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Emerging Growth NewsEntertainment & RetailTechnology
Aftermaster, Inc. (OTCQB: AFTM) Could Be Like Investing in Dolby Digital (NYSE: DLB) in 1965.
September 26, 2016
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Aftermaster, Inc. (OTCQB: AFTM) Could Be Like Investing in Dolby Digital (NYSE: DLB) in 1965.

Since the 2008 recession, U.S. consumers have bounced back in a major way. 2008, US consumer spending in the United States was slightly above $10 trillion and has since grown to $11.49 trillion, as of the second quarter 2016. According to Tradingeconomics.com, consumer spending in the United States could reach $12.5 trillion, by 2020. As the economic recovery continues to gain ground, Americans are finding work again and gaining more disposable income, which will allow consumer spending to see further growth. Considering that nearly 70% of the U.S. economy relies on consumer spending and retail sales, the projected growth is good news overall.

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Source: TradingEconomics.com
Continued growth in U.S. consumer spending will boost companies that supply consumer goods, retail, e-commerce stores, and more. One such company that is set to capitalize on the growth in consumer spending is AfterMaster, Inc. (OTCQB: AFTM).

Overview: AfterMaster, Inc. (OTCQB: AFTM)

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AfterMaster, Inc. (OTCQB: AFTM) is an award-winning audio technology company led by an unparalleled team of music and audio experts. AfterMaster, Inc. (OTCQB: AFTM) has developed “AfterMaster,” a breakthrough audio technology that delivers unparalleled clarity, depth, volume and fullness to any audio source; without increased distortion or loss of dynamic range. The technology has been utilized by a number of leading musicians seeking to create a fuller and richer sound quality, than is otherwise available on the digital audio market.

AfterMaster, Inc. (OTCQB: AFTM) currently operates 4 main businesses:

AfterMaster Embedded Semi-Conductor Chips and Software: the company’s chip and software business that allows the company to embed AfterMaster, Inc. (OTCQB: AFTM)’s audio technology into consumer products.
AfterMaster Brand Consumer/Professional Products: the company is developing its own product line of consumer and professional electronic goods, which will be embedded with AfterMaster, Inc. (OTCQB: AFTM)’s audio technology.
ProMaster: ProMaster allows independent music artists to conduct online automated mastering of their music using AfterMaster, Inc. (OTCQB: AFTM)’s technology in minutes.
In-Studio Professional Music engineering and Mastering Services: AfterMaster, Inc. (OTCQB: AFTM) operates world-class research, recording and mastering studios in Hollywood, CA. This is where senior engineers mix and master music for artists worldwide. Most recently AfterMaster, Inc. (OTCQB: AFTM) was chosen to master the music for the TV show “Empire”.
AfterMaster, Inc. (OTCQB: AFTM) is unique in the sense that a team of experts in the music and audio industries developed its patented technologies. More time, money, effort and research has gone into refining audio for the music industry than any other format such as TV and film.

AfterMaster, Inc. (OTCQB: AFTM) signed a multi-year partnership with ON Semiconductor Corp. (NASDAQ: ON), which is a multi-billion dollar, multi-national designer and manufacturer of semiconductors. With this partnership, AfterMaster, Inc. (OTCQB: AFTM)’s embedded hardware and software solutions will have the ability to embed its award-winning digital signal processing (DSP) technology into various consumer goods products, such as: smartphones, TVs, soundbars, headphones, stereos, speakers, phone docks, VOIP products, and more. The semiconductor hardware, BelaSigna 300 AM will have the power to bring “never before heard audio quality” to many of your common consumer electronic goods. Here is a link to check out the specifications of the ON/AfterMaster BelaSigna 300 AM chip: Link

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AfterMaster, Inc. (OTCQB: AFTM)’s consumer products business division offers the AfterMaster, Inc. (OTCQB: AFTM) TV Personal Audio Device: The AfterMaster Pro (www.aftermasterpro.com).

The AfterMaster Pro is the first consumer product to be released by the company, and has a patent pending. The Pro will allow consumers to experience award-winning AfterMaster, Inc. (OTCQB: AFTM) audio quality, right through their own television. Not only will the AfterMaster Pro significantly improve the audio quality of your television, it will also solve the annoying issue of among others, extremely loud commercials. AfterMaster Pro will retail for $150 and has already experienced over 4,500 units pre-sold to buyers in 40 countries.

Ever wonder why you have to turn up your TV’s volume so high when you’re trying to hear dialogue in your favorite shows, only to be blasted out of the room by extremely loud commercials? Despite this widespread issue, there has been very little effort to correct this issue. However, the AfterMaster Pro will finally offer a solution, by “raising and clarifying dialogue levels, while making all surrounding audio sound substantially better,” according to the AfterMaster, Inc. (OTCQB: AFTM) product page.

Aside from the TV, the AfterMaster Pro has the ability to go portable with an internal rechargeable battery and is compatible for use with smartphones, tablets, computers, headphones, and really any other audio devices.

