Guitammer Strengthens Balance Sheet by Over $2.25mil

WESTERVILLE, Ohio, Feb. 6, 2012 /PRNewswire/ -- The Guitammer Company (OTCBB: GTMM) a leader in low frequency sound products and technology including its innovative and award winning line of patented ButtKicker-brand low frequency audio transducers, announced that as of January 31, 2012 it had strengthened its balance sheet by more than $2.25mil and improved its monthly cash flow by over $24k over the last two quarters and a month, with the vast majority occurring in the past three months. 

More specifically, Guitammer has received $625k of new equity investment, converted $1.326mil of debt and reduced payables by approx. $67k.  Of that $1.326mil debt that was removed from the balance sheet, approx. $641k was due on demand notes.

An additional $250k of notes payable that were due on demand with default interest rates of 20% and 30% were re-written to be two year notes at 8% interest with the interest payable at in 2013 and 2104.

The net result of these activities is to remove over $891k of due on demand debt (as well as the interest accrued on those notes) and to increase the Company's cash flow by over $24k per month due to the reduction in debt service.

According to Mark Luden, President of Guitammer, "The reduction of debt, increased equity and ensuing improved cash flow, gives us the opportunity to grow our core ButtKicker® brand product business and more importantly, begin to take advantage of the unique opportunities we see for our patented ButtKicker Live®! broadcast technology. The support from our new investors and existing creditors has been very encouraging and continues to validate the strategic path we are on to fundamentally change the world of broadcast sports."

About The Guitammer Company

The Guitammer Company, Westerville, Ohio, is a leader in low frequency sound products and technology. Its 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, IMAX and Disney in movie theaters and attractions; by world-famous musicians; in home theaters, simulators and for car audio. ButtKicker brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker", and factory installed in home theater seating by Palliser Furniture. "ButtKicker brand products patented design makes them musically accurate, powerful and virtually indestructible.

The Guitammer Company's newly patented broadcast technology, ButtKicker LIVE! enables the excitement, impact and feeling of sporting events to broadcast along with the sound and video. ButtKicker LIVE! puts you into the action, whether you're at home or at the event. ButtKicker Live! technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcast and has been successfully tested with several major content (sports) providers. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company. For additional information, visit www.thebuttkicker.com and www.shakemycouch.com

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.

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SOURCE The Guitammer Company