Tuesday, March 12, 2013

The Guitammer Company, Inc. (GTMM) Enhances Cash Flow by Modifying Terms of “Innovation Loan”

The Guitammer Company, a leader in low frequency sound and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience, announced this morning that The Director of the Ohio Development Services Agency and the company have entered into an agreement to modify its loan payment schedule.

Previously scheduled to be due in full by July of 2014, the loan was modified to have a longer amortization timeframe. The modification was made to reduce Guitammer’s monthly payment by approximately $16.5k per month for 2013 and by $14.6k per month for 2014 from the previous schedule. This equates to an annual cash flow enhancement of approx. $200k this year and $175k in 2014.

“This modification combined with the significant improvements the company made to its balance sheet last year, including reduced debt, decreased interest rates, reduction in working capital deficits and increased levels of inventory, are helping to bring the company closer to positive cash flow on its core business. In addition to giving us more operational leeway, the increased cash flow will provide more support as we continue to advance the commercialization of our ButtKicker Live! broadcast technology,” stated Guitammer’s Chief Financial Officer, Richard Conn.

For more information on the company, visit www.Guitammer.com

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