Destiny Media (DSNY) 10-Q 14 Apr 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Feb. 28, 2015	Apr. 13, 2015
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	28-Feb-15
Trading Symbol	dsny
Entity Registrant Name	DESTINY MEDIA TECHNOLOGIES INC
Entity Central Index Key	1099369
Current Fiscal Year End Date	-23
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	2015
Document Fiscal Period Focus	Q2

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Feb. 28, 2015	Aug. 31, 2014
Current
Cash and cash equivalents	$577,118	$990,007
Accounts receivable, net of allowance for doubtful accounts of $5,601 [Aug 31, 2014 - $5,513]	526,697	544,609
Other receivables	43,740	78,040
Current portion of long term receivable	101,611	115,464
Prepaid expenses	43,136	147,206
Deposits - current portion	53,064	0
Total current assets	1,345,366	1,875,326
Deposits- long term portion	23,499	22,870
Long term receivable	237,096	345,830
Property and equipment, net	324,023	315,180
Deferred tax assets - long term portion	842,000	842,000
Total assets	2,771,984	3,401,206
Current
Accounts payable	212,596	172,617
Accrued liabilities	192,012	203,353
Deferred revenue	4,359	22,589
Deferred leasehold inducement	14,530	0
Obligation under capital lease - current portion	4,967	0
Total current liabilities	428,464	398,559
Obligation under capital lease - long term portion	14,115	0
Total liabilities	442,579	398,559
Commitments and contingencies	0	0
Stockholders' equity
Common stock, par value $0.001 [] Authorized: 100,000,000 shares Issued and outstanding: 52,993,874 shares [Aug 31, 2014 - issued and outstanding 52,993,874 shares]	52,994	52,994
Additional paid-in capital	9,074,636	9,061,325
Accumulated deficit	-6,532,181	-6,111,415
Accumulated other comprehensive (loss)	-266,044	-257
Total stockholders' equity	2,329,405	3,002,647
Total liabilities and stockholders' equity	$2,771,984	$3,401,206

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Allowance for Doubtful Accounts Receivable, Current	$5,601	$5,513
Common Stock, Par Value Per Share	$0.00	$0.00
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	52,993,874	52,993,874
Common Stock, Shares, Outstanding	52,993,874	52,993,874

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Revenue	$743,193	$810,682	$1,698,263	$1,733,223
Operating expenses
General and administrative	246,922	526,166	540,580	769,665
Sales and marketing	422,493	394,750	753,506	726,391
Research and development	411,282	268,362	775,251	532,846
Amortization	38,998	33,061	74,783	64,408
Total Operating expenses	1,119,695	1,222,339	2,144,120	2,093,310
(Loss) from operations	-376,502	-411,657	-445,857	-360,087
Other income
Interest income	12,045	15,824	25,091	32,647
(Loss) before income taxes	-364,457	-395,833	-420,766	-327,440
Income tax recovery (expense) - deferred	0	21,000	0	-3,000
Net (loss)	-364,457	-374,833	-420,766	-330,440
Other comprehensive (loss), net of tax
Foreign currency translation adjustments	-164,827	-140,131	-265,787	-154,681
Total comprehensive (loss)	($529,284)	($514,964)	($686,553)	($485,121)
Net (loss) per common share, basic and diluted	($0.01)	($0.01)	($0.01)	($0.01)
Weighted average common shares outstanding:
Basic	52,993,874	52,222,640	52,993,874	52,109,899
Diluted	52,993,874	52,222,640	52,993,874	52,109,899

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, 2013	$51,982	$8,929,384	($5,787,016)	$88,657	$3,283,007
Beginning Balance (Shares) at Aug. 31, 2013	51,981,964
Total comprehensive income (loss)			-324,399	-88,914	-413,313
Common stock issued on private placement	129	111,841			111,970
Common stock issued on private placement (Shares)	128,701
Common stock issued on options exercised	883	100,367			101,250
Common stock issued on options exercised (Shares)	883,209
Repurchase of options		-113,215			-113,215
Stock based compensation		32,948			32,948
Ending Balance at Aug. 31, 2014	52,994	9,061,325	-6,111,415	-257	3,002,647
Ending Balance (Shares) at Aug. 31, 2014	52,993,874
Total comprehensive income (loss)			-420,766	-265,787	-686,553
Stock based compensation		13,311			13,311
Ending Balance at Feb. 28, 2015	$52,994	$9,074,636	($6,532,181)	($266,044)	$2,329,405
Ending Balance (Shares) at Feb. 28, 2015	52,993,874

