Destiny Media (DSNY) 10-Q 14 Jan 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Nov. 30, 2013	Jan. 14, 2014
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Nov-13	'
Trading Symbol	'dsny	'
Entity Registrant Name	'DESTINY MEDIA TECHNOLOGIES INC	'
Entity Central Index Key	'0001099369	'
Current Fiscal Year End Date	'--08-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	52,099,327
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well Known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Nov. 30, 2013	Aug. 31, 2013
Current	'	'
Cash and cash equivalents	$1,458,487	$1,521,552
Accounts receivable, net of allowance for doubtful accounts of $8,495 [August 31, 2013 - $11,392]	594,012	419,697
Other receivables	7,517	16,636
Current portion of long term receivable	104,217	99,649
Prepaid expenses	42,350	29,653
Deferred tax assets - current portion	130,000	130,000
Total current assets	2,336,583	2,217,187
Deposits	23,495	35,611
Long term receivable	422,426	440,889
Property and equipment, net	280,186	234,969
Deferred tax assets - long term portion	705,000	729,000
Total assets	3,767,690	3,657,656
Current	'	'
Accounts payable	142,990	79,622
Accrued liabilities	248,151	221,720
Deferred leasehold inducement	0	2,892
Deferred revenue	40,880	70,415
Total liabilities	432,021	374,649
Stockholders' equity	'	'
Common stock, par value $0.001 Authorized: 100,000,000 shares Issued and outstanding: 52,021,353 shares [August 31, 2013 - issued outstanding 51,981,964 shares]	52,021	51,982
Additional paid-in capital	8,952,164	8,929,384
Accumulated Deficit	-5,742,623	-5,787,016
Accumulated other comprehensive income	74,107	88,657
Total stockholders' equity	3,335,669	3,283,007
Total liabilities and stockholders' equity	$3,767,690	$3,657,656

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Nov. 30, 2013	Aug. 31, 2013
Allowance for Doubtful Accounts Receivable, Current	$8,495	$11,392
Common Stock, Par Value Per Share	$0.00	$0.00
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	52,021,353	51,981,964
Common Stock, Shares, Outstanding	52,021,353	51,981,964

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
	Nov. 30, 2013	Nov. 30, 2012
Service revenue	$922,541	$1,063,867
Operating expenses	'	'
General and administrative	243,499	191,257
Sales and marketing	331,641	240,218
Research and development	264,484	400,352
Depreciation and amortization	31,347	27,656
Total Operating Expenses	870,971	859,483
Income from operations	51,570	204,384
Other income	'	'
Interest income	16,823	20,666
Income before provision for income taxes	68,393	225,050
Deferred income tax expense	-24,000	-65,000
Net income	44,393	160,050
Other comprehensive loss, net of tax	'	'
Foreign currency translation adjustments	-14,550	-5,516
Total comprehensive income	$29,843	$154,534
Net income per common share, basic and diluted	$0	$0
Weighted average common shares outstanding:	'	'
Basic	51,998,397	52,112,210
Diluted	53,418,156	52,885,825

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Nov. 30, 2013	Nov. 30, 2012
OPERATING ACTIVITIES	'	'
Net income	$44,393	$160,050
Items not involving cash:	'	'
Depreciation and amortization	31,347	27,656
Stock-based compensation	22,819	0
Deferred leasehold inducement	-2,929	-489
Deferred income taxes	24,000	65,000
Unrealized foreign exchange	-13,510	-9,303
Changes in non-cash working capital:	'	'
Accounts receivable	-179,998	-187,331
Other receivables	9,193	-23,586
Prepaid expenses and deposits	-965	-27,733
Accounts payable	65,023	-98,522
Accrued liabilities	28,209	-21,503
Deferred revenue	-29,679	-8,665
Long term receivable	24,532	24,553
Net cash provided (used) by operating activities	22,435	-99,873
INVESTING ACTIVITIES	'	'
Purchase of property and equipment	-78,768	-27,151
Net cash used in investing activities	-78,768	-27,151
FINANCING ACTIVITIES	'	'
Net cash used in financing activities	0	0
Effect of foreign exchange rate changes on cash	-6,732	-2,686
Net decrease in cash during the period	-63,065	-129,710
Cash, beginning of the period	1,521,552	1,275,423
Cash, end of the period	1,458,487	1,145,713
Supplementary disclosure	'	'
Interest paid	0	0
Income taxes paid	$0	$0

