Digital Shelf Space Corp. Announces Unaudited Financial Results for the Three Months Ending March 31, 2014 and Stock Option Grants
Marketwired
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2014) - Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE:DSS)(DTSRF) announced today its unaudited financial results for the three month period ended March 31, 2014.
Highlights
On May 5, 2014 the Company announces the signing of an exclusive licensing and partnership agreement with FLO FIT Holdings, LLC, and Tramar Dillard (FLO RIDA) for the use of the FLO RIDA name, trademarks, image and likeness in the health and fitness category including but not limited to an instructional exercise video series.
FLO Holdings, LLC invests $100,000 USD ($110,000 CAD) into the Company and receives 733,334 common shares at $0.15 CAD.
On May 9, 2014 the Company closes a $3,000,000 private placement.
Revenue (USD)
Total revenue for the quarter was $92,999 (2013 - $405,351).
Expenses (USD)
Operating expenses for the quarter were $444,267 (2013 - $731,859).
Net Loss
Net loss for the quarter ended March 31, 2014 was $351,268 (2013 - $326,508).
Mr. Jeffrey Sharpe, President and CEO of DSS stated, "As expected our revenue for the quarter took a hit as a result of the transition of the distribution and marketing of GSP RUSHFIT from GAIAM back to the company. However, the transition is now complete and we look forward to testing our new 30 minute infomercial on television this summer. We have also completed a 5 minute, 30 second and 60 second infomercial for the TOURAcademy and anticipate testing them on the Golf Channel this spring/summer. The markets have demonstrated confidence in the Company with the closing of a $3 million financing and along with the signing of the agreement with FLO RIDA, we believe we can recover from this quarter and end the year on a strong note."
Selected Financial Highlights
Selected Period Information
Three months ended March 31, 2013
Three months ended March 31, 2013
Gross Revenue
$
92,999
$
405,351
Net loss
$
(444,267
)
$
(326,508
)
Currency Translation Adj.
$
(34,082
)
$
4,889
Weighted average number of shares outstanding
28,433,781
14,525.946
Net loss per share (1)
$
(0.014
)
$
(0.022
)
Total assets
$
2,542,760
$
2,287,412
Total liabilities
$
1,111,922
$
897,725
Shareholders equity
$
1,430,838
$
1,389,687
(1) Basic and diluted net loss
Option Grants
On May 26, 2013, the Company granted, subject to shareholder's approval, a total of 600,000 of incentive stock options to directors, officers, management and employees. Of the stock options granted 300,000 will vest immediately and 300,000 will vest quarterly over 8 quarters. All options granted are exercisable to acquire one common share at CAD $0.12 and can be exercised until May 26, 2018.
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, 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 exclusive licensing and partnership agreement with FLO FIT Holdings, LLC and Tramar Dillard (FLO RIDA); expected completion and airing date of two infomercials for the Company'sTOURAcademy® Home Edition; the Company's revenue and flagship product GSP RUSHFIT; and sales of the Company'sTOURAcademy® Home Edition.
In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things, the sufficiency of budgeted expenditures in carrying out planned activities; 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 effects of the terminated Gaiam agreement; 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 partnership with FLO FIT Holdings, LLC and FLO RIDA may not benefit the Company as currently anticipated, or at all; 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; unpredictability of the commercial success of our programming; 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 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.