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
OPERATING ACTIVITIES
Net income (loss)	($420,766)	($330,440)
Items not involving cash:
Depreciation and amortization	74,783	64,408
Stock-based compensation	13,311	32,635
Deferred leasehold inducement	15,687	-2,867
Deferred income taxes	0	3,000
Unrealized foreign exchange	17,327	-29,363
Changes in non-cash working capital:
Accounts receivable	-56,563	-230,192
Other receivables	26,158	-60,915
Prepaid expenses and deposits	39,055	-2,833
Accounts payable	87,538	88,586
Accrued liabilities	16,094	299,407
Deferred revenue	-16,535	-64,035
Long term receivable	50,741	48,658
Net cash used in operating activities	-153,170	-183,951
INVESTING ACTIVITIES
Purchase of property and equipment	-128,258	-106,971
Net cash used in investing activities	-128,258	-106,971
FINANCING ACTIVITIES
Proceeds from options/warrants exercised	0	37,500
Repurchase of options	0	-305,250
Net cash used in financing activities	0	-267,750
Effect of foreign exchange rate changes on cash	-131,461	-91,941
Net decrease in cash during the period	-412,889	-650,613
Cash, beginning of the period	990,007	1,521,552
Cash, end of the period	577,118	870,939
Supplementary disclosure
Interest paid	0	0
Income taxes paid	$0	$0

ORGANIZATION

ORGANIZATION	6 Months Ended
	Feb. 28, 2015
ORGANIZATION [Text Block]	1. ORGANIZATION
	Destiny Media Technologies Inc. (the “Company”) was incorporated in August 1998 under the laws of the State of Colorado and the corporate jurisdiction was changed to Nevada effective October 8, 2014. 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 U.S. 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	6 Months Ended
	Feb. 28, 2015
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 six months ended February 28, 2015 are not necessarily indicative of the results that may be expected for the year ended August 31, 2015.
	The balance sheet at August 31, 2014 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, 2014.

LONG_TERM_RECEIVABLE

LONG TERM RECEIVABLE	6 Months Ended
	Feb. 28, 2015
LONG TERM RECEIVABLE [Text Block]	3. LONG TERM RECEIVABLE
	The Company agreed to settle litigation with an unrelated party. 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 and ending on February 28, 2018. The balance is due to be paid in equal monthly installments of $14,050 AUD until the end of the obligation. 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 of February 28, 2015, installments of $577,700 AUD (US $556,579) including interest of $186,495 AUD (US $179,695) has been received.
	The following table summarizes the changes regarding the carrying value of the remaining receivable balance during the six months period ended February 28, 2015 covering period of September 1, 2014 to February 28, 2015 and the three months period ended February 28, 2015 covering period of November 1, 2014 to February 28, 2015:
		Three Months Ended				Six Months Ended
		28-Feb		28-Feb		28-Feb		28-Feb
		2015		2014		2015		2014
		$		$		$		$
	Beginning balance	394,660		526,643		461,294		540,538
	Gross installments received	(33,939	)	(37,653	)	(71,158	)	(77,143	)
	Interest included in above	9,342		13,026		20,297		27,355
	Foreign exchange impact	(31,356	)	(9,039	)	(71,726	)	2,227
	Ending balance	338,707		492,977		338,707		492,977
	The foreign exchange impact in above table is partially allocated into other comprehensive income (loss) and partially allocated into exchange gain (loss) on income statement.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Feb. 28, 2015
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 six months ended February 28, 2015, no shares were issued.
	[b] Stock option plans
	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 8,181 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 February 28, 2015, 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, 2014	545,000	0.95	2.55	67,500
	Issued	—	—
	Exercised	—	—
	Expired	200,000	0.5
	Outstanding at February 28, 2015	345,000	1.21	3.29	—
	Vested and exercisable at
	28-Feb-15	25,000	0.5	0.05	—
	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 respective reporting date.
	The following table summarizes information regarding the non-vested stock purchase options outstanding as of February 28, 2015:
			Weighted
			Average
			Grant Date
		Number of Options	Fair Value
	Non-vested options at August 31, 2014	320,000	0.23
	Granted	—	—
	Vested	—	—
	Non-vested options at February 28, 2015	320,000	0.23
	As of February 28, 2015, there was $31,832 of total unrecognized compensation cost related to non-vested share-based compensation awards. The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.35 years.
	During the six months ended February 28, 2015 and 2014, stock-based compensation expense has been reported in the consolidated statement of operations and comprehensive income as follows:
		Three Months Ended		Six Months Ended
		28-Feb	28-Feb	28-Feb	28-Feb
		2015	2014	2015	2014
		$	$	$	$
	Stock-based compensation:
	General and administrative	2,884	344,352	7,922	367,171
	Sales and marketing	2,643	—	4,802	—
	Research and development	587	—	587	—
	Total stock-based compensation	6,114	344,352	13,311	367,171
	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:
		Three Months Ended		Six Months Ended
		28-Feb	28-Feb	28-Feb	February 28
		2015	2014	2015	2014
	Expected term of stock options (years)	—	0.00 - 0.12	—	0.00 - 0.25
	Expected volatility	—	0%- 150%	—	0%- 150%
	Risk-free interest rate	—	0.00%- 0.06%	—	0.00%- 0.14%
	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 of options vested.
	[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 six months ended February 28, 2015, the Company recognized compensation expense of $67,369 (February 28, 2014 - $92,135) 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 $0.4682 (February 28, 2014 - $1.85) . The shares are held in trust by the Company for a period of one year from the date of purchase.

