Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three and Six Months Ending June 30, 2013
August 30 2013 - 8:30AM
Marketwired Canada
Digital Shelf Space Corp. (the "Company" or "DSS") (TSX
VENTURE:DSS)(OTCQX:DTSRF) announced today its unaudited financial results for
the three and six month period ended June 30, 2013.
Quarterly Highlights
-- In April the Company entered into a global distribution agreement for
the Company's flagship product, GSP RUSHFIT, with one of the largest
distributors for lifestyle media, Gaiam, Inc. listed on the NADAQ: GAIA
("Gaiam").
-- In May production began of a new long form GSP RUSHFIT infomercial for
North American DRTV advertising. The infomercial is scheduled for
release on North American television in the fall of 2013 to coincide
with the commencement of the distribution agreement with Gaiam.
-- On May 21, 2013, the Company announced the closing of a brokered private
placement for total gross proceeds of $1,562,971 ($1,582,150 CAD)
comprised of common shares and convertible debentures.
-- Total revenues for the quarter equals $195,159 and continued to be
driven primarily by GSP RUSHFIT
Mr. Jeffrey Sharpe, President and CEO of DSS stated, "We were excited to
finalize the agreement with Gaiam this quarter, close the private placement and
to commence the production of the long form infomercial for the GSP RUSHFIT
product. The funding received from the private placement enabled us to move
quickly on the production of the infomercial with it now being in the editing
stages. The combination of the infomercial along with GAIAM's marketing
abilities and network should result in strong results for the latter part of
2013 and into 2014. Our quarterly results are very reflective of both the
seasonality of GSP RUSHFIT during the summer months when sales for all fitness
related products fall off, as well as our minimal advertising spend. The coming
months will see an adjustment in our revenues as we transition to working with
Gaiam but we are confident that once the program with Gaiam is in full force our
revenues will rebound and new levels should be achieved."
Revenue (USD)
The total revenue for the quarter of $195,159 (2012 - $280,602) 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.
Expenses (USD)
During the three months ending June 30, 2013, operating expenses were $718,323
(2012 - $761,661).
Net Loss
Net loss for the quarter ended June 30, 2013 was $523,164 (2012 - $481,059).
Selected Financial Highlights
Selected Period Information
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Three months ended Three months ended
June 30, 2013 June 30, 2012
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Gross Revenue $ 195,159 $ 280,602
Net loss $ (523,164) $ (481,059)
Currency Translation Adj. $ (10,811) $ (9,411)
Weighted average number of shares
outstanding 74,102,516 52,782,584
Net loss per share (1) $ (0.007) $ (0.009)
Total assets $ 2,616,617 $ 2,336,845
Total liabilities $ 954,330 $ 266,010
Shareholders equity $ 1,662,287 $ 2,070,835
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(1) Basic and fully diluted net loss
Appointment and Resignation of Directors
On July 10, 2013, Jason Sparaga was appointed as a Director of the Company. Mr.
Sparaga is the President of Spara Capital Partners Inc., founded in 2001, a
provider of customized investment and merchant banking solutions to owners of
private businesses in matters relating to liquidity, growth or transition, which
Mr. Sparaga. Mr. Sparaga has specific expertise in raising capital, the
succession or sale of privately owned businesses, management buy-outs, and
turnarounds. He is the founder and former Managing Director of TL Corporate
Finance Inc. and has held positions with PriceWaterhouseCoopers LLP and BDO
Dunwoody LLP.
On August 15, 2013, Thomas D. Lamb resigned as a Director of the Company in
order to pursue other business interests. The Company wishes to express their
thanks to Mr. Lamb for his work with the Board of Directors over the years and
in particular with his efforts as a founding participant of the Company.
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 please visit
www.digitalshelfspace.com and to view the Company's products please 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 direct sales of GSP RUSHFIT and the growth and revenue potential of
GSP RUSHFIT; the ability of the Company to generate sales of GSP RUSHFIT and TA
Home Edition, sign additional content deals, raise additional capital from
investors to fund marketing, distribution, content production and operations;
the ability of the Company to form and maintain strategic partnerships to
achieve market exposure necessary to achieve sales volume required to be
profitable; increased adverting funds needed to achieve revenues necessary to
allow the Company to become cash flow positive; the development of marketing
strategies for GSP RUSHFIT consistent with the distribution agreement signed
with Gaiam; the production of a long form DRTV infomercial for the North
American market; the development of a marketing strategy for TA Home Edition to
maximize the brand recognition of the PGA(R) endorsement and the TOURAcademy
partnership; dedicating the capital required to achieve exposure necessary to
establish the TA Home Edition as a premium product in the golf accessory market;
the launch of a new direct-to-home DVD series or product line featuring a
celebrity, athlete or global brand; the ability of the Company to continue as a
going concern; revenue growth for 2013; the Company's outlook of planned
activities; current strategies and ongoing adjustments to these strategies
providing the potential for revenue opportunities; future revenue growth; plans
for increased retail distribution and international expansion through the Gaiam,
Inc. distribution agreement; 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
effect of the Gaiam, Inc. distribution agreement; 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; and
expected growth of sales. 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 distribution agreement with Gaiam may not increase sales or
revenues; anticipated sales and/or volumes of sales for GSP RUSHFIT and
TOURAcademy(R) Home Edition may not be realized; the Company may not be able to
produce a new long form GSP RUSHFIT infomercial in the timeframe as currently
contemplated, or at all; 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; the Company
may not adopt successful advertising strategies or marketing methods; 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; the Company
may not obtain or generate sufficient funds to continue as a going concern;
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Digital Shelf Space Corp.
Jeff Sharpe
President & CEO
604.736-7977 ext.111
604.736-7944 (FAX)
jeff@digitalshelfspace.com
www.digitalshelfspace.com
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