Destiny Media (DSNY) 10-Q 14 Jan 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Nov. 30, 2015	Jan. 14, 2016
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 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		55,013,874
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Nov. 30, 2015	Aug. 31, 2015
Current
Cash and cash equivalents	$ 642,028	$ 387,316
Accounts receivable, net of allowance for doubtful accounts of $5,985 [Aug 31, 2015 - $6,129]	548,168	399,148
Other receivables	26,998	15,471
Current portion of long term receivable	101,004	98,180
Prepaid expenses	37,829	36,042
Total current assets	1,356,027	936,157
Deposits	22,521	32,222
Long term receivable	141,601	167,350
Property and equipment, net	412,479	401,461
Total assets	1,932,628	1,537,190
Current
Accounts payable	148,784	139,879
Accrued liabilities	201,837	189,672
Deferred leasehold inducement	53,933	63,217
Deferred revenue	14,711	24,712
Obligation under capital lease - current portion	4,828	5,205
Total current liabilities	424,093	422,685
Obligation under capital lease - long term portion	10,571	12,071
Total liabilities	434,664	434,756
Commitments and contingencies	0	0
Stockholders' equity
Common stock, par value $0.001 Authorized: 100,000,000 shares Issued and outstanding: 55,013,874 shares [Aug 31, 2015 - issued and outstanding 52,993,874 shares]	55,014	52,994
Additional paid-in capital	9,634,405	9,122,132
Accumulated deficit	(7,809,068)	(7,708,061)
Accumulated other comprehensive (loss)	(382,387)	(364,631)
Total stockholders' equity	1,497,964	1,102,434
Total liabilities and stockholders' equity	$ 1,932,628	$ 1,537,190

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Nov. 30, 2015	Aug. 31, 2015
Allowance for Doubtful Accounts Receivable, Current	$ 5,985	$ 6,129
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	55,013,874	52,993,874
Common Stock, Shares, Outstanding	55,013,874	52,993,874

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended
	Nov. 30, 2015	Nov. 30, 2014
Service revenue	$ 847,721	$ 955,070
Operating expenses
General and administrative	235,383	293,658
Sales and marketing	350,598	331,013
Research and development	319,040	363,969
Depreciation and amortization	49,829	35,785
	954,850	1,024,425
Income (loss) from operations	(107,129)	(69,355)
Other income
Interest income	6,122	13,046
Net income (loss)	(101,007)	(56,309)
Other comprehensive loss, net of tax
Foreign currency translation adjustments	(17,756)	(100,960)
Total comprehensive income (loss)	$ (118,763)	$ (157,269)
Net income (loss) per common share, basic and diluted	$ 0	$ 0
Weighted average common shares outstanding:
Basic	53,903,984	52,993,874
Diluted	53,903,984	52,993,874

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - 3 months ended Nov. 30, 2015 - USD ($)	Common stock [Member]	Additional paid-in capital [Member]	Accumulated Deficit [Member]	Accumulated other comprehensive Income (loss) [Member]	Total
Beginning Balance at Aug. 31, 2015	$ 52,994	$ 9,122,132	$ (7,708,061)	$ (364,631)	$ 1,102,434
Beginning Balance (Shares) at Aug. 31, 2015	52,993,874
Total comprehensive loss			(101,007)	(17,756)	(118,763)
Common stock issued pursuant to private placement	$ 2,020	502,980			505,000
Common stock issued pursuant to private placement (Shares)	2,020,000
Less: share issuance costs		(3,109)			(3,109)
Stock based compensation		12,402			12,402
Ending Balance at Nov. 30, 2015	$ 55,014	$ 9,634,405	$ (7,809,068)	$ (382,387)	$ 1,497,964
Ending Balance (Shares) at Nov. 30, 2015	55,013,874