COMMITMENTS

COMMITMENTS	6 Months Ended
	Feb. 28, 2015
COMMITMENTS [Text Block]	5. COMMITMENTS
	In December 2014, the Company entered into a sublease agreement commencing May 1, 2015 and expiring June 29, 2017 for a new premise with free occupation from December 2014 to April 2015. During this quarter the sublease agreement was amended to include one extra month free occupation for May 2015 with rent payment starting June 1, 2015. The Company has fiscal year payments committed as follows:
		$
	2015	70,498
	2016	281,992
	2017	234,994
	During the six months ended February 28, 2015 the Company incurred rent expense of $166,049 (February 28, 2014 - $129,643) 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 (loss). The rent expense during the six months ended February 28, 2015 has included the allocation of rental payments for our new office into this quarter starting from the sublease commencement date on a straight-line basis.
	In February 2015, the Company entered into a capital lease. Commencing this quarter, The Company is committed to make payments under its capital leases for 4 year terms as follows:
		$
	2015	3,180
	2016	6,361
	2017	6,361
	2018	6,043
	Total lease payments	21,945
	Less: Amounts representing interest	(2,863	)
	Balance of obligation	19,082
	Less: Current portion	(4,967	)
	Long term portion	14,115

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Feb. 28, 2015
RELATED PARTY TRANSACTIONS [Text Block]	6. RELATED PARTY TRANSACTIONS
	The Company entered into a consulting agreement with a family member of a Director to provide project management service effective March 1, 2014. During the six months ended February 28, 2015, the Company paid consulting fees of $44,928 (February 28, 2014 - $Nil) under this agreement.

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Feb. 28, 2015
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 February 28, 2015, the tax years which remain subject to examination by major tax jurisdictions as of February 28, 2015. 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	6 Months Ended
	Feb. 28, 2015
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.

CONCENTRATIONS_AND_ECONOMIC_DE

CONCENTRATIONS AND ECONOMIC DEPENDENCE	6 Months Ended
	Feb. 28, 2015
CONCENTRATIONS AND ECONOMIC DEPENDENCE [Text Block]	9. 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		Six Months Ended
		28-Feb	28-Feb	28-Feb	28-Feb
		2015	2014	2015	2014
		$	$	$	$
	Play MPE®
	North America	266,400	267,018	648,317	602,295
	Europe	411,600	489,036	896,933	1,004,721
	Australasia	61,835	28,168	137,853	61,654
	Total Play MPE®	739,835	784,222	1,683,103	1,668,670
	Clipstream ® & Pirate Radio
	North America	3,358	26,460	15,160	64,553
	Outside of North America	—	—	—	—
	Total Clipstream ® & Pirate Radio	3,358	26,460	15,160	64,553
	Total revenue	743,193	810,682	1,698,263	1,733,223
	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. During the six months ended February 28, 2015, the Company generated 46% of total revenue from one customer [ February 28, 2014 - one customer represented 50%].
	It is in management’s opinion that the Company is not exposed to significant credit risk.
	As at February 28, 2015, one customer represented $356,414 ( 68%) of the trade receivables balance [February 28, 2014 – one customer represented 71%].
	The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada.

NEW_ACCOUNTING_PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Feb. 28, 2015
NEW ACCOUNTING PRONOUNCEMENTS [Text Block]	10. NEW ACCOUNTING PRONOUNCEMENTS
	Recently adopted accounting pronouncements
	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 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 May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue depicting the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will also result in enhanced revenue related disclosures. ASU 2014-09 is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016. The Company has not yet evaluated the impact of the adoption of this new standard.

