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Digital Shelf Space Announces Release of Audited Financial Statements for the Year Ended December 31, 2012 and Stock Option Grants

Apr 24 2013 12:00AM

Marketwire

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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/24/13 -- Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE: DSS)(OTCQX: DTSRF) announces the release of its audited financial results for the year ended December 31, 2012.

2012 Highlights

-- The Company's flagship product, GSP RUSHFIT, starring Mixed Martial Arts ("MMA") World Welterweight Champion Georges St-Pierre continues its strong direct sales revenues through 2012.-- In November 2012, Amazon.com sold over 700 units of GSP RUSHFIT on a single day, setting a single day sales record since the product launch in December 2010.-- As a result of consumer's feedback and steady sales performance at Amazon.com, GSP RUSHFIT maintained the #1 rating for consumer products in the Exercise and Fitness category to close the year and a top 10 rating for daily sales volumes in the top 100 exercise videos.-- In March 2012 the Company closed a private placement priced at $0.15 per unit for gross proceeds of $1,563,231.-- In April 2012, the Company signed and exclusive production, marketing and distribution agreement for the Company's second product, PGA TOUR's TOURAcademy® Home Edition 8-Week Golf Improvement Program ("TA Home Edition"). As part of the agreement Golf Experiences, LLC made an investment of $250,000 at a price per unit of $0.20.-- The TOURAcademy® Home Edition 8-Week Golf Improvement Program was released for sale in late October 2012.-- In October 2012 the Company closed a private placement priced at $0.05 per unit for gross proceeds of $500,500.



Revenue

The total revenue for the year of $1,637,219 (December 31, 2011 - $2,571,182) 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, "Although we saw a drop in our overall revenues due to the reduced wholesale orders this past year, it was encouraging to see continued strong sales for the GSP RUSHFIT product through our direct channels, whether our company's dedicated website or through our growing relationship with Amazon.com. Additionally, we were very excited to release the TOURAcademy Home Edition 8-Week Golf Improvement Program in October 2012. We are optimistic for 2013 that with an increase in funding that the GSP RUSHFIT product will continue its growth in the market and the TOURAcademy Home Edition will achieve the exposure necessary to realize its potential."

Expenses

During the year ending December 31, 2012, operating expenses were 3% lower than 2011 to $3,614,497 (2011 - $3,725,152).

Net Loss

Although expenses for 2012 were marginally lower (3%) than 2011, the loss for the year ended December 31, 2012 increased $814,048 to $1,977,278 (2011 - $1,163,230). The largest contributing factor to this increased loss was the reduced wholesale orders realized in the year.

Selected Financial Highlights

Selected Period Information-------------------------------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Dec 31, Dec 31, 2012 2011 (Audited) (Audited)--------------------------------------------------------------------------------------------------------------------------------------------------------Gross Revenue $ 1,637,219 $ 2,542,899Net loss $ (1,977,278) $ (1,163,230)Weighted average number of shares outstanding 62,665,507 48,245,883Net loss per share (1) $ (0.03) $ (0.03)Total assets $ 2,404,893 $ 1,811,529Total liabilities $ 716,649 $ 398,405Shareholders' equity $ 1,688,244 $ 1,413,124--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Basic and fully diluted net loss



Option Grants

On April 23, 2013, the Company granted, subject to regulatory approval, a total of 3,060,000 of incentive stock options to directors, officers, management, employees and consultants. The stock options vest immediately, are exercisable to acquire one common share at CAD $0.10 and can be exercised until April 22, 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 outlook of planned activities; growth of sales, and continued receipt of orders of the Company's products through Amazon websites; increased sales for the fitness industry; increased revenues as a result of advertising dollars spent; the potential growth of GSP RUSHFIT and TOURAcademy® Home Edition; current strategies and ongoing adjustments to these strategies providing the potential for revenue opportunities; the development of marketing strategies; 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; future additional capital from investors to fund marketing, distribution and content production; revenue growth in the next fiscal period; 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; 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: 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; 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 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; general market and consumer demand weakness in the traditionally strong fourth quarter may negatively affect the Company's sales and revenues; as a result of the Company's change in presentation from Canadian dollars to United States dollars, the Company's prior fiscal interim and annual financial statements may not be comparable to results filed in the current year; 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.



Contacts:
Digital Shelf Space Corp.
Jeff Sharpe
President & CEO
604.736-7977 ext.111
604.736-7944 (FAX)
jeff@digitalshelfspace.com
www.digitalshelfspace.com





Source: Marketwire


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