Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three and Six Months Ending June 30, 2012
August 31 2012 - 8:30AM
Marketwired Canada
Digital Shelf Space Corp. (TSX VENTURE:DSS)(OTCQX:DTSRF) (the "Company" or
"DSS") announced today its unaudited financial results for the three and six
month period ended June 30, 2012.
Highlights
-- Exclusive DVD production and global distribution agreement signed with
the PGA TOUR's "TOURAcademy(R)". The agreement includes the production,
marketing, and global distribution of a direct-to-home DVD golf
instructional series, to be marketed under the TOURAcademy(R) brand
name.
-- GOLF EXPERIENCES, LLC (parent company of "TOURAcademy(R)") invests
$250,000 in purchase of the Company's equity at a price of CAD $0.20 per
Unit.
-- GSP RUSHFIT #1 consumer rated product in the Exercise and Fitness
category on Amazon.com.
-- Sales of GSP RUSHFIT continue to be strong on the Amazon websites in
Canada, US and UK achieving a 57% growth rate in sales month over month
for this quarter. These strong numbers has enabled GSP RUSHFIT to be
rated as high as #7 in the top 100 exercise videos sold on Amazon.com
and consistently in the top 10.
-- The Company completed the production of the new TOURAcademy(R) Home
Edition in April 2012, and subsequently announced the launch of the pre-
order website for the comprehensive 8-week golf instruction program on
August 16, 2012, with order fulfillment to be completed in late
September 2012.
Financial Statements' Currency Presentation
In recognition of the functional currency, United States dollars ("USD"), in
which the Company earns its income, effective this quarter all financial
information will be presented in USD unless otherwise advised. As a result the
Company's prior fiscal year interim and annual financial statements as filed may
not be comparable to results filed in the current year.
Revenue
The total revenue for the quarter of $280,602 (2011 - $563,411) continued to be
driven primarily by the Company's flagship product GSP RUSHFIT an 8-week
home-based DVD workout program starring MMA World Welterweight Champion Georges
St-Pierre.
Mr. Jeffrey Sharpe, President and CEO of DSS, stated, "We are excited about the
last half of 2012 as we head into the peak season for the sale of fitness media
products like GSP RUSHFIT and also formally start fulfillment and marketing of
our new program the PGA TOUR's TOURAcademy(R) Home Edition, one of the top
brands in all of sports. Additionally, after being out of the cage and out of
the media spot light for nearly 18 months, the star of GSP RUSHFIT, Georges
St-Pierre, is scheduled to return from his ACL injury to fight for the title in
Montreal in November 2012. We anticipate GSP's return to have a very positive
impact on our overall sell through this year."
Expenses
During the three months ending June 30, 2012, operating expenses were $761,661
(2011 - $786,946).
Net Loss
Net loss for the quarter ended June 30, 2012 was $481,059 (2011 - $223,535).
Selected Financial Highlights
Selected Period Information
---------------------------------------------------------------------------
Three months Three months
ended ended
June 30, June 30,
2012 2011
---------------------------------------------------------------------------
Gross Revenue $ 280,602 $ 563,411
Net loss $ (481,059) $ (223,535)
Currency Translation Adj. $ (9,411) $ (59,885)
Weighted average number of shares outstanding 52,782,584 44,511,572
Net loss per share (1) $ (0.009) $ (0.006)
Total assets $ 2,336,845 $ 2,161,906
Total liabilities $ 266,010 $ 173,722
Shareholders equity $ 2,070,835 $ 1,988,184
---------------------------------------------------------------------------
(1) Basic and fully diluted net loss.
About Digital Shelf Space Corp.
Digital Shelf Space is an independent creator, producer and distributor of home
entertainment content targeted at the fitness and sports instruction market.
Digital Shelf Space's overall content partnership strategy is to align itself
with world-class, global brand partners. For more information visit
www.digitalshelfspace.com and to view our current projects with Georges
St-Pierre and the TOURAcademy(R), visit www.gsprushfit.com and
www.touracademydvds.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 the commencement of online pre-orders of TOURAcademy(R) Home Edition
comprehensive 8-week golf instruction program and timing of order fulfillment;
the restatement of the Company's financial reporting into United States dollars;
inventories stocked by the Company's distribution partner, Northern, and
wholesale demand for the Company's product; GSP RUSHFIT royalty payments;
anticipated sales of TOURAcademy(R) Home Edition comprehensive 8-week golf
instruction program; continued growth of sales of GSP RUSHFIT on Amazon; the
return of Georges St. Pierre to fight in November 2012; additional content
production deals; future additional capital from investors to fund marketing,
distribution and content production; revenue growth in the next fiscal period;
the development of new marketing strategies for GSP RUSHFIT; the launch of a new
direct-to-home DVD series or product line featuring a celebrity, athlete, or
global brand; plans for increased retail distribution; international expansion;
the opening of new markets; projections for further growth continuing to meet
and exceed earlier forecasts; new television and internet marketing campaigns
for the Company's products; expanded sales into overseas markets; expected
growth of retail sales of the Company's products; 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; 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 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: there may be an insignificant number of pre-orders of TOURAcademy(R)
Home Edition comprehensive 8-week golf instruction program; the Company may not
be able to fulfill pre-order commitments of TOURAcademy(R) Home Edition
comprehensive 8-week golf instruction program in a timely manner; Northern may
not need to replenish inventories of the Company's product in the near or
mid-term, leading to diminished revenues; GSP RUSHFIT royalty payments will lead
to diminished revenues; anticipated sales and/or volumes of sales for GSP
RUSHFIT and TOURAcademy(R) Home Edition may not be realized; Georges St. Pierre
may not return from injury to fight in November 2012; the Company may never
conclude an additional content production deal; the Company may never launch a
new direct-to-home DVD series or product line featuring a celebrity, athlete, or
global brand; 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 Company may never expand its distribution channels domestically
or internationally; anticipated international expansion may not occur in the
anticipate timeframe; the Company may not adopt successful advertising
strategies or marketing methods;
the Company may not develop or sell complementary product lines and/or may not
achieve sales of such products to existing customers in the quantum anticipated,
or at all; 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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