Destiny Media (DSNY) 10-Q 15 Jul 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May. 31, 2015	Jul. 14, 2015
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2015
Trading Symbol	dsny
Entity Registrant Name	DESTINY MEDIA TECHNOLOGIES INC
Entity Central Index Key	1,099,369
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	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	May. 31, 2015	Aug. 31, 2014
Current
Cash and cash equivalents	$ 419,391	$ 990,007
Accounts receivable, net of allowance for doubtful accounts of $8,029 [Aug 31, 2014 - $5,513]	514,842	544,609
Other receivables	10,246	78,040
Current portion of long term receivable	101,954	115,464
Prepaid expenses	30,975	147,206
Deposits - current portion	23,579	0
Total current assets	1,100,987	1,875,326
Deposits- long term portion	34,167	22,870
Long term receivable	205,431	345,830
Property and equipment, net	421,829	315,180
Deferred tax assets - long term portion	842,000	842,000
Total assets	2,604,414	3,401,206
Current
Accounts payable	178,368	172,617
Accrued liabilities	211,275	203,353
Deferred revenue	4,415	22,589
Deferred leasehold inducement	76,173	0
Obligation under capital lease - current portion	5,444	0
Total current liabilities	475,675	398,559
Obligation under capital lease - long term portion	13,751	0
Total liabilities	489,426	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	9,080,472	9,061,325
Accumulated deficit	(6,750,610)	(6,111,415)
Accumulated other comprehensive (loss)	(267,868)	(257)
Total stockholders' equity	2,114,988	3,002,647
Total liabilities and stockholders' equity	$ 2,604,414	$ 3,401,206

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	May. 31, 2015	Aug. 31, 2014
Allowance for Doubtful Accounts Receivable, Current	$ 8,029	$ 5,513
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
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 STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Revenue	$ 803,409	$ 942,472	$ 2,501,672	$ 2,675,695
Operating expenses
General and administrative	267,967	271,855	808,547	1,041,520
Sales and marketing	360,925	330,830	1,114,431	1,057,221
Research and development	348,680	237,790	1,123,931	770,636
Amortization	53,595	39,655	128,378	104,063
Total Operating Expenses	1,031,167	880,130	3,175,287	2,973,440
Income (loss) from operations	(227,758)	62,342	(673,615)	(297,745)
Other income
Other Income	289	0	289	0
Interest income	9,482	14,758	34,573	47,405
Interest and Other Expense	(442)	0	(442)	0
Income (loss) before income taxes	(218,429)	77,100	(639,195)	(250,340)
Income tax recovery (expense) - deferred	0	3,000	0	0
Net income (loss)	(218,429)	80,100	(639,195)	(250,340)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(1,824)	75,804	(267,611)	(78,877)
Total comprehensive income (loss)	$ (220,253)	$ 155,904	$ (906,806)	$ (329,217)
Net income (loss) per common share, basic and diluted	$ 0	$ 0	$ (0.01)	$ 0
Weighted average common shares outstanding:
Basic	52,993,874	52,412,480	52,993,874	52,272,673
Diluted	52,993,874	52,510,940	52,993,874	52,272,673

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($)	Common stock [Member]	Additional paid-in capital [Member]	Accumulated Deficit [Member]	Accumulated other comprehensive Income (loss) [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)			(639,195)	(267,611)	(906,806)
Stock based compensation		19,147			19,147
Ending Balance at May. 31, 2015	$ 52,994	$ 9,080,472	$ (6,750,610)	$ (267,868)	$ 2,114,988
Ending Balance (Shares) at May. 31, 2015	52,993,874

