AfterMaster Inc (EM)【AFTM】株式ニュース

Corporate Background
We are a Delaware corporation, incorporated on May 12, 1988, and traded on an over the counter market (ticker symbol: AFTM). As
of March 31, 2020, there were 306,736,038 shares of Common Stock issued and outstanding. The Company’s office and principal
place of business, research, recording and mastering studios are located at 6671 Sunset Blvd., Suite 1520, Hollywood, CA 90028 USA,
and its telephone number is (310) 657-4886. The Company also has an office at 7825 E. Gelding Drive, Suite 101, Scottsdale, Arizona
85260 USA, and its telephone number is (480) 556-9303.
Aftermaster, Inc. (“the Company” or “Aftermaster”) is an audio technology and products company located in Hollywood, California
and Scottsdale, Arizona. The Company’s subsidiaries include Aftermaster HD Audio Labs, Inc. and MyStudio, Inc.
The Company and its subsidiaries are engaged in the development and commercialization of proprietary (patents issued and pending),
leading-edge audio and video technologies and products for professional and consumer use, including Aftermaster® Audio,
ProMaster™, Aftermaster Pro™, HearClearTV, the Superbar™, Aftermaster Studio Pro and MyStudio®. The Company also operates
recording and mastering studios at its Hollywood facilities.
The name Aftermaster was derived from our technology being primarily utilized to remaster and improve audio that has already been
mastered. The Aftermaster audio process remasters an audio event to our standards, that has previously been finished or mastered,
hence “Aftermaster”. Aftermaster is unique among audio processes as it greatly enhances the entire frequency range without distortion
or changing the underlying intent of the audio. The Aftermaster process is also popular for mastering previously un-mastered audio
such as new recordings or live events.
Aftermaster, Inc. is an award-winning audio laboratory whose unique expertise and approach to its audio technologies and products, is
rooted in its world class expertise in music related audio engineering, processing and mastering. The music industry has been
responsible for the biggest breakthroughs in audio techniques, inventions and technologies for over a century. Aftermaster’s team of
audio engineers and music industry veterans have produced, engineered and mastered more hit records than any other audio company
in the world, providing it with its leading edge expertise. For more information visit. www.Aftermaster.com/team
Mission Statement
Aftermaster’s goal is to become one of the most innovative and important audio companies in the world through the development and
licensing of proprietary audio technologies, the development and sales of leading-edge consumer and professional audio electronics
products and through its contributions in the production, mixing and mastering of music, television and film audio.
The quarter ending March 31, 2020 brought unexpected challenges due to the outbreak of the Worldwide Covid-19 Coronavirus
Pandemic. The “stay-at-home” laws that were passed and the overall uncertainty created by the Pandemic, brought the company’s
ability to raise capital to a virtual standstill and further delayed the roll-out of our products. The one bright spot operationally was the
recording and mastering studios operated by the Company in Hollywood which continued to perform well during the quarter while
complying with California Executive Order N-33-20. Also, the Company’s R & D and product engineering team continued to work
non-stop to refine its existing products, as well as develop new products, which are soon to be introduced.
The current uncertainty in the financial markets for micro-cap companies has made the Company’s level of debt (a significant portion
of it being toxic, ratcheting convertible notes), a concern with prospective investors, which combined with the Company’s share price,
have made it virtually impossible for the Company to continue to raise capital on acceptable terms. In order to attract investment
capital, the Company must rapidly lower its overall debt. Accordingly, the Company recently offered all of its creditors and noteholders the opportunity to convert their debt into common shares. Subsequent to the end of the quarter, conversions pursuant to the
debt-for-shares offer have reduced the Company’s debt by $3,635,513.05 (approximately 33% of total debt, excluding non-cash
derivative liabilities), in exchange for 265,964,064 restricted common shares with an average conversion price of $0.014 per share (a
substantial premium to the market). The Company is continuing to work aggressively with its lenders and creditors to further reduce its
debt in order to raise the capital required to carry the Company through until the manufacturing of its products recommences.
After several quarters of exceptional sales growth, the Company was forced to suspend manufacturing and dismiss its manufacturer
because of high return rates and quality and reliability issues with the Company’s Aftermaster Pro product. The suspension of
manufacturing and sales substantially impaired the Company’s growth and operations over many quarters, as it eliminated any
meaningful revenues from product sales. In an effort to recapture the damages sustained from its manufacturer before the Pandemic,
the Company commenced an action against the manufacturer, Infinity Power and Controls, LLC of Rock Springs, Wyoming for $30 million to recover direct and punitive damages in the United States District Court for the Central District of California.
The Company’s product sales continued to be on hold during the quarter ended March 31, 2020, due to the ongoing delay in the
manufacturing of our products. The latest delay is due primarily to the impact of the worldwide Coronavirus Pandemic, which forced
the Company to further hold up the rollout of its product line.
Prior to the Pandemic, the Company secured a new manufacturer (see below) and had expected that manufacturing would resume
during the latter part of the quarter. However, the outbreak of the Worldwide Coronavirus Pandemic and “stay-at-home” laws, brought
manufacturing to an abrupt standstill. It remains uncertain when manufacturing will start-up again, however based on current
information it is expected that our manufacturer will reopen in India soon and begin manufacturing our products sometime in the next
two calendar quarters.
As stated above, the Company entered into a multi-year, Financing, Licensing, Manufacturing and Distribution agreement with Ritika
Research Labs Pvt. Ltd. of Mumbai India. Ritika is a private company which has interests in manufacturing, electronics and product
distribution and marketing. The agreement calls for Ritika to finance engineering, product development, manufacturing, inventory and
the marketing and distribution of all Aftermaster’s products worldwide (excluding the US and Canada). The agreement is significant as
it brings much needed capital for manufacturing, inventory and sales of Aftermaster products to the Company. The agreement is
expected to save the Company significant resources both financially and operationally while raising the quality and reliability of all its
products in markets worldwide.

The Company will receive tiered royalty payments on worldwide sales excluding the US and Canadian markets, which are retained by the Company.

The progress with Ritika in the manufacturing and sales of Aftermaster products was impacted by the worldwide Coronavirus Pandemic and lockdown in India. It remains uncertain when our products will be available for
sale but based on the current state of the Coronavirus epidemic in India, the Company expects manufacturing and sales to begin
sometime in the next two calendar quarters.