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (USD $)	Common stock [Member]	Additional paid-in capital [Member]	Accumulated Deficit [Member]	Accumulated other comprehensive income [Member]	Total
Beginning Balance at Aug. 31, 2012	$52,091	$9,008,957	($6,013,030)	$232,917	$3,280,935
Beginning Balance (Shares) at Aug. 31, 2012	52,091,004	'	'	'	'
Total comprehensive income	'	'	226,014	-144,260	81,754
Common stock issued on options exercised	48	-48	'	'	'
Common stock issued on options exercised (Shares)	47,610	'	'	'	'
Common stock cancelled	-157	-99,605	'	'	-99,762
Common stock cancelled (Shares)	-156,650	'	'	'	'
Stock compensation	'	20,080	'	'	20,080
Ending Balance at Aug. 31, 2013	51,982	8,929,384	-5,787,016	88,657	3,283,007
Ending Balance (Shares) at Aug. 31, 2013	51,981,964	'	'	'	'
Total comprehensive income	'	'	44,393	-14,550	29,843
Common stock issued on options exercised	39	-39	'	'	'
Common stock issued on options exercised (Shares)	39,389	'	'	'	'
Stock compensation	'	22,819	'	'	22,819
Ending Balance at Nov. 30, 2013	$52,021	$8,952,164	($5,742,623)	$74,107	$3,335,669
Ending Balance (Shares) at Nov. 30, 2013	52,021,353	'	'	'	'

ORGANIZATION

ORGANIZATION	3 Months Ended
	Nov. 30, 2013
ORGANIZATION [Text Block]	'
	1. ORGANIZATION
	Destiny Media Technologies Inc. (the “Company”) was incorporated in August 1998 under the laws of the State of Colorado. The Company develops technologies that allow for the distribution over the Internet of digital media files in either a streaming or digital download format. The technologies are proprietary. The Company operates out of Vancouver, BC, Canada and serves customers predominantly located in the United States, Europe and Australia.
	The Company’s stock is listed for trading under the symbol “DSNY” on the OTCQX in the United States, under the symbol “DSY” on the TSX Venture Exchange and under the symbol “DME” on the Berlin, Frankfurt, Xetra and Stuttgart exchanges in Germany.

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Nov. 30, 2013
BASIS OF PRESENTATION [Text Block]	'
	2. BASIS OF PRESENTATION
	The accompanying unaudited interim condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States for interim financial information pursuant to the rules and regulations of the United States Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2013 are not necessarily indicative of the results that may be expected for the year ended August 31, 2014.
	The balance sheet at August 31, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for annual financial statements.
	For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended August 31, 2013.

