Destiny Media (DSNY) 10-Q 14 Jul 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	31-May-14	Jul. 14, 2014
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-May-14	'
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	'	52,993,874
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well Known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	31-May-14	Aug. 31, 2013
Current	'	'
Cash and cash equivalents	$1,038,930	$1,521,552
Accounts receivable, net of allowance for doubtful accounts of $5,535 [August 31, 2013 - $11,392]	486,165	419,697
Other receivables	67,613	16,636
Current portion of long term receivable	112,205	99,649
Prepaid expenses	33,962	29,653
Deposits	22,962	35,611
Deferred tax assets - current portion	130,000	130,000
Total current assets	1,891,837	2,252,798
Long term receivable	374,643	440,889
Property and equipment, net	315,126	234,969
Deferred tax assets - long term portion	729,000	729,000
Total assets	3,310,606	3,657,656
Current	'	'
Accounts payable	102,526	79,622
Accrued liabilities	202,207	221,720
Deferred leasehold inducement	0	2,892
Deferred revenue	31,100	70,415
Total liabilities	335,833	374,649
Stockholders' equity	'	'
Common stock, par value $0.001 Authorized: 100,000,000 shares Issued and outstanding: 52,865,173 shares [August 31, 2013 - issued outstanding 51,981,964 shares]	52,865	51,982
Additional paid-in capital	8,949,484	8,929,384
Accumulated deficit	-6,037,356	-5,787,016
Accumulated other comprehensive income (loss)	9,780	88,657
Total stockholders' equity	2,974,773	3,283,007
Total liabilities and stockholders' equity	$3,310,606	$3,657,656

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	31-May-14	Aug. 31, 2013
Allowance for Doubtful Accounts Receivable, Current	$5,535	$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	52,865,173	51,981,964
Common Stock, Shares, Outstanding	52,865,173	51,981,964

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
	31-May-14	31-May-13	31-May-14	31-May-13
Revenue	$942,472	$873,866	$2,675,695	$2,818,055
Operating expenses	'	'	'	'
General and administrative	271,855	285,857	1,041,520	675,454
Sales and marketing	330,830	207,492	1,057,221	651,092
Research and development	237,790	336,083	770,636	1,193,515
Amortization	39,655	28,746	104,063	84,792
Total operating expenses	880,130	858,178	2,973,440	2,604,853
Income (loss) from operations	62,342	15,688	-297,745	213,202
Other income	'	'	'	'
Interest income	14,758	18,907	47,405	59,641
Income (loss) before income taxes	77,100	34,595	-250,340	272,843
Income tax recovery (expense) - deferred	3,000	-8,000	0	-73,000
Net Income (loss)	80,100	26,595	-250,340	199,843
Other comprehensive income (loss), net of tax	'	'	'	'
Foreign currency translation adjustments	75,804	-13,465	-78,877	-96,429
Total comprehensive income (loss)	$155,904	$13,130	($329,217)	$103,414
Net income (loss) per common share, basic and diluted	$0	$0	$0	$0
Weighted average common shares outstanding:	'	'	'	'
Basic	52,412,480	51,961,922	52,272,673	52,021,101
Diluted	52,510,940	52,651,928	52,272,673	52,703,717