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014	Aug. 31, 2014
OPERATING ACTIVITIES
Net income (loss)	$ (218,429)	$ 80,100	$ (639,195)	$ (250,340)
Items not involving cash:
Depreciation and amortization	53,595	39,655	128,378	104,063
Stock-based compensation			19,147	32,948	$ 32,948
Deferred leasehold inducement			80,167	(2,834)
Deferred income taxes	0	(3,000)	0	0
Unrealized foreign exchange			25,987	(35,626)
Changes in non-cash working capital:
Accounts receivable			(40,972)	(78,988)
Other receivables			60,989	(51,887)
Prepaid expenses and deposits			71,807	6,560
Accounts payable			49,160	25,369
Accrued liabilities			35,330	(13,393)
Deferred revenue			(16,128)	(37,647)
Long term receivable			74,753	74,386
Net cash used in operating activities			(150,577)	(227,389)
INVESTING ACTIVITIES
Purchase of property and equipment			(282,461)	(191,598)
Net cash used in investing activities			(282,461)	(191,598)
FINANCING ACTIVITIES
Proceeds from options/warrants exercised			0	101,250
Repurchase of options			0	(113,215)
Net cash used in financing activities			0	(11,965)
Effect of foreign exchange rate changes on cash			(137,578)	(51,670)
Net decrease in cash during the period			(570,616)	(482,622)
Cash, beginning of the period			990,007	1,521,552	1,521,552
Cash, end of the period	$ 419,391	$ 1,038,930	419,391	1,038,930	$ 990,007
Supplementary disclosure
Interest paid			442	0
Income taxes paid			$ 0	$ 0

ORGANIZATION

ORGANIZATION	9 Months Ended
	May. 31, 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	9 Months Ended
	May. 31, 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 nine months ended May 31, 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	9 Months Ended
	May. 31, 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 May 31, 2015, installments of $619,850 AUD (US $589,351) including interest of $197,345 AUD (US $188,079) has been received. The following table summarizes the changes regarding the carrying value of the remaining receivable balance during the nine months period ended May 31, 2015 covering period of September 1, 2014 to May 31, 2015 and the three months period ended May 31, 2015 covering period of March 1, 2015 to May 31, 2015: Three Months Ended Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 $ $ $ $ Beginning balance 338,707 492,977 461,294 540,538 Gross installments received (32,772 ) (38,888 ) (103,930 ) (116,031 ) Interest included in above 8,384 12,817 28,681 40,172 Foreign exchange impact (6,934 ) 19,942 (78,660 ) 22,169 Ending balance 307,385 486,848 307,385 486,848 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	9 Months Ended
	May. 31, 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 nine months ended May 31, 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 33,181 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, 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 225,000 0.50 Outstanding at May 31, 2015 320,000 1.26 3.29 — Vested and exercisable at May 31, 2015 77,500 1.36 2.95 — 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 May 31, 2015: Weighted Average Grant Date Number of Options Fair Value Non-vested options at August 31, 2014 320,000 0.20 Granted — — Vested 77,500 0.20 Non-vested options at May 31, 2015 242,500 0.21 As of May 31, 2015, there was $25,596 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 1.09 years. During the nine months ended May 31, 2015 and 2014, stock-based compensation expense has been reported in the consolidated statement of operations and comprehensive income as follows: Three Months Ended Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 $ $ $ $ Stock-based compensation: General and administrative 5,249 313 13,171 367,484 Sales and marketing 587 — 5,389 — Research and development — — 587 — Total stock-based compensation 5,836 313 19,147 367,484 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 Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 Expected term of stock options (years) — — — 0.00 - 0.25 Expected volatility — — — 48% Risk-free interest rate — — — 0.00% 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 nine months ended May 31, 2015, the Company recognized compensation expense of $81,949 (May 31, 2014 - $103,071) 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 $0.3937 (May 31, 2014 - $1.72) . 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
	May. 31, 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. In February 2015 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 70,736 2016 282,944 2017 235,786 During the nine months ended May 31, 2015 the Company incurred rent expense of $230,038 (May 31, 2014 - $198,668) 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 nine months ended May 31, 2015 has included the allocation of rental payments for our new office into the period starting from the sublease commencement date on a straight-line basis up to May 31, 2015. In February 2015, the Company entered into a capital lease. The Company is committed to make payments under its capital leases for the remaining terms of the leases as follows: $ 2015 1,707 2016 6,829 2017 6,829 2018 6,488 Total lease payments 21,853 Less: Amounts representing interest (2,658 ) Balance of obligation 19,195 Less: Current portion (5,444 ) Long term portion 13,751

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	May. 31, 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 nine months ended May 31, 2015, the Company paid consulting fees of $69,290 (May 31, 2014 - $8,000) under this agreement. The family member's service was terminated at the end of May 2015.