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Nov. 30, 2015	Nov. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ (101,007)	$ (56,309)
Items not involving cash:
Depreciation and amortization	49,829	35,785
Stock-based compensation	12,402	7,197
Deferred leasehold inducement	(8,623)	0
Unrealized foreign exchange	(3,786)	19,312
Changes in non-cash working capital:
Accounts receivable	(155,805)	(58,188)
Other receivables	(11,861)	(9,544)
Prepaid expenses and deposits	7,177	37,470
Accounts payable	8,954	(39,225)
Accrued liabilities	14,651	10,273
Deferred revenue	(9,823)	(19,311)
Long term receivable	23,732	26,607
Net cash provided (used) by operating activities	(174,160)	(45,933)
INVESTING ACTIVITIES
Purchase of property and equipment	(65,925)	(17,647)
Net cash used in investing activities	(65,925)	(17,647)
FINANCING ACTIVITIES
Common stock issued in private placements	501,891	0
Net cash used in financing activities	501,891	0
Effect of foreign exchange rate changes on cash	(7,094)	(49,900)
Net increase (decrease) in cash during the period	254,712	(113,480)
Cash, beginning of the period	387,316	990,007
Cash, end of the period	642,028	876,527
Supplementary disclosure
Interest paid	0	0
Income taxes paid	$ 0	$ 0

ORGANIZATION

ORGANIZATION	3 Months Ended
	Nov. 30, 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	3 Months Ended
	Nov. 30, 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 three months ended November 30, 2015 are not necessarily indicative of the results that may be expected for the year ended August 31, 2016. The balance sheet at August 31, 2015 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, 2015.

LONG TERM RECEIVABLE

LONG TERM RECEIVABLE	3 Months Ended
	Nov. 30, 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 November 30, 2015, installments of $704,150 AUD including interest of $216,598 AUD have been received. The following table summarizes the changes regarding the carrying value of the remaining receivable balance: November 30, 2015 August 31, 2015 $ $ Beginning balance 265,530 461,294 Gross installments received (30,369 ) (135,403 ) Interest included in above 6,637 36,089 Foreign exchange impact 807 (96,450 ) Ending balance 242,605 265,530 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. Payments to be received over the next three fiscal years as follows: Principal Interest Total $ $ $ 2016 74,778 16,132 90,910 2017 109,039 12,174 121,213 2018 58,788 1,769 60,557 242,605 30,075 272,680

STOCKHOLDERS EQUITY

STOCKHOLDERS EQUITY	3 Months Ended
	Nov. 30, 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 three months ended November 30, 2015, the Company issued 2,020,000 Units at a price of $0.25 per Unit for gross proceeds of $505,000 pursuant to a private placement. Each Unit was comprised of one common share of the Company and one-half of one common share purchase warrant ("Warrant"), with each whole Warrant entitling the holder to purchase one additional common share at $0.30 per share for a period of two years from the date of the issuance. The Company will have the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of the Company’s common shares is equal to or greater than $1.25 for 20 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right. [b] Stock option plans The Company has two existing stock option plan (the “Plan”), namely the 2006 Stock Option Plan and the 2015 Stock Option Plans, under which up to 7,750,000 shares of the common stock, has been reserved for issuance. A total of 1,783,181 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 Plans as of November 30, 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 September 1, 2015 1,220,000 0.53 2.38 — Granted — — — — Forfeited (50,000 ) 0.40 — — Exercised — — — — Outstanding at November 30, 2015 1,170,000 0.53 2.13 — Exercisable at November 30, 2015 527,500 0.50 1 .62 — The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money at November 30, 2015. The following table summarizes information regarding the non-vested stock purchase options outstanding as of November 30, 2015: Weighted Average Grant Date Number of Options Fair Value Non-vested options at August 31, 2015 736,250 0.09 Granted — — Vested (93,750 ) 0.40 Non-vested options at November 30, 2015 642,500 0.23 As of November 30, 2015, there was $74,429 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 1.48 years. During the three months ended November 30, 2015 and 2014, stock-based compensation expense has been reported in the consolidated statement of operations and comprehensive income as follows: Three Months Ended November 30, 2015 2014 $ $ Stock-based compensation General and administrative 7,152 5,038 Sales and marketing 3,266 2,159 Research and development 1,984 — Total stock-based compensation 12,402 7,197 [c] Employee Stock Purchase Plan The Company’s 2011 Employee Stock Purchase Plan (the “Plan”) became effective on February 22, 2011. Under the Plan, employees of Destiny are able to contribute up to 5% of their annual salary into a pool which is matched equally by Destiny. Independent directors are able to contribute a maximum of $12,500 each for a combined maximum annual purchase of $25,000. The maximum annual combined contributions will be $400,000. All purchases are made through the Toronto Stock Exchange by a third party plan agent. The third party plan agent will also be responsible for the administration of the Plan on behalf of Destiny and the participants. During the three months ended November 30, 2015, the Company recognized compensation expense of $8,645 (2014 - $13,906) 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 $0.25 (2014 - $0.54) . The shares are held in trust by the Company for a period of one year from the date of purchase. [d] Share purchase warrants A summary of the Company’s share purchase warrants outstanding is presented below: Weighted Average Number Exercise Price Outstanding at September 1, 2015 — — Issued 1,010,000 0.30 Exercised — — Outstanding at November 30, 2015 1,010,000 0.30 Each warrant is exercisable at $0.30 per share until October 20, 2017. The Company will have the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of the Company’s common shares is equal to or greater than $1.25 for 20 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right

