Digital Shelf Space Corp.

Digital Shelf Space Corp.

August 30, 2013 08:30 ET

Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three and Six Months Ending June 30, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 30, 2013) - Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE:DSS)(OTCQX:DTSRF) announced today its unaudited financial results for the three and six month period ended June 30, 2013.

Quarterly Highlights

  • In April the Company entered into a global distribution agreement for the Company's flagship product, GSP RUSHFIT, with one of the largest distributors for lifestyle media, Gaiam, Inc. listed on the NADAQ: GAIA ("Gaiam").
  • In May production began of a new long form GSP RUSHFIT infomercial for North American DRTV advertising. The infomercial is scheduled for release on North American television in the fall of 2013 to coincide with the commencement of the distribution agreement with Gaiam.
  • On May 21, 2013, the Company announced the closing of a brokered private placement for total gross proceeds of $1,562,971 ($1,582,150 CAD) comprised of common shares and convertible debentures.
  • Total revenues for the quarter equals $195,159 and continued to be driven primarily by GSP RUSHFIT

Mr. Jeffrey Sharpe, President and CEO of DSS stated, "We were excited to finalize the agreement with Gaiam this quarter, close the private placement and to commence the production of the long form infomercial for the GSP RUSHFIT product. The funding received from the private placement enabled us to move quickly on the production of the infomercial with it now being in the editing stages. The combination of the infomercial along with GAIAM's marketing abilities and network should result in strong results for the latter part of 2013 and into 2014. Our quarterly results are very reflective of both the seasonality of GSP RUSHFIT during the summer months when sales for all fitness related products fall off, as well as our minimal advertising spend. The coming months will see an adjustment in our revenues as we transition to working with Gaiam but we are confident that once the program with Gaiam is in full force our revenues will rebound and new levels should be achieved."

Revenue (USD)

The total revenue for the quarter of $195,159 (2012 - $280,602) 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 June 30, 2013, operating expenses were $718,323 (2012 - $761,661).

Net Loss

Net loss for the quarter ended June 30, 2013 was $523,164 (2012 - $481,059).

Selected Financial Highlights

Selected Period Information
Three months ended
June 30, 2013
Three months ended
June 30, 2012
Gross Revenue $ 195,159 $ 280,602
Net loss $ (523,164 ) $ (481,059 )
Currency Translation Adj. $ (10,811 ) $ (9,411 )
Weighted average number of shares outstanding 74,102,516 52,782,584
Net loss per share (1) $ (0.007 ) $ (0.009 )
Total assets $ 2,616,617 $ 2,336,845
Total liabilities $ 954,330 $ 266,010
Shareholders equity $ 1,662,287 $ 2,070,835
(1) Basic and fully diluted net loss

Appointment and Resignation of Directors

On July 10, 2013, Jason Sparaga was appointed as a Director of the Company. Mr. Sparaga is the President of Spara Capital Partners Inc., founded in 2001, a provider of customized investment and merchant banking solutions to owners of private businesses in matters relating to liquidity, growth or transition, which Mr. Sparaga. Mr. Sparaga has specific expertise in raising capital, the succession or sale of privately owned businesses, management buy-outs, and turnarounds. He is the founder and former Managing Director of TL Corporate Finance Inc. and has held positions with PriceWaterhouseCoopers LLP and BDO Dunwoody LLP.

On August 15, 2013, Thomas D. Lamb resigned as a Director of the Company in order to pursue other business interests. The Company wishes to express their thanks to Mr. Lamb for his work with the Board of Directors over the years and in particular with his efforts as a founding participant of the Company.

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 and to view the Company's products please visit and


"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 direct sales of GSP RUSHFIT and the growth and revenue potential of GSP RUSHFIT; the ability of the Company to generate sales of GSP RUSHFIT and TA Home Edition, sign additional content deals, raise additional capital from investors to fund marketing, distribution, content production and operations; the ability of the Company to form and maintain strategic partnerships to achieve market exposure necessary to achieve sales volume required to be profitable; increased adverting funds needed to achieve revenues necessary to allow the Company to become cash flow positive; the development of marketing strategies for GSP RUSHFIT consistent with the distribution agreement signed with Gaiam; the production of a long form DRTV infomercial for the North American market; the development of a marketing strategy for TA Home Edition to maximize the brand recognition of the PGA® endorsement and the TOURAcademy partnership; dedicating the capital required to achieve exposure necessary to establish the TA Home Edition as a premium product in the golf accessory market; the launch of a new direct-to-home DVD series or product line featuring a celebrity, athlete or global brand; the ability of the Company to continue as a going concern; revenue growth for 2013; the Company's outlook of planned activities; 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 timing and quantum of revenue generated through sales of the Company's products revenues will continue at current levels and increase; the effect of the Gaiam, Inc. distribution agreement; 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; 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 not be able to produce a new long form GSP RUSHFIT infomercial in the timeframe as currently contemplated, or at all; 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 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