Digital Shelf Space Corp. (TSX VENTURE: DSS) (the "Company" or
"DSS") announces unaudited financial results for the six months
ended June 30, 2011.
Highlights
-- Since launching the Company's first product, the GSP RUSHFIT DVD workout
program, the Company achieved revenues for the six months ending June
30, 2011 in excess of $1.1 million dollars.
-- Revenues for the second quarter ending June 30 were $582,251, a 3.6%
increase over the previous quarter. The growth this quarter is despite
seasonal trends for health and fitness products when revenues in the
first quarter of the calendar year typically generate the largest
proportion of annual sales.
-- In connection with the initial launch of the GSP RUSHFIT Direct Response
TV Campaign in June, wholesale revenues increased 195% overall in the
2nd quarter, as retail distribution continued to grow in Canada.
-- On May 16, 2011, the Company closed a private placement in the amount of
$1,226,527.
-- On June 27, 2011 Mr. Jeffrey Sackman, former President of Lionsgate
Films and CEO and Founder of THINKfilm, was appointed to the board of
directors of the Company.
-- On June 28, 2011 the Company converted $262,500 in loans owing into
equity of the Company at a price per common share of $0.22. The Company
is now debt free.
Revenue
The total revenue for the six months of $1,144,078 (July 31,
2010 - $5,053) 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), wholesale
revenues grew by 195% through the Company's partnership with
Northern Response (International) Ltd. ("Northern"). Product sold
to Northern was distributed in Canada through some of the largest
retailers such as Future Shop, Best Buy and Walmart Canada. Plans
for international expansion continue to move forward with expansion
planned in the next quarter.
Mr. Jeffrey Sharpe, CEO and President of DSS stated, "We are
very pleased with the financial results for our second quarter and
for the 6 month period ending June 30, 2011. For us to increase our
revenue in the second quarter over the first quarter is a very
positive sign that GSP RUSHFIT is gaining significant traction in
the retail market place. Typically revenues for health and fitness
products experience seasonal trends with the first quarter of the
calendar year most often generating the largest proportion of
annual sales. We have now sold over 25,000 copies of GSP RUSHFIT
and have over 20,000 followers on our GSP RUSHFIT Facebook page.
Our retail sell through has happened very quickly and Northern
Response (International) Ltd. anticipates the program being for
sale in over 3000 stores across Canada by the end of the third
quarter. We look forward to expanding our distribution channels
internationally and extending our marketing and advertising reach
throughout the balance of 2011." 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 six month period ending June 30, 2011, operating
expenses increased to $1,477,584 (July 31, 2010 - $557,587).
Contributing factors to this increase of $919,997 were those
directly related to the increased revenue generated in this quarter
by the sales of the GSP RUSHFIT program and expenses related to the
publicly traded status of the Company for which there were no
comparative expenses in 2010.
Net Loss
Although expenses almost tripled on a period to period
comparison, the loss for the six months ended June 30, 2011 was
$345,584, a decrease of $206,969 from the net loss of $552,553 for
six months ended July 31, 2010.
Selected Financial Highlights
Selected Period Information
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Six months Six months
ended ended
June 30, 2011 July 31, 2010
(Unaudited) (Unaudited)
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Net loss $ (345,584) $ (552,553)
Weighted average number of shares
outstanding 44,833,823 18,946,694
Net loss per share (1) $ (0.008) $ (0.029)
Total assets $ 2,239,676 $ 383,767
Total liabilities $ 208,797 $ 1,458,922
Shareholders equity $ 2,030,879 $ (1,075,155)
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(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 and 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 expected revenue as new outlets are added, the Company enters
into other markets, expands existing advertising strategies and new
marketing methods are implemented; 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 RISHFIT 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,
plans for international expansion in the next quarter and the
quantum of growth of Canadian 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; revenues will
continue at current levels and increase; 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; anticipated international expansion may not occur
in the next quarter; 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@digitalshelfspace.com
www.digitalshelfspace.com Investor Cubed Inc. Investor Relations
647-258-3311 or Toll Free: 1-888-258-3323 416-363-7977 (FAX)
info(at)investor3.ca
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