COMMITMENTS

COMMITMENTS	3 Months Ended
	Nov. 30, 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: $ 2016 197,698 2017 219,664 During the three months ended November 30, 2015 the Company incurred rent expense of $65,899 (2014 - $67,826) 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 three months ended November 30, 2015 has included the allocation of rental payments on a straight-line basis. In February 2015, the Company entered into a capital lease. As of November 30, 2015, the Company is committed to make payments under its capital lease for the remaining terms of the lease as follows: Fiscal year ending August 31, $ 2016 4,241 2017 6,362 2018 6,574 Total lease payments 17,177 Less: Amounts representing interest (1,778 ) Balance of obligation 15,399 Less: Current portion (4,828 ) Long term portion 10,571

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Nov. 30, 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 three months ended November 30, 2015, the Company paid consulting fees of $Nil (2014 - $19,681) under this agreement. The family member’s service was terminated at the end of May 2015.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Nov. 30, 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 August 31, 2015, the tax years which remain subject to examination by major tax jurisdictions as of November 30, 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	3 Months Ended
	Nov. 30, 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.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Nov. 30, 2015
NEW ACCOUNTING PRONOUNCEMENTS [Text Block]	9. NEW ACCOUNTING PRONOUNCEMENTS Accounting Standards Not Yet Effective 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. On August 12, 2015, ASU 2015-14 was released to defer the effective date of ASU 2014-09 to be effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of this new standard. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. The Company is currently evaluating the impact of the adoption of this new standard.

CONCENTRATIONS AND ECONOMIC DEP

CONCENTRATIONS AND ECONOMIC DEPENDENCE	3 Months Ended
	Nov. 30, 2015
CONCENTRATIONS AND ECONOMIC DEPENDENCE [Text Block]	10. CONCENTRATIONS AND ECONOMIC DEPENDENCE The Company operates solely in the digital media software segment and all revenue from its products and services are made in this segment. Revenue from external customers, by product and location of customer, is as follows: Three Months Ended November 30, 2015 2014 $ $ Play MPE® North America 345,952 381,917 Europe 419,556 485,333 Australia 70,124 76,018 Total Play MPE® Revenue 835,632 943,268 Clipstream ® and Radio Destiny North America 12,089 11,802 Total Clipstream ® & Radio Destiny Revenue 12,089 11,802 Total Revenue 847,721 955,070 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 three months ended November 30, 2015, the Company generated 41% of total revenue from one customer [2014 – 42% from one customer and 11% from another customer]. It is in management’s opinion that the Company is not exposed to significant credit risk. As at November 30, 2015, one customer represented $336,380 ( 61%) of the trade receivables balance [August 31, 2015 – one customer represented 59%]. The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada.