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 (loss)	'	'	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 (loss)	'	'	-250,340	-78,877	-329,217
Stock options repurchased and cancelled	'	-113,215	'	'	-113,215
Common stock issued on options exercised	883	100,367	'	'	101,250
Common stock issued on options exercised (Shares)	883,209	'	'	'	'
Stock compensation	'	32,948	'	'	32,948
Ending Balance at May. 31, 2014	$52,865	$8,949,484	($6,037,356)	$9,780	$2,974,773
Ending Balance (Shares) at May. 31, 2014	52,865,173	'	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	31-May-14	31-May-13
OPERATING ACTIVITIES	'	'
Net income (loss)	($250,340)	$199,843
Items not involving cash:	'	'
Depreciation and amortization	104,063	84,792
Stock-based compensation	32,948	1,945
Deferred leasehold inducement	-2,834	1,820
Deferred income taxes	0	73,000
Unrealized foreign exchange	-35,626	17,396
Changes in non-cash working capital:	'	'
Accounts receivable	-78,988	-187,588
Other receivables	-51,887	33,878
Prepaid expenses and deposits	6,560	-7,281
Accounts payable	25,369	-136,288
Accrued liabilities	-13,393	-15,528
Deferred revenue	-37,647	6,618
Long term receivable	74,386	74,539
Net cash provided by (used in) operating activities	-227,389	147,146
INVESTING ACTIVITIES	'	'
Purchase of property and equipment	-191,598	-50,403
Net cash used in investing activities	-191,598	-50,403
FINANCING ACTIVITIES	'	'
Proceeds from options/warrants exercised	101,250	0
Repurchase of stock options	-113,215	0
Repurchase of common shares	0	-99,762
Net cash provided by (used in) financing activities	-11,965	-99,762
Effect of foreign exchange rate changes on cash	-51,670	-46,650
Net decrease in cash during the period	-482,622	-49,669
Cash, beginning of the period	1,521,552	1,275,423
Cash, end of the period	1,038,930	1,225,754
Supplementary disclosure	'	'
Interest paid	0	0
Income taxes paid	$0	$0

ORGANIZATION

ORGANIZATION	9 Months Ended
	31-May-14
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	9 Months Ended
	31-May-14
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 nine months ended May 31, 2014 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	9 Months Ended
	31-May-14
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 May 31, 2014, installments of $451,250 AUD and interest of $149,292 AUD had been received.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	31-May-14
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 nine months ended May 31, 2014, 733,209 shares were issued pursuant to the cashless exercise of 875,000 share purchase options exercisable at $0.50 and 150,000 share purchase options exercisable at $0.25. 150,000 shares were issued pursuant to the cash exercise of 75,000 share purchase options exercisable at $0.50 and 75,000 share purchase options exercisable at $0.85.
	[b] Stock option plan
	The Company has one existing stock option plan (the “Plan”), namely the 2006 Stock Option Plan, under which up to 5,100,000 shares of the common stock, has been reserved for issuance. A total of 208,181 common shares remain eligible for issuance under the plan. 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 Plan as of May 31, 2014, 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
	Granted	120,000		1.7			—
	Exercised	(1,175,000	)	0.49			1,110,500
	Repurchased and cancelled	(450,000	)	0.5			447,750
	Outstanding at May 31, 2014	345,000		0.92	1.41		110,250
	Vested and exercisable at May 31, 2014	225,000		0.5	0.68		110,250
	During the nine months ended May 31, 2014, 450,000 options at an exercise price of $0.50 were repurchased by the Company for consideration of $447,750 based on the open market price on the date of repurchase. The difference between the fair value of options at the repurchase date and the fair market value at grant date was charged to expense resulting in additional compensation of $334,536 recorded in general and administrative expenses.
	The following table summarizes information regarding the non-vested stock purchase options outstanding as of May 31, 2014:
		Number of Options
	Non-vested options at August 31, 2013	40,625
	Granted and non-vested	120,000
	Vested	(40,625	)
	Non-vested options at May 31, 2014	120,000
	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 May 31, 2014.
	During the three and nine months ended May 31, 2014 and May 31, 2013, stock-based compensation expense has been reported in the statement of operations as follows:
		Three Months Ended			Nine Months Ended
		31-May		31-May	31-May		31-May
		2014		2013	2014		2013
		$		$	$		$
	Stock-based compensation:
	General and administrative	313		1,945	367,484		1,945
	Sales and marketing	—		—	—		—
	Research and development	—		—	—		—
	Total stock-based compensation	313		1,945	367,484		1,945
	Valuation Assumptions
	The fair value of each option award (with exception of the amount attributable to the stock option repurchase discussed above) is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions:
		Three Months Ended			Nine Months Ended
		31-May		31-May	31-May		31-May
		2014		2013	2014		2013
	Expected term of stock options (years)	—		0.37 - 0.46	0.00 - 0.25		0.37 - 0.46
	Expected volatility	—		49%- 54%	48 %- 150 %		49%- 54%
	Risk-free interest rate	—		0.07%- 0.09%	0.00 %- 0.14 %		0.07%- 0.09%
	Dividend yield	—		—	—		—
	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 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 40,625 during the nine months ended May 31, 2014 was measured using the Black-Scholes option-pricing model and amounted to $32,948. 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 nine months ended May 31, 2014, the Company recognized compensation expense of $103,071 (May 31, 2013 – $89,286) 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 $1.72 (May 31, 2013 – $0.75) . The shares are held in trust by the Company for a period of one year from the date of purchase.