LONG_TERM_RECEIVABLE_Tables

LONG TERM RECEIVABLE (Tables)	6 Months Ended
	Feb. 28, 2015
Schedule of Long Term Receivable [Table Text Block]		Three Months Ended				Six Months Ended
		28-Feb		28-Feb		28-Feb		28-Feb
		2015		2014		2015		2014
		$		$		$		$
	Beginning balance	394,660		526,643		461,294		540,538
	Gross installments received	(33,939	)	(37,653	)	(71,158	)	(77,143	)
	Interest included in above	9,342		13,026		20,297		27,355
	Foreign exchange impact	(31,356	)	(9,039	)	(71,726	)	2,227
	Ending balance	338,707		492,977		338,707		492,977

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Feb. 28, 2015
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, 2014	545,000	0.95	2.55	67,500
	Issued	—	—
	Exercised	—	—
	Expired	200,000	0.5
	Outstanding at February 28, 2015	345,000	1.21	3.29	—
	Vested and exercisable at
	28-Feb-15	25,000	0.5	0.05	—
Schedule of Non-vested Stock Options Activity [Table Text Block]			Weighted
			Average
			Grant Date
		Number of Options	Fair Value
	Non-vested options at August 31, 2014	320,000	0.23
	Granted	—	—
	Vested	—	—
	Non-vested options at February 28, 2015	320,000	0.23
Schedule of Stock-based Compensation Expense [Table Text Block]		Three Months Ended		Six Months Ended
		28-Feb	28-Feb	28-Feb	28-Feb
		2015	2014	2015	2014
		$	$	$	$
	Stock-based compensation:
	General and administrative	2,884	344,352	7,922	367,171
	Sales and marketing	2,643	—	4,802	—
	Research and development	587	—	587	—
	Total stock-based compensation	6,114	344,352	13,311	367,171
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]		Three Months Ended		Six Months Ended
		28-Feb	28-Feb	28-Feb	February 28
		2015	2014	2015	2014
	Expected term of stock options (years)	—	0.00 - 0.12	—	0.00 - 0.25
	Expected volatility	—	0%- 150%	—	0%- 150%
	Risk-free interest rate	—	0.00%- 0.06%	—	0.00%- 0.14%
	Dividend yield	—	—	—	—

COMMITMENTS_Tables

COMMITMENTS (Tables)	6 Months Ended
	Feb. 28, 2015
Schedule of Sub-Lease Payments [Table Text Block]		$
	2015	70,498
	2016	281,992
	2017	234,994
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]		$
	2015	3,180
	2016	6,361
	2017	6,361
	2018	6,043
	Total lease payments	21,945
	Less: Amounts representing interest	(2,863	)
	Balance of obligation	19,082
	Less: Current portion	(4,967	)
	Long term portion	14,115

CONCENTRATIONS_AND_ECONOMIC_DE1

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	6 Months Ended
	Feb. 28, 2015
Schedule of Revenue by Customer [Table Text Block]		Three Months Ended		Six Months Ended
		28-Feb	28-Feb	28-Feb	28-Feb
		2015	2014	2015	2014
		$	$	$	$
	Play MPE®
	North America	266,400	267,018	648,317	602,295
	Europe	411,600	489,036	896,933	1,004,721
	Australasia	61,835	28,168	137,853	61,654
	Total Play MPE®	739,835	784,222	1,683,103	1,668,670
	Clipstream ® & Pirate Radio
	North America	3,358	26,460	15,160	64,553
	Outside of North America	—	—	—	—
	Total Clipstream ® & Pirate Radio	3,358	26,460	15,160	64,553
	Total revenue	743,193	810,682	1,698,263	1,733,223

LONG_TERM_RECEIVABLE_Narrative

LONG TERM RECEIVABLE (Narrative) (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
	M
Long Term Receivable 1	$825,000
Long Term Receivable 2	858,194
Long Term Receivable 3	72
Long Term Receivable 4	14,050
Long Term Receivable 5	10.25%
Long Term Receivable 6	577,700
Long Term Receivable 7	556,579
Long Term Receivable 8	186,495
Long Term Receivable 9	$179,695

