Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three Months Ending March 31, 2011
May 20 2011 - 8:30AM
Marketwired Canada
Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE:DSS) announces
unaudited financial results for the three months ended March 31, 2011.
-- Financial Highlights
-- Achieved revenues for the first full quarter of $561,827 since
launching the Company's first product GSP RUSHFIT DVD workout
program.
-- Commencement of sales to Northern Response (International) Ltd. for
distribution to some of the largest Canadian retailers.
-- Announcement of retail distribution of GSP RUSHFIT program through
Canada's largest consumer electronics retailer, Future Shop.
-- Announcement of retail distribution of GSP RUSHFIT program through
Walmart Canada Announcement of a private placement for up to
$2,500,000.
-- First tranche of the private placement in the amount of $1,226,567
closed on May 16, 2011.
Revenue
The total revenue this quarter of $561,827 (April 30, 2010 - $3,424) continued
to be driven primarily by the Company's new product GSP RUSHFIT, an 8-week
home-based DVD workout program starring Mixed Martial Arts ("MMA") welterweight
world champion Georges St-Pierre. In addition to the product sales directly
through the GSP RUSHFIT website (www.gsprushfit.com), during this quarter
wholesale sales commenced through the Company's partnership with Northern
Response (International) Ltd. ("Northern"). Product sold to Northern will be
distributed initially in Canada through some of the largest retailers such as
Future Shop and Walmart Canada, with future plans for international expansion.
Mr. Jeffrey Sharpe, CEO and President of DSS stated, "We are very pleased with
the financial results from our first full quarter as a public company. The
response to GSP RUSHFIT has been extremely positive and we look forward to
expanding the RUSHFIT brand and our distribution channels in the coming months."
GSP RUSHFIT was launched on December 10, 2010, and has quickly established
itself as a premium brand in the lucrative home fitness market.
Expenses
During the three month period ending March 31, 2011, operating expenses
increased to $580,418 (April 30, 2010 - $169,996). Contributing factors to this
increase of $410,422 were those directly related to the increased revenue
generated in this quarter by the sales of the GSP RUSHFIT program.
Net Loss
Although expenses more than doubled on a quarter to quarter comparison, the loss
for the three months ended March 31, 2011, was $115,557, a decrease of $133,197
from the net loss of $248,754 for three months ended April 30, 2010.
Selected Financial Highlights
Selected Quarterly Information
------------------------------------------------------------------------
Three months Three months
ended ended
March 31, 2011 April 30, 2010
(Unaudited) (Unaudited)
------------------------------------------------------------------------
Net loss $ (115,557) $ (248,754)
------------------------------------------------------------------------
Weighted average number of shares
outstanding 44,185,743 18,929,079
------------------------------------------------------------------------
Net loss per share (1) $ (0.003) $ (0.013)
------------------------------------------------------------------------
Total assets $ 1,483,686 $ 503,799
------------------------------------------------------------------------
Total liabilities $ 587,212 $ 1,357,822
------------------------------------------------------------------------
Shareholders equity $ 1,026,645 $ (854,022)
------------------------------------------------------------------------
(1) Basic and fully diluted net loss per share are the same
About Digital Shelf Space Corp.
Digital Shelf Space is an independent producer of home entertainment content and
online delivery technology provider to digital retailers, content owners and
aggregators. Digital Shelf Space's proprietary technology platform has been
custom built to deliver home entertainment content directly to consumers. The
platform blends e-commerce functionality and paid DVD, digital download and
streaming video delivery. For more information please visit
www.digitalshelfspace.com. To view our recently launched project with Georges
St-Pierre, please visit www.gsprushfit.com.
ON BEHALF OF THE BOARD
Jeffrey Sharpe, President & CEO
Forward Looking Statements
This news release contains "forward-looking information" within the meaning of
the Canadian securities laws. Forward-looking information is generally
identifiable by use of the words "believes", "may", "plans", "will",
"anticipates", "intends", "budgets", "could", "estimates", "expects",
"forecasts", "projects" and similar expressions, and the negative of such
expressions. Forward-looking information in this news release include statements
about revenue potential; the expansion of the GSP RUSHFIT brand and distribution
channels; the impact and profitability of digital delivery of the Company's
products; penetration of new markets, both domestic and international, as well
as expanded advertising strategies and new marketing methods; the development
and sale of complementary GSP RUSHFIT product lines; the launch of a new
fitness-based DVD series or product line starring a celebrity or athlete; the
Company's strategy, future operations, prospects and plans of management; the
Company's expectations with respect to existing and future agreements with third
parties; estimates of the length of time the Company's business will be funded
by anticipated financial resources; the scope of distribution of GSP RUSHFIT,
the timing of and potential growth of Canadian and International sales as a
result of the Northern Response partnership, and anticipated results and
benefits of consumer use of celebrity fitness products.
In connection with the forward-looking information contained in this news
release, the Company has made numerous assumptions, regarding, among other
things, the timing and quantum of revenue generated through sales of the
Company's products; the sufficiency of budgeted expenditures in carrying out
planned activities; the Company's ability to protect its intellectual property
rights and not to infringe on the intellectual property rights of others; the
availability and cost of labour and services; expected growth of sales as a
result of the Northern Response Partnership and consumer demand; and expected
results from the use of celebrity fitness products. While the Company considers
these assumptions to be reasonable, these assumptions are inherently subject to
significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could cause the
Company's actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by the
forward-looking information contained herein. Known risk factors include, among
others: the Company may not be able to sustain or increase revenues achieved
during the current reporting period; the Company's products may not achieve the
brand recognition and increased distribution as currently anticipated; the
digital delivery of the Company's products may not produce additional revenue in
the anticipated amounts, or at all; the Company may never expand its
distribution channels domestically or internationally; the Company may not adopt
successful advertising strategies or marketing methods; the Company may not
develop or sell complementary GSP RUSHFIT product lines and/or may not achieve
sales of such products to existing customers in the quantum anticipated, or at
all; the Company may not be able to launch a new fitness-based DVD series or
product line starring a celebrity or athlete; the substantial investment of
capital required to produce and market video and entertainment productions, the
need to obtain additional financing and uncertainty as to the availability and
terms of future financing, unpredictability of the commercial success of our
programming, difficulties in integrating technological changes and other trends
affecting the entertainment industry, significant competition in the global
economic market, the possibility the rate of growth of the market for fitness
media will slow, reliance on the health and marketability of celebrity fitness
talent in productions owned by the Company, the possibility of competition from
other ecommerce and online marketing vendors, the continued strong growth in
adoption of digital media, the possibility of new fitness titles from
traditional large studios that target the male demographic, large media
production companies may move ecommerce operations in-house rather than
outsourcing, reliance on production studios continuing to outsource ecommerce
operations, reliance on a number of key employees, limited operating history,
the possibility of claims against the intellectual property rights of the
Company, the possibility of infringements upon the intellectual property rights
of the Company; the Company may not have sufficiently budgeted for expenditures
necessary to carry out planned activities; future operating results are
uncertain and likely to fluctuate; the Company may not have the ability to raise
additional financing required to carry out its business objectives on
commercially acceptable terms, or at all; and volatility of the market price of
the Company's shares.
A more complete discussion of the risks and uncertainties facing the Company is
disclosed in the Company's Filing Statement dated November 16, 2010 and
continuous disclosure filings with Canadian securities regulatory authorities at
www.sedar.com. All forward-looking information herein is qualified in its
entirety by this cautionary statement, and the Company disclaims any obligation
to revise or update any such forward-looking information or to publicly announce
the result of any revisions to any of the forward-looking information contained
herein to reflect future results, events or developments, except as required by
law.
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