COMMITMENTS

COMMITMENTS	9 Months Ended
	31-May-14
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 has fiscal year payments committed as follows:
		$
	2014	68,858
	2015	91,811
	During the nine months ended May 31, 2014 the Company incurred rent expense of $198,668 (May 31, 2013: $148,730) 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.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	31-May-14
RELATED PARTY TRANSACTIONS [Text Block]	'
	6. RELATED PARTY TRANSACTIONS
	The Company entered into a consulting agreement with a Director effective October 1, 2010 which terminated on December 31, 2013. The Company paid $2,000 per month, plus authorized expenses. During the nine months ended May 31, 2014, the Company paid consulting fees of $8,000 (May 31, 2013 - $18,000) under this agreement.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	31-May-14
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 May 31, 2014. 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	9 Months Ended
	31-May-14
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.

NEW_ACCOUNTING_PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	31-May-14
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.
	In March 2013, the FASB issued Accounting Standards Update2013-05, “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 adoption of this standard 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 periods 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 May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09: Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 is the result of a joint project between FASB and the International Accounting Standards Board (IASB) initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would:
	1. Remove inconsistencies and weaknesses in revenue requirements.
	2. Provide a more robust framework for addressing revenue issues.
	3. Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets.
	4. Provide more useful information to users of financial statements through improved disclosure requirements.
	5. Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer.
	To meet those objectives, the FASB is amending the FASB Accounting Standards Codification and creating a new Topic 606, Revenue from Contracts with Customers, and the IASB is issuing IFRS 15, Revenue from Contracts with Customers. The issuance of these documents completes the joint effort by the FASB and the IASB to meet those objectives and improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and IFRS.
	The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this Update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, this Update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts.
	The ASU is effective for public entities with reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company has not yet evaluated the impact of the adoption of this new standard.

CONCENTRATIONS_AND_ECONOMIC_DE

CONCENTRATIONS AND ECONOMIC DEPENDENCE	9 Months Ended
	31-May-14
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		Nine Months Ended
		31-May	31-May	31-May	31-May
		2014	2013	2014	2013
		$	$	$	$
	Play MPE®
	North America	351,347	327,278	953,642	1,308,128
	Europe	517,353	485,619	1,522,074	1,284,633
	Australasia	53,180	32,542	114,834	102,341
	Total Play MPE®	921,880	845,439	2,590,550	2,695,102
	Clipstream ®
	North America	20,592	28,427	85,145	122,953
	Outside of North America	—	—	—	—
	Total Clipstream ®	20,592	28,427	85,145	122,953
	Total revenue	942,472	873,866	2,675,695	2,818,055
	Revenue in the above table is based on location of the customer. Some of these customers have distribution centers located around the globe and distribute around the world. One customer, representing 49% of total revenue for the period ending May 31, 2014, consolidated affiliated members, effective March 1, 2013, under one global agreement located in Europe. As a result, global revenue associated with this customer for the period ending May 31, 2014 is included in European revenue. In the comparative period in the prior year, this customer represented 53% of revenue and that revenue was allocated to both North America ( 14%) and Europe ( 39%). As a result, there is a movement in the location of the source of the revenue which does not reflect underlying distribution activities.
	As at May 31, 2014, one customer represented $290,098 ( 60%) 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	9 Months Ended
	31-May-14
SUBSEQUENT EVENTS [Text Block]	'
	11. SUBSEQUENT EVENTS
	On May 23, 2014, the Board of Directors set the annual compensation payable to each member of the Board of Directors at $48,000 per annum for the period from June 1, 2014 to May 31, 2015 (the “Director Compensation”). The Director Compensation is in addition to any existing compensation paid to the executive director of the Company.
	On June 13, 2014, the Company closed its private placement to its Directors for 128,701 shares of common stock at $0.96 per share for gross proceeds of $123,553.