LONG TERM RECEIVABLE (Tables)

LONG TERM RECEIVABLE (Tables)	3 Months Ended
	Nov. 30, 2015
Schedule of Long Term Receivable [Table Text Block]	November 30, 2015 August 31, 2015 $ $ Beginning balance 265,530 461,294 Gross installments received (30,369 ) (135,403 ) Interest included in above 6,637 36,089 Foreign exchange impact 807 (96,450 ) Ending balance 242,605 265,530
Schedule of Financing Receivables, Minimum Payments [Table Text Block]	Principal Interest Total $ $ $ 2016 74,778 16,132 90,910 2017 109,039 12,174 121,213 2018 58,788 1,769 60,557 242,605 30,075 272,680

STOCKHOLDERS EQUITY (Tables)

STOCKHOLDERS EQUITY (Tables)	3 Months Ended
	Nov. 30, 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 September 1, 2015 1,220,000 0.53 2.38 — Granted — — — — Forfeited (50,000 ) 0.40 — — Exercised — — — — Outstanding at November 30, 2015 1,170,000 0.53 2.13 — Exercisable at November 30, 2015 527,500 0.50 1 .62 —
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, 2015 736,250 0.09 Granted — — Vested (93,750 ) 0.40 Non-vested options at November 30, 2015 642,500 0.23
Schedule of Stock-based Compensation Expense [Table Text Block]	Three Months Ended November 30, 2015 2014 $ $ Stock-based compensation General and administrative 7,152 5,038 Sales and marketing 3,266 2,159 Research and development 1,984 — Total stock-based compensation 12,402 7,197
Schedule of Share-based Compensation, Stock Options, and Warrants or Rights Activity [Table Text Block]	Weighted Average Number Exercise Price Outstanding at September 1, 2015 — — Issued 1,010,000 0.30 Exercised — — Outstanding at November 30, 2015 1,010,000 0.30

COMMITMENTS (Tables)

COMMITMENTS (Tables)	3 Months Ended
	Nov. 30, 2015
Schedule of Sub-Lease Payments [Table Text Block]	$ 2016 197,698 2017 219,664
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	Fiscal year ending August 31, $ 2016 4,241 2017 6,362 2018 6,574 Total lease payments 17,177 Less: Amounts representing interest (1,778 ) Balance of obligation 15,399 Less: Current portion (4,828 ) Long term portion 10,571

CONCENTRATIONS AND ECONOMIC D20

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	3 Months Ended
	Nov. 30, 2015
Schedule of Revenue by Customer [Table Text Block]	Three Months Ended November 30, 2015 2014 $ $ Play MPE® North America 345,952 381,917 Europe 419,556 485,333 Australia 70,124 76,018 Total Play MPE® Revenue 835,632 943,268 Clipstream ® and Radio Destiny North America 12,089 11,802 Total Clipstream ® & Radio Destiny Revenue 12,089 11,802 Total Revenue 847,721 955,070

LONG TERM RECEIVABLE (Narrative

LONG TERM RECEIVABLE (Narrative) (Details)	3 Months Ended
	Nov. 30, 2015USD ($)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	$ 704,150
Long Term Receivable 7	$ 216,598

STOCKHOLDERS EQUITY (Narrative)