INCOME TAXES

INCOME TAXES	9 Months Ended
	May. 31, 2015
INCOME TAXES [Text Block]	7. INCOME TAX Deferred income tax assets and liabilities are computed based on differences between the carrying amount of assets and liabilities on the balance sheet and their corresponding tax values using the enacted income tax rates by tax jurisdiction at each balance sheet date. Deferred income tax assets also result from unused loss carry-forwards and other deductions. The valuation of deferred income tax assets is reviewed annually and adjusted, if necessary, by use of a valuation allowance to reflect the estimated realizable amount. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. We evaluate all available evidence, such as recent and expected future operating results by tax jurisdiction, and current and enacted tax legislation and other temporary differences between book and tax accounting to determine whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. There is a risk that management estimates for operating results could vary significantly from actual results, which could materially affect the valuation of the future income tax asset. Although the Company has tax loss carry-forwards and other deferred income tax assets, management has determined certain of these deferred tax assets do not meet the more likely than not criteria, and accordingly, these deferred income tax asset amounts have been partially offset by a valuation allowance as disclosed in Note 6 of our annual consolidated financial statements for the year ended August 31, 2014. If management’s estimates of the cash flows or operating results do not materialize due to errors in estimates or unforeseen changes to the economic conditions affecting the Company, it could result in an impairment adjustment in future periods up to the carrying value of the deferred income tax balance of $842,000. 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 May 31, 2015, the tax years which remain subject to examination by major tax jurisdictions as of May 31, 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	9 Months Ended
	May. 31, 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 DEP

CONCENTRATIONS AND ECONOMIC DEPENDENCE	9 Months Ended
	May. 31, 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 Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 $ $ $ $ Play MPE® North America 319,130 351,347 967,447 953,642 Europe 398,490 517,353 1,295,423 1,522,074 Australasia 78,295 53,180 216,148 114,834 Total Play MPE® 795,915 921,880 2,479,018 2,590,550 Clipstream ® & Pirate Radio North America 7,494 20,592 22,654 85,145 Outside of North America — — — — Total Clipstream ® & Pirate Radio 7,494 20,592 22,654 85,145 Total revenue 803,409 942,472 2,501,672 2,675,695 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 nine months ended May 31, 2015, the Company generated 45% of total revenue from one customer [May 31, 2014 - one customer represented 49%]. It is in management’s opinion that the Company is not exposed to significant credit risk. As at May 31, 2015, one customer represented $349,418 ( 68%) of the trade receivables balance [May 31, 2014 – one customer represented 60%]. 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	9 Months Ended
	May. 31, 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	May. 31, 2015
SUBSEQUENT EVENTS [Text Block]	11. SUBSEQUENT EVENTS Subsequent to the quarter ended May 31, 2015, 1,170,000 stock options under its approved 2015 Stock Option Plan were granted to officers, directors, employees and consultants of the Company. The options were granted for a period of two years, expiring two years from their vesting dates, and each stock option will allow the holder to purchase a common share of Destiny at an exercise price of USD$0.40 per share.

