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

Digital Shelf Space Corp.

August 31, 2012 08:30 ET

Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three and Six Months Ending June 30, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2012) - Digital Shelf Space Corp. (TSX VENTURE:DSS)(OTCQX:DTSRF) (the "Company" or "DSS") announced today its unaudited financial results for the three and six month period ended June 30, 2012.

Highlights

  • Exclusive DVD production and global distribution agreement signed with the PGA TOUR's "TOURAcademy®". The agreement includes the production, marketing, and global distribution of a direct-to-home DVD golf instructional series, to be marketed under the TOURAcademy® brand name.
  • GOLF EXPERIENCES, LLC (parent company of "TOURAcademy®") invests $250,000 in purchase of the Company's equity at a price of CAD $0.20 per Unit.
  • GSP RUSHFIT #1 consumer rated product in the Exercise and Fitness category on Amazon.com.
  • Sales of GSP RUSHFIT continue to be strong on the Amazon websites in Canada, US and UK achieving a 57% growth rate in sales month over month for this quarter. These strong numbers has enabled GSP RUSHFIT to be rated as high as #7 in the top 100 exercise videos sold on Amazon.com and consistently in the top 10.
  • The Company completed the production of the new TOURAcademy® Home Edition in April 2012, and subsequently announced the launch of the pre-order website for the comprehensive 8-week golf instruction program on August 16, 2012, with order fulfillment to be completed in late September 2012.

Financial Statements' Currency Presentation

In recognition of the functional currency, United States dollars ("USD"), in which the Company earns its income, effective this quarter all financial information will be presented in USD unless otherwise advised. As a result the Company's prior fiscal year interim and annual financial statements as filed may not be comparable to results filed in the current year.

Revenue

The total revenue for the quarter of $280,602 (2011 - $563,411) 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, "We are excited about the last half of 2012 as we head into the peak season for the sale of fitness media products like GSP RUSHFIT and also formally start fulfillment and marketing of our new program the PGA TOUR's TOURAcademy® Home Edition, one of the top brands in all of sports. Additionally, after being out of the cage and out of the media spot light for nearly 18 months, the star of GSP RUSHFIT, Georges St-Pierre, is scheduled to return from his ACL injury to fight for the title in Montreal in November 2012. We anticipate GSP's return to have a very positive impact on our overall sell through this year."

Expenses

During the three months ending June 30, 2012, operating expenses were $761,661 (2011 - $786,946).

Net Loss

Net loss for the quarter ended June 30, 2012 was $481,059 (2011 - $223,535).

Selected Financial Highlights

Selected Period Information
Three months ended
June 30, 2012
Three months ended
June 30, 2011
Gross Revenue $ 280,602 $ 563,411
Net loss $ (481,059) $ (223,535)
Currency Translation Adj. $ (9,411) $ (59,885)
Weighted average number of shares outstanding 52,782,584 44,511,572
Net loss per share (1) $ (0.009) $ (0.006)
Total assets $ 2,336,845 $ 2,161,906
Total liabilities $ 266,010 $ 173,722
Shareholders equity $ 2,070,835 $ 1,988,184
(1) Basic and fully diluted net loss.

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 visit www.digitalshelfspace.com and to view our current projects with Georges St-Pierre and the TOURAcademy®, 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 commencement of online pre-orders of TOURAcademy® Home Edition comprehensive 8-week golf instruction program and timing of order fulfillment; the restatement of the Company's financial reporting into United States dollars; inventories stocked by the Company's distribution partner, Northern, and wholesale demand for the Company's product; GSP RUSHFIT royalty payments; anticipated sales of TOURAcademy® Home Edition comprehensive 8-week golf instruction program; continued growth of sales of GSP RUSHFIT on Amazon; the return of Georges St. Pierre to fight in November 2012; additional content production deals; future additional capital from investors to fund marketing, distribution and content production; revenue growth in the next fiscal period; the development of new marketing strategies for GSP RUSHFIT; the launch of a new direct-to-home DVD series or product line featuring a celebrity, athlete, or global brand; plans for increased retail distribution; international expansion; 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 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 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: there may be an insignificant number of pre-orders of TOURAcademy® Home Edition comprehensive 8-week golf instruction program; the Company may not be able to fulfill pre-order commitments of TOURAcademy® Home Edition comprehensive 8-week golf instruction program in a timely manner; Northern may not need to replenish inventories of the Company's product in the near or mid-term, leading to diminished revenues; 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; Georges St. Pierre may not return from injury to fight in November 2012; 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; anticipated international expansion may not occur in the anticipate timeframe; 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; 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 ext.111
    604.736-7944 (FAX)
    jeff(at)digitalshelfspace.com
    www.digitalshelfspace.com