Digital Shelf Space Corp. Annouces Unaudited Financial Results for the Three and Nine Months Ending September 30, 2013
November 29 2013 - 9:15PM
Marketwired
Digital Shelf Space Corp. Annouces Unaudited Financial Results for
the Three and Nine Months Ending September 30, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 29, 2013) -
Digital Shelf Space Corp. (the "Company" or "DSS")
(TSX-VENTURE:DSS)(OTCQX:DTSRF) announced today its unaudited
financial results for the three and nine months ending September
30, 2013.
Quarterly
Highlights
- Production continued during the quarter on a new long form GSP
RUSHFIT infomercial for North American DRTV advertising which was
successfully completed on time, with release for testing in limited
US television markets commencing in November.
- On July 3, 2013, the Company announced the closing of a
non-brokered private placement for total gross proceeds of $437,690
(CAD $459,999) comprised of common shares and warrants.
- Total revenues for the quarter equals $142,750 and continued to
be driven primarily by GSP RUSHFIT
Mr. Jeffrey Sharpe,
President and CEO of DSS stated, "We are excited with the
completion of the long form infomercial that commenced testing, in
limited US television markets, on November 1, 2013, plus the
successful defense by Georges St-Pierre of his welterweight MMA
title. As for our quarterly results, they are very reflective of
both the seasonality of GSP RUSHFIT during the summer months when
sales for all fitness related products are slow but also the
effects of the transition to GAIAM taking control of the marketing
and distribution of GSP RUSHFIT. Although we are disappointed with
the results of this quarter, we understand that this is the process
that we must go through to achieve the success we believe is
possible using the marketing and distribution strengths of GAIAM in
the US and internationally. We are confident that as our
relationship with GAIAM solidifies and with the upcoming holiday
season and fitness season in 2014, that our revenues will reflect
our optimism."
Revenue (USD)
The total revenue
for the quarter of $142,750 (2012 - $324,877) 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 September 30, 2013, operating expenses were $695,828
(2012 - $748,374).
Net Loss
Net loss for the
quarter ended September 30, 2013 was $520,862 (2012 -
$418,949).
Selected Financial Highlights |
|
|
|
|
|
Selected Period Information |
|
|
Three months ended Sep 30, 2013 |
|
Three months ended Sep 30, 2012 |
|
Gross
Revenue |
$ |
142,750 |
|
$ |
324,877 |
|
Net
loss |
$ |
(553,078 |
) |
$ |
(423,497 |
) |
Currency Translation Adj. |
$ |
32,216 |
|
$ |
4,548 |
|
Weighted average number of |
|
|
|
|
|
|
shares outstanding (2) |
|
15,250,879 |
|
|
10,634,129 |
|
Net
loss per share (1) |
$ |
(0.034 |
) |
$ |
(0.077 |
) |
Total
assets |
$ |
2,553,127 |
|
$ |
2,320,846 |
|
Total
liabilities |
$ |
919,562 |
|
$ |
600,837 |
|
Shareholders' equity |
$ |
1,633,565 |
|
$ |
1,720,009 |
|
- Basic and fully diluted net loss
- On October 30, 2013, the Company's shares were consolidated on
a basis of 5:1 and all share data has been retroactively restated
to reflect this consolidation.
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
distribution agreement for GSP RUSHFIT with GAIAM, Inc. and the
effects thereof on the Company and sales of GSP RUSHFIT; the timing
of the effects of the GAIAM distribution agreement on the outlook
of the Company; the growth and revenue potential of GSP RUSHFIT and
TA Home Edition; 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 effect of the new Gaiam, Inc. distribution
agreement; the sufficiency of budgeted expenditures in carrying out
planned activities; 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® Home Edition may not be realized; 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.
Digital Shelf Space Corp.Jeffrey SharpePresident &
CEO604.736-7977
ext.111604.736-7944jeff@digitalshelfspace.comwww.digitalshelfspace.com
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