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The ProMaster business is huge for AfterMaster, Inc. (OTCQB: AFTM). The software gives independent music, TV, and video artists the chance to have highly-sophisticated audio mastering tools, which can all be done online in literally minutes. This gives independent artists an economical tool to vastly improve their mastering and audio quality abilities. AfterMaster, Inc. (OTCQB: AFTM)’s ProMaster software is available at Guitar Centers nationwide and through its online store: www.ProMasterHD.com. Furthermore, AfterMaster, Inc. (OTCQB: AFTM) has signed a partnership with Adobe Systems Incorporated (NASDAQ: ADBE) to integrate ProMaster with Adobe Audition and its add-on marketplace.

AFTM: Management Made Up of Music Industry Veterans, Including Justin
Timberlake

After learning more about the AfterMaster, Inc. (OTCQB: AFTM) management team, it should come as no surprise that After Master, Inc. (OTCQB: AFTM) has created groundbreaking audio quality products and services.

team-picture-larryLarry Ryckman: co-founder and CEO of AfterMaster, Inc. (OTCQB: AFTM):

25 years of experience in music and entertainment industry
Has partnered with “The X Factor,” JVC, Mark Burnett Productions, Nintendo, Polygram, Hard Rock International, The GRAMMY Foundation, Lionsgate, and many more
Former co-founder and CEO of QSound Labs, Inc.
team-shelly-yakusShelly Yakus: co-founder and Chief Engineer:

Renowned music producer, engineer, and mixer, whose clients have grossed over a billion dollars in sales
Nominated for induction into Rock and Roll Hall of Fame in 1999
Has engineered or mixed music for well-known musicians, such as: John Lennon, Stevie Nicks, Tom Petty, Van Morrison, Alice Cooper, Bob Seger, Don Henley, U2, Madonna, Blue Oyster Cult, and more.
team-justin-timberlake-finalJustin Timberlake: Partner

Grammy and Emmy Award winning singer, songwriter, producer, and actor.
The 2020 Experience-The Complete Experience was a best-selling album when it was released in 2013
The album has since sold over 5 million copies and 15 million tracks
Acting credits include: The Social Network (2010), Runner, Runner (2013), Inside Llewyn Davis (2013)
team-peter-doellPeter Doell: Senior Mastering Engineer:

One of the most widely known mastering engineers in the world
35 years of experience in the mastering and engineering industry
During his career, Doell was a first-call engineer to some of the most widely known studios and entertainment personalities in the world: Frank Sinatra, Josh Groban, Celine Dion, The Beach Boys, Miles Davis, Miss Saigon, Dave Coz, Marilyn Mason, Sheryl Crow, Harry Connick Jr., Toto, Brian McKnight, Capitol Studios, Sunset Sound, and more.
This is only a small sampling of the renowned, experienced management team that leads AfterMaster, Inc. (OTCQB: AFTM). In fact, the AfterMaster, Inc. (OTCQB: AFTM) team has the unique distinction of having produced, engineered and mastered more hit music than any other audio company in the world. If anyone knows what good audio quality should sound like, it’s AfterMaster, Inc. (OTCQB: AFTM).

AFTM: Financial and Competitor Analysis

Turning to AfterMaster, Inc. (OTCQB: AFTM)’s financial and competitor analysis, the media technology company has a market cap value of $36,409,396 as of September 2016. Furthermore, AfterMaster, Inc. (OTCQB: AFTM) has a share structure consisting of 250 million authorized shares and 101.14 million shares outstanding, as of August 2016. During the latest earnings filing from the period ending March 31st, 2016, AfterMaster, Inc. (OTCQB: AFTM) reported $19,000 in total revenue, $547,000 in cash and cash equivalents, total assets of $2.74 million and total liabilities of $6.39 million.

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Source: otcmarkets.com
Management is forecasting full year fiscal 2016 revenue to come in around $2 million, of which $800,000 in deferred revenue is expected to be recognized as earned revenue, during the fourth quarter of 2016. Furthermore, with full manufacturing expected to kick-in over the next two weeks and the vast number of pre-sales for the AfterMaster Pro coming in, AfterMaster, Inc. (OTCQB: AFTM) has a powerful story that will only continue to grow as 2017 progresses.

The sound and media industry have long attracted massive amounts of research and development spending, as music artists and studios continue to search for even better sound technologies. In fact, R&D spending for sound quality in the music industry has outpaced R&D spending for sound improvements in television and radio. Dolby Laboratories, Inc. (NYSE: DLB)’s Dolby Digital has long been an industry go-to and a sound technology pioneer. In decades past, Dolby Digital could be found in all sorts of devices and electronics that emit sound. Unfortunately, the golden days are largely over for Dolby Laboratories, Inc. (NYSE: DLB), as updated technologies and increasing number of competitors have left Dolby Laboratories, Inc. (NYSE: DLB) behind the curve.