LONG TERM RECEIVABLE (Tables)

LONG TERM RECEIVABLE (Tables)	9 Months Ended
	May. 31, 2015
Schedule of Long Term Receivable [Table Text Block]	Three Months Ended Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 $ $ $ $ Beginning balance 338,707 492,977 461,294 540,538 Gross installments received (32,772 ) (38,888 ) (103,930 ) (116,031 ) Interest included in above 8,384 12,817 28,681 40,172 Foreign exchange impact (6,934 ) 19,942 (78,660 ) 22,169 Ending balance 307,385 486,848 307,385 486,848

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	May. 31, 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 225,000 0.50 Outstanding at May 31, 2015 320,000 1.26 3.29 — Vested and exercisable at May 31, 2015 77,500 1.36 2.95 —
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 0.20 Granted — — Vested 77,500 0.20 Non-vested options at May 31, 2015 242,500 0.21
Schedule of Stock-based Compensation Expense [Table Text Block]	Three Months Ended Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 $ $ $ $ Stock-based compensation: General and administrative 5,249 313 13,171 367,484 Sales and marketing 587 — 5,389 — Research and development — — 587 — Total stock-based compensation 5,836 313 19,147 367,484
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Three Months Ended Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 Expected term of stock options (years) — — — 0.00 - 0.25 Expected volatility — — — 48% Risk-free interest rate — — — 0.00% Dividend yield — — — —

COMMITMENTS (Tables)

COMMITMENTS (Tables)	9 Months Ended
	May. 31, 2015
Schedule of Sub-Lease Payments [Table Text Block]	$ 2015 70,736 2016 282,944 2017 235,786
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	$ 2015 1,707 2016 6,829 2017 6,829 2018 6,488 Total lease payments 21,853 Less: Amounts representing interest (2,658 ) Balance of obligation 19,195 Less: Current portion (5,444 ) Long term portion 13,751

CONCENTRATIONS AND ECONOMIC D21

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	9 Months Ended
	May. 31, 2015
Schedule of Revenue by Customer [Table Text Block]	Three Months Ended Nine Months Ended May 31 May 31 May 31 May 31 2015 2014 2015 2014 $ $ $ $ Play MPE® North America 319,130 351,347 967,447 953,642 Europe 398,490 517,353 1,295,423 1,522,074 Australasia 78,295 53,180 216,148 114,834 Total Play MPE® 795,915 921,880 2,479,018 2,590,550 Clipstream ® & Pirate Radio North America 7,494 20,592 22,654 85,145 Outside of North America — — — — Total Clipstream ® & Pirate Radio 7,494 20,592 22,654 85,145 Total revenue 803,409 942,472 2,501,672 2,675,695

LONG TERM RECEIVABLE (Narrative

LONG TERM RECEIVABLE (Narrative) (Details) - 9 months ended May. 31, 2015	USD ($)mo
Long Term Receivable 1	$ 825,000
Long Term Receivable 2	$ 858,194
Long Term Receivable 3 | mo	72
Long Term Receivable 4	$ 14,050
Long Term Receivable 5	10.25%
Long Term Receivable 6	$ 619,850
Long Term Receivable 7	589,351
Long Term Receivable 8	197,345
Long Term Receivable 9	$ 188,079

STOCKHOLDERS' EQUITY (Narrative

STOCKHOLDERS' EQUITY (Narrative) (Details) - 9 months ended May. 31, 2015	USD ($)moyr$ / sharesshares
Stockholders' Equity 1 | shares	100,000,000
Stockholders' Equity 2 | $ / shares	$ 0.001
Stockholders' Equity 3 | shares	5,100,000
Stockholders' Equity 4 | shares	33,181
Stockholders' Equity 5	12
Stockholders' Equity 6 | mo	24
Stockholders' Equity 7	$ 25,596
Stockholders' Equity 8 | yr	1.09
Stockholders' Equity 9	5.00%
Stockholders' Equity 10	$ 12,500
Stockholders' Equity 11	25,000
Stockholders' Equity 12	400,000
Stockholders' Equity 13	81,949
Stockholders' Equity 14	103,071
Stockholders' Equity 15	0.3937
Stockholders' Equity 16	$ 1.72

COMMITMENTS (Narrative) (Detail

COMMITMENTS (Narrative) (Details)	9 Months Ended
	May. 31, 2015USD ($)
Commitments 1	$ 230,038
Commitments 2	$ 198,668

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details)	9 Months Ended
	May. 31, 2015USD ($)
Related Party Transactions 1	$ 69,290
Related Party Transactions 2	$ 8,000

