Digital Shelf Space Corp.

TSX VENTURE : DSS
PINKSHEETS : DTSRF


Digital Shelf Space Corp.

April 30, 2014 16:37 ET

Digital Shelf Space Corp. Announces Release of Audited Financial Statements for the Year-Ended December 31, 2013 and Stock Option Grants

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 30, 2014) - Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE:DSS)(PINKSHEETS:DTSRF) announced today the release of its audited financial results for the year ending December 31, 2013.

Highlight

  • The Company announced on April 23, 2014 its intentions to complete a non-brokered private placement of up to CAD $3,000,000 in funds. Concurrent with this news release the Company will be announcing the successful closing of the first tranche of the private placement having raised gross proceeds of CAD $2,636,000.

Revenue (USD)

The total revenue for the year of $958,656 (2012 - $1,637,218) 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. Sales of the Company's second product TOURAcademy Home Edition comprehensive 8-week golf instruction DVD program completed its first full year of release.

Expenses (USD)

For the year ending December 31, 2013, operating expenses were $2,886,659 (2012 - $3,614,497).

Net Loss

Net loss after taxes for the year ended December 31, 2013 was $1,905,114 (2012 - $1,977,278).

Selected Financial Highlights

Selected Period Information
Year-ended
Dec 31, 2013
(Audited)
Year-ended
Dec 31, 2012
(Audited)
Gross Revenue $ 958,656 $ 1,637,219
Net loss $ (1,905,114 ) $ (1,977,278 )
Currency Translation Adj. $ 81,451 $ (2,171 )
Weighted average number of shares outstanding 18,569,346 12,533,101
Net loss per share (1) $ (0.10 ) $ (0.16 )
Total assets $ 2,658,187 $ 2,404,893
Total liabilities $ 842,283 $ 716,649
Shareholders' equity $ 1,815,904 $ 1,688,244
(1) Basic and fully diluted net loss

Option Grants

On April 28, 2013, the Company granted, subject to shareholder's approval, a total of 2,750,000 of incentive stock options to directors, officers, management and employees. The stock options vest immediately, are exercisable to acquire one common share at CAD $0.12 and can be exercised until April 28, 2018.

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 Company's revenue and flagship product GSP RUSHFIT; and sales of the Company's TOURAcademy® Home Edition.

In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things, 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: 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 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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