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	31-May-14
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
	Granted	120,000		1.7			—
	Exercised	(1,175,000	)	0.49			1,110,500
	Repurchased and cancelled	(450,000	)	0.5			447,750
	Outstanding at May 31, 2014	345,000		0.92	1.41		110,250
	Vested and exercisable at May 31, 2014	225,000		0.5	0.68		110,250
Schedule of Non-vested Stock Options Activity [Table Text Block]	'
		Number of Options
	Non-vested options at August 31, 2013	40,625
	Granted and non-vested	120,000
	Vested	(40,625	)
	Non-vested options at May 31, 2014	120,000
Schedule of Stock-based Compensation Expense [Table Text Block]	'
		Three Months Ended			Nine Months Ended
		31-May		31-May	31-May		31-May
		2014		2013	2014		2013
		$		$	$		$
	Stock-based compensation:
	General and administrative	313		1,945	367,484		1,945
	Sales and marketing	—		—	—		—
	Research and development	—		—	—		—
	Total stock-based compensation	313		1,945	367,484		1,945
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	'
		Three Months Ended			Nine Months Ended
		31-May		31-May	31-May		31-May
		2014		2013	2014		2013
	Expected term of stock options (years)	—		0.37 - 0.46	0.00 - 0.25		0.37 - 0.46
	Expected volatility	—		49%- 54%	48 %- 150 %		49%- 54%
	Risk-free interest rate	—		0.07%- 0.09%	0.00 %- 0.14 %		0.07%- 0.09%
	Dividend yield	—		—	—		—

COMMITMENTS_Tables

COMMITMENTS (Tables)	9 Months Ended
	31-May-14
Schedule of Sub-Lease Payments [Table Text Block]	'
		$
	2014	68,858
	2015	91,811

CONCENTRATIONS_AND_ECONOMIC_DE1

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	9 Months Ended
	31-May-14
Schedule of Revenue by Customer [Table Text Block]	'
		Three Months Ended		Nine Months Ended
		31-May	31-May	31-May	31-May
		2014	2013	2014	2013
		$	$	$	$
	Play MPE®
	North America	351,347	327,278	953,642	1,308,128
	Europe	517,353	485,619	1,522,074	1,284,633
	Australasia	53,180	32,542	114,834	102,341
	Total Play MPE®	921,880	845,439	2,590,550	2,695,102
	Clipstream ®
	North America	20,592	28,427	85,145	122,953
	Outside of North America	—	—	—	—
	Total Clipstream ®	20,592	28,427	85,145	122,953
	Total revenue	942,472	873,866	2,675,695	2,818,055

LONG_TERM_RECEIVABLE_Narrative

LONG TERM RECEIVABLE (Narrative) (Details) (USD $)	9 Months Ended
	31-May-14
	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	451,250
Long Term Receivable 6	$149,292

STOCKHOLDERS_EQUITY_Narrative_

STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $)	9 Months Ended
	31-May-14
	M
Stockholders' Equity 1	100,000,000
Stockholders' Equity 2	$0.00
Stockholders' Equity 3	733,209
Stockholders' Equity 4	875,000
Stockholders' Equity 5	$0.50
Stockholders' Equity 6	150,000
Stockholders' Equity 7	0.25
Stockholders' Equity 8	150,000
Stockholders' Equity 9	75,000
Stockholders' Equity 10	0.5
Stockholders' Equity 11	75,000
Stockholders' Equity 12	0.85
Stockholders' Equity 13	5,100,000
Stockholders' Equity 14	208,181
Stockholders' Equity 15	12
Stockholders' Equity 16	24
Stockholders' Equity 17	450,000
Stockholders' Equity 18	0.5
Stockholders' Equity 19	447,750
Stockholders' Equity 20	334,536
Stockholders' Equity 21	75,000
Stockholders' Equity 22	$0.85
Stockholders' Equity 23	40,625
Stockholders' Equity 24	32,948
Stockholders' Equity 25	5.00%
Stockholders' Equity 26	12,500
Stockholders' Equity 27	25,000
Stockholders' Equity 28	400,000
Stockholders' Equity 29	103,071
Stockholders' Equity 30	89,286
Stockholders' Equity 31	1.72
Stockholders' Equity 32	$0.75

