.35
Total Debt (millions)
$3.2
52-Week Low
$0.08
Cash (millions) (12/31/13)
$0.08
Diluted Shares Outstanding (millions)
68.96
Enterprise Value (millions)
$13.3
Financial Metrics & Valuation (as of 12/31/13)
TTM Revenue (millions)
TTM EPS
Top Holders/Type
$2.1
($0.02)
Price/Revenue
6.3x
Stock Price/TTM EPS
N/A
Management/Insiders
54.5%
Other Holders
45.5%
Mark Luden – President and CEO
Mark has held positions with increasing executive responsibilities in sales, marketing, and top management
positions in the software industry for 13 years before joining Guitammer Company.
In addition to leading the strategic and day-by-day operations of the Company, Mark has earned the respect of
his peers in the consumer electronics industry, serving as an elected member of the Executive Board of the
Consumer Electronics Association, the Board of Industry Leaders, the Chairman of the Division Executive Board
and past Chairman of the Small Business Council.
John Ertmann – SVP ButtKicker Live!
John founded the Columbus Sports Network in 2005 and served as its President and General Manager. Prior to
that he was Legal Counsel for the New York Yankees, Executive Vice President for Major League Soccer and Vice
President of Sports Negotiations for NBC.
Marvin Clamme – Director of Engineering
Marvin is a professional studio engineer with an Electronics Engineering Technology undergraduate degree from
Purdue University. Marvin has extensive audio engineering experience including serving as the recording
engineer at Britannia Studios in Los Angeles. He has worked for and traveled with well known entertainers such
as Merle Haggard and Tom Jones.
Ken McCaw – Founder and Member of the Board of Directors
Ken is an accomplished musician, producer, writer and inventor. He is a graduate of the UCLA Film Scoring
program and has worked as a producer for Walt Disney Productions. Additionally, he has written and produced
music for The White House, the US Olympic Committee, Opryland Productions theaters and playhouses
throughout the country.
John Ertmann – SVP ButtKicker Live!
John founded the Columbus Sports Network in 2005 and served as its President and General Manager. Prior to
that he was Legal Counsel for the New York Yankees, Executive Vice President for Major League Soccer and Vice
President of Sports Negotiations for NBC.
Mark Bell
Senior Director, Industry Affairs & Administration, National Cable & Telecommunications Association
Dr. Rich Prodan
Vice President & Chief Technology Officer, Broadband Communications, Broadcom Corporation
Bill Warga
Vice President, Technology, Liberty Cable