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details)	9 Months Ended
	May. 31, 2015USD ($)
Income Taxes 1	$ 842,000

CONTINGENCIES (Narrative) (Deta

CONTINGENCIES (Narrative) (Details)	9 Months Ended
	May. 31, 2015USD ($)
Contingencies 1	$ 100,000

CONCENTRATIONS AND ECONOMIC D28

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) - 9 months ended May. 31, 2015 - USD ($)	Total
Concentrations And Economic Dependence 1	45.00%
Concentrations And Economic Dependence 2	49.00%
Concentrations And Economic Dependence 3	$ 349,418
Concentrations And Economic Dependence 4	68.00%
Concentrations And Economic Dependence 5	60.00%

SUBSEQUENT EVENTS (Narrative) (

SUBSEQUENT EVENTS (Narrative) (Details) - 9 months ended May. 31, 2015 - $ / shares	Total
Subsequent Events 1	1,170,000
Subsequent Events 2	$ 0.40

Schedule of Long Term Receivabl

Schedule of Long Term Receivable (Details)	9 Months Ended
	May. 31, 2015USD ($)
Long Term Receivable Schedule Of Long Term Receivable 1	$ 338,707
Long Term Receivable Schedule Of Long Term Receivable 2	492,977
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	(32,772)
Long Term Receivable Schedule Of Long Term Receivable 6	(38,888)
Long Term Receivable Schedule Of Long Term Receivable 7	(103,930)
Long Term Receivable Schedule Of Long Term Receivable 8	(116,031)
Long Term Receivable Schedule Of Long Term Receivable 9	8,384
Long Term Receivable Schedule Of Long Term Receivable 10	12,817
Long Term Receivable Schedule Of Long Term Receivable 11	28,681
Long Term Receivable Schedule Of Long Term Receivable 12	40,172
Long Term Receivable Schedule Of Long Term Receivable 13	(6,934)
Long Term Receivable Schedule Of Long Term Receivable 14	19,942
Long Term Receivable Schedule Of Long Term Receivable 15	(78,660)
Long Term Receivable Schedule Of Long Term Receivable 16	22,169
Long Term Receivable Schedule Of Long Term Receivable 17	307,385
Long Term Receivable Schedule Of Long Term Receivable 18	486,848
Long Term Receivable Schedule Of Long Term Receivable 19	307,385
Long Term Receivable Schedule Of Long Term Receivable 20	$ 486,848

Schedule of Stock Option Activi

Schedule of Stock Option Activity (Details) - 9 months ended May. 31, 2015	USD ($)
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	$ 225,000
Stockholders' Equity Schedule Of Stock Option Activity 10	0.50
Stockholders' Equity Schedule Of Stock Option Activity 11	$ 320,000
Stockholders' Equity Schedule Of Stock Option Activity 12	1.26
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	$ 77,500
Stockholders' Equity Schedule Of Stock Option Activity 16	1.36
Stockholders' Equity Schedule Of Stock Option Activity 17	2.95
Stockholders' Equity Schedule Of Stock Option Activity 18	$ 0

Schedule of Non-vested Stock Op

Schedule of Non-vested Stock Options Activity (Details) - 9 months ended May. 31, 2015	USD ($)
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 1	$ 320,000
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 2	0.20
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	$ 77,500
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 6	0.20
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 7	$ 242,500
Stockholders' Equity Schedule Of Non-vested Stock Options Activity 8	0.21

