Digital Shelf Space Corp.
TSX VENTURE : DSS

Digital Shelf Space Corp.

May 20, 2011 08:30 ET

Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three Months Ending March 31, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2011) -Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE:DSS) announces unaudited financial results for the three months ended March 31, 2011.

  • Financial Highlights
    • Achieved revenues for the first full quarter of $561,827 since launching the Company's first product GSP RUSHFIT DVD workout program.
    • Commencement of sales to Northern Response (International) Ltd. for distribution to some of the largest Canadian retailers.
    • Announcement of retail distribution of GSP RUSHFIT program through Canada's largest consumer electronics retailer, Future Shop.
    • Announcement of retail distribution of GSP RUSHFIT program through Walmart Canada Announcement of a private placement for up to $2,500,000.
    • First tranche of the private placement in the amount of $1,226,567 closed on May 16, 2011.

Revenue

The total revenue this quarter of $561,827 (April 30, 2010 - $3,424) continued to be driven primarily by the Company's new product GSP RUSHFIT, an 8-week home-based DVD workout program starring Mixed Martial Arts ("MMA") welterweight world champion Georges St-Pierre. In addition to the product sales directly through the GSP RUSHFIT website (www.gsprushfit.com), during this quarter wholesale sales commenced through the Company's partnership with Northern Response (International) Ltd. ("Northern"). Product sold to Northern will be distributed initially in Canada through some of the largest retailers such as Future Shop and Walmart Canada, with future plans for international expansion.

Mr. Jeffrey Sharpe, CEO and President of DSS stated, "We are very pleased with the financial results from our first full quarter as a public company. The response to GSP RUSHFIT has been extremely positive and we look forward to expanding the RUSHFIT brand and our distribution channels in the coming months." GSP RUSHFIT was launched on December 10, 2010, and has quickly established itself as a premium brand in the lucrative home fitness market.

Expenses

During the three month period ending March 31, 2011, operating expenses increased to $580,418 (April 30, 2010 – $169,996). Contributing factors to this increase of $410,422 were those directly related to the increased revenue generated in this quarter by the sales of the GSP RUSHFIT program.

Net Loss

Although expenses more than doubled on a quarter to quarter comparison, the loss for the three months ended March 31, 2011, was $115,557, a decrease of $133,197 from the net loss of $248,754 for three months ended April 30, 2010.

Selected Financial Highlights

Selected Quarterly Information
Three months
ended
March 31, 2011
(Unaudited)
Three months
ended
April 30, 2010
(Unaudited)
Net loss$(115,557)$(248,754)
Weighted average number of shares outstanding44,185,74318,929,079
Net loss per share (1)$(0.003)$(0.013)
Total assets$1,483,686$503,799
Total liabilities$587,212$1,357,822
Shareholders equity$1,026,645$(854,022)
(1) Basic and fully diluted net loss per share are the same

About Digital Shelf Space Corp.

Digital Shelf Space is an independent producer of home entertainment content and online delivery technology provider to digital retailers, content owners and aggregators. Digital Shelf Space's proprietary technology platform has been custom built to deliver home entertainment content directly to consumers. The platform blends e-commerce functionality and paid DVD, digital download and streaming video delivery. For more information please visit www.digitalshelfspace.com. To view our recently launched project with Georges St-Pierre, please visit www.gsprushfit.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 revenue potential; the expansion of the GSP RUSHFIT brand and distribution channels; the impact and profitability of digital delivery of the Company's products; penetration of new markets, both domestic and international, as well as expanded advertising strategies and new marketing methods; the development and sale of complementary GSP RUSHFIT product lines; the launch of a new fitness-based DVD series or product line starring a celebrity or athlete; 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; the scope of distribution of GSP RUSHFIT, the timing of and potential growth of Canadian and International sales as a result of the Northern Response partnership, 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; 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; expected growth of sales as a result of the Northern Response Partnership and consumer demand; and expected results from the use of celebrity fitness products. 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 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 digital delivery of the Company's products may not produce additional revenue in the anticipated amounts, or at all; 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 GSP RUSHFIT product lines and/or may not achieve sales of such products to existing customers in the quantum anticipated, or at all; the Company may not be able to launch a new fitness-based DVD series or product line starring a celebrity or athlete; 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, 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.

Contact Information

  • Digital Shelf Space Corp.
    Jeff Sharpe
    President & CEO
    604-736-7977
    604-736-7944 (FAX)
    jeff(at)digitalshelfspace.com
    www.digitalshelfspace.com

    Investor Cubed Inc.
    (647) 258-3311 or Toll Free: (888) 258-3323
    (416) 363-7977 (FAX)
    info(at)investor3.ca