STOCKHOLDERS_EQUITY_Narrative_

STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
	M
	Y
Stockholders' Equity 1	100,000,000
Stockholders' Equity 2	$0.00
Stockholders' Equity 3	5,100,000
Stockholders' Equity 4	8,181
Stockholders' Equity 5	12
Stockholders' Equity 6	24
Stockholders' Equity 7	$31,832
Stockholders' Equity 8	1.35
Stockholders' Equity 9	5.00%
Stockholders' Equity 10	12,500
Stockholders' Equity 11	25,000
Stockholders' Equity 12	400,000
Stockholders' Equity 13	67,369
Stockholders' Equity 14	92,135
Stockholders' Equity 15	0.4682
Stockholders' Equity 16	$1.85

COMMITMENTS_Narrative_Details

COMMITMENTS (Narrative) (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
	Y
Commitments 4	$166,049
Commitments 5	$129,643
Commitments 6	4

RELATED_PARTY_TRANSACTIONS_Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Related Party Transactions 1	$44,928
Related Party Transactions 2	$0

CONTINGENCIES_Narrative_Detail

CONTINGENCIES (Narrative) (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Contingencies 1	$100,000

CONCENTRATIONS_AND_ECONOMIC_DE2

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Concentrations And Economic Dependence 1	46.00%
Concentrations And Economic Dependence 2	50.00%
Concentrations And Economic Dependence 3	$356,414
Concentrations And Economic Dependence 4	68.00%
Concentrations And Economic Dependence 5	71.00%

Schedule_of_Long_Term_Receivab

Schedule of Long Term Receivable (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Long Term Receivable Schedule Of Long Term Receivable 1	$394,660
Long Term Receivable Schedule Of Long Term Receivable 2	526,643
Long Term Receivable Schedule Of Long Term Receivable 3	461,294
Long Term Receivable Schedule Of Long Term Receivable 4	540,538
Long Term Receivable Schedule Of Long Term Receivable 5	-33,939
Long Term Receivable Schedule Of Long Term Receivable 6	-37,653
Long Term Receivable Schedule Of Long Term Receivable 7	-71,158
Long Term Receivable Schedule Of Long Term Receivable 8	-77,143
Long Term Receivable Schedule Of Long Term Receivable 9	9,342
Long Term Receivable Schedule Of Long Term Receivable 10	13,026
Long Term Receivable Schedule Of Long Term Receivable 11	20,297
Long Term Receivable Schedule Of Long Term Receivable 12	27,355
Long Term Receivable Schedule Of Long Term Receivable 13	-31,356
Long Term Receivable Schedule Of Long Term Receivable 14	-9,039
Long Term Receivable Schedule Of Long Term Receivable 15	-71,726
Long Term Receivable Schedule Of Long Term Receivable 16	2,227
Long Term Receivable Schedule Of Long Term Receivable 17	338,707
Long Term Receivable Schedule Of Long Term Receivable 18	492,977
Long Term Receivable Schedule Of Long Term Receivable 19	338,707
Long Term Receivable Schedule Of Long Term Receivable 20	$492,977

Schedule_of_Stock_Option_Activ

Schedule of Stock Option Activity (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Stockholders' Equity Schedule Of Stock Option Activity 1	$545,000
Stockholders' Equity Schedule Of Stock Option Activity 2	0.95
Stockholders' Equity Schedule Of Stock Option Activity 3	2.55
Stockholders' Equity Schedule Of Stock Option Activity 4	67,500
Stockholders' Equity Schedule Of Stock Option Activity 5	0
Stockholders' Equity Schedule Of Stock Option Activity 6	0
Stockholders' Equity Schedule Of Stock Option Activity 7	0
Stockholders' Equity Schedule Of Stock Option Activity 8	0
Stockholders' Equity Schedule Of Stock Option Activity 9	200,000
Stockholders' Equity Schedule Of Stock Option Activity 10	0.5
Stockholders' Equity Schedule Of Stock Option Activity 11	345,000
Stockholders' Equity Schedule Of Stock Option Activity 12	1.21
Stockholders' Equity Schedule Of Stock Option Activity 13	3.29
Stockholders' Equity Schedule Of Stock Option Activity 14	0
Stockholders' Equity Schedule Of Stock Option Activity 15	25,000
Stockholders' Equity Schedule Of Stock Option Activity 16	0.5
Stockholders' Equity Schedule Of Stock Option Activity 17	0.05
Stockholders' Equity Schedule Of Stock Option Activity 18	$0

Schedule_of_Nonvested_Stock_Op

Schedule of Non-vested Stock Options Activity (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 1	$320,000
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 2	0.23
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 3	0
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 4	0
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 5	0
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 6	0
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 7	$320,000
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 8	0.23

