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OTC BB: GTMM Mark A. Luden President and CEO November 2012 www.guitammer.com. Safe Harbor.
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OTC BB: GTMM Mark A. Luden President and CEO November 2012 www.guitammer.com
Safe Harbor Any 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. The above 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.
Company Overview • Patented broadcast technology products competitively priced for multiple applications, markets and platforms • 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 • Recently completed private placement raised $2.1 million in growth capital and extinguished nearly $1.5 million in debt
Investment Opportunity Two Attractive Growth Platforms
ButtKicker Brand Products and Markets www.guitammer.com
ButtKicker Brand Products – Competitive Advantages • 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) 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 designcharacteristics • Only tactile products designed for mass market consumerelectronics distribution with the appropriate packaging,pricing and “all-one-kit” ease of use
Core Business Growth Opportunities Home Theaters Gaming Movie Theaters Musicians/Pro Audio • Consumer • All-in-one kits • Add-on accessories and components • Point of purchase packaging • Custom installation IMAX U.S. Theaters International Theaters Amusement & Attractions Online Gaming PC Games Console • Many top drummers and bass players forfamous bands useButtKicker branded products • Strategic partnership with Pearl Drum for "ThroneThumper by ButtKicker“ –Pearl handling NorthAmerica and Europeandistribution
Market Opportunity – Home Theaters & Gaming • Consumer electronics sales exceeds $190 billion in annual wholesale revenues • Home theater sales, including home theater in-a-box system sales (HTIB), 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 Source: CEA Market Research (*2012 data projected)
Market Opportunity – Movie Theaters 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
Global Theater Installations “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 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 *as of 8/12
ButtKicker Live! Broadcast Technology and Market Opportunity www.guitammer.com
ButtKicker Live! – Fans Feel the Action They’re Watching • Patented technology that enables the excitement, impact and feeling of sporting events to broadcast in synch with sound and video • Wireless tri-axial accelerometers and sensors capture vibration and impact data from multiple sources – vehicles, players, hockey boards, crash barriers, etc. • Rollout testing and progress in motorsports, football and hockey • Accelerometers attached to cars, equipment, hockey rink walls, etc.
Market Opportunity – ButtKicker Live! • All digital television transmissions, over-the-air, cable, satellite or IPTV, is broadcast in 5.1 surround sound • Audience includes over 59mm digital cable, 44mm satellite and approximately 7mm FiOS TV subscribers • ESPN is available in nearly 100 million households and the NBC Sports Network in over 75 million households • # of sports specific cable networksare increasing and their penetrationis growing (MLB Network, ESPN2,Fox Sports Net, CSTV, YES Network,Big 10 Network…) • In 2011, approximately 35 – 40million HDTV sets were sold in theU.S., which are well-suited forButtKicker Live! Entertainment experience
Favorable Competitive Positioning for ButtKicker Live! • “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! – How it Will Drive Market Adoption • 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! – Revenue and Scale Model • 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” paving the way for licensing opportunities with major CE products companies for in-home hardware. • Additional in-arena or live event revenue and brand awareness opportunities with special ButtKicker Live! enabled seating areas and sections
Recent Progress and Successes • Total sales through September 2012 already exceed FY’11 total sales of $1.3 million • Significantly improved balance sheet & liquidity provide working capital to deliver substantial core business growth • Raised $2.1 million in growth capital and extinguished ~$1.5 million of debt through private placement • Now have working capital availability for increased inventory to meet growing domestic and international demand • Moving into testing phase of ButtKicker Live! broadcast technology in late Q4’12 or Q1’13 • Expanded “beta” test with a major professional sports league • ButtKicker Live! presents a significant opportunity to open up new, high-margin recurring revenue & technology licensing channels • Expect initial revenues in FY’13
Appendix www.guitammer.com
Management Mark Luden – President and CEO Mark has held positions with increasing executive responsibilities in sales, marketing President & CEO and management 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.
ButtKicker Live! Technical Advisory Group 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