Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three Months Ending March 31, 2013
May 30 2013 - 7:13PM
Marketwired Canada
Digital Shelf Space Corp. (the "Company" or "DSS") (TSX
VENTURE:DSS)(OTCQX:DTSRF) announced today its unaudited financial results for
the three month period ended March 31, 2013.
Quarterly Highlights
-- Total revenues of $405,351 continued to be driven primarily by GSP
RUSHFIT
-- Direct online sales of GSP RUSHFIT realize a 50% increase year over year
-- Overall expenses for quarter see a 30% reduction
-- 770 units of GSP RUSHFIT sell in a single day during Amazon "Lightning
Sale" in January 2013
-- Amazon US & Canada rankings for GSP RUSHFIT continues in the top 10 in
both the Exercise & Fitness and Sports & Outdoors categories
Revenue (USD)
The total revenue for the quarter of $405,351 (2012 - $509,306) 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, "Although our wholesale
revenues are down significantly from 2012 we are very pleased with the continued
online growth of the GSP RUSHFIT product and the 50% increase realized this
quarter when compared with the results in 2012. This only confirms our long held
belief in this product and the tremendous potential for growth yet to be
experienced. Our new relationship with Gaiam, Inc. and its marketing know-how
and network will only add to this success and should enable us to realize the
full market potential of the GSP RUSHFIT product. We are excited to get Georges
St. Pierre back into the studio to begin production of the long form infomercial
which should help to propel the GSP RUSHFIT product to new revenue levels.
Finally, our success in closing the current private placement of over $1.5
million will also give us the necessary capital to implement the advertising
strategy for our new product the PGA TOUR's TourAcademy(R) and help establish it
as a premium golf accessory. 2013 looks to be an exciting time for us as a
company."
Expenses (USD)
During the three months ending March 31, 2013, operating expenses were $731,859
(2012 - $1,050,164).
Net Loss
Net loss for the quarter ended March 31, 2013 was $326,508 (2012 - $540,858).
Selected Financial Highlights
Selected Period Information
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Three months ended Three months ended
March 31, 2013 March 31, 2012
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Gross Revenue $ 405,351 $ 509,306
Net loss $ (326,508) $ (540,858)
Currency Translation Adj. $ 4,889 $ 16,066
Weighted average number of shares
outstanding 72,629,732 51,696,158
Net loss per share (1) $ (0.004) $ (0.010)
Total assets $ 2,287,412 $ 2,404,893
Total liabilities $ 897,725 $ 716,649
Shareholders equity $ 1,389,687 $ 1,688,244
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(1) Basic and fully diluted net loss
Appointment of New Chief Financial Officer
On May 29, 2013, Thomas D. Lamb resigned as Chief Financial Officer but will
remain as a Director of the Company. Concurrently, the Board of Directors
approved the appointment of Stephen D. Inouye as Chief Financial Officer of the
Company. Mr. Inouye is a Vancouver-based business man with over 30 years of
accounting experience and for the past 2 years has acted as the Company's
controller. His accounting career began in 1981 with Canada Safeway Stores Ltd.
("Safeway") at their head offices then located in Vancouver, British Columbia.
During his 10 years with Safeway he held a number of accounting positions,
providing him an in-depth understanding of large corporate accounting. From 1991
to 1995 he lived in Ecuador, South America where he was involved in volunteer
work. Upon his return to Canada in 1995, he moved to his home town of Toronto,
Ontario, and returned to his accounting career working for the next 3 years in
an accounting & tax public practice firm where he expanded his accounting
experience with work in taxes, both corporate and personal, and in accounting
for small to medium sized privately held businesses. In 1998, Mr. Inouye
relocated to Vancouver where he opened his own accounting and tax public
practice. Beginning in 2008, he began working with publicly traded companies and
has since then taken on the position of controller for two of those companies.
He continues to operate his public practice providing corporate and personal
accounting and tax services.
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; license agreements and sales of TA Home Edition to specific
customers in the United States; the terms and completion of the subscription by
SAO for common shares of the Company (which upon completion will constitute
SAO's qualifying transaction); the approvals required to complete the SAO
private placement and qualifying transaction, including the approvals of the TSX
Venture Exchange and the shareholders of SAO; the ability of the Company to
generate sales of GSP RUSHFIT and TA Home Edition, sign additional content
deals, raise additional capital to fund marketing, distribution, content
production and operations; increasing advertising funds to achieve increased
revenues; the ability of the Company to continue as a going concern; the
production and completion of a long form GSP RUSHFIT infomercial, and the timing
thereof; revenue growth for 2013; the development of marketing strategies for
GSP RUSHFIT and TA Home Edition; the launch of a new direct-to-home DVD series
or product line featuring a celebrity, athlete or global brand; the Company's
outlook of planned activities; growth of sales, and continued receipt of orders
of the Company's products through Amazon websites; increased sales for the
fitness industry; increased revenues as a result of advertising dollars spent;
current strategies and ongoing adjustments to these strategies providing the
potential for revenue opportunities; wholesale demand for the Company's product;
future revenue growth; plans for increased retail distribution and international
expansion through the Gaiam, Inc. distribution agreement; 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
effect of the new 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, Inc. may not increase sales or
revenues; the subscription and qualifying transaction with SAO may not complete
on the terms and the anticipated timeframe currently contemplated, or at all;
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; 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 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; 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; as a result of the Company's change in presentation from
Canadian dollars to United States dollars, the Company's prior fiscal interim
and annual financial statements may not be comparable to results filed in the
current year; 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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