LONG_TERM_RECEIVABLE

LONG TERM RECEIVABLE	3 Months Ended
	Nov. 30, 2013
LONG TERM RECEIVABLE [Text Block]	'
	3. LONG TERM RECEIVABLE
	Pursuant to a Settlement Deed dated March 5, 2012, the Company became entitled to a settlement sum of $825,000 Australian dollars (“AUD”) (US $858,194), receivable in monthly installments over the course of 72 months, beginning on March 31, 2012. The unpaid balance accrues interest of 10.25% per annum compounded monthly. The receivable is secured by a registered charge against real estate located in Australia. As at November 30, 2013, installments of $366,950 AUD and interest of $120,806 AUD had been received.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Nov. 30, 2013
STOCKHOLDERS' EQUITY [Text Block]	'
	4. STOCKHOLDERS’ EQUITY
	[a] Common stock issued and authorized
	The Company is authorized to issue up to 100,000,000 shares of common stock, par value $0.001 per share.
	During the three months ended November 30, 2013, 39,389 shares were issued pursuant to the cashless exercise of 50,000 share purchase options exercisable at $0.50.
	[b] Stock option plans
	The Company has two existing stock option plans (the “Plans”), namely the Amended 1999 Stock Option Plan and the 2006 Stock Option Plan, under which up to 3,750,000 and 5,100,000 shares of the common stock, respectively, have been reserved for issuance. A total of 1,655,507 common shares remain eligible for issuance under the plans. The options generally vest over a range of periods from the date of grant, some are immediate, and others are 12 or 24 months. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the common shares underlying them are returned to the reserve. The options generally have a contractual term of five years.
	Stock-Based Payment Award Activity
	A summary of option activity under the Plans as of November 30, 2013, and changes during the period ended are presented below:
					Weighted
					Average	Aggregate
				Weighted	Remaining	Intrinsic
				Average	Contractual	Value
	Options	Shares		Exercise Price	Term	$
	Outstanding at August 31, 2013	1,850,000		0.49	0.56	3,119,250
	Exercised	(50,000	)	0.5		102,500
	Outstanding at November 30, 2013	1,800,000		0.49	0.32	3,107,250
	Vested and exercisable at November 30, 2013	1,778,125		0.49	0.32	3,077,281
	The following table summarizes information regarding the non-vested stock purchase options outstanding as of November 30, 2013:
		Number of Options
	Non-vested options at August 31, 2013	40,625
	Vested	(18,750	)
	Non-vested options at November 30, 2013	21,875
	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money at November 30, 2013.
	During the three months ended November 30, 2013 and 2012, stock-based compensation expense has been reported in the consolidated statement of operations and comprehensive income as follows:
		2013		2012
		$		$
	Stock-based compensation
	General and administrative	22,819		—
	Sales and marketing	—		—
	Research and development	—		—
	Total stock-based compensation	22,819		—
	Valuation Assumptions
	The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions:
		2013		2012
		$		$
	Expected term of stock options (years)	0.12 - 0.25		—
	Expected volatility	50 - 72 %		—
	Risk-free interest rate	0.01%		—
	Dividend yields	—		—
	Expected volatilities are based on historical volatility of the Company’s stock. The Company also uses historical data to estimate option exercise and employee termination within the valuation model.
	The expected term of stock options represents the period of time that options vested are expected to be outstanding. The risk-free rate for periods within the contractual life of the options is based on US Treasury bill rates in effect at the time of options vested.
	During the year ended August 31, 2013, the Company entered into a consulting agreement with a non-employee to provide investor relations consulting services and maximize shareholder value. As part of the agreement, the Company has issued 75,000 options exercisable at $0.85 per share. The options vest equally over twelve months following the signing of the agreement on March 15, 2013. The vested options of 18,750 during the three months ended November 30, 2013 was measured using the Black-Scholes option-pricing model and amounted to $22,819. The amount was expensed to general and administrative in the consolidated statement of operations and comprehensive income.
	[c] Employee Stock Purchase Plan
	The Company’s 2011 Employee Stock Purchase Plan (the “Plan”) became effective on February 22, 2011. Under the Plan, employees of Destiny are able to contribute up to 5% of their annual salary into a pool which is matched equally by Destiny. Independent directors are able to contribute a maximum of $12,500 each for a combined maximum annual purchase of $25,000. The maximum annual combined contributions will be $400,000. All purchases are made through the Toronto Stock Exchange by a third party plan agent. The third party plan agent will also be responsible for the administration of the Plan on behalf of Destiny and the participants.
	During the three months ended November 30, 2013, the Company recognized compensation expense of $13,499 (2012 - $12,137) in salaries and wages on the consolidated statement of operations and comprehensive income in respect of the Plan, representing the Company’s employee matching of cash contributions to the plan. The shares were purchased on the open market at an average price of $2.18 (2012 - $0.87) . The shares are held in trust by the Company for a period of one year from the date of purchase.