Schedule of Stock-based Compens

Schedule of Stock-based Compensation Expense (Details)	9 Months Ended
	May. 31, 2015USD ($)
Stockholders' Equity Schedule Of Stock-based Compensation Expense 1	$ 5,249
Stockholders' Equity Schedule Of Stock-based Compensation Expense 2	313
Stockholders' Equity Schedule Of Stock-based Compensation Expense 3	13,171
Stockholders' Equity Schedule Of Stock-based Compensation Expense 4	367,484
Stockholders' Equity Schedule Of Stock-based Compensation Expense 5	587
Stockholders' Equity Schedule Of Stock-based Compensation Expense 6	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 7	5,389
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	587
Stockholders' Equity Schedule Of Stock-based Compensation Expense 12	0
Stockholders' Equity Schedule Of Stock-based Compensation Expense 13	5,836
Stockholders' Equity Schedule Of Stock-based Compensation Expense 14	313
Stockholders' Equity Schedule Of Stock-based Compensation Expense 15	19,147
Stockholders' Equity Schedule Of Stock-based Compensation Expense 16	$ 367,484

Schedule of Share-based Payment

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - 9 months ended May. 31, 2015	USD ($)
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
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
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	48.00%
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
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 12	$ 0
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 13	0.00%
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 14	$ 0
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
Stockholders' Equity Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 17	$ 0

Schedule of Sub-Lease Payments

Schedule of Sub-Lease Payments (Details)	9 Months Ended
	May. 31, 2015USD ($)
Commitments Schedule Of Sub-lease Payments 1	$ 70,736
Commitments Schedule Of Sub-lease Payments 2	282,944
Commitments Schedule Of Sub-lease Payments 3	$ 235,786

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments for Capital Leases (Details)	9 Months Ended
	May. 31, 2015USD ($)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 1	$ 1,707
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 2	6,829
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 3	6,829
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 4	6,488
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 5	21,853
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 6	(2,658)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 7	19,195
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 8	(5,444)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 9	$ 13,751

Schedule of Revenue by Customer

Schedule of Revenue by Customer (Details)	9 Months Ended
	May. 31, 2015USD ($)
Concentrations And Economic Dependence Schedule Of Revenue By Customer 1	$ 319,130
Concentrations And Economic Dependence Schedule Of Revenue By Customer 2	351,347
Concentrations And Economic Dependence Schedule Of Revenue By Customer 3	967,447
Concentrations And Economic Dependence Schedule Of Revenue By Customer 4	953,642
Concentrations And Economic Dependence Schedule Of Revenue By Customer 5	398,490
Concentrations And Economic Dependence Schedule Of Revenue By Customer 6	517,353
Concentrations And Economic Dependence Schedule Of Revenue By Customer 7	1,295,423
Concentrations And Economic Dependence Schedule Of Revenue By Customer 8	1,522,074
Concentrations And Economic Dependence Schedule Of Revenue By Customer 9	78,295
Concentrations And Economic Dependence Schedule Of Revenue By Customer 10	53,180
Concentrations And Economic Dependence Schedule Of Revenue By Customer 11	216,148
Concentrations And Economic Dependence Schedule Of Revenue By Customer 12	114,834
Concentrations And Economic Dependence Schedule Of Revenue By Customer 13	795,915
Concentrations And Economic Dependence Schedule Of Revenue By Customer 14	921,880
Concentrations And Economic Dependence Schedule Of Revenue By Customer 15	2,479,018
Concentrations And Economic Dependence Schedule Of Revenue By Customer 16	2,590,550
Concentrations And Economic Dependence Schedule Of Revenue By Customer 17	7,494
Concentrations And Economic Dependence Schedule Of Revenue By Customer 18	20,592
Concentrations And Economic Dependence Schedule Of Revenue By Customer 19	22,654
Concentrations And Economic Dependence Schedule Of Revenue By Customer 20	85,145
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	7,494
Concentrations And Economic Dependence Schedule Of Revenue By Customer 26	20,592
Concentrations And Economic Dependence Schedule Of Revenue By Customer 27	22,654
Concentrations And Economic Dependence Schedule Of Revenue By Customer 28	85,145
Concentrations And Economic Dependence Schedule Of Revenue By Customer 29	803,409
Concentrations And Economic Dependence Schedule Of Revenue By Customer 30	942,472
Concentrations And Economic Dependence Schedule Of Revenue By Customer 31	2,501,672
Concentrations And Economic Dependence Schedule Of Revenue By Customer 32	$ 2,675,695