Schedule_of_Stockbased_Compens

Schedule of Stock-based Compensation Expense (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Stockholders' Equity Schedule Of Stock-based Compensation Expense 1	$2,884
Stockholders' Equity Schedule Of Stock-based Compensation Expense 2	344,352
Stockholders' Equity Schedule Of Stock-based Compensation Expense 3	7,922
Stockholders' Equity Schedule Of Stock-based Compensation Expense 4	367,171
Stockholders' Equity Schedule Of Stock-based Compensation Expense 5	2,643
Stockholders' Equity Schedule Of Stock-based Compensation Expense 6	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 7	4,802
Stockholders' Equity Schedule Of Stock-based Compensation Expense 8	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 9	587
Stockholders' Equity Schedule Of Stock-based Compensation Expense 10	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 11	587
Stockholders' Equity Schedule Of Stock-based Compensation Expense 12	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 13	6,114
Stockholders' Equity Schedule Of Stock-based Compensation Expense 14	344,352
Stockholders' Equity Schedule Of Stock-based Compensation Expense 15	13,311
Stockholders' Equity Schedule Of Stock-based Compensation Expense 16	$367,171

Schedule_of_Sharebased_Payment

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
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
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 3	0.12
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
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 6	0.25
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	0.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 9	150.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 10	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 11	0.00%
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	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 14	0.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 15	0.06%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 16	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 17	0.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 18	0.14%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 19	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 20	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 21	0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 22	$0

Schedule_of_SubLease_Payments_

Schedule of Sub-Lease Payments (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Commitments Schedule Of Sub-lease Payments 1	$70,498
Commitments Schedule Of Sub-lease Payments 2	281,992
Commitments Schedule Of Sub-lease Payments 3	$234,994

Schedule_of_Future_Minimum_Lea

Schedule of Future Minimum Lease Payments for Capital Leases (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 1	$3,180
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 2	6,361
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 3	6,361
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 4	6,043
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 5	21,945
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 6	-2,863
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 7	19,082
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 8	-4,967
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 9	$14,115

Schedule_of_Revenue_by_Custome

Schedule of Revenue by Customer (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Concentrations And Economic Dependence Schedule Of Revenue By Customer 1	$266,400
Concentrations And Economic Dependence Schedule Of Revenue By Customer 2	267,018
Concentrations And Economic Dependence Schedule Of Revenue By Customer 3	648,317
Concentrations And Economic Dependence Schedule Of Revenue By Customer 4	602,295
Concentrations And Economic Dependence Schedule Of Revenue By Customer 5	411,600
Concentrations And Economic Dependence Schedule Of Revenue By Customer 6	489,036
Concentrations And Economic Dependence Schedule Of Revenue By Customer 7	896,933
Concentrations And Economic Dependence Schedule Of Revenue By Customer 8	1,004,721
Concentrations And Economic Dependence Schedule Of Revenue By Customer 9	61,835
Concentrations And Economic Dependence Schedule Of Revenue By Customer 10	28,168
Concentrations And Economic Dependence Schedule Of Revenue By Customer 11	137,853
Concentrations And Economic Dependence Schedule Of Revenue By Customer 12	61,654
Concentrations And Economic Dependence Schedule Of Revenue By Customer 13	739,835
Concentrations And Economic Dependence Schedule Of Revenue By Customer 14	784,222
Concentrations And Economic Dependence Schedule Of Revenue By Customer 15	1,683,103
Concentrations And Economic Dependence Schedule Of Revenue By Customer 16	1,668,670
Concentrations And Economic Dependence Schedule Of Revenue By Customer 17	3,358
Concentrations And Economic Dependence Schedule Of Revenue By Customer 18	26,460
Concentrations And Economic Dependence Schedule Of Revenue By Customer 19	15,160
Concentrations And Economic Dependence Schedule Of Revenue By Customer 20	64,553
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	3,358
Concentrations And Economic Dependence Schedule Of Revenue By Customer 26	26,460
Concentrations And Economic Dependence Schedule Of Revenue By Customer 27	15,160
Concentrations And Economic Dependence Schedule Of Revenue By Customer 28	64,553
Concentrations And Economic Dependence Schedule Of Revenue By Customer 29	743,193
Concentrations And Economic Dependence Schedule Of Revenue By Customer 30	810,682
Concentrations And Economic Dependence Schedule Of Revenue By Customer 31	1,698,263
Concentrations And Economic Dependence Schedule Of Revenue By Customer 32	$1,733,223