COMMITMENTS

COMMITMENTS	3 Months Ended
	Nov. 30, 2013
COMMITMENTS [Text Block]	'
	5. COMMITMENTS
	On August 21, 2013 the company entered into a lease agreement for its premises and it commenced on November 1, 2013 and will expire on December 31, 2014. The Company is committed to payments as followed:
		$
	2014	211,368
	2015	93,941
	During the three months ended November 30, 2013 the Company incurred rent expense of $59,879 (2012: $31,620) which has been allocated between general and administrative expenses, research and development and sales and marketing on the consolidated statement of operations and comprehensive income.
	By a credit facilities agreement dated April 8, 2010 and amended June 17, 2011 and August 23, 2012, the Company has a credit facility with the Royal Bank of Canada consisting of a commercial credit card limit of $47,500 ($50,000 CDN) with interest rate of the bank prime rate plus 3.5% . Borrowings under the facilities are repayable on demand. As of November 30, 2013 and August 31, 2013, the Company has not drawn the credit facility.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Nov. 30, 2013
RELATED PARTY TRANSACTIONS [Text Block]	'
	6. RELATED PARTY TRANSACTIONS
	The Company entered into a consulting agreement with a Director effective October 1, 2010. The Company will pay $2,000 per month, plus authorized expenses. The Director will receive a 10% commission if related new businesses are successfully closed. During the three months ended November 30, 2013, the Company paid consulting fees of $6,000 (2012 - $6,000) under this agreement.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Nov. 30, 2013
INCOME TAXES [Text Block]	'
	7. INCOME TAX
	The Company has adopted the provisions of ASC 740, Income taxes. This standard clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The standard also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company and its subsidiaries are subject to U.S. federal income tax, Canadian income tax, as well as income tax of multiple state and local jurisdictions. Based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The Company’s evaluation was performed for the tax years ended August 31, 1999 through August 31, 2013, the tax years which remain subject to examination by major tax jurisdictions as of November 30, 2013. The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to the Company’s financial results. In the event the Company has received an assessment for interest and/or penalties, it has been classified in the financial statements as selling, general and administrative expense.

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Nov. 30, 2013
CONTINGENCIES [Text Block]	'
	8. CONTINGENCIES
	On November 8, 2011, the Company was served with a Notice of Civil Claim in the Supreme Court of British Columbia from Noramco Capital Corporation for $100,000. The claim asserts that the Company has repudiated a subscription agreement entered into in August 2000. Management believes the claim is without merit and that the likelihood that the outcome of this matter will have a material adverse impact on its result of operations, cash flows and financial condition of the Company is remote. The Company has filed a counterclaim against Noramco and the alleged major beneficial shareholder of Noramco, R. A. Bruce McDonald, for damages arising from a proposed private placement in 2000 which did not close. On March 4, 2013, Mr. McDonald passed away. The implications for the outstanding litigation are unclear.

NEW_ACCOUNTING_PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Nov. 30, 2013
NEW ACCOUNTING PRONOUNCEMENTS [Text Block]	'
	9. NEW ACCOUNTING PRONOUNCEMENTS
	Recently adopted accounting pronouncements
	In February 2013, the FASB issued Accounting Standards Update 2013-02, “Other Comprehensive Income (Topic 220)”. The objective of this Update is to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this Update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This accounting standard update is effective prospectively for annual and interim periods beginning after December 15, 2012. The Company’s adoption of this guidance did not have a material effect on the Company’s consolidated financial statements.
	Accounting Standards Not Yet Effective
	In July 2013, the FASB issued Accounting Standards Update 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The current practice Topic 740, “Income Taxes” does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The objective of this Update is to eliminate the diversity in practice in the presentation of unrecognized tax benefits. This accounting standard update is effective for fiscal years, and interim within those years, beginning after December 15, 2014, early adoption is permitted. The Company is currently evaluating the impact of this update on the consolidated financial statements.
	In April 2013, the FASB issued Accounting Standards Update 2013-07, “Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting”. The amendments of this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP except investment companies that are regulated under the Investment Company Act of 1940. The amendments are effective for entities that determine liquidation imminent during annual reporting periods beginning after December 15, 2013. The Company does not expect the adoption of this Update will have material impact on the consolidated financial statements.
	In March 2013, the FASB issued Accounting Standards Update 2013-05, “Foreign Currency Matters (Topic 830)”. The objective of this Update is to resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. This accounting standard update is effective prospectively for annual and interim periods beginning after December 31, 2013. The Company is currently evaluating the impact of this update on the consolidated financial statements.

