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The New Digital Self-Tuning System Endorsed by Guitar Legends 1

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1

The New Digital Self-Tuning System Endorsed by Guitar Legends

2

Total Addressable Market

$3.8B Guitar industry

worldwide($1.5B in the U.S.

alone)

6.4Mguitars sold

worldwide each year, 2.5 million

sold in the United States

Plus millions and millions of

existing guitars worldwide that are candidates for an AxCent

self-tuning system upgrade

3

The Trouble with Guitars…

Guitars are inherently unstable...

Changes in temperature, aging strings, use and other factors constantly de-tune guitars.

Out-of-tune guitars waste your time and money, and hurt your

sound.

4

AxCent is the premiere digital self-tuning

system for every guitarist. *Installs easily on new and used guitars

5

Automatically change tuning with the touch of a button (on your

phone or tablet)●

Choose from a limitless selection of tuning possibilities – including accurate tunings from favorite

artists and songs●

Patented digital technology controls all strings – perfect tuning always.

The AxCent System

6

Mobile Device Integration

The new AxCent System can be

controlled by cell phones and

tablets

7

Joe Perry Peter Frampton

Jimmy Page

Endorsed by Legends

“It has to be seen and heard to be believed.”

– Jimmy Page

More AxCent users include:

Eddie Van HalenPat Metheny

Pete TownshendPeter Buck

And many others…

8

Good for Every Guitarist

Beginners: Self-tuning saves time and helps instill sense of perfect-pitch. Allows beginners to learn to play songs more easily by allowing them to use the tunings the artists have written the songs in.

Intermediates: Save time and experiment with alternative tunings. Allows intermediates to change tunings while playing and allows them to access more tunings faster and more accurately than ever before.

Professional Players: Saves time and ensures perfect tuning in all studio, live and songwriting settings. Alternate tuning, too! Allows professionals to save money on equipment as one guitar can now be tuned and retuned at the touch of a button, allowing for fewer guitar purchases etc.

9

Why AxCent is Different

AxCent is the only self-tuning system that uses a patented

“open loop” technology.

Other, less successful self-tuning systems are “closed loop”, and unlike AxCent,

cannot be used on a wide range of new and old guitars. They also do not allow for tuning

changes while playing.

10

Jim D’AddarioD’Addario Strings

Peter FramptonFrampton

Graham NashCSN

Mark SlaughterSlaughter

Advisors

Mark Bitter56 CEO

Managing Director

Neil Skinn57 CTO

Managing Director

Peter Janssen

Managers

11

AxCent Cost and Pricing

Cost to produce: $100 per unit (lower once higher production volumes

achieved)

*Approximately 45% to 67% margin per unit

$695 Retail price

$495Wholesale price

$300OEM price

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$100M Aggregate

revenue, years 1-5, all products

$50MRevenue, year 5

$50MAggregate

EBITDA years 1-5

Revenue Projections

$25MEBITDA year 5

This projection assumes we capture only 1.8% of the candidate domestic guitar market or .72% of the candidate global guitar market by the fifth year. We believe it is possible to attain that

share even earlier.

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Investment Opportunity

Raising up to $2.5 million for up to 25%

of the company. Private, accredited investors only.

Contact Mark Bitter for additional questions at [email protected]

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Thank you