COMMITMENTS_Narrative_Details

COMMITMENTS (Narrative) (Details) (USD $)	9 Months Ended
	31-May-14
Commitments 1	$198,668
Commitments 2	$148,730

RELATED_PARTY_TRANSACTIONS_Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $)	9 Months Ended
	31-May-14
Related Party Transactions 1	2,000
Related Party Transactions 2	$8,000
Related Party Transactions 3	$18,000

CONTINGENCIES_Narrative_Detail

CONTINGENCIES (Narrative) (Details) (USD $)	9 Months Ended
	31-May-14
Contingencies 1	$100,000

CONCENTRATIONS_AND_ECONOMIC_DE2

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) (USD $)	9 Months Ended
	31-May-14
Concentrations And Economic Dependence 1	49.00%
Concentrations And Economic Dependence 2	53.00%
Concentrations And Economic Dependence 3	14.00%
Concentrations And Economic Dependence 4	39.00%
Concentrations And Economic Dependence 5	$290,098
Concentrations And Economic Dependence 6	60.00%
Concentrations And Economic Dependence 7	67.00%

SUBSEQUENT_EVENTS_Narrative_De

SUBSEQUENT EVENTS (Narrative) (Details) (USD $)	9 Months Ended
	31-May-14
Subsequent Events 1	$48,000
Subsequent Events 2	128,701
Subsequent Events 3	$0.96
Subsequent Events 4	$123,553

Schedule_of_Stock_Option_Activ

Schedule of Stock Option Activity (Details) (USD $)	9 Months Ended
	31-May-14
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	120,000
Stockholders' Equity Schedule Of Stock Option Activity 6	1.7
Stockholders' Equity Schedule Of Stock Option Activity 7	0
Stockholders' Equity Schedule Of Stock Option Activity 8	-1,175,000
Stockholders' Equity Schedule Of Stock Option Activity 9	0.49
Stockholders' Equity Schedule Of Stock Option Activity 10	1,110,500
Stockholders' Equity Schedule Of Stock Option Activity 11	-450,000
Stockholders' Equity Schedule Of Stock Option Activity 12	0.5
Stockholders' Equity Schedule Of Stock Option Activity 13	447,750
Stockholders' Equity Schedule Of Stock Option Activity 14	345,000
Stockholders' Equity Schedule Of Stock Option Activity 15	0.92
Stockholders' Equity Schedule Of Stock Option Activity 16	1.41
Stockholders' Equity Schedule Of Stock Option Activity 17	110,250
Stockholders' Equity Schedule Of Stock Option Activity 18	225,000
Stockholders' Equity Schedule Of Stock Option Activity 19	0.5
Stockholders' Equity Schedule Of Stock Option Activity 20	0.68
Stockholders' Equity Schedule Of Stock Option Activity 21	$110,250

Schedule_of_Nonvested_Stock_Op

Schedule of Non-vested Stock Options Activity (Details) (USD $)	9 Months Ended
	31-May-14
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 1	$40,625
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 2	120,000
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 3	-40,625
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 4	$120,000

Schedule_of_Stockbased_Compens

Schedule of Stock-based Compensation Expense (Details) (USD $)	9 Months Ended
	31-May-14
Stockholders' Equity Schedule Of Stock-based Compensation Expense 1	$313
Stockholders' Equity Schedule Of Stock-based Compensation Expense 2	1,945
Stockholders' Equity Schedule Of Stock-based Compensation Expense 3	367,484
Stockholders' Equity Schedule Of Stock-based Compensation Expense 4	1,945
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	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 8	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 9	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 10	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 11	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 12	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 13	313
Stockholders' Equity Schedule Of Stock-based Compensation Expense 14	1,945
Stockholders' Equity Schedule Of Stock-based Compensation Expense 15	367,484
Stockholders' Equity Schedule Of Stock-based Compensation Expense 16	$1,945