CONCENTRATIONS_AND_ECONOMIC_DE

CONCENTRATIONS AND ECONOMIC DEPENDENCE	3 Months Ended
	Nov. 30, 2013
CONCENTRATIONS AND ECONOMIC DEPENDENCE [Text Block]	'
	10. CONCENTRATIONS AND ECONOMIC DEPENDENCE
	The Company operates solely in the digital media software segment and all revenue from its products and services are made in this segment.
	Revenue from external customers, by product and location of customer, is as follows:
		Three Months Ended
		November 30,
		2013	2012
		$	$
	Play MPE®
	North America	335,277	511,806
	Europe*	515,685	468,717
	Australia	33,486	37,190
	Total Play MPE® Revenue	884,448	1,017,713
	Clipstream ® and Radio Destiny
	North America	38,093	46,154
	Total Clipstream ® & Radio Destiny Revenue	38,093	46,154
	Total Revenue	922,541	1,063,867
	* Of this total, $436,171 (2012: $408,446) was derived from the United Kingdom during the three months ended November 30, 2013.
	While, the above segmented information is based on location of the customer, some of these customers have distribution centres located around the globe. Play MPE revenue based on the location source of its distributions is as follows:
		Three Months Ended
		November 30,
		2013	2012
		$	$
	Play MPE®
	North America	397,488	511,806
	Europe	345,862	436,489
	Australia	141,098	69,418
	Total Play MPE® Revenue	884,448	1,017,713
	During the three months ended November 30, 2013, the Company generated 47% of total revenue from one customer [2012 - one customer represented 38% and another customer represented 18%].
	As at November 30, 2013, one customer represented $439,856 ( 74%) of the trade receivables balance [August 31, 2013 – one customer represented 67%].
	The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Nov. 30, 2013
SUBSEQUENT EVENTS [Text Block]	'
	11. SUBSEQUENT EVENTS
	Subsequent to November 30, 2013, 77,974 shares were issued pursuant to the cashless exercise of 100,000 share purchase options exercisable at $0.50.

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Nov. 30, 2013
Schedule of Stock Option Activity [Table Text Block]	'
					Weighted
					Average	Aggregate
				Weighted	Remaining	Intrinsic
				Average	Contractual	Value
	Options	Shares		Exercise Price	Term	$
	Outstanding at August 31, 2013	1,850,000		0.49	0.56	3,119,250
	Exercised	(50,000	)	0.5		102,500
	Outstanding at November 30, 2013	1,800,000		0.49	0.32	3,107,250
	Vested and exercisable at November 30, 2013	1,778,125		0.49	0.32	3,077,281
Schedule of Non-vested Stock Options Activity [Table Text Block]	'
		Number of Options
	Non-vested options at August 31, 2013	40,625
	Vested	(18,750	)
	Non-vested options at November 30, 2013	21,875
Schedule of Stock-based Compensation Expense [Table Text Block]	'
		2013		2012
		$		$
	Stock-based compensation
	General and administrative	22,819		—
	Sales and marketing	—		—
	Research and development	—		—
	Total stock-based compensation	22,819		—
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	'
		2013		2012
		$		$
	Expected term of stock options (years)	0.12 - 0.25		—
	Expected volatility	50 - 72 %		—
	Risk-free interest rate	0.01%		—
	Dividend yields	—		—

