SOURCE: DSS Digital Shelf Space Corp.

DSS Digital Shelf Space Corp.

November 28, 2014 18:00 ET

Digital Shelf Space Corp. Announces Unaudited Financial Results for the Nine Months Ending September 30, 2014 and Board Change

VANCOUVER, BC--(Marketwired - November 28, 2014) - Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE: DSS) (OTC PINK: DTSRF) announced today its unaudited financial results for the nine month period ended September 30, 2014.

Highlights

  • Non-cash expenses for the period totaled $884,870.
  • Production of the new instructional exercise series FLO FIT starring recording artist Tramar Dillard (FLO RIDA) is completed August 2014.
  • Pre-order sales website for FLO FIT targeted for "Black Friday" with fulfillment commencing January 2015.
  • Majority owned subsidiary, 0999810 BC Ltd., changes name to Burn It Productions Inc. ("Burn It"). The Company through Burn It will create, produce and market the FLO FIT project.

Revenue (USD)
Total revenue for the period was $242,858 (2013 - $743,260).

Expenses (USD)
Operating expenses for the nine months ending September 30, 2014 were $2,341,271 (2013 - $2,146,010) however, excluding non-cash expenses reported for this period of $884,870 (2013 - $218,731), the adjusted total operating cash expenses were $1,456,401 (2013 - $1,927,279). Key non-cash expenses were the cost of the GSP RUSHFIT infomercial of $493,382 (required under IFRS IAS 38 to be fully expensed in the period the Company took possession of completed product) and stock-based compensation of $317,185 (2013 - $142,963).

Net Loss
Net loss for the nine months ended September 30, 2014 was $1,907,892 (2013 - $1,376,456). Adjusted loss excluding non-cash expenses for the period was $1,023,022 (2013 - $1,157,725), marginally lower than 2013.

Selected Financial Highlights 
  
Selected Period Information  
  Nine months ended
Sept 30, 2014
  Nine months ended
Sept 30, 2013
 
Gross Revenue $ 242,858   $ 743,260  
Net loss $ (2,098,413 ) $ (1,402,750 )
Currency Translation Adj. $ 190,521   $ 26,294  
Weighted average number of shares outstanding   45,754,328     17,944,173  
Net loss per share (1) $ (0.042 ) $ (0.077 )
Total assets $ 3,518,097   $ 2,553,127  
Total liabilities $ 703,716   $ 919,562  
Shareholders equity $ 2,814,381   $ 1,633,565  
  1. Basic and diluted net loss

Board Resignation

The Company accepted the resignation of Mr. Hector MacKay-Dunn, QC from the Board of Directors, due to personal commitments and other professional obligations. Mr. MacKay-Dunn has no conflicts with the Company or its Board or management. Mr. Mackay-Dunn has agreed to continue to act as the corporate secretary for the Company.

Mr. Mackay-Dunn has been a director with the Company since its inception and the Company wishes to thank him for his time and contributions and wishes him only continued success both personally and professionally.

About FLO RIDA

FLO RIDA is an international hip hop artist and businessman having sold over 80 million records around the world. He owns a music production company under the banner I.M.G. STRONGARM, and has a following around the globe with over 17 million Facebook fans and over 5 million followers on Twitter. He also supports the local community through his Football League (FYFL) and track club (StrongArm Elite Track Club). Information on FLO RIDA can be found at www.officialflo.com

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"
CEO & Director

Forward Looking Statements

This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information in this news release include statements about the production of the new instructional exercise series FLO FIT starring FLO RIDA; and pre-order sales for FLO FIT targeting "Black Friday" with fulfilment commencing January 2015.

In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions. 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 , TOURAcademy® Home Edition and FLO FIT may not be realized; the partnership with FLO FIT Holdings, LLC and FLO RIDA may not benefit the Company as currently anticipated, or at all; 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 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; unpredictability of the commercial success of our programming; 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 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.

Contact Information