STOCKHOLDERS EQUITY (Narrative) (Details)	3 Months Ended
	Nov. 30, 2015USD ($)modyr$ / sharesshares
Stockholders Equity 1 | shares	100,000,000
Stockholders Equity 2 | $ / shares	$ 0.001
Stockholders Equity 3	2,020,000
Stockholders Equity 4	$ 0.25
Stockholders Equity 5	$ 505,000
Stockholders Equity 6 | $ / shares	$ 0.30
Stockholders Equity 7	$ 1.25
Stockholders Equity 8	20
Stockholders Equity 9 | d	30
Stockholders Equity 10 | shares	7,750,000
Stockholders Equity 11 | shares	1,783,181
Stockholders Equity 12	12
Stockholders Equity 13 | mo	24
Stockholders Equity 14	$ 74,429
Stockholders Equity 15 | yr	1.48
Stockholders Equity 16	5.00%
Stockholders Equity 17	$ 12,500
Stockholders Equity 18	25,000
Stockholders Equity 19	400,000
Stockholders Equity 20	8,645
Stockholders Equity 21	13,906
Stockholders Equity 22	0.25
Stockholders Equity 23	$ 0.54
Stockholders Equity 32 | $ / shares	$ 0.30
Stockholders Equity 33	$ 1.25
Stockholders Equity 34	20
Stockholders Equity 35 | d	30

COMMITMENTS (Narrative) (Detail

COMMITMENTS (Narrative) (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Commitments 1	$ 65,899
Commitments 2	$ 67,826

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Related Party Transactions 1	$ 0
Related Party Transactions 2	$ 19,681

CONTINGENCIES (Narrative) (Deta

CONTINGENCIES (Narrative) (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Contingencies 1	$ 100,000

CONCENTRATIONS AND ECONOMIC D26

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Concentrations And Economic Dependence 1	41.00%
Concentrations And Economic Dependence 2	42.00%
Concentrations And Economic Dependence 3	11.00%
Concentrations And Economic Dependence 4	$ 336,380
Concentrations And Economic Dependence 5	61.00%
Concentrations And Economic Dependence 6	59.00%

Schedule of Long Term Receivabl

Schedule of Long Term Receivable (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Long Term Receivable Schedule Of Long Term Receivable 1	$ 265,530
Long Term Receivable Schedule Of Long Term Receivable 2	461,294
Long Term Receivable Schedule Of Long Term Receivable 3	(30,369)
Long Term Receivable Schedule Of Long Term Receivable 4	(135,403)
Long Term Receivable Schedule Of Long Term Receivable 5	6,637
Long Term Receivable Schedule Of Long Term Receivable 6	36,089
Long Term Receivable Schedule Of Long Term Receivable 7	807
Long Term Receivable Schedule Of Long Term Receivable 8	(96,450)
Long Term Receivable Schedule Of Long Term Receivable 9	242,605
Long Term Receivable Schedule Of Long Term Receivable 10	$ 265,530

Schedule of Financing Receivabl

Schedule of Financing Receivables, Minimum Payments (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 1	$ 74,778
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 2	16,132
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 3	90,910
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 4	109,039
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 5	12,174
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 6	121,213
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 7	58,788
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 8	1,769
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 9	60,557
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 10	242,605
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 11	30,075
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 12	$ 272,680

Schedule of Stock Option Activi

Schedule of Stock Option Activity (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Stockholders Equity Schedule Of Stock Option Activity 1	$ 1,220,000
Stockholders Equity Schedule Of Stock Option Activity 2	0.53
Stockholders Equity Schedule Of Stock Option Activity 3	2.38
Stockholders Equity Schedule Of Stock Option Activity 4	$ 0
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	$ (50,000)
Stockholders Equity Schedule Of Stock Option Activity 10	0.40
Stockholders Equity Schedule Of Stock Option Activity 11	$ 0
Stockholders Equity Schedule Of Stock Option Activity 12	0
Stockholders Equity Schedule Of Stock Option Activity 13	0
Stockholders Equity Schedule Of Stock Option Activity 14	0
Stockholders Equity Schedule Of Stock Option Activity 15	0
Stockholders Equity Schedule Of Stock Option Activity 16	0
Stockholders Equity Schedule Of Stock Option Activity 17	$ 1,170,000
Stockholders Equity Schedule Of Stock Option Activity 18	0.53
Stockholders Equity Schedule Of Stock Option Activity 19	2.13
Stockholders Equity Schedule Of Stock Option Activity 20	$ 0
Stockholders Equity Schedule Of Stock Option Activity 21	$ 527,500
Stockholders Equity Schedule Of Stock Option Activity 22	0.50
Stockholders Equity Schedule Of Stock Option Activity 23	$ 1
Stockholders Equity Schedule Of Stock Option Activity 24	0.62
Stockholders Equity Schedule Of Stock Option Activity 25	$ 0

