VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 30, 2013) - 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® 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 | ||||||
| Three months ended March 31, 2013 | Three months ended March 31, 2012 | |||||
| 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 | ||
| (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® 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.
