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AfterMaster, Inc. (OTCMKTS:AFTM) Files An 8-K Termination of a Material Definitive Agreement

AfterMaster, Inc. (OTCMKTS:AFTM) Files An 8-K Termination of a Material Definitive AgreementItem 1.02. Termination of a Material Definitive Agreement.

The disclosure in Item 8.01 below is incorporated by reference herein.

Item 8.01. Other Events.

On March30,2018,Aftermaster, Inc. (the “Company”)entered into a settlement agreement witha securedcreditorof theCompanyto pay asettlement paymentto the creditor(the “Settlement Payment”), and effective upon the receipt of theSettlementPayment,(i)the creditor agreed to cancelapproximately33securedconvertible promissory notes issued by the Company to the creditor in the aggregate principal amount of $3,925,000(the “Convertible Notes”),(ii) the creditor agreed to cancel three securednon-convertible notes promissory notes issued by the Company to the creditor in the aggregate principal amount of $575,000 (the “Nonconvertible Notes”), and (iii)the creditor and its affiliate agreed to return an aggregate of 14,837,251 shares ofthe Company’scommon stock(the “Shares”)to the Company for cancellation.In addition, 1,280,162shares which were due to the secured creditor willnolonger be issuable,resulting in 16,117,413total shares no longer being issued or issuable as a result of the settlement.TheSettlement Payment amount was substantially below the aggregate principal amounts of the Convertible Notes and Nonconvertible Notes.

The $4,500,000 in principal owed to the creditor to the Convertible Notes and Nonconvertible Notes represented approximately 55% of the Company’s total loan debt as of March 30, 2018, and the Shares represent more than 10% of the Company’s issued and outstanding shares of common stock as of March 30, 2018. The settlement will also eliminate over $700,000 per year of the Company’s debt servicing costs.

On March 30, 2018, the Company paid the Settlement Payment to the creditor resulting in the effective cancellation of the Convertible Notes and Nonconvertible Notes (and termination of ancillary security agreements related to those notes), and to the agreement, the Company expects to receive the Shares for cancellation within the next two weeks.

About AfterMaster, Inc. (OTCMKTS:AFTM)
Aftermaster, Inc. is an audio technology company. The Company and its subsidiaries are engaged in the development and commercialization of audio and video technologies for professional and consumer use, including AfterMaster audio, ProMaster, Aftermaster Pro and MyStudio. As of June 30, 2016, the Company operated six recording and mastering studios at its Hollywood California facility. AfterMaster Audio Technology is an internally-developed mastering, remastering and audio processing technology. AfterMaster Pro is a personal audio re-mastering device. Aftermaster Pro transforms the audio of television, smartphone, headphones, laptop, tablet, gaming unit, or virtually any audio-enabled device. ProMaster is an online music mastering, streaming and storage service designed for independent artists, which utilizes audio technologies developed by it. ProMaster will master a user’s uploaded music and allows them to compare up to 90 seconds of their original to the newly mastered songs.

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