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.
Contacts: Digital Shelf Space Corp. Jeff Sharpe President &
CEO 604-736-7977 604-736-7944 (FAX) jeff(at)digitalshelfspace.com
www.digitalshelfspace.com Investor Cubed Inc. (647) 258-3311 or
Toll Free: (888) 258-3323 (416) 363-7977 (FAX)
info(at)investor3.ca
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