COMMITMENTS_Tables

COMMITMENTS (Tables)	3 Months Ended
	Nov. 30, 2013
Schedule of Sub-Lease Payments [Table Text Block]	'
		$
	2014	211,368
	2015	93,941

CONCENTRATIONS_AND_ECONOMIC_DE1

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	3 Months Ended
	Nov. 30, 2013
Schedule of Revenue by Customer [Table Text Block]	'
		Three Months Ended
		November 30,
		2013	2012
		$	$
	Play MPE®
	North America	335,277	511,806
	Europe*	515,685	468,717
	Australia	33,486	37,190
	Total Play MPE® Revenue	884,448	1,017,713
	Clipstream ® and Radio Destiny
	North America	38,093	46,154
	Total Clipstream ® & Radio Destiny Revenue	38,093	46,154
	Total Revenue	922,541	1,063,867
Schedule of Segment Reporting Information, by Segment [Table Text Block]	'
		Three Months Ended
		November 30,
		2013	2012
		$	$
	Play MPE®
	North America	397,488	511,806
	Europe	345,862	436,489
	Australia	141,098	69,418
	Total Play MPE® Revenue	884,448	1,017,713

LONG_TERM_RECEIVABLE_Narrative

LONG TERM RECEIVABLE (Narrative) (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
	M
Long Term Receivable 1	$825,000
Long Term Receivable 2	858,194
Long Term Receivable 3	72
Long Term Receivable 4	10.25%
Long Term Receivable 5	366,950
Long Term Receivable 6	$120,806

STOCKHOLDERS_EQUITY_Narrative_

STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
	M
Stockholders' Equity 1	100,000,000
Stockholders' Equity 2	$0.00
Stockholders' Equity 3	39,389
Stockholders' Equity 4	50,000
Stockholders' Equity 5	$0.50
Stockholders' Equity 6	3,750,000
Stockholders' Equity 7	5,100,000
Stockholders' Equity 8	1,655,507
Stockholders' Equity 9	12
Stockholders' Equity 10	24
Stockholders' Equity 11	75,000
Stockholders' Equity 12	$0.85
Stockholders' Equity 13	18,750
Stockholders' Equity 14	22,819
Stockholders' Equity 15	5.00%
Stockholders' Equity 16	12,500
Stockholders' Equity 17	25,000
Stockholders' Equity 18	400,000
Stockholders' Equity 19	13,499
Stockholders' Equity 20	12,137
Stockholders' Equity 21	2.18
Stockholders' Equity 22	$0.87

COMMITMENTS_Narrative_Details

COMMITMENTS (Narrative) (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Commitments 1	$59,879
Commitments 2	31,620
Commitments 3	47,500
Commitments 4	$50,000
Commitments 5	3.50%

RELATED_PARTY_TRANSACTIONS_Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Related Party Transactions 1	2,000
Related Party Transactions 2	10.00%
Related Party Transactions 3	$6,000
Related Party Transactions 4	$6,000

CONTINGENCIES_Narrative_Detail

CONTINGENCIES (Narrative) (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Contingencies 1	$100,000

CONCENTRATIONS_AND_ECONOMIC_DE2

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Concentrations And Economic Dependence 1	$436,171
Concentrations And Economic Dependence 2	408,446
Concentrations And Economic Dependence 3	47.00%
Concentrations And Economic Dependence 4	38.00%
Concentrations And Economic Dependence 5	18.00%
Concentrations And Economic Dependence 6	$439,856
Concentrations And Economic Dependence 7	74.00%
Concentrations And Economic Dependence 8	67.00%

SUBSEQUENT_EVENTS_Narrative_De

SUBSEQUENT EVENTS (Narrative) (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Subsequent Events 1	77,974
Subsequent Events 2	100,000
Subsequent Events 3	$0.50