Schedule of Non-vested Stock Op

Schedule of Non-vested Stock Options Activity (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Stockholders Equity Schedule Of Non-vested Stock Options Activity 1	$ 736,250
Stockholders Equity Schedule Of Non-vested Stock Options Activity 2	0.09
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	$ (93,750)
Stockholders Equity Schedule Of Non-vested Stock Options Activity 6	0.40
Stockholders Equity Schedule Of Non-vested Stock Options Activity 7	$ 642,500
Stockholders Equity Schedule Of Non-vested Stock Options Activity 8	0.23

Schedule of Stock-based Compens

Schedule of Stock-based Compensation Expense (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Stockholders Equity Schedule Of Stock-based Compensation Expense 1	$ 7,152
Stockholders Equity Schedule Of Stock-based Compensation Expense 2	5,038
Stockholders Equity Schedule Of Stock-based Compensation Expense 3	3,266
Stockholders Equity Schedule Of Stock-based Compensation Expense 4	2,159
Stockholders Equity Schedule Of Stock-based Compensation Expense 5	1,984
Stockholders Equity Schedule Of Stock-based Compensation Expense 6	0
Stockholders Equity Schedule Of Stock-based Compensation Expense 7	12,402
Stockholders Equity Schedule Of Stock-based Compensation Expense 8	$ 7,197

Schedule of Share-based Compens

Schedule of Share-based Compensation, Stock Options, and Warrants or Rights Activity (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 1	$ 0
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 2	0
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 3	$ 1,010,000
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 4	0.30
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 5	$ 0
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 6	0
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 7	$ 1,010,000
Stockholders Equity Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 8	0.30

Schedule of Sub-Lease Payments

Schedule of Sub-Lease Payments (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Commitments Schedule Of Sub-lease Payments 1	$ 197,698
Commitments Schedule Of Sub-lease Payments 2	$ 219,664

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments for Capital Leases (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 1	$ 4,241
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 2	6,362
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 3	6,574
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 4	17,177
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 5	(1,778)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 6	15,399
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 7	(4,828)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 8	$ 10,571

Schedule of Revenue by Customer

Schedule of Revenue by Customer (Details)	3 Months Ended
	Nov. 30, 2015USD ($)
Concentrations And Economic Dependence Schedule Of Revenue By Customer 1	$ 345,952
Concentrations And Economic Dependence Schedule Of Revenue By Customer 2	381,917
Concentrations And Economic Dependence Schedule Of Revenue By Customer 3	419,556
Concentrations And Economic Dependence Schedule Of Revenue By Customer 4	485,333
Concentrations And Economic Dependence Schedule Of Revenue By Customer 5	70,124
Concentrations And Economic Dependence Schedule Of Revenue By Customer 6	76,018
Concentrations And Economic Dependence Schedule Of Revenue By Customer 7	835,632
Concentrations And Economic Dependence Schedule Of Revenue By Customer 8	943,268
Concentrations And Economic Dependence Schedule Of Revenue By Customer 9	12,089
Concentrations And Economic Dependence Schedule Of Revenue By Customer 10	11,802
Concentrations And Economic Dependence Schedule Of Revenue By Customer 11	12,089
Concentrations And Economic Dependence Schedule Of Revenue By Customer 12	11,802
Concentrations And Economic Dependence Schedule Of Revenue By Customer 13	847,721
Concentrations And Economic Dependence Schedule Of Revenue By Customer 14	$ 955,070