Here are five notable companies that operate within the sound and media industry, that are worth taking a look at with regard to how AfterMaster, Inc. (OTCQB: AFTM) could be valued:

DTS Inc. (NASDAQ: DTSI) is a provider of sound technology that is geared towards high-definition entertainment. DTS Inc. (NASDAQ: DTSI)’s audio solutions allow users to record, delivery, and playback audio content in high-definition, across numerous devices, such as TVs, laptops, mobile devices, sound bars, wireless speakers, digital media players, and more. DTS Inc. (NASDAQ: DTSI) has a market cap value of $592 million, 17.49 million shares outstanding, and a float consisting of 15.42 million shares, as of September 2016. During the second quarter of 2016, the audio company reported total revenue of $48.66 million, and net income of $4.7 million.

Knowles Corporation (NYSE: KN) engages in the designing, manufacturing, and marketing of micro-acoustic, audio processing, and specialty parts to mobile devices, communications, health care sector, defense, aerospace, industrial sector, and more. As of September 2016, Knowles Corporation (NYSE: KN) has a market cap value of $1.27 billion, 88.69 million shares outstanding, and a float of 88.14 million shares. During the second quarter 2016, the audio processing company reported total revenue of $190.3 million, but a net loss of $24.6 million.

Dolby Laboratories, Inc. (NYSE: DLB) develops high-quality audio, imaging, and communication solutions, which provides greater entertainment experience to consumers through its cinema, consumer electronics, and enterprise electronics platforms. Among the company’s business segments is Dolby Digital, which engages in the development of audio technologies across all viewing and entertainment platforms. As mentioned earlier, just several years ago, Dolby Digital was the king of the industry, and had its logo on numerous electronic items. As of September 2016, Dolby Laboratories, Inc. (NYSE: DLB) lists a market cap of nearly $5.1 billion, 53.58 million shares outstanding, and a float consisting of 52.18 million shares. During the latest fiscal quarter ending July 1, 2016, Dolby Laboratories, Inc. (NYSE: DLB) reportedly had total revenues of $277.59 million and net income of $63.63 million.

Sony Corp (ADR) (NYSE: SNE) operates in many different businesses and industries. Sony Corp (ADR) (NYSE: SNE)’s business segments include: Mobile Communications, Game & Network Services, Imaging Products & Solutions, Home Entertainment & Sound, Devices, Pictures, Music, Financial Services, and All Other. Sony Corp (ADR) (NYSE: SNE) manufactures many different popular consumer electronics, such as the company’s flagship gaming system, PlayStation, smart TVs, Sony Music, DJ headphones, and much more. All of these devices, electronics, and the company’s recording business all need top-tier audio solutions. Over the past couple of decades, Sony Corp (ADR) (NYSE: SNE) has been emerging as an electronic audio stronghold. As of September 2016, Sony Corp (ADR) (NYSE: SNE) has a market cap consisting of $41.8 billion and 1.26 billion shares outstanding. During the latest quarter ending June 30, 2016, Sony Corp (ADR) (NYSE: SNE) reported total revenue of 1.61 trillion Japanese Yen and net income of 21.17 billion Japanese Yen.

Apple Inc. (NASDAQ: AAPL) is a technology company that focuses on hardware and software, such as the company’s iconic iPhone, iPad, Mac, Apple TV, Apple Watch, iCloud, iOS, App Store, iTunes, and more. Apple Inc. (NASDAQ: AAPL) may be gaining a lot of attention right now surrounding the company’s plan to eliminate the traditional headphone jack from its iPhone handsets, and offering a pricey $150 wireless ear-bud option. However, this is not why Apple Inc. (NASDAQ: AAPL) is being featured in comparison to other audio technology companies. Back in May 2014, Apple Inc. (NASDAQ: AAPL) made airwaves with its acquisition of Beats Audio and Beats Music for $3 billion. The acquisition effectively opened the door to Apple Inc. (NASDAQ: AAPL) capitalizing on the high-quality headphone market and Beats’s streaming music service. Apple Inc. (NASDAQ: AAPL) has a market cap of $568.53 billion, 5.39 billion shares outstanding, and a float consisting of 5.37 billion shares, as of September 2016. During Apple Inc. (NASDAQ: AAPL)’s fiscal quarter ending June 25, 2016, the technology giant reported total revenue of $42.36 billion and net income of $7.8 billion.

Overall, AfterMaster, Inc. (OTCQB: AFTM) is preparing to see its business ramp up over the next month, as manufacturing is scheduled to go into full operation over the next couple of weeks. This will help the company fill the massive amounts of preorders that have been received for their AfterMaster Pro product and allow AfterMaster, Inc. (OTCQB: AFTM) to officially recognize approximately $800,000 in deferred revenue, by the end of 2016.

Furthermore, during the fourth quarter 2016, AfterMaster, Inc. (OTCQB: AFTM) will see its TV box product in numerous well-known store locations across the United States. Not to mention, as AfterMaster, Inc. (OTCQB: AFTM) continues to move forward with big name technology partnerships, the company will be able to gain greater awareness for its product. Management believes they will be able to sell around 1 million units of its AfterMaster Pro product through the first full year of being on the shelves. While management is waiting before projecting 2017 revenues, the company is positioned to become the next “Dolby Digital” over the next several years, as more products and greater exposure are seen impacting the brand.

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