Digital Shelf Space Corp.
TSX VENTURE : DSS
OTCQX : DTSRF

Digital Shelf Space Corp.

November 29, 2013 21:15 ET

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
  1. Basic and fully diluted net loss
  2. 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.

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