Schedule_of_Sharebased_Payment

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (USD $)	9 Months Ended
	31-May-14
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 1	$0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 2	0.37
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 3	0.46
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 4	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 5	0.25
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 6	0.37
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 7	0.46
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	49.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 10	54.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 11	48.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 12	150.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 13	49.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 14	54.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 15	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 16	0.07%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 17	0.09%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 18	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 19	0.14
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 20	0.07%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 21	0.09%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 22	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 23	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 24	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 25	$0

Schedule_of_SubLease_Payments_

Schedule of Sub-Lease Payments (Details) (USD $)	9 Months Ended
	31-May-14
Commitments Schedule Of Sub-lease Payments 1	$68,858
Commitments Schedule Of Sub-lease Payments 2	$91,811

Schedule_of_Revenue_by_Custome

Schedule of Revenue by Customer (Details) (USD $)	9 Months Ended
	31-May-14
Concentrations And Economic Dependence Schedule Of Revenue By Customer 1	$351,347
Concentrations And Economic Dependence Schedule Of Revenue By Customer 2	327,278
Concentrations And Economic Dependence Schedule Of Revenue By Customer 3	953,642
Concentrations And Economic Dependence Schedule Of Revenue By Customer 4	1,308,128
Concentrations And Economic Dependence Schedule Of Revenue By Customer 5	517,353
Concentrations And Economic Dependence Schedule Of Revenue By Customer 6	485,619
Concentrations And Economic Dependence Schedule Of Revenue By Customer 7	1,522,074
Concentrations And Economic Dependence Schedule Of Revenue By Customer 8	1,284,633
Concentrations And Economic Dependence Schedule Of Revenue By Customer 9	53,180
Concentrations And Economic Dependence Schedule Of Revenue By Customer 10	32,542
Concentrations And Economic Dependence Schedule Of Revenue By Customer 11	114,834
Concentrations And Economic Dependence Schedule Of Revenue By Customer 12	102,341
Concentrations And Economic Dependence Schedule Of Revenue By Customer 13	921,880
Concentrations And Economic Dependence Schedule Of Revenue By Customer 14	845,439
Concentrations And Economic Dependence Schedule Of Revenue By Customer 15	2,590,550
Concentrations And Economic Dependence Schedule Of Revenue By Customer 16	2,695,102
Concentrations And Economic Dependence Schedule Of Revenue By Customer 17	20,592
Concentrations And Economic Dependence Schedule Of Revenue By Customer 18	28,427
Concentrations And Economic Dependence Schedule Of Revenue By Customer 19	85,145
Concentrations And Economic Dependence Schedule Of Revenue By Customer 20	122,953
Concentrations And Economic Dependence Schedule Of Revenue By Customer 21	0
Concentrations And Economic Dependence Schedule Of Revenue By Customer 22	0
Concentrations And Economic Dependence Schedule Of Revenue By Customer 23	0
Concentrations And Economic Dependence Schedule Of Revenue By Customer 24	0
Concentrations And Economic Dependence Schedule Of Revenue By Customer 25	20,592
Concentrations And Economic Dependence Schedule Of Revenue By Customer 26	28,427
Concentrations And Economic Dependence Schedule Of Revenue By Customer 27	85,145
Concentrations And Economic Dependence Schedule Of Revenue By Customer 28	122,953
Concentrations And Economic Dependence Schedule Of Revenue By Customer 29	942,472
Concentrations And Economic Dependence Schedule Of Revenue By Customer 30	873,866
Concentrations And Economic Dependence Schedule Of Revenue By Customer 31	2,675,695
Concentrations And Economic Dependence Schedule Of Revenue By Customer 32	$2,818,055