$DSNY

DESTINY MEDIA TECHNOLOGIES INC

CIK:0001099369|SEC Filings

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Service revenue	$ 1,039,118	$ 1,133,963	$ 3,285,366	$ 3,379,692
Cost of revenue	166,238	161,872	515,434	467,274
Gross margin	$ 872,880	$ 972,091	$ 2,769,932	$ 2,912,418
Percentage of gross margin	84.00%	85.70%	84.30%	86.20%
Operating expenses
General and administrative	$ 342,849	$ 206,193	$ 1,099,513	$ 752,412
Sales and marketing	173,524	228,760	587,097	631,241
Product development	416,341	423,970	1,295,291	1,263,749
Depreciation and amortization	164,499	190,425	504,001	541,128
Total operating expenses	1,097,213	1,049,348	3,485,902	3,188,530
Loss from operations	(224,333)	(77,257)	(715,970)	(276,112)
Other income
Interest and other income	11,006	4,969	19,985	19,870
Net loss before income tax	(213,327)	(72,288)	(695,985)	(256,242)
Current income tax expense	0	0	0	0
Net loss	(213,327)	(72,288)	(695,985)	(256,242)
Foreign currency translation adjustments	(22,647)	119,306	(21,505)	(79,330)
Total comprehensive income (loss)	$ (235,974)	$ 47,018	$ (717,490)	$ (335,572)
Net loss per common share
Basic	$ (0.02)	$ (0.01)	$ (0.07)	$ (0.03)
Diluted	$ (0.02)	$ (0.01)	$ (0.07)	$ (0.03)
Weighted average common shares outstanding:
Basic	9,637,410	9,637,410	9,637,410	9,637,410
Diluted	9,637,410	9,637,410	9,637,410	9,637,410
Hosting costs [Member]
Cost of revenue	$ 42,024	$ 41,374	$ 176,580	$ 129,702
Internal engineering support [Member]
Cost of revenue	17,166	15,897	44,735	43,030
Customer support [Member]
Cost of revenue	97,275	90,083	253,501	243,836
Third-party and transactions costs [Member]
Cost of revenue	$ 9,773	$ 14,518	$ 40,618	$ 50,706

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2026	May 31, 2025
Operating Activities
Net loss	$ (695,985)	$ (256,242)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	504,001	541,128
Stock-based compensation	2,391	27,832
Bad debts	29,124	(2)
Unrealized foreign exchange (gain) loss	(187)	10,575
Changes in non-cash working capital:
Accounts receivable	237,675	(90,757)
Other receivables	88,131	(39,150)
Prepaid expenses and deposits	(15,241)	46,834
Accounts payable	86,499	(56,684)
Accrued liabilities	141,081	(40,724)
Deferred revenue	(22,056)	(3,899)
Net cash provided by operating activities	355,433	138,911
Investing Activities
Development of software	(40,136)	(285,297)
Purchase of property, equipment, and intangibles	(13,526)	(28,928)
Net cash used in investing activities	(53,662)	(314,225)
Financing Activity
Net cash used in financing activity	0	0
Effect of foreign exchange rate changes on cash and cash equivalents	(22,562)	(44,562)
Net increase (decrease) in cash and cash equivalents	279,209	(219,876)
Cash and cash equivalents, beginning of period	1,117,889	1,481,582
Cash and cash equivalents, end of period	1,397,098	1,261,706
Supplementary disclosure:
Interest paid	0	0
Income taxes paid	$ 0	$ 0

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	May 31, 2026	Aug. 31, 2025
Current
Cash and cash equivalents	$ 1,397,098	$ 1,117,889
Accounts receivable, net of allowance for doubtful accounts of $108,199 (August 31, 2025 - $82,184)	588,245	863,422
Other receivables	39,653	127,698
Prepaid expenses	41,359	38,252
Deposits	43,802	31,581
Total current assets	2,110,157	2,178,842
Property and equipment, net	323,959	752,719
Intangible assets, net	14,412	35,282
Total assets	2,448,528	2,966,843
Current
Accounts payable	147,318	70,255
Accrued liabilities	574,694	432,959
Deferred revenue	19,027	41,041
Total current liabilities	741,039	544,255
Total liabilities	741,039	544,255
Stockholders' equity
Common stock, par value $0.001, authorized 20,000,000 shares.Issued and outstanding - 9,637,410 shares (August 31, 2025 - 9,637,410 shares)	9,637	9,637
Additional paid-in capital	8,853,904	8,851,513
Accumulated deficit	(6,526,471)	(5,830,486)
Accumulated other comprehensive loss	(629,581)	(608,076)
Total stockholders' equity	1,707,489	2,422,588
Total liabilities and stockholders' equity	$ 2,448,528	$ 2,966,843