Schedule_of_Stock_Option_Activ

Schedule of Stock Option Activity (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Stockholders' Equity Schedule Of Stock Option Activity 1	$1,850,000
Stockholders' Equity Schedule Of Stock Option Activity 2	0.49
Stockholders' Equity Schedule Of Stock Option Activity 3	0.56
Stockholders' Equity Schedule Of Stock Option Activity 4	3,119,250
Stockholders' Equity Schedule Of Stock Option Activity 5	-50,000
Stockholders' Equity Schedule Of Stock Option Activity 6	0.5
Stockholders' Equity Schedule Of Stock Option Activity 7	102,500
Stockholders' Equity Schedule Of Stock Option Activity 8	1,800,000
Stockholders' Equity Schedule Of Stock Option Activity 9	0.49
Stockholders' Equity Schedule Of Stock Option Activity 10	0.32
Stockholders' Equity Schedule Of Stock Option Activity 11	3,107,250
Stockholders' Equity Schedule Of Stock Option Activity 12	1,778,125
Stockholders' Equity Schedule Of Stock Option Activity 13	0.49
Stockholders' Equity Schedule Of Stock Option Activity 14	0.32
Stockholders' Equity Schedule Of Stock Option Activity 15	$3,077,281

Schedule_of_Nonvested_Stock_Op

Schedule of Non-vested Stock Options Activity (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 1	$40,625
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 2	-18,750
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 3	$21,875

Schedule_of_Stockbased_Compens

Schedule of Stock-based Compensation Expense (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Stockholders' Equity Schedule Of Stock-based Compensation Expense 1	$22,819
Stockholders' Equity Schedule Of Stock-based Compensation Expense 2	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 3	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 4	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 5	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 6	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 7	22,819
Stockholders' Equity Schedule Of Stock-based Compensation Expense 8	$0

Schedule_of_Sharebased_Payment

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 1	0.12
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 2	0.25
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 3	$0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 4	50
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 5	72
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 5	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 6	0.01%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 7	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 8	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 9	$0

Schedule_of_SubLease_Payments_

Schedule of Sub-Lease Payments (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Commitments Schedule Of Sub-lease Payments 1	$211,368
Commitments Schedule Of Sub-lease Payments 2	$93,941

Schedule_of_Revenue_by_Custome

Schedule of Revenue by Customer (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Concentrations And Economic Dependence Schedule Of Revenue By Customer 1	$335,277
Concentrations And Economic Dependence Schedule Of Revenue By Customer 2	511,806
Concentrations And Economic Dependence Schedule Of Revenue By Customer 3	515,685
Concentrations And Economic Dependence Schedule Of Revenue By Customer 4	468,717
Concentrations And Economic Dependence Schedule Of Revenue By Customer 5	33,486
Concentrations And Economic Dependence Schedule Of Revenue By Customer 6	37,190
Concentrations And Economic Dependence Schedule Of Revenue By Customer 7	884,448
Concentrations And Economic Dependence Schedule Of Revenue By Customer 8	1,017,713
Concentrations And Economic Dependence Schedule Of Revenue By Customer 9	38,093
Concentrations And Economic Dependence Schedule Of Revenue By Customer 10	46,154
Concentrations And Economic Dependence Schedule Of Revenue By Customer 11	38,093
Concentrations And Economic Dependence Schedule Of Revenue By Customer 12	46,154
Concentrations And Economic Dependence Schedule Of Revenue By Customer 13	922,541
Concentrations And Economic Dependence Schedule Of Revenue By Customer 14	$1,063,867

Schedule_of_Segment_Reporting_

Schedule of Segment Reporting Information, by Segment (Details) (USD $)	3 Months Ended
	Nov. 30, 2013
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 1	$397,488
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 2	511,806
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 3	345,862
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 4	436,489
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 5	141,098
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 6	69,418
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 7	884,448
Concentrations And Economic Dependence Schedule Of Segment Reporting